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This is a discussion on Socialism is GOOD for EVERYONE! within the Congress forums, part of the US Discussion category; Quote: Originally Posted by Kathianne I hear you. I empathize. Truth is, the American worker needs to recognize that the employer needs to make a ...


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Old 11-02-2008, 06:27 PM
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Quote: Originally Posted by Kathianne View Post
I hear you. I empathize. Truth is, the American worker needs to recognize that the employer needs to make a sustainable profit. There are different ways to get there, needs to be filled, but it does need to be a partnership.
I agree with you completely. I personally have no tolerance for corporate corruption or disrespecting the people who got you where you are.
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  #137 (permalink)  
Old 02-15-2009, 01:52 AM
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In any thread regarding socialism, one critical element must be noted. Capitalism is plagued by imperfect contracting, primarily that of the nature caused by information asymmetries, which have the inevitable tendency to cause adverse selection and moral hazard problems.

However, the same is not true for socialism inasmuch as an integral component of socialism is autogestion. (Workers' self-management.) This autogestion has the tendency of minimizing principal-agent problems. For instance, if we were to consider the available data on worker-owned enterprises, we might look to the work of researchers Logue and Yates in Cooperatives, Worker-Owned Enterprises, Productivity and the International Labor Organization

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A survey of empirical research on productivity in worker-owned enterprises and cooperatives finds a substantial literature that largely supports the proposition that worker-owned enterprises equal or exceed the productivity of conventional enterprises when employee involvement is combined with ownership. The weight of a sparser literature on cooperatives tends toward the same pattern. In addition, employee-owned firms create local employment, anchor jobs in their communities and enrich local social capital.
Hence, we see that capitalism has the tendency to create inefficiencies because of its information asymmetries and more general principal-agent problems. Socialism has the benefit of correcting those issues, and thereby generating efficiency gains.

Last edited by Agnapostate; 02-15-2009 at 01:54 AM.
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Old 02-15-2009, 03:48 AM
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Quote: Originally Posted by alupka View Post

Now the rich man, feeling gypped
You can't let off more than a couple of sentences without spouting off racial epithets can you?


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and sensing the obvious pattern, packs up his small technology firm and moves it to China. When he gets there, he realizes that he can save 70% off his labor costs, build a state of the art production studio and never pay property taxes (ever), get an instant business tax cut of 98%, and relish in the fact that Uncle Sam no longer has the legal authority to swipe benjamins from his checking account to give to the poor guy.
And he'd be living in a country where there is no freedom of speech, no freedom of the press, no freedom to assemble, no protection against unreasonable search and seizure, and no freedom of religion, and relish in the fact that the Communist government he lives under might just decide to come and take all his property one day.

If such a man is willing to give up all those freedoms to save a little money on his taxes - THEN FUCK THAT PIECE OF SHIT BECAUSE AMERICA DOESN'T NEED PEOPLE LIKE HIM


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Old 02-15-2009, 07:43 AM
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China really isn't "communist" in any sense of the word, and haven't been fully economically state capitalist in nature since the reign of Deng Xiaopang.
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Old 02-15-2009, 08:50 AM
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Quote: Originally Posted by NO!bama08 View Post
The top 10% already pay about 60% of all taxes paid. Hell what do you want? 80? 90?
They also own the vast majority of assets so maybe.
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  #141 (permalink)  
Old 02-15-2009, 09:01 AM
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[quote=Agnapostate;1045266]In any thread regarding socialism, one critical element must be noted. Capitalism is plagued by imperfect contracting, primarily that of the nature caused by information asymmetries, which have the inevitable tendency to cause adverse selection and moral hazard problems.
Quote:

So far so good

Quote:
However, the same is not true for socialism inasmuch as an integral component of socialism is autogestion. (Workers' self-management.)
Here we go..in a few rare cases for period lasting what? months? That might have existed.

But anywhere you see socialism lasting for any period of time, what you see is that the working class is exploited WORSE than in most modern capitalist mixed economies.

Surely you cannot deny that is true, Agna.



Quote:
This autogestion has the tendency of minimizing principal-agent problems. For instance, if we were to consider the available data on worker-owned enterprises, we might look to the work of researchers Logue and Yates in Cooperatives, Worker-Owned Enterprises, Productivity and the International Labor Organization
My wife actually works for a flat managment cooperative. There are no leaders, there are merely associates who take on responsibility for this task or that department.

They spend an AWFUL lot of time in meetings where issues get hashed out, assignments made and so foth.

So what I am telling you with the benefit of knowing somebody who actually walks the walk that I suspect to you is entirely theoretical talk, is this...

