I'll second Skylar's interest in how collective ownership should be handled. Not necessarily the transition to it, but in an ideal situation. Let's say we were starting fresh. How would we decide how to use resources efficiently if they are owned in common?
Would collective ownership mandate the elimination of the market? I mean, hypothetically speaking couldn't a company be communally owned and still be subject to the market? It may be akin to stock in a company that everyone owned.
Would some be allowed to own more than others? If not, I'm doubt we'd see any benefits of a market mechanism, and if so, how would that be different than today's corporations?
Dunno. Is Alaskan oil owned more by some than others? Its not a perfect analogy as oil is more of a resource than a means of production. But collective ownership and collective distribution of resources works in that context.
That being said, the engine of efficiency in capitalism is competition. Its essentially the primary (perhaps sole?) advantage of the system. And how would you motivate the risk of investment without the possibility of benefit? What would motivate innovation? Collective benefit may be altruistic, but its not a very good personal motivator.
Collective benefit tends to work on smaller scales where the benefit is more immediate. The group say....goes on a hunt, or raises a barn, or repairs a boat. And then the group benefits directly. I don't think you could go much farther than a few thousand before the immediacy of benefit begins to break down. And with it the personal motivation.
Perhaps some hybrid system. Where you could personally benefit from a project of your own design.....but only up to a point. Say, a ratio of the mean wage. Say, 30 times. It would motivate the individual to work harder, spread the wealth among the community, and still allow for the collection of modest fortunes
Or, a more capitalist system with time limits. Steep inheritance taxes, or corporations with human lifespans. The former would be unpopular and the latter chaotic, but it would certainly encourage more of a meritocracy, especially if the taxes collected were put into an outstanding public education system.
I'm just thinking out loud and hypothetically.
At the level of capital investment, ownership is synonymous with control over resource distribution. That's the main problem the stock market addresses. Investment, either via the market or more direct means, is how we currently decide, as a society, which projects are worthwhile and which aren't. I'm wondering how we'd make those decisions without private investment.
Kinda. The Stock Market itself has almost nothing to do with resource distribution. As almost all of the trades upon it don't actually distribute resources or benefit the business that issued the shares in any meaningful way. Stock trading produces nothing, enhances nothing, refines nothing. It provides one and only one product: liquidity. And yet traders syphon off enormous capital in exchange for no useful service. The bonuses for wall street traders alone was more than all minimum wage workers earning for an entire year.
In terms of practical use or efficiency, those resources are just wasted.
Only the initial public offering or the owner that actually executes a commodities contract involve resource distribution. And that happens only once for each share or contract. While the same share or contract may be traded hundreds, if not thousands of times. And produce......nothing. Liquidity. The ability to sell the share faster. A product that is only useful to the very people leeching off value in exchange for nothing.
Worse, there are a comparative handful of people making these decisions. Large investor to large investor trades make up well over 99% of all trades. With well over 95% of all publically traded shares owned by a few thousand hedge funds and investment trusts. We already have a tiny group deciding who is worthy of 'investment'. With the goal of benefit for those in benefit for those 'investments' aimed to stay within the same tiny group.
In terms of a system to distribute resources, its rather top heavy. And overwhelmingly benefits a comparative few. Its also *wildly* unstable. The purer in form, the more unstable it is.