Re: [OPE] socialist planning in capitalist firms

From: Gerald Levy <>
Date: Thu Mar 18 2010 - 10:09:43 EDT

> So, what does make conflicting interests in capitalist economies more
> powerful than conflicting interests in socialist
> economies that prevent the former to go further in a centrally capitalist
> economy?

Hi Alejandro:

The profit system. Also, while there can be conflicting interests in a
socialist system, there can and should be
a certain level of coordination among different producers. For instance,
consider how the diffusion of new
technologies is often retarded by the system of proprietary rights, such as
the patent system, under
capitalism. This incredible inefficiency would (or, at least, should) be
overcome in a socialist system where
producers would share knowledge about technologies. In any event, there
wouldn't be the same people vs.
profit equation in which the requirements of the latter trump the former
under socialism.

> Nothing in my criterion. Therefore the issue of diminishing returns to
> management.

What do you mean by diminishing returns "to management"? There can be - and
are - bureaucratic
inefficiencies wherever there are bureaucracies. A capitalist corporation is
an inherently
bureaucratic and hierarchical organization and there are many inefficiencies
that arise from

In solidarity, Jerry

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Received on Thu Mar 18 10:11:26 2010

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