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Latest post Sat, Feb 4 2012 6:50 AM by Nathan T. Freeman. 30 replies.
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  • Fri, Jan 20 2012 2:13 AM

    Difference between "capital" goods and "personal" goods

    Hey guys 

    i was talking to a communist the other and we got onto the topic of private property.
    He asserted that there is a difference between private property and personal property:

    "-Personal property is part of your person and includes property from which you have the right to exclude others (e.g., televisions, cars, clothes, etc.)

    -Private property is a social relationship, not a relationship between person and thing according to Marx (e.g., factories, mines, dams, infrastructure, etc.). In capitalism, feudalism, and slavery there is no distinction between personal and private property.

    -To many socialists, the term private property refers to capital or the means of production, while personal property refers to consumer and non-capital goods and services."

     

    Now what he says seems  to make sense, but I was just wondering what you guys think

    -Steve 

  • Fri, Jan 20 2012 3:16 AM In reply to

    • repka
    • Top 500 Contributor
    • Joined on Sat, Oct 9 2010
    • Posts 184

    Re: Difference between "capital" goods and "personal" goods

    He is right. But there is also what I'd like to call natural property, like your arm, heart and kidney that I guess even the most fanatic communists wouldn't favour common/state ownership of. Common/state ownership over the means of production is a bad idea however.

  • Fri, Jan 20 2012 11:51 AM In reply to

    Re: Difference between "capital" goods and "personal" goods

    So would it still be consistent for him to assert that socialists are supportive of personal property but oppose "private" property?

  • Fri, Jan 20 2012 12:40 PM In reply to

    Re: Difference between "capital" goods and "personal" goods

    pinkballoons:

    Hey guys 

    i was talking to a communist the other and we got onto the topic of private property.
    He asserted that there is a difference between private property and personal property:

    "-Personal property is part of your person and includes property from which you have the right to exclude others (e.g., televisions, cars, clothes, etc.)

    -Private property is a social relationship, not a relationship between person and thing according to Marx (e.g., factories, mines, dams, infrastructure, etc.). In capitalism, feudalism, and slavery there is no distinction between personal and private property.

    -To many socialists, the term private property refers to capital or the means of production, while personal property refers to consumer and non-capital goods and services."

     

    Now what he says seems  to make sense, but I was just wondering what you guys think

    -Steve 

    If I sell my personal property to get enough money to buy a factory, at what point is that no longer personal property? Simply by it's intended function? Then what is a computer? An oven? A truck? Is a plow personal property if I only produce enough food to feed myself, but private property if I produce enough to feed my village?

    This is a red herring intended to introduce a false category that allows the communist to enter a "null zone" where all the rules change. "What's the difference between personal property and private property?" "How well it serves my argument to call it one or the other." He's attempting to rationalize a non-universal principle.

    All property is based on a social relationship, and it stems from the premise that each person owns their body and their mind. If they own their SELVES, then they should own the consequences of their actions, ie: the fruits of their labor.

  • Sat, Jan 21 2012 1:06 AM In reply to

    Re: Difference between "capital" goods and "personal" goods

    Personal goods are what your communist interlocutor has that he wants you to respect.

    Capital goods are what you have that your communist interlocutor wants to rob.

  • Sat, Jan 21 2012 1:16 AM In reply to

    Re: Difference between "capital" goods and "personal" goods

    Nathan T. Freeman:

    pinkballoons:

    Hey guys 

    i was talking to a communist the other and we got onto the topic of private property.
    He asserted that there is a difference between private property and personal property:

    "-Personal property is part of your person and includes property from which you have the right to exclude others (e.g., televisions, cars, clothes, etc.)

    -Private property is a social relationship, not a relationship between person and thing according to Marx (e.g., factories, mines, dams, infrastructure, etc.). In capitalism, feudalism, and slavery there is no distinction between personal and private property.

    -To many socialists, the term private property refers to capital or the means of production, while personal property refers to consumer and non-capital goods and services."

     

    Now what he says seems  to make sense, but I was just wondering what you guys think

    -Steve 

    If I sell my personal property to get enough money to buy a factory, at what point is that no longer personal property?



    Well I would believe that its when you buy the factory

    Simply by it's intended function? Then what is a computer? An oven? A truck?

    Well i believe these are all personal property since theyre not geared towards mass production and profit.


