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

Alejandro Agafonow wrote:
>
>
>
> There is an additional step that a planned economy should explore to
> overcome the impossibility of dynamic efficiency. Besides the scale of
> the adoption of these bonuses, there must exist a mechanism that
> pushes these productive units out with some costs for their members.
>
>
>
 If a socialist economy has reached the stage where it can be concerned
about such things, which is only after initial industrialisation,
then what should be done is fix labour budgets for units of production.
If a unit of production making good A is producing efficiently and
another also making A
inefficiently, then the labour budget of the efficient unit should be
increased to expand production there and the labour budget
of the less efficient one correspondingly reduced. In effect labour is
transfered to the more efficient unit. The collective in
the inefficient unit then has an incentive to improve their utilisation
of resources to keep their work teams together come the
next plan period.
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Received on Tue Nov 4 09:50:29 2008