[OPE] Invention, Inventors, and the Productivity of Labor

1) Ian W.: “In your market socialist scheme, how will these "entrepreneurs" get rewarded? What kind of income will they receive?”   2) Jerry: “The main problem for your argument, imo, is that with all of the controls and regulations you propose for enterprises under a system of market socialism, no one would want to operate market-based businesses! If you take away their discretion to set prices, place extreme limits on their decision-making, and limit their rewards then no right-thinking, rational entrepreneur would want to have any part of that system: you are expecting them to take risks but are limiting their possible rewards - as indeed you _must_ unless you want _increasing_ wealth and income disparities and market concentration.”   I, following Dickinson , consider the emergence of profit a failure to expand output. But unlike him I propose to reward socialist entrepreneurs according to the “volume of production effectively sold off”. So she/he would not have incentives to depart from the rule of pricing according to marginal costs, since they would be interested in imputing the lowest price possible to attract consumers and expand the output.   Incidentally, this pricing alternative would overcome the problems shown by the “index of gross production” in the USSR , i.e. heavier irons -for example- to reach the goals of the central plan.   The controls and regulations would not be grater than in mixed economies, but different in many respects.   Regards,A. Agafonow ________________________________ De: Ian Wright <wrighti@acm.org> Para: Outline on Political Economy mailing list <ope@lists.csuchico.edu> Enviado: domingo, 2 de noviembre, 2008 23:50:11 Asunto: Re: [OPE] Invention, Inventors, and the Productivity of Labor > Why these salaried workers don't produce these inventions by their own? >  > The lack of capital is not enough, since it is possible to borrow this capital. >  > I think the answer comes from more subtle phenomena coming from the degree of risk averse of entrepreneurs. A low degree of risk averse is needed to embark on risky projects. >  > We can't neglect this soft side of the problem if we want a socialist institutional design able to reach the rate of technological change of capitalism. >  > Regards, A. Agafonow In your market socialist scheme, how will these "entrepreneurs" get rewarded? What kind of income will they receive? Thanks, -Ian. _______________________________________________ ope mailing list ope@lists.csuchico.edu https://lists.csuchico.edu/mailman/listinfo/ope

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Received on Mon Nov 3 10:11:07 2008