    Is a plow personal property if I only produce enough food to feed myself, but private property if I produce enough to feed my village?


     well the plow is irrelevant, it is the amount of land used to grow on. Personal garden = personal property. large field = communal property

     

    All property is based on a social relationship,


    that being the police defending the assets of the absentee landlords. Your argument of "defending your property" is invalid if said property isnt used by its owner. This kind of property requires force to defend whether through a police state or private contractors. Both institute violence and coercion

    and it stems from the premise that each person owns their body and their mind. If they own their SELVES, then they should own the consequences of their actions, ie: the fruits of their labor.



    What about surplus value? 

  • Sat, Jan 21 2012 3:47 AM In reply to

    • repka
    • Top 500 Contributor
    • Joined on Sat, Oct 9 2010
    • Posts 184

    Re: Difference between "capital" goods and "personal" goods

    pinkballoons:

    So would it still be consistent for him to assert that socialists are supportive of personal property but oppose "private" property?

     

    I think so. Most communists/socialists (that I've read) support private property in terms of most consumer goods (clothes, purses, etc..), but don't support private ownership over the means of production.

  • Sat, Jan 21 2012 7:38 AM In reply to

    Re: Difference between "capital" goods and "personal" goods

    pinkballoons:

    Nathan T. Freeman:

    pinkballoons:

    Hey guys 

    i was talking to a communist the other and we got onto the topic of private property.
    He asserted that there is a difference between private property and personal property:

    "-Personal property is part of your person and includes property from which you have the right to exclude others (e.g., televisions, cars, clothes, etc.)

    -Private property is a social relationship, not a relationship between person and thing according to Marx (e.g., factories, mines, dams, infrastructure, etc.). In capitalism, feudalism, and slavery there is no distinction between personal and private property.

    -To many socialists, the term private property refers to capital or the means of production, while personal property refers to consumer and non-capital goods and services."

     

    Now what he says seems  to make sense, but I was just wondering what you guys think

    -Steve 

    If I sell my personal property to get enough money to buy a factory, at what point is that no longer personal property?

    Well I would believe that its when you buy the factory

    That doesn't make any sense. If things A, B and C are rightfully controlled by an individual, and they are freely and voluntarily exchanged for thing D, how is it that D is no longer rightfully controlled by that individual? Again, I ask --  it is because of it's purpose? What if I want to purchase the factory because I think it would make a great paintball course for me and my 15 closest friends? 

    pinkballoons:
     
    Simply by it's intended function? Then what is a computer? An oven? A truck?

    Well i believe these are all personal property since theyre not geared towards mass production and profit.

    A computer is not geared towards profit? Man, I wonder what I've been doing with myself for the last 20 years. Certain Steve Wozniak, Bill Gates, Mark Zuckerburg and Larry Page would point out that a computer is a very effective capital good for producing profits.

    An oven isn't "geared towards mass production?" So what if I start a cake shop and sell baked goods? A truck isn't "geared towards profit?" Does that change if I have a local delivery service?

    pinkballoons:

    Is a plow personal property if I only produce enough food to feed myself, but private property if I produce enough to feed my village?


     well the plow is irrelevant, it is the amount of land used to grow on. Personal garden = personal property. large field = communal property

     

    If the PLOW is irrelevant then so are the machines inside the factory. So it's the BUILDING that's communal property, but not the tools inside it? Or are the walls and ceiling themselves just more tools, and what matters is the land on which the factory sits?

    What is the magical inflection point between a personal garden and a field? Is 25 sq meters a garden, but 30 sq meters a field? What if I'm growing enough food to feed my family of 12? What if I also happen to grow enough food to feed my brother who lives next door and his family of 10, while they take on the task tending sheep? Do my crops and his flock suddenly become communal property because they support more than 20 people? Because it's more than one household? Do they remain personal because we're one family? What if he's my cousin instead of my brother?

    pinkballoons:
    All property is based on a social relationship,


    that being the police defending the assets of the absentee landlords. Your argument of "defending your property" is invalid if said property isnt used by its owner. This kind of property requires force to defend whether through a police state or private contractors. Both institute violence and coercion

    Where did I mention "defending your property?" You just inserted that phrase in there. I'm simply saying that property is defined by relationships because part of owning something is everyone else's tacit agreement not to attempt to control it. This CAN be achieved by violent enforcement, but it is not NECESSARILY achieved that way. I leave food in the refrigerator at my office, computers on the conference table, even cash on my desk -- and no one takes my property because we all voluntarily understand the notion of ownership. We don't have cops roaming the halls at my place of work, and yet the social aspect of property universally acknowledged and practiced.


    pinkballoons:
     
    and it stems from the premise that each person owns their body and their mind. If they own their SELVES, then they should own the consequences of their actions, ie: the fruits of their labor.