There's many a slip twix cup and workers' paradise's lip, amigo.



Quote:
A survey of empirical research on productivity in worker-owned enterprises and cooperatives finds a substantial literature that largely supports the proposition that worker-owned enterprises equal or exceed the productivity of conventional enterprises when employee involvement is combined with ownership. The weight of a sparser literature on cooperatives tends toward the same pattern. In addition, employee-owned firms create local employment, anchor jobs in their communities and enrich local social capital.
Hence, we see that capitalism has the tendency to create inefficiencies because of its information asymmetries and more general principal-agent problems. Socialism has the benefit of correcting those issues, and thereby generating efficiency gains.

I know you believe that to be absolutely true, but I think it is probably wildly overstated.

My admiteed limited but Actual experience suggests to me that socialized worker dominated businesses are not very efficient, either.

FWIW, efficiency isn't ALWAYS a good marker of good business, anyway.

Sometimes inefficiencies are just the cost of working in a fair employment situtation.
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  #142 (permalink)  
Old 02-15-2009, 10:15 AM
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Quote: Originally Posted by alupka View Post
Quote: Originally Posted by Diuretic View Post
Since that piece of comedy has nothing to do with socialism it's safe to say any point trying to be made is irrelevant.
I thought about calling it "Economic Justice" but it just didn't have the same ring to it.
Beyond interesting, it's ironic that the NEOCOMS, libs, love to coo about giving to the underprivileged, poor or whatever term makes them feel superior, it has been well documented that conservatives give more in VOLUNTARY charity than they do!

Yet they continue to champion "redistribution of wealth."
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  #143 (permalink)  
Old 02-15-2009, 10:19 AM
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Quote: Originally Posted by PoliticalChic View Post
Quote: Originally Posted by alupka View Post
Quote: Originally Posted by Diuretic View Post
Since that piece of comedy has nothing to do with socialism it's safe to say any point trying to be made is irrelevant.
I thought about calling it "Economic Justice" but it just didn't have the same ring to it.
Beyond interesting, it's ironic that the NEOCOMS, libs, love to coo about giving to the underprivileged, poor or whatever term makes them feel superior, it has been well documented that conservatives give more in VOLUNTARY charity than they do!

Yet they continue to champion "redistribution of wealth."
Could it be that they are greedy bastards ?
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Old 02-15-2009, 03:44 PM
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All Fascists Now!

Faster, Please! » We’re All Fascists Now II: American Tyranny

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We’re All Fascists Now II: American Tyranny
Posted By Michael Ledeen On February 14, 2009 @ 12:21 pm In Uncategorized | 20 Comments

Most Americans no longer read Alexis de Tocqueville’s masterpiece, Democracy in America, about which I wrote a book (Tocqueville on American Character; from which most of the following is taken) a few years ago. What a pity! No one understood us so well, no one described our current crisis with such brutal accuracy, as Tocqueville.

The economics of the current expansion of state power in America are, as I said, “fascist,” but the politics are not. We are not witnessing “American Fascism on the march.” Fascism was a war ideology and grew out of the terrible slaughter of the First World War. Fascism hailed the men who fought and prevailed on the battlefield, and wrapped itself in the well-established rhetoric of European nationalism, which does not exist in America and never has. Our liberties are indeed threatened, but by a tyranny of a very different sort.

Most of us imagine the transformation of a free society to a tyrannical state in Hollywood terms, as a melodramatic act of violence like a military coup or an armed insurrection. Tocqueville knows better. He foresees a slow death of freedom. The power of the centralized government will gradually expand, meddling in every area of our lives until, like a lobster in a slowly heated pot, we are cooked without ever realizing what has happened. The ultimate horror of Tocqueville’s vision is that we will welcome it, and even convince ourselves that we control it....

...As Tocqueville grimly predicted, modern totalitarians have thoroughly mastered this lesson. Nazis, Fascists and Communists have passionately preached sermons of equality, and constantly paid formal homage to the sovereignty of the people. Hitler proclaimed himself primus inter pares, the first among equals, while Mao and Stalin claimed their authority in the name of a classless society where everyone would be equal. And, while Communism was brought to power by violent coups or by military conquest, Fascism was not installed by violence. Hitler and Mussolini were popular leaders, their authority was sanctioned by great electoral victories and repeated demonstrations of mass public enthusiasm, and neither of them was ever challenged by a significant percentage of the population. The great Israeli historian Jacob Talmon coined the perfect name for this perversion of the Enlightenment dream, which enslaves all in the name of all: totalitarian democracy.

