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The other question is what does labor get when there are temporarily low or negative profits? I used to work at a company which gave 10% of its profits to the
by lopmotr 6y ago
The other question is what does labor get when there are temporarily low or negative profits?
I used to work at a company which gave 10% of its profits to the workers each month as a bonus. But I was only there during some money-losing months so I got zero bonus. Imagine if that had been my entire pay!
- aidenn0 6y agoIf they gave 100% of their profits to the workers as the only pay, then long term workers could presumably self-insure.
- drran 6y agoIt looks like excellent solution for startup: just pay 100% of startup profit to workers by giving them 100% of shares, so they will self-insure themselves and be OK when startup will fail.
- IncRnd 6y agoThat almost guarantees that fewer companies will be started, since your model removes incentive for people to benefit from starting companies.
- zozbot234 6y agoThe socialist solution is actually centralized planning over multiple industry sectors. The workers would be paid profits from a huge, diversified conglomerate, mot merely the one industry sector that they happened to be working in. Of course, this leads to all the known drawbacks of central planning.
- chii 6y ago> what does labor get when there are temporarily low or negative profits? good question - the current system ensures that labour gets paid, regardless of profits being negative or not (until the company collapses). This is enshrined into law - you cannot leave wages unpaid, and it sits above creditors in seniority.