
One of you left a comment, which unfortunately ended up in moderation, so I didn’t even see it until I was rescuing something else. (For obvious reasons for me, less obvious things for her (because she doesn’t post her reasons/life here on the regular) neither my assistant nor I have been QUITE on top of pending and held comments these last few weeks.) Anyway, so I answered him late and it probably fell through the cracks.
His comment was that he often shares my posts, but in a group someone said I had quite the wrong idea about Marxism, because nowhere did Marx say that economics was a finite pie. So, he wanted me to tell him the passage in Marx’s writings that said this. No, he was not an hostile, he’s someone I’ve known forever online.
Did Marx ever say it explicitly? I don’t remember. I used to have eidetic memory, but two concussions did for that. And also I will confess to having studied Marx in three courses in high school, but having hated it so much I probably blotted out a bunch of it, even before the concussions.
I doubt he said it explicitly though, for the simple reason that Marx didn’t say the most outrageous parts of his philosophy outright and explicitly. It was just such a deep assumption of his psyche that it never was questioned by either him or those who follow him.
First of all let’s dispose of the idea that Marx was an economist. That’s a canard when the man understood about as much of economics as I do of advanced physics. (Maybe less.) What he was was a polemicist who leaned heavily on his natural resentment and envy.
And inherent in all his writing was the idea that not just economics, but life in general, was a finite pie, that value was inherent in objects and labor (meaning that each had a value that could be assigned by the person possessing/doing it), and that innovation and value creation was impossible.
How so?
Well, what would be the point of taking the means of production from the evil “capitalists” controlling them (and underpaying the workers) if you could in fact just create different means of production and out-earn the “evil capitalists”? Which is in fact what happened in history and is still happening to a great degree, where the government doesn’t make it impossible?
More importantly, why does he assume that having acquired the means of production, the workers will then continue producing and receiving the like profit only now without an evil capitalist twisting his mustache and stealing the value of their labor?
Yes, the man was an idiot who didn’t understand distribution or commerce. This all came from not understanding relative value as determined by those who buy. As in, if you don’t understand the proverbial transaction (not actually true and far more complex, but let’s imagine it was as reported) of buying the island of Manhattan for a bag of beads was fair on both sides, you don’t understand value or distribution.
To unpack that: Land was valuable for the colonists who came from a place with land rights and settled agriculture. Land meant nothing for roving bands of hunters. (Shush. I told you to go with the cartoon version. I know NE Amerindians were agriculturalists, and also the transaction probably never happened, and they didn’t own that particular island, and– Not the point.) So for them what they were selling was valueless. Meanwhile the colonists also came from an industrial society, where beads could be produced by the bucket load for very little. The natives OTOH came from a society where beads were only manufactured one by one, at great expense, were a symbol of wealth, and often were used as currency.
It would be like aliens who cr*p gold buying your weekly trash from you for a kilo in gold. You were throwing the stuff away, anyway, and for them gold is literally waste, while you can put it in a Swiss bank account and retire in style. Of course, over time, the aliens who cr*p gold will make it valueless, and once your descendants have the drive that makes trash into power to travel the stars, they’ll hate you for selling your potato peelings and used cat litter. But that’s because value is not static, and the economy is not a fixed, limited pie.
Marx failed to get that. He failed to get that value didn’t inhere in objects. He failed to understand that labor didn’t have a fixed value.
Yes, when you’re starting a business, and also in Adam Smith’s formulas, price is raw materials plus labor. BUT that all is subjugated to the reality that you can’t get any of that unless someone is willing to pay you. To which I’d add that the value of both the raw materials, the labor and the finished object very much depends on supply and demand, which depend on … location, location, location.
We’re kind of getting a course in this, since some things that were scarce and expensive in Colorado are cheap here, and vice versa. More obviously, as we’ll experience over the next few days, things that are expensive here are cheap in Europe, and vice versa. To wit, in Portugal anything that depends mostly on human labor — most services — is very cheap, while industrial products are more expensive than here and I can’t imagine how they can afford to live with that disparity, which is something I’ll touch on in a minute.
This is because some things — say labor — are more abundant some places than others. As explained above in the parabola of the Manhattan Island purchase.
But if you don’t understand positional value, nor that value is what someone is willing to pay for it, you fall into the error of current Marxists, so that even educated people have rocks in their heads about economics.
Now keep in mind most economics being taught in school are actually Marxism. I read my kids’ books. Under no circumstances should the lesson on hiring people direct you to take into account who “needs it more” unless humans are fungible and all labor is the same, for instance.