    What about surplus value? 

    Define "surplus" please. If I happen to be a really effective laborer, and thus create more value in an hour than others do in a month, are you defining that as "surplus?" Or does surplus only exist if a capital good was in use? If so, again, what's the delineation for a capital good? Because I see no differential provided in this conversation.

    By the way, you began this conversation with "I was talking to a communist the other [day]..." I have to say that for someone who's searching for responses to a third party's assertion, you certainly seem well-versed in the language and the practice of cherry-picking quotes. With a name like "pinkballoons," one might wonder whether the communist you were talking to was in the mirror.

    Not that there's anything wrong with that -- I'm always happy to educate a communist on the logical failings of Marx. It just means you started the conversation on a disingenuous note. It would be polite to clear that up.

  • Sat, Jan 21 2012 8:38 AM In reply to

    Re: Difference between "capital" goods and "personal" goods

    pinkballoons:

    Hey guys 

    i was talking to a communist the other and we got onto the topic of private property.
    He asserted that there is a difference between private property and personal property:

    "-Personal property is part of your person and includes property from which you have the right to exclude others (e.g., televisions, cars, clothes, etc.)

    -Private property is a social relationship, not a relationship between person and thing according to Marx (e.g., factories, mines, dams, infrastructure, etc.). In capitalism, feudalism, and slavery there is no distinction between personal and private property.

    -To many socialists, the term private property refers to capital or the means of production, while personal property refers to consumer and non-capital goods and services."

    Now what he says seems  to make sense, but I was just wondering what you guys think

    -Steve 

      All property arises by the social recognition of the legitimacy of a person's right to exclude others from the use of a good.  There is no difference in the relationship between cars, televisions, etc and mines, factories etc.  If the term "private property" refers to  the "means of production" then cars, televisions, clothes etc. are "private property" depending on their use.  If it's something that is produce it's a means of production, and cars are used as taxis, televisions as entertainment in the waiting rooms or instructional aids for new employees, clothes are used to work in cold conditions etc.  There is no dividing line between "personal" and "private" property in the scheme other than the ever changing intents of people w.r.t. their goods.  It is a nonsense and any serious economic theorist who didn't laugh this out of the room is a dishonest disgrace. 

     

  • Sat, Jan 21 2012 1:36 PM In reply to

    Re: Difference between "capital" goods and "personal" goods

    Basically socialists see the difference as being:

    1. Goods used for personal use (i.e. bacon for delicious consumption

    2. Goods used for profit (i.e. bacon being produced with the desire of making profit

    What this ignores however is that all goods are used to achieve profit of some sense, not for the good itself, but the subjective value that it provides to you. 

     To go more into detail, socialists see an arbitary distinction between means of production and consumer goods. What this ignores however is that anything can be used for both production and consumer goods. 

    For example, I can either use a Playstation 3 for:

     

    • Indulging myself in video games
    • Hacking it apart for the steel and other parts inside to produce something else
    A hammer can be used in production of tables, or I can hang the hammer up on the wall and indulge myself in it's magnificent rusty beauty. Marxists have a narrow view on what "use" is. They would say that since the capitalist himself does not work with the capital himself, he is being wrong in asking the workers for a chunk in what is produced (they ignore the fact that the capital contributes most to production, but that's for another story)
    I define "use" as being:
    Utilizing something as a means to achieve an end
    I think this is a pretty fair definition which is entirely open to anything. "Use" does not require that you be constantly touching it (else someone could just get up and take my tv since I'm just viewing it). Not letting someone use your capital means that you are using it to achieve the value of knowing that it's there, not being touched by any moochers who give you nothing in return.

     

     

  • Sat, Jan 21 2012 4:24 PM In reply to

    Re: Difference between "capital" goods and "personal" goods

    Nathan T. Freeman:

    pinkballoons:
     
    Simply by it's intended function? Then what is a computer? An oven? A truck?

