For quite a few years, I was a socialist. I considered myself an anarchist (also known as a libertarian socialist). I remember reading a few books by some libertarian socialists and my favorites were Economic Justice and Democracy by Robin Hahnel and Anarchism, Marxism, and the Future of the Left by Murray Bookchin. I also read Hahnel’s journal paper “Exploitation: A Modern Approach”. What got me to renounce socialism, regretfully at first, is part of my general trek from progressive politics to libertarian politics. What led me to realize my error as a socialist was actually a thought experiment.
I believed, as a socialist, that only effort, or sacritice, was worth rewarding and not the contrbution of one’s property or labor to the market system. I had aspirations to become an author. I had it in my mind to become a socialist author. I wanted to write both fiction and nonfiction and hope to earn enough money to establish my financial independence so I could write books denouncing capitalism. I now laugh at the absurdity of what I had in mind: a socialist would-be author seeking to become financially independent. Benefiting from capitalism in order to destroy it!
But this put me in a horrile dilemma. How do I escape the horrible charge of hypocrisy? To further educate the world about libertarian socialism and the evils of capitalism and to spend my time educating the world, full-time, would require financial independence. Yet if I became financially independent, I would have to admit that I exploited people in the process. If I became financially independent, I would have to either admit that I am part of the very problem that I am railing against or that there is nothing exploitative about capitalism. How would I avoid hypocrisy? I realized that I couldn’t.
Then something hit me that never hit me before. I was really shocked that it hit me as forcefully as it did. It was also a very profound realization for me.
I realized that many wealthy people acquire their wealth through voluntary exchanges with other people. Take, for instance, Dan Brown or J. Rowling. Brown’s book The DaVinci Code and Rowling’s Harry Potter books sell millions. Brown and Rowling are probably multimillionaires. Yet, there is no exploitation involved, as far as I can see. I realized that if people want to buy any of Brown’s books, that is up to them. How much people are willing to pay and how much Rowling gets for her books is between the customers, the publishing company, and Rowling. It’s all a voluntary exchange.
If a publishing company offers a royality of half for a book to an author, so that for every dollar earned, the author gets half the dollar and the publishing company gets the other half, that contract is between the author and the company. If a company and an author agree to split sales, 50/50, and a book sells at, say, 10 dollars, if 100 people choose to buy this book, the company gets 500 dollars and the author gets the other 500. If 200,000 people buy this book and the author gets 5 dollars per purchase, then that author will become a millionaire.
Again, whether the costumers purchase a book or not is up to them. How much the cost is for the book and how much royalty the author gets is all a matter of voluntary contract. An author freely writes. Costumers freely buy books they choose to buy. The same is with sports. How much a given athlete makes is between that athlete, the manager of a sports team, the sports fans willing to buy tickets for a game, and other people involved. All of it is voluntary exchange. There is no fraud or coercion that I can see in these kinds of exchanges. I realized that the market economy is based, ideally, on free, voluntary market transactions like these.
When I had this realization, I became convinced that capitalism is not exploitatiive and that socialists llke Robin Hahnel and others are simply wrong. This realization shattered my belief that socialism of any sort is morally superior to capitalism. It was after this that I abandoned my libertarian socialist ideas and I realized that I was a libertarian capitalist.