And their geography book talked about how Europe and America stole all the raw materials from indigenous people in colonized lands, which is a belly laugh. Look, dudes, dudettes and dudekins, even the potentially more valuable in the west raw materials are still plentiful in Africa and Asia and Latin America. For a stupid but real example: South Africa still — I’m sure — has diamonds rolling around on the ground in ridiculous abundance. It had them when it was first colonized. It had them when it was first-world-wealthy. And it has them now when it is impoverished via Marxian rage, Gramscian variant. All they need is to be picked up to be worthy trade goods…. Or let’s take Venezuela. I remember the relatives who immigrated there talking in awe about the fertility of the ground, where even a backyard garden could produce enough for a family, and did so year around. … it had that when it was the envy of Latin America. It has that now, when people are reduced to eating their zoo animals or starve. Obviously it isn’t the raw materials.
But the idea that once they take your “raw materials” you’re poor forever is pure Marxism. And pure finite pie. (You can’t find new utility in other raw materials. You can’t find/grow more raw materials. You can’t do anything, but starve, because someone bilked you of your all precious “raw materials.”)
Granted, it is the Marxism Gramscian variant, since Marx was more concerned with the early industrial state and its (within the country) inequities. And he was obsessed with the means of production.
If the workers could only control the existing machines, and be paid for their labor enough that no one was stealing for them — i.e. making a profit from investment — there would be pie in the sky by and by.
Note his followers, not as sophisticated, didn’t laser-focus on the “means of production” but on the end product. Communist revolutions often took both, and talked about taking the goods of the rich and “distributing” them.
But both are ULTIMATELY closed pie. If you can (or let’s face it, have to. Those seized means of production, weirdly didn’t last forever) build new machines, seizing the old ones is a bit silly. And if you steal the stuff from the rich and distribute it, yeah, sure, poor people will have more stuff, but there’s scale there and–
Look, people are rich and become rich by being able to save a bit off the extreme needful and accumulate capital to invest.
I know that Marx thought that this was impossible for the working class, and granted for some it was very very difficult, but there was mobility even in the Victorian working class, and it absolutely was possible to save, start your own business and slowly move up.
These things are possible because there is humanity innovation and cunning and wealth is not a finite pie.
And if you — like the guy who protested my reader sharing the post — think I’m making a straw man, and that no one really thinks the economy is a closed pie, and that the result of Marxism being taught everywhere hasn’t put big fat Marxian rats in people’s heads…
There was a tweet this week I won’t link, mostly because I can’t find it in my history (I answered it) meaning it’s buried, where some “artist” was saying that “art” was an essential good and “artists” should demand to be paid high amounts for their labor.
This is pure Marxism. Art is needed, therefore art is essential. Artists labor long and hard at their work. Therefore they “deserve” to be paid a high share of the value going around.
This only makes sense if there is a finite pie and some benevolent and all-knowing entity is assigning shares of it to occupations that are “high value” as determined by the value inhering to the goods, which is of course a fixed portion of that fixed pie.
In fact, that tweet was so wrong it wasn’t even wrong. To be merely wrong, it would need some contact with reality.
Art is more intangible even than normal “production” because what people are willing to pay for it varies so much depending on so many things.
Take my occupation. I’m told it is art. I wrote for free for over a decade. Not because I thought my stories weren’t worth anything, but because no one else thought they were worth anything. As judged by speedy rejection letters.
Did the stories have inherent value? I don’t know. Do you? Was the value the printing paper plus the electricity the computer used plus what I would like to be paid an hour? Wait a minute, I need to stop laughing. Okay, no. As judged by the fact that when I started selling my “value” was 1/10th of a cent a word. Later upgraded to 1/4 of a cent a word, until I was selling for 6c a word, and now when I can make thousands from a short story.
What changed?
Weirdly some of the stories I sold for 6c a word had been rejected by magazines that paid 1/10th of a cent a word. The fools! Not. You see the value had changed. Young Sarah Hoyt sending out 4 new stories a month, had no name or recognition, and no fan base who would buy a magazine or antho because her name is on the cover. She was, therefore, objectively worth less, regardless of the fact the material she produced was not only “As good” but objectively the precise same. (I have no trunk stories left, except three that I deemed too stupid to circulate. Oh, and two I’ve genuinely lost. I think they disappeared in one fo the computer crashes.)
If at the beginning of my career I had sent out a note saying “This is my short story, and you can buy it for the $3k I know it’s worth” (what I can get from a long short story indie. Keep in mind I still sell them for less to anthologies. It’s just I can reprint them later and average that over five or six years. I’ve also made more from a story first year out, but those are outliers.) I’d never have sold to trad pub. And it’s not because the publishers were “exploiting” my “labor.”
And then there is the tweet one of you (Thank you Ian!) called to my attention this morning. It is a thing of beauty and it perfectly exemplifies the “closed pie” mentality in people educated in Marxian pseudo economics which always transmit a heavy dose of his inherent envy and malice like a viral infection. The link to its being shared is here.