    Well i believe these are all personal property since theyre not geared towards mass production and profit.

    A computer is not geared towards profit? Man, I wonder what I've been doing with myself for the last 20 years. Certain Steve Wozniak, Bill Gates, Mark Zuckerburg and Larry Page would point out that a computer is a very effective capital good for producing profits.

    An oven isn't "geared towards mass production?" So what if I start a cake shop and sell baked goods? A truck isn't "geared towards profit?" Does that change if I have a local delivery service?

    I do not think more evidence is required, to conclude that the distinction between "means of production" and "personal possessions" is entirely whimsical.

    When is a gun not a gun?  When a communist is aiming it at you.  Then it is an "instrument of liberation against oppression".

  • Sat, Jan 21 2012 7:41 PM In reply to

    Re: Difference between "capital" goods and "personal" goods

    Nathan T. Freeman:

    how is it that D is no longer rightfully controlled by that individual?


    Supposing "Thing D" is the means of production, it wouldn't be exchanged in the first place under Socialism. It would be communally owned


    Again, I ask --  it is because of it's purpose? What if I want to purchase the factory because I think it would make a great paintball course for me and my 15 closest friends?

     

    supposing there weren't more important uses for the factory, it would be abandoned. It would be free for community use.



    A computer is not geared towards profit? Man, I wonder what I've been doing with myself for the last 20 years. Certain Steve Wozniak, Bill Gates, Mark Zuckerburg and Larry Page would point out that a computer is a very effective capital good for producing profits.


    Their profits are derived from "Intellectual property" and for profit from advertisements. 2 things that would not exist under socialism

    An oven isn't "geared towards mass production?" So what if I start a cake shop and sell baked goods? A truck isn't "geared towards profit?" Does that change if I have a local delivery service?


    If you can do all of these things without exploiting others' labor, then eat your heart out

     

     

    If the PLOW is irrelevant then so are the machines inside the factory.

    You can have as fancy of a plow as you want, it won't make you produce more on the same amount of land. With machines, this is different. Manufactured goods aren't grown out of the ground for months, the only limit to production is the amount of raw materials. Both require additional labor power to mass produce

     

    So it's the BUILDING that's communal property, but not the tools inside it?


    If it were large enough to facilitate mass production and employment, it would be entirely communal property. A simple workshop able to be used by one man would be personal property.

    What is the magical inflection point between a personal garden and a field?

    There is none. It simplies lie in how much land can you use yourself. If it was big enough that you needed extra workers, it would be a field.

    What if I'm growing enough food to feed my family of 12? What if I also happen to grow enough food to feed my brother who lives next door and his family of 10,

    If you can do that singlehandedly, more power to you. But why would you want to considering cooperatives would be more efficient?

    I leave food in the refrigerator at my office, computers on the conference table, even cash on my desk -- and no one takes my property because we all voluntarily understand the notion of ownership.

    Probably because they

    A. Would have to accouint for their actions eventually, seeing as that person goes to work with said co-worker almost every day

    B.Probably have the ability to bur the food themselves

    Entirely different from the real world where there is alienation and poverty.

     


    Define "surplus" please.


    Surplus value is the value a worker creates, but does not keep. Suppose a worker is paid $25 a day, and makes $100 worth of products. That extra $75 kept by the boss is surplus value.

  • Sat, Jan 21 2012 7:47 PM In reply to

    Re: Difference between "capital" goods and "personal" goods

    Livemike:

     

      All property arises by the social recognition of the legitimacy of a person's right to exclude others from the use of a good.  


    Which is pretty much nothing when you don't have food, shelter and water. A society of haves and have-nots will always require a police to protect their privilege.

     

    cars, television, clothes 


    None of these things ACTUALLT produce anything, they only transport and advertises. Without private property, all 3 things would almost never be used for profit. 

  • Sat, Jan 21 2012 10:04 PM In reply to

    Re: Difference between "capital" goods and "personal" goods

    Well, now that we know you were, in fact, looking in a mirror, this is just fun. :-)

    pinkballoons:

    Nathan T. Freeman:

    how is it that D is no longer rightfully controlled by that individual?


