[lbo-talk] free!

Wojtek S wsoko52 at gmail.com
Thu Aug 20 06:12:10 PDT 2009


[WS:] I do not have much experience with Web servers, so I am not in a position to argue your specific point. However, I do have some experience with using software, such as text editors, spread sheets, or statistical packages. These products are priced in hundreds or even thousands of dollars but their basic functionality changed very little in the past twenty or so years. AFAIK, spell checkers existed in the 1990s and the regression equations have not "improved" either. What is changing in those programs is graphic inteface and file formats which is planned obsolescence. At the same time, you can buy programs with very similar functionality but less fancy GUI from independent developer for much less. Case in point: Softmaker Office for Windows 2008 sells for about 70 euro or 20 euro if you upgrade (http://www.softmaker.com/english/ofw_en.htm) vs. $300-400 for "standard" version of MS Offcie 2007.

But more to the point, these programs are priced based on "whatever the market can bear" principle - which may make sense if you are a monopolist but not if you are a user who does not charge exorbitant fees for their services. Of course, this is not limited to computer software - college texbooks, legal publications, medical products are priced on the same principle of extortion. Again, one may argue whether that "makes sense" form a business point of view, and I am pretty sure that arguments can be made in favor of such pricing. One thing is certain, however. The claims of mainstream economists that prices are determined by equilibrium between supply and demand (which is the cornerstone of legitimating the capitalist system) are plain horseshit, not worth the paper on which they are written.

Wojtek

On Wed, Aug 19, 2009 at 5:34 PM, Jordan Hayes <jmhayes at j-o-r-d-a-n.com> wrote:


> Wojtek writes:
>
> I do object however, to paying exorbitant monopoly prices to
>> monopolists like Microsoft and kindred businesses, only to be
>> subjected to planned obsolescence and paying the ransom again and
>> again.
>>
>
> Let's compare the last 10 years of Windows to the last 10 years of Linux.
>
> I have, as recently stated, a bunch of computers. I'll pick two and talk
> about them. One of them is a server; the other is a laptop. When I bought
> the laptop, I implicitly bought a license for Windows 2000. It was my main
> machine for a while and over time was replaced by something faster which
> needed a license for Windows XP. It still runs Windows 2000 today, having
> fallen several pegs down in my life to the point where it runs the label
> maker and an occasional CD rip. 10 years, one license; still works fine and
> gets the "major" security patches. The laptop that replaced it, a
> spiffy-for-then Sony, served me for a good few years. After it was replaced
> around 2006, I tried to upgrade it and broke something. It awaits my
> efforts someday when I have the time. The laptop that replaced it also had a
> Windows XP license, implicit in the purchase somewhere. That one is still
> my main travel laptop, and I'll probably have to replace it in the upcoming
> year. I've already deprecated the built-in 3G modem ... but basically you
> could say that these three machines have cost me three OS licenses. The
> server on the other hand has been running RedHat, at a maintenance cost of
> $179/yr. This system runs most of the projects for my business, and some of
> my hobbies (including this list, Doug's podcasts and his free-download site
> for Wall Street The Book), so having a software-supported system has been
> prudent for me. I've similarly had three "major" hardware/OS upgrades (the
> hardware is now a 2-CPU dual-core yadda-yadda) in the last decade, and the
> yearly price for OS maintenance has stayed about the same.
>
> I think I've given much more money to Raleigh for a "free" OS than to
> Redmond for a "monopoly" OS ... but your mileage may vary.
>
> /jordan
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