Socialism versus Capitalism, solved

As a democracy becomes larger and more complex voters rely increasingly on experts to figure out what is in their interest and for every expert there are 10 lobbyists posing as experts. As such there are limits to what can be decided "collectively" before corruption sets in, there is no fruit loop utopian vision that can simply wish away corruption and enable everything to be managed perfectly.

Thus it makes sense for socialists to think like capitalists, to recognise the limits of democracy and not overextend the limited administrative capital of voters, this would probably result in some kind of direct democratic system and strong local government taking care of welfare and public safety with otherwise unfettered capitalism everywhere else.

>>39
Why? Because people can cooperate for mutual gain? Even in cooperation there is competition.

Let's say you're a baker and buying grain from a miller. One needs the other but what price is set?

You could buy grain from another miller but he is farther away and this will incur transportation costs, it's the same for the miller, he could sell to another baker but he will have to lower the price so the baker can afford to transport it.

If the miller sets the price at $1.51 you are better off buying flour from the miller in the next town.

If the miller sets the price at $0.99 the other baker can afford to buy his flour and transport it.

The thing is the miller doesn't know this. So do you tell him and watch him set the price at $1.50? Or do you pretend that your brother Percival goes to the other town every week, could transport the flour in the back of his truck as a favor and that only a price of $1 will do?

Already we're starting to see the importance of information and negotiation.

The miller could decide to hold out to see if you're bluffing, in which case you'll both have to pay transport costs, then eventually you would have to say "ok I will pay $1.45 but no higher" and tell yourself you saved yourself 5 cents per kilo, or you could convince him that Percival is hauling for you but has started charging you a small fee and say "yeah yeah, how about $1.10 then to sweeten the deal", which the miller may take it because he is starting to feel the pinch of the low prices.

So, the miller and the baker would be foolish not to cooperate outside the $1 to $1.50 margin, but within the margin you could see some quite fierce competition and machiavellian intrigue as each jostles for position, searches for useful information about the other's situation and tries to manipulate the other, all while trying to maintain the facade of being best buddies and trustworthy friends.