    Supposing "Thing D" is the means of production, it wouldn't be exchanged in the first place under Socialism. It would be communally owned

    Again, I ask --  it is because of it's purpose? What if I want to purchase the factory because I think it would make a great paintball course for me and my 15 closest friends?

    supposing there weren't more important uses for the factory, it would be abandoned. It would be free for community use. 

    So what if I built it myself? Let's say I one day thought "gee, I'd like to wear T-shirt emblazened with the Freedomain Radio emblem!" So I build a silkscreening apparatus in my backyard. They are simple enough to construct from lumber and a bit of fabric. I wear my shirt and people say "hey cool! I want one!" So I start making more. People like them so much, I decide to modify my silkscreen apparatus to support multiple arms. People bring over their blank shirts, we pop them on the stand in the backyard, and spin it around to put the logo on.

    Then one day it rains. The fabric on my machine gets wet, and I can't make any more shirts. "Darn!" I think, "if I put this indoors, then I wouldn't have to worry about the weather!"

    So I move it to the barn. There under the soft hay, I can print the Freedomain Radio logo on shirts all day and night, regardless of the weather.

    But people love them so much, that I find we have a long line of people simpy waiting for their shirts to dry. So I decide "I'll build a dryer!" and I put a big revolving clothesline over a vented fireplace, and everyone is able to get their completed shirts in 1/3rd the time. People love it and keep showing up.

    Now the line is so long, and I have both a screener and a dryer, so I realize I need help. My friend from next door volunteers to operate the dryer while I operate the screener.

    At what point does all this go from being personal property to a factory? I haven't sold anything, but there's massive demand for the goods coming off what is most definitely an assembly line. Can all those people in line suddenly throw me out and start printing the face of Che Guevera instead of the Freedomain Radio logo on my screening press? They have assumed ownership of the "means of production," but this was something I created entirely for myself and by my own labor and that of other free volunteers. At what point is it no longer personal?

    pinkballoons:

    A computer is not geared towards profit? Man, I wonder what I've been doing with myself for the last 20 years. Certain Steve Wozniak, Bill Gates, Mark Zuckerburg and Larry Page would point out that a computer is a very effective capital good for producing profits.


    Their profits are derived from "Intellectual property" and for profit from advertisements. 2 things that would not exist under socialism

    Intellectual property most certainly exists under socialism. One must look only to state-owned media to see that. So does advertising -- it's simply all advertising for the state.

    But, I'll grant you that Wozniak, Gates, Page and Zuckerburg would all never exist under socialism. We would never have had Apple, Microsoft, Google or Facebook. Thank you for the wonderful reminder that the first thing the state destroys is entrepreneurial innovation. We should all remember that under communism, a computer is a capital good, so the only thing you can own personally is an abacus.

    It's worth noting that Page and Zuckerburg do not, in fact, count on intellectual property protection. Google's search algorithm is a closely-guarded and continually-innovated secret. Zuckerburg has never published the code for Facebook under a copyright or patent protection. In fact, in many ways these organizations fight against IP rules in aggressive ways. So to claim that they are built on the facade of intellectual property is seriously disingenuous.

     

    pinkballoons:
    An oven isn't "geared towards mass production?" So what if I start a cake shop and sell baked goods? A truck isn't "geared towards profit?" Does that change if I have a local delivery service?

    If you can do all of these things without exploiting others' labor, then eat your heart out

    I'm not the one proposing cannnibalism here.

    pinkballoons:
    If the PLOW is irrelevant then so are the machines inside the factory.

    You can have as fancy of a plow as you want, it won't make you produce more on the same amount of land. With machines, this is different. Manufactured goods aren't grown out of the ground for months, the only limit to production is the amount of raw materials. Both require additional labor power to mass produce

    Whoa. You do realize that the plow itself is a fundamental advancement in agricultural technology, right? Of course, there have been 3 fundamental phases of plowing technology: human plows, livestock plows and mechanical plows. Plows now have been replaced by tillers, which replenish soil with a rotational motion rather than a linear one, thus using the much more efficient tooling of the spiral inclined plane rather than the direct wedge.

    Certainly a person as learned in the history of economics and society as yourself already knows this.

    pinkballoons:
    So it's the BUILDING that's communal property, but not the tools inside it?

    If it were large enough to facilitate mass production and employment, it would be entirely communal property. A simple workshop able to be used by one man would be personal property.

