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

1) Ian W.: “In this context, profit can also emerge from cost-saving technical change.”   But cost-saving technical changes in capitalism nurture profits privately appropriated. Under my two-level solution cost-saving technical changes will contribute with the expansion of output. Then my pricing model is “consumer centred” unlike the capitalist pricing model which is “owner centred”.   2) Ian W.: “Would the socialist entrepreneurs, therefore, receive a different kind of income to the other workers? If so, I worry about the social and political implications of this difference.”   Some differences of income are necessary for the sake of incentives and reward or merit, but I think that they might be lower differences than those existing in Scandinavian countries. In terms of Gini index, we could brake the barrier of 20 (the most egalitarian countries nowadays have a Gini between 20-29) reaching a Gini between 10-19.   Even the model of C&C foresees some differences in labour-income.   3) Ian W.: “I also think having two kinds of income is potentially redundant. Why not allow all workers in the firm decide, in a democratic manner, how the profit is distributed? Especially as the entrepreneurs are supplying labour, like everyone else.”   Cooperatives operate upon the capitalist pricing model which is “owner centred”, i.e. the institutional environment within which cooperatives operate pushes them to ascertain prices above marginal costs harming consumers.   My mandatory price mechanism is designed to coexist with cooperatives and even some small private firms, but my model exorcises a down-warding pressure upon the general level of prices.   We can think in a two-level solution integrating economic democracy –a two-level solution for a cooperative model– but I am suspicious about the feasibility of equal reward, particularly in the present state of moral development of our societies.   We can think in a programme of reforms that would introduce more economic democracy depending on its consequences on the productivity of these firms. I encourage you to do so if you are convinced of our premise: “the emergence of profit is a failure to expand output”.   Regards,A. Agafonow ________________________________ De: Ian Wright <wrighti@acm.org> Para: Alejandro Agafonow <alejandro_agafonow@yahoo.es> Enviado: lunes, 3 de noviembre, 2008 21:55:25 Asunto: Re: [OPE] Invention, Inventors, and the Productivity of Labor > I, following Dickinson, consider the emergence of profit a failure to > expand output. In this context, profit can also emerge from cost-saving technical change. > 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. Would the socialist entrepreneurs, therefore, receive a different kind of income to the other workers? If so, I worry about the social and political implications of this difference. I also think having two kinds of income is potentially redundant. Why not allow all workers in the firm decide, in a democratic manner, how the profit is distributed? Especially as the entrepreneurs are supplying labour, like everyone else. -Ian.

_______________________________________________
ope mailing list
ope@lists.csuchico.edu
https://lists.csuchico.edu/mailman/listinfo/ope
Received on Tue Nov 4 03:22:35 2008