Re: [OPE] socialist planning in capitalist firms

From: Alejandro Agafonow <>
Date: Mon Mar 29 2010 - 13:07:16 EDT

Diminishing returns to management are yield rates that after a certain point fail to increase proportionately and start to decrease to additional outlays of management. Should certain degree of centralization reached this bureaucratic inefficiencies start to increase disproportionately.  A. Agafonow ________________________________ De: Gerald Levy <> Para: Outline on Political Economy mailing list <> Enviado: jue,18 marzo, 2010 15:09 Asunto: Re: [OPE] socialist planning in capitalist firms > 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 this. In  solidarity, Jerry _______________________________________________ ope mailing list

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Received on Mon Mar 29 13:09:08 2010

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