    So if it's ONE person, it's personal. But the moment that two people collaborate, it's communal?

    pinkballoons:
    What is the magical inflection point between a personal garden and a field?

    There is none. It simplies lie in how much land can you use yourself. If it was big enough that you needed extra workers, it would be a field.

    No, you just said that it's the difference between one and two. "Extra" means any more than the individual.

    So, to be clear, if it's my brother, my father, my wife or my son in the field or the workshop with me, the building and land themselves become communal property?

    It follows, then, that if it takes two people -- a man and a woman -- to produce a child, then the fruits of their labor must be communal property. There was more than one person involved, and therefore it's no longer personal. That's the standard you've defined.

    pinkballoons:
    What if I'm growing enough food to feed my family of 12? What if I also happen to grow enough food to feed my brother who lives next door and his family of 10,

    If you can do that singlehandedly, more power to you. But why would you want to considering cooperatives would be more efficient?

    Perhaps I hold a certain fondness for self-determination, and I do not wish to sacrifice my volition for the sake of supposed efficiency. What difference does it make if you're willing to acknowledge that it's "personal property?"

    I'm still confused about the notion of "singlehanded-ness" though. You're saying that I as a single individual must perform ALL the labor involved by my own personal hand?

    I wonder, then, how anything is ever personal property. Even the shirt you're wearing was produced by an incalculable complexity of interwoven transactions. The cotton was harvested by a tractor built in 25 different factories. It was traded on an exchange involving global price bidding across a computer network made possible by millions of people. It was then transported with a truck manufactured by millions on roads constructed by millions to a spinning facility that was constructed out of brick, steel, glass, aluminum and concrete sourced from millions of different people. From there the yarn was again transported to a weaving facility where a loom of unimaginable complexity was used to turn the yarn into a fabric of magnificent thread count. Once complete, the industrial bolts of fabric were again sent to a different facility, where thousands of workers cut and stiched the fabric that was the result of a billion interactions into a t-shirt.

    But still, once the shirt was done, it was then sent to a dye facility. You don't want to imagine what went into the dye factory!

    Finally, the shirt you're wearing was complete. But still, the work is not done. The shirt was thousands of miles away from you. It had to be folded, and packed in a cardboard box (which again involved millions of people.) and the box placed as one of many inside a shipping container (probably with a forklift -- which involved a number of interactions that would make Stephen Hawking wince at the complexity.) 

    The container was then put on a truck (hopefully not a ship or a train, because then the number of interactions jumps by an order of magnitude!) and shipped to your local Gap. Once you entered that store in the mall that was constructed using tools and materials coming from all over the planet, you could see this shirt sitting on the shelf and put your personal money on the counter to buy it.

    Oh wait... you used a CREDIT CARD!??!?!? Okay, now it really gets goddamn complicated.

    Or, to put it another way -- by this standard, YOU DON'T OWN THE SHIRT ON YOUR BACK.

    pinkballoons:
    I leave food in the refrigerator at my office, computers on the conference table, even cash on my desk -- and no one takes my property because we all voluntarily understand the notion of ownership.

    Probably because they

    A. Would have to accouint for their actions eventually, seeing as that person goes to work with said co-worker almost every day

    B.Probably have the ability to bur the food themselves

    Entirely different from the real world where there is alienation and poverty

    Translation: It's different because I say it's different and I want to stick to my guns (literally.)

    pinkballoons:
    Define "surplus" please.

    Surplus value is the value a worker creates, but does not keep. Suppose a worker is paid $25 a day, and makes $100 worth of products. That extra $75 kept by the boss is surplus value.

    What if the worked is paid $50/day? So that's $50 that the boss keeps. What if the next best option for the worker is at $25/day, producing $30 worth of products? So the worker can choose between $50/day where the boss keeps another $50/day, or $25/day where the boss keeps $5/day. Doesn't that make the $50/day job provide a surplus of $25/day to the worker?

  • Sat, Jan 21 2012 10:34 PM In reply to

    Re: Difference between "capital" goods and "personal" goods

    repka:

    He is right. But there is also what I'd like to call natural property, like your arm, heart and kidney that I guess even the most fanatic communists wouldn't favour common/state ownership of.

     

      Guess again:

    http://en.wikipedia.org/wiki/Conscription

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