"3 inconvenient facts that make libertarians’ heads explode"

[applegrove]

3 inconvenient facts that make libertarians’ heads explode

by Lynn Stuart Parramore at AlterNet/Salon
http://www.salon.com/2014/03/12/3_inconvenient_facts_that_make_libertarians_heads_explode_partner/

"SNIP..................................

1. The inequality problem: Why do some people end up with most of the toys? The fact that in a capitalist system, money seems to flow into the hands of the few is a source of big headaches for many libertarians, though not all—some seem to regard any market outcome as the hand of God herself.

Irrefutably, America’s income distribution has become ridiculous, ranked #4 in the world out of 141 countries for inequality, behind Russia, Ukraine and Lebanon, and this rattles many libertarians.

.................

2. The public goods problem. In the libertarian utopia, you would find nothing but individuals making private transactions in private markets. Those exchanges between individuals would always be fair, because the laws of supply and demand would make sure that you got the things you need at a fair price. You want a pizza, you buy a pizza from a pizzeria, which makes it for you at a reasonable price. Everybody’s happy.

Only, what if you want to buy your pizza in the evening, and you need streetlights in order to walk to the pizzeria? Now you’ve got a problem, because you can’t go out and buy a streetlight.



.................................SNIP"

[Major Nikon]

1. Coin operated streetlights

Each streetlight would have a coin slot and each streetlight would put out just enough light to get you to the next one.

Problem solved.

Traffic signals would work the same way.

[geek tragedy]

5. correction: bitcoin operated streetlights nt

[Sarah Ibarruri]

2. Wonderful article! Thanks! nt

[Cali_Democrat]

3. DU rec

[Lint Head]

4. A democratic republic works when it is democratic and representative of The People.

Libertarianism doesn't work and neither does communism.

[Cha]

6. Kick!

[Donald Ian Rankin]

7. I'm suspicious of the "4th most unequal" claim.

The standard measure of inequality is the Gini coefficient, and as it's standardly measured the US is middle-of-the-pack - not great, but better than a lot of other places.

The "4th worst" claim appears to come from a spreadsheet at http://inequalityforall.com/fact-4/ which lists three measures - "Wealth Gini", "World bank Gini" and "CIA Gini".

The latter two seem to match one another, and other measures of the Gini coefficient I've seen, fairly closely, and the US is mediocre. The first of the three seems uncorrelated, and is the one America scores fourth worst on.

Does anyone know what the difference between it and standard Gini is, and where these numbers came from?

On edit: OK, after a little more research I think I see what's going on: the Gini coefficient measures income inequality; wealth Gini is presumably applying the same algorithm to wealth rather than income. So maybe it is a legitimate claim after all.

[freshwest]

9. Yes, there's a difference between wealth, cash flow and ownership, I think. *Eyes glazing over* n/t

[napkinz]

8. love watching libertarian heads explode ...

"I think these guys are very sick."