These extreme cases help us understand Tocqueville’s brilliant warning that equality is not a defense against tyranny, but an open invitation to ambitious and cunning leaders who enlist our support in depriving ourselves of freedom. He summarizes it in two sentences that should be memorized by every American who cherishes freedom:
The…sole condition required in order to succeed in centralizing the supreme power in a democratic community is to love equality, or to get men to believe you love it. Thus the science of despotism, which was once so complex, is simplified, and reduced, as it were, to a single principle.
As I said last time, we’re in for a hell of a fight. Or so I hope.
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Old 02-15-2009, 04:25 PM
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Quote: Originally Posted by editec View Post
Here we go..in a few rare cases for period lasting what? months? That might have existed.

But anywhere you see socialism lasting for any period of time, what you see is that the working class is exploited WORSE than in most modern capitalist mixed economies.

Surely you cannot deny that is true, Agna.
Months? This is a microeconomic analysis regarding the efficiency of worker-owned enterprises; I did not even comment on full-fledged socialism. Regardless, I'm not sure what justifies the latter comment about socialism; I certainly can't say that there was widespread exploitation of workers in Aragon and Catalonia during the Spanish Revolution, for instance. I hope this isn't another inappropriate reference to the Soviet Union.

Quote: Originally Posted by editec View Post
My wife actually works for a flat managment cooperative. There are no leaders, there are merely associates who take on responsibility for this task or that department.

They spend an AWFUL lot of time in meetings where issues get hashed out, assignments made and so foth.
That doesn't surprise me. There's no one-size-fits-all model for a functioning enterprise...except for the fact that there's no one-size-fits-all model for a functioning enterprise, which might be called a model itself. That being said, effective utilization of democratic management techniques will generally yield efficiency gains...and I'm skeptical as to what anecdotal evidence can say to general policy issues.

Quote: Originally Posted by editec View Post
So what I am telling you with the benefit of knowing somebody who actually walks the walk that I suspect to you is entirely theoretical talk, is this...
It isn't. I've traveled through the Basque region, which is the home of the Mondragon Cooperative Corporation, the largest corporation in the Basque region and the seventh larges in Spain. The MCC, of course, has existed for more than twenty years, and the worker-owned enterprises which preceded its formation as a corporation have existed for more than fifty.

Quote: Originally Posted by editec View Post
There's many a slip twix cup and workers' paradise's lip, amigo.
Speaking of a "workers' paradise" seems to border on utopianism. Since free market capitalism primarily suffers from utopianism in its advocates' disregard of principal-agent problems and asymmetric information, I wouldn't be especially inclined to embrace a utopian ideal myself. Hence, noting obvious problems with worker-owned enterprises is to commit the perfectionist fallacy if your purpose is to completely discredit them.

Quote: Originally Posted by editec View Post
I know you believe that to be absolutely true, but I think it is probably wildly overstated.
It's not overstated. As I've mentioned previously, principal-agent problems cannot be minimized in a hierarchical firm with conflicting interests amongst workers, managers, owners, and investors. Capitalists are aware of the resulting difficulties that may occur as a result of this (i.e. shirking), which is why efficiency wages remain one of the most prevalent compensatory mechanisms utilized in the capitalist firm.

Quote: Originally Posted by editec View Post
My admiteed limited but Actual experience suggests to me that socialized worker dominated businesses are not very efficient, either.
Yes, but your limited experience may be related to an anomaly and cannot effectively analyze the efficiency of worker-owned enterprises in the same manner that Logue and Yates's analysis of ESOP's and parastatals can.

Quote: Originally Posted by editec View Post
FWIW, efficiency isn't ALWAYS a good marker of good business, anyway.

Sometimes inefficiencies are just the cost of working in a fair employment situtation.
Yes, I'm quite aware of that. I wouldn't have specified efficiency gains as beneficial if they had the deleterious effect of imposing negative social opportunity costs on a disenfranchised population or citizenry. But that doesn't seem to be the case. Consider the abstract again:

Quote:
A survey of empirical research on productivity in worker-owned enterprises and cooperatives finds a substantial literature that largely supports the proposition that worker-owned enterprises equal or exceed the productivity of conventional enterprises when employee involvement is combined with ownership. The weight of a sparser literature on cooperatives tends toward the same pattern. In addition, employee-owned firms create local employment, anchor jobs in their communities and enrich local social capital.
Hence, workers' self-management is regarded as not only having the effect of equaling or exceeding the productivity of conventional enterprises, they also bring considerable social benefits to the table, placing their value above that of traditional capitalism in that regard.
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