"Surplus Profits" theory non-valid ?

Discussion in 'Economy' started by Widdekind, Mar 27, 2012.

  1. Widdekind
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    Widdekind Member

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    In the documentary The Corporation, activist Noam Chomsky seemingly espouses the Marxist doctrine, of "Surplus Profits", according to which all business profits are "owed" to the workers, in wages. Please ponder. A corporation, engaged in some business, "buys" the labor, of the worker, paying them their wages. And, that corporation also buys many other "inputs", e.g. electricity; water; coffee filters; styrofoam cups; chairs. Each of those "purchases" is an independent economic interaction; and each of the "products" purchased, by the corporation, are bought, at a "fair market price", determined by the supply versus demand, of that "product" (and no other factors, lest the market be un-fair).

    Ergo, workers, who sell their "labor" to a corporation, are no more "owed" a cut, of that corporation's profits, than those other economic entities, who sell other "products" to that corporation. Logically, if you accept Marxist "Surplus Profits" doctrine; then you have declared "open season" on corporations, doling out all their profits, to all of their "up-stream suppliers", who sell them their production "inputs". I.e. you have de facto "opened up the corporation's wallet, and dumped all their money on the ground". I.e. you have "voted yourself the corporate private treasury".
     
  2. uscitizen
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    uscitizen Senior Member

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    They are not owed thoe profits, however if their wages are stagnant, their numbers drop or their wages decline this is not good for corporations profits in a consumer spending driven economy.
     
  3. CrusaderFrank
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    CrusaderFrank Diamond Member

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    The ceo should get the bulk of those profits
     
  4. uscitizen
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    uscitizen Senior Member

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    Why? He is just another employee.
     
  5. Widdekind
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    Widdekind Member

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    According to that documentary (The Corporation), business that pay "10 cents an hour" can be perceived as "God-sends" that enable families to "buy the rice they need to feed their families". However, subsequently, the same documentary says that workers wind up starving, in a race-to-the-bottom, when many countries compete, for businesses, opening up free-trade-zones, and offering tax-breaks. Ergo, when supply of labor outstrips demand, labor must lower its "costs", both at the societal "public" scale, i.e. government taxes; and at the individual "private" scale, i.e. wages.

    Uncritical acceptance, of "facts" as presented (stripped of "spin"), suggests that, world-wide, labor is "under-employed", i.e. incentivizing labor-intensive production strategies ("picks & shovels"). Perhaps public taxes could be reduced, in preference to private wages ?
     
  6. percysunshine
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    percysunshine Gold Member

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    Noam Chompsky?

    That is, like, the weirdest name a set of cruel parents could ever give to a child.

    Heck, Johny Cash was just joking when he wrote the song 'Sue'.
     
  7. Mr. H.
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    Mr. H. Diamond Member

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    That concept would fly if and only if workers also assumed a share of the corporation's debt and risk portfolio.
     
  8. DSGE
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    DSGE VIP Member

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    Challenge accepted.

    Pepsi Koch

    Mork from Ork

    Army Sergeant

    Smark Grublins

    Fanny Gobbler

    Moon Unit

    Dick Enthusiast
     
  9. percysunshine
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    percysunshine Gold Member

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    'Mork From Ork' was a screen name imparted onto Robin Williams by a creative writers guild with Robins' full, and very successful, consent.

    Fanny Gobbler?

    Please tell us this is not a relative of yours...
     
  10. Mr. H.
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    Mr. H. Diamond Member

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    Naom Judd.
     

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