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Scrooge was right

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Scrooge was right

Unread postby Cog » Wed 25 Dec 2019, 11:11:05

Merry Christmas and may your new year be as profitable as the last. :-D

https://mises.org/library/defense-scrooge

It's Christmas again, time to celebrate the transformation of Ebenezer Scrooge. You know the ritual: boo the curmudgeon initially encountered in Charles Dickens's A Christmas Carol, then cheer the sweetie pie he becomes in the end. It's too bad no one notices that the curmudgeon had a point—quite a few points, in fact.

To appreciate them, it is necessary first to distinguish Scrooge's outlook on life from his disagreeable persona. He is said to have a pointed nose and a harsh voice, but not all hardheaded businessmen are so lamentably endowed, nor are their feckless nephews (remember Fred?) always "ruddy and handsome," and possessed of pretty wives. These touches of the storyteller's art only bias the issue.

So let's look without preconceptions at Scrooge's allegedly underpaid clerk, Bob Cratchit. The fact is, if Cratchit's skills were worth more to anyone than the fifteen shillings Scrooge pays him weekly, there would be someone glad to offer it to him. Since no one has, and since Cratchit's profit-maximizing boss is hardly a man to pay for nothing, Cratchit must be worth exactly his present wages.

No doubt Cratchit needs—i.e., wants—more, to support his family and care for Tiny Tim. But Scrooge did not force Cratchit to father children he is having difficulty supporting. If Cratchit had children while suspecting he would be unable to afford them, he, not Scrooge, is responsible for their plight. And if Cratchit didn't know how expensive they would be, why must Scrooge assume the burden of Cratchit's misjudgment?

As for that one lump of coal Scrooge allows him, it bears emphasis that Cratchit has not been chained to his chilly desk. If he stays there, he shows by his behavior that he prefers his present wages-plus-comfort package to any other he has found, or supposes himself likely to find. Actions speak louder than grumbling, and the reader can hardly complain about what Cratchit evidently finds satisfactory.

More notorious even than his miserly ways are Scrooge's cynical words. "Are there no prisons," he jibes when solicited for charity, "and the Union workhouses?"

Terrible, right? Lacking in compassion?

Not necessarily. As Scrooge observes, he supports those institutions with his taxes. Already forced to help those who can't or won't help themselves, it is not unreasonable for him to balk at volunteering additional funds for their extra comfort.

Scrooge is skeptical that many would prefer death to the workhouse, and he is unmoved by talk of the workhouse's cheerlessness. He is right to be unmoved, for society's provisions for the poor must be, well, Dickensian. The more pleasant the alternatives to gainful employment, the greater will be the number of people who seek these alternatives, and the fewer there will be who engage in productive labor. If society expects anyone to work, work had better be a lot more attractive than idleness.

The normally taciturn Scrooge lets himself go a bit when Cratchit hints that he would like a paid Christmas holiday. "It's not fair," Scrooge objects, a charge not met by Cratchet's patently irrelevant protest that Christmas comes but once a year. Unfair it is, for Cratchit would doubtless object to a request for a day's uncompensated labor, "and yet," as Scrooge shrewdly points out, "you don't think me ill used when I pay a day's wages for no work."

Cratchit has apparently forgotten the golden rule. (Or is it that Scrooge has so much more than Cratchit that the golden rule does not come into play? But Scrooge doesn't think he has that much, and shouldn't he have a say in the matter?)

Scrooge's first employer, good old Fezziwig, was a lot freer with a guinea—he throws his employees a Christmas party. What the Ghost of Christmas Past does not explain is how Fezziwig afforded it. Did he attempt to pass the added costs to his customers? Or did young Scrooge pay for it anyway by working for marginally lower wages?

The biggest of the Big Lies about Scrooge is the pointlessness of his pursuit of money. "Wealth is of no use to him. He doesn't do any good with it," opines ruddy nephew Fred.

Wrong on both counts. Scrooge apparently lends money, and to discover the good he does one need only inquire of the borrowers. Here is a homeowner with a new roof, and there a merchant able to finance a shipment of tea, bringing profit to himself and happiness to tea drinkers, all thanks to Scrooge.

Dickens doesn't mention Scrooge's satisfied customers, but there must have been plenty of them for Scrooge to have gotten so rich.

Scrooge is said to hound debtors so relentlessly that—as the Ghost of Christmas Yet To Be is able to show him—an indebted couple rejoices at his demise. The mere delay while their debt is transferred will avert the ruin Scrooge would have imposed.

