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Let's really dig into this. Monopolies are bad, but I wouldn't clamp down on the size of companies per se. There is a much more clever thing to do: Managers wa
by Ericson2314 7y ago
Let's really dig into this. Monopolies are bad, but I wouldn't clamp down on the size of companies per se. There is a much more clever thing to do:
Managers wanting to seem self-important, and speculation-prone owners, are too obsessed with growth and seek to maximize revenue. Even maximizing profit is still meh, because that still creates some incentive for growth. What we really want companies to maximize is profit / revenue, or profit / employee. In other words, productivity for productivity's sake.
BTW, co-ops are generally great, and already have the incentive to maximize profit / employee. Perfect!
But how do we get non-employee owned companies to do the same? Tax them based off of revenue rather than profit. Then they will only grow if they don't need to burn productivity in the process. Yes, capital expenditures no longer have the nice side benefit of reducing profit, but the incentive for productivity makes up for it.
Also, it's fair because stupid things like income tax are effective taxing revenue rather than profit, and finally it's also way simpler to levy / harder to evade.
- Nasrudith 7y agoI am all for increased productivity but there are two big issues there even putting aside fallacies about efficency and growth being bad. One is that it promotes a skewed specialization on the high margin while neglecting the lower margins which may be important and essentially by definition are in high demand if they got big enough for that economy or scale in the first place. It is largely inequitable as it discourages the low end from showing up at all. Two is that it inherently misvalues resources based upon what it sees as revenue vs not. It echoes the Soviet mistakes in thinking of their workers as serfs with free labor and new tools as expensive because they cost revenue. Said revenue would continue down the chain as one's gains are another's losses that need to rise virally down every logistical step leading to needless repetition to "start from scratch" with vertical intergration.