Again, it is so profoundly wrong, it’s not even wrong. To be wrong, it would need a much higher share of contact with reality.
The wrongness starts with his not appreciating that the “immense wealth” of America is not by and large at this moment in the hands of young working people. In fact, our working people are having problems finding A job, let alone one that keeps body and soul together. (This is largely due to too much socialism sewage in the wine barrel.) Then there is the fact that American wealth is not a thing lying on the ground, inhering to the soil, and just existing, waiting for envious Europeans to come steal it.
The idea of finite pie is baked in into his idea that if Europeans could somehow storm America and take our “immense wealth” they’d be equally wealthy, in “fairness” forever. And the brilliant idea that distribution should be “fair” by which I think we’re supposed to understand “equal.”
It makes no sense whatsoever, unless wealth is a) static. So if you steal your “fair share” it is forever fixed. b) finite. Because once you redistribute it, it stays the same forever.
Another “fixed pie” idea involved in that tweet and which is also pure Marxism is the idea that if one region is rich, it causes others to be poor. In this poor sob’s head, he’s being paid less and barely able to afford to live BECAUSE American “corporations” are so rich.
Of course, this also assumes corporations are sort of alien entities, roaming the world, vacuuming up “wealth” which they presumably store in money bins, into which they go for a swim on the regular.
No, think about it. It has to be, because he’s raging at the billions the corporations “have.” Seemingly without realizing corporations are by and large a way to organize to do business. (My corporation, for instance, is right now extending its little bowl and saying if all corporations have billions, it would like its share, please. Heck, it would be quite happy with millions. And considering how bad this year has been because the loooooong book ate my brain, thousands would be kind of nice. (And why have a corporation: If something happens to me it makes it trivially easy for my heirs to continue the business.))
He also doesn’t understand the notional “billions” these corporations have are often in property assets that are in use to produce whatever the profit is the corporation actually pays salaries (and taxes) from. Say a company owns a big Manhattan office. This might be headed to a worth of some beads in another 100 years, but for now at least it’s likely to have a notional (theoretical until they find someone to pay it) value of billions. Then there is the billions invested in research/paying scientists salaries/paying employee salaries/creating new product/marketing new product. etc. etc. ad nauseum. Point being that none of, or a very small portion of a corporations worth is in fixed wealth waiting to to be seized, be it by envious Europeans or our ludicrous governing Junta, which was indoctrinated the same way as the above twit.
Also not mentioned is that the money corporations have is often actually owned by small investors who own part shares of the company. Some young people who are making about as much as the creature above, and from their spare $600 manage to squeeze a couple hundred a month to invest, with the idea that when they’re older and unable to work, they will collect the increased amount of their investment. I know several young people squeezing just such investments by incredible amounts of self-discipline. If you seize the “billions” you are in fact taking their few thousands and rendering them paupers.
So, ultimately what does this person envision, if Europe took everything from America? That Europe would now be rich, and Americans would be poor scrabbling in the dirt?
All supposing we can prevent the Junta from stomping harder on our necks, I can tell you with absolute certainty what the result would be. Within 10 years, Europeans would be scrabbling to survive while America would have “immense wealth” they wished they could come over and steal.
The real difference is in America having a Constitution that — however barely respected now — prevents their ruling class from stomping around stealing everything from the productive people. And (again much curtailed by people who think that socialism is workable) leaving people able to invent, invest and create.
Meanwhile, if the “poors” (I can’t tell you how much I hate that term) of Europe want to make a difference in their livelihood and lifestyle, the easiest method with the biggest result would be to get rid of VAT.
And then, one by one, start cutting off their unproductive, redistributive departments and institutions. Hey, it seems to work for Argentina, despite its having “lost” all its all precious “raw materials.”
Perhaps giving up some of the inefficient and costly “services” like “national health” which are mostly the means of producing ineffective service while enriching bureaucrats might help?
Nah. Never mind. Of course, Marx was right, and if they just seize American wealth, they’ll now be much wealthier forever and ever.
In another world. In which humans aren’t humans, and nothing works as it does here.
Now, excuse me, I have a — metaphorical — pie to bake, so I can acquire the raw materials (in my case? mostly books. And piece of mind) to make many many more pies.

















































































































