This canard is triply absurd. First, a businessman as keen as Scrooge would prefer to delay payment to protect his investment rather than take possession of possibly useless collateral. (No bank wants developers to fail and leave it the proud possessor of a half-built shopping mall.) Second, the fretful couple knew and agreed to the terms on which Scrooge insisted. By reneging on the deal, they are effectively engaged in theft. Third, most important, and completely overlooked by Ghost and by Dickens, there are hopefuls whose own plans turn on borrowing the money returned to Scrooge from his old accounts. Scrooge can't relend what Caroline and her unnamed husband don't pay up, and he won't make a penny unless he puts the money to use after he gets it back.

The hard case, of course, is a payment due from Bob Cratchit, who needs the money for an emergency operation on Tiny Tim. (Here I depart from the text, but Dickens characters are so familiar to us they can be pressed into unfamiliar roles.) If you think it is heartless of Scrooge to demand payment, think of Sickly Sid, who needs an operation even more urgently than Tim does, and whose father is waiting to finance that operation by borrowing the money Cratchit is expected to pay up.

Is Tim's life more valuable than Sid's just because we've met him? And how do we explain to Sid's father that his son won't be able to have the operation after all, because Scrooge, as Christmas generosity, is allowing Cratchit to reschedule his debt? Scrooge does not circulate money from altruism, to be sure, but his motives, whatever they are, are congruent with the public good.

But what about those motives? Scrooge doesn't seem to get much satisfaction from the services he may inadvertently perform, and that seems to be part of Dickens's point. But who, apart from Dickens, says that Scrooge is not enjoying himself? He spends all his time at his business, likes to count his money, and has no outside interests.

At the same time, Scrooge is not given to brooding and shows absolutely no sign of depression or conflict. Whether he wished to or not, Dickens has made Scrooge by far the most intelligent character in his fable, and Dickens credits his creation with having nothing "fancy" about him. So we conclude that, in his undemonstrative way, Scrooge is productive and satisfied with his lot, which is to say happy.

There can be no arguing with Dickens's wish to show the spiritual advantages of love. But there was no need to make the object of his lesson an entrepreneur whose ideas and practices benefit his employees, society at large, and himself. Must such a man expect no fairer a fate than to die scorned and alone? Bah, I say. Humbug
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Re: Scrooge was right

Unread postby asg70 » Wed 25 Dec 2019, 11:33:46

The reason Scrooge is wrong is that he stands for pure economic darwinism, i.e. the invisible hand of the market. A world in which everything needs to be settled on a balance-sheet is a world without love, charity, or sacrifice. To see this sort of dystopia in full bloom look at the movie THX-1138, where every living human has a computer number-crunching his or her return on investment.

Where I do sympathize with Scrooge is in his Malthusian talk about the "surplus population". Nature itself imposes its own ecological accounting and it is ultimately amoral. Survival pressures ultimately put limits on generosity, forcing people to draw smaller and smaller circles, i.e. lifeboat ethics. You give when you have something to give, and the less you have to give, the more selective you are about who you give to, and how much. Scrooge had enough money saved up to perform the acts of giving that he was asked to do. He just chose not to.

Most acts of charity are such where you give a little here or there but don't come close to emptying your entire nestegg. That is more or less what societal norms expect from a considerate human being (or at least used to expect). Scrooge was meant to be a caricature when he balks at even these small gestures.

The story, like It's a Wonderful Life, illustrated how even a small change in a household budget could make a difference between life and death (with Tiny Tim). How often do small donations make such a difference? There's no way to know for sure, but random acts of kindness have a butterfly or karmic effect.

I guess it's too much to ask for jaded doomers with their guns and ammo to appreciate such things.

BOLD PREDICTIONS
-Billions are on the verge of starvation as the lockdown continues. (yoshua, 5/20/20)

HALL OF SHAME:
-Short welched on a bet and should be shunned.
-Frequent-flyers should not cry crocodile-tears over climate-change.
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Re: Scrooge was right

Unread postby Outcast_Searcher » Wed 25 Dec 2019, 11:34:41

Merry Christmas, Cog.

Though many of the points you make will be extremely unpopular with the left, I think they're valid in the main -- at least the discussion re such issues should be more balanced and far less emotional. I'm reminded of how Ayn Rand framed the left's main talking point in "Atlas Shrugged", over and over again: "But X NEEDS it", said as a plaintive cry.

I'm also reminded of a discussion I had with various left wing friends about the factory with the highest wages in the entire US, re a magazine article I read on it perhaps 3 decades ago.

Principles:

1). The factory paid the highest hourly wages in the US, full stop. By enough of a margin that the point wasn't even debated.

2). The factory paid HUGE awards (on top of the high wages) to employees for ideas that meaningfully helped the business. (Thus smart employees and the business were both benefiting from LOTS of process improvement over time). There were quite a few millionaires still working at the factory due to the great renumeration, and a feeling they were truly "paid what they were worth".

3). There are no paid "sick days". If you're sick, that's fine, call in and deal with the situation. However, the company doesn't pay for the days you're sick and don't work.

4). I think other benefits were relatively minimal, but I don't remember the details on that.

...

Now the main points, re political groups is:

A). That for folks in the middle and on the right, that overall situation was just dandy with them. As long as the employees understand the terms (full and honest disclosure), and overall their wages are huge -- what's the problem? (Over time, even the normal factory workers were doing VERY WELL financially).

B). That in the main, for folks on the left, they would rather DESTROY that business (legally prevent it from operating like that -- even at the cost of all those jobs) than allow them to operate without providing sick days.


And so it goes. Now, multiply such benefits endlessly and ask for more and more taxes (this is what the left does, over time), and then blame all economic issues on the right. This is what the left does, in the main.

------------------

And I'm NOT saying the right doesn't have plenty of problems like too much spending vs. revenue (just like the left, sometimes, on different things than the left), and wanting to cut taxes and regulations at every turn no matter what the consequences -- I'm just saying blaming just the GOP and "mean old rich people" for middle class wages stagnating is missing quite a bit of the cause.

And it's not just a US thing -- look at the overall economic situation re growth over time in Western Europe -- not exactly a growth dynamo vs. say Asia. Or more recently, much of Africa.
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.
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Re: Scrooge was right

Unread postby asg70 » Wed 25 Dec 2019, 11:45:19

You have to understand that the 19th century world of Dickens was the world of robber-barons and no child labor laws (and also no environmental laws, hence the constant cloud of smoke). It was the unfettered capitalism of the 19th century that set the stage for Marxism and unions.

Point being that you can always find fault in the extremes. Complete free-market capitalism, and more importantly, a religious devotion to the invisible hand as the only mechanism of the world, is not a world anyone but the elites would want to live in.

Decades of trickle-down economics and the red-state poor's continued faith in them has only shifted the country back towards a 19th century style dysfunction, that is, if globalization and automation don't render yourself unable to work, period. I mean, at least Cratchit had a job.

Political debates these days always argues from exaggerations and extremes so it becomes increasingly hard to visualize an ideal that rests more or less in the middle, neither communist nor robber baron. Everyone just tries to find flaws in the ointment. Well, the way humans negotiate surplus (aka money) has been a problem at least as far back as the neolithic revolution. It can't be solved completely, only patched-over in such a way that society at least feels as though everyone is doing their part in the unwritten social contract.

BOLD PREDICTIONS
-Billions are on the verge of starvation as the lockdown continues. (yoshua, 5/20/20)

HALL OF SHAME:
-Short welched on a bet and should be shunned.
-Frequent-flyers should not cry crocodile-tears over climate-change.
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Re: Scrooge was right

Unread postby Outcast_Searcher » Wed 25 Dec 2019, 11:59:35

asg70 wrote:Point being that you can always find fault in the extremes. Complete free-market capitalism, and more importantly, a religious devotion to the invisible hand as the only mechanism of the world, is not a world anyone but the elites would want to live in.

I don't disagree with that at all. However, I never can find a leftist who is content, no matter how much taxes are confiscated, how big government gets, etc. There's always some new rule, some new group to rescue, etc.

And of course, to be fair, almost everyone who is rich wants even more, even if they couldn't possibly spend what they have. That's a principle I never began to understand, which is why I retired 17 years early, preferring moderation and low stress and free time to having bigger accounts and more stuff than I need.

Both sides need to stick to some overall sense of balance and principles. As it is, both sides feel attacked and so push their side to the max, politically.

Now that America is in that mindset of extreme division, I don't know how to fix it.

...

I'm a moderate, who is often for compromise and against the extremes of either party. From what I read, that's becoming more of a rarity. (And being a moderate can including leaning, say, right on financial issues, and left on many social issues, as I do).
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.
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Re: Scrooge was right

Unread postby FLAMEOUT » Wed 25 Dec 2019, 18:00:27

Christmas Day in the workhouse,
The season of good cheer,
Their hearts were full of gladness,
And their bellies were full of beer.

The pompous workhouse master
As he strode about the halls,
He wished them a "Merry Christmas!"
And the paupers answered "Balls!"

This angered the workhouse master,
And he swore by all the gods
They'd get no Christmas pudding,
The ungrateful unwashed sods.

Then up stood a hardened old pauper,
A veteran of the Khyber Pass;
"You can take your Christmas pudding,
And stuff it up your arse"
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