I've been thinking about how to build an economic system to replace capitalism and I've turned to the Proudhonian libertarian socialist inspired alternative commonly known as anarchosyndicalism or worker coops. A self-sufficient ecosystem of federated coops (of all kinds), could, if made incompatible and inimical to the capitalist system, replace it. However, even with socialized property, and socialized intellectual property, it is expected that some coops will produce more than others, and without a centralized or coercively regulated system, with a free system, some coops would outproduce others, have better marketing, location, or otherwise achieve competitive advantages that would then create inequalities. The best case scenario, means those inequalities are negligible, but those would likely be compounded by the effect it would have on the commodity prices, making coops that produce more, have cheaper products, which would then be favored by demand, and then this supply and demand dynamic could make a successful coop undermine and vanquish the competiton (which isn't necessarily a bad thing). This could, however, snowball into the concentration of wealth into an area that would then out-compete coops in other areas, creating regional inequalities, etc. Also, when commonly funded services (education, healthcare, security, justice, art, culture, banking, roads, etc) are accounted for, even if they are sustained by contributions proportional to production, some coops could potentially opt to lessen their contributions to counterbalance, achieve or pursue competitive advantages, thereby preventing such services from improving or even causing them to contract. Essentially, my fear is that market dynamics would eventually erode the basis of this anti-capitalist society. Is there a mechanism to avoid such a fate that doesn't fall into the trap of a bureaucratic distribution system?
Hello. First off, I want to say thank you for what you do, professor. I'm wondering why TLC/FHV drivers can't simply put their own app out that (ideally) wouldn't take ANY commission. It's my understanding that there is no exclusivity with drivers and platforms (Uber, Lyft, Juno, car service base and etc); meaning an Uber driver is a Lyft driver and a Juno driver all at once. Juno is an interesting story because it got sold for $200,000,000 to Gett and only lived in the market for one year. They just gave out $50 phones to drivers that were already driving with Uber and Lyft and only charged them 10% commission (compared to Uber and Lyft's 20%.) This movement of "for the drivers" was its own selling point to the both drivers and passengers. You hardly seen any ads for Juno but they sold for a lot of money in a short period of time because of their share of the marketplace that they carved through that mantra. So my question: why can't the workforce recognize that they physically own the market and create their own app that can offer the driver the whole 100%? In a competition sense, $1,000,000 to build a GPS app that processes credit cards (ie Uber Lyft etc) doesn't seem like much to bring the antedote to the scam that these "ride-sharing" hustle bring along. Sounds like it can be even crowd-sourced. No other company would be able to compete. True P2P.
The Disconnect between Trumps earlier position on Afghanistan and what he is doing now can not go unnoticed by anyone. IS this all simply "War as for-profit Business" OR is their ANY real strategic end-game for anyone? Surely to God people see that more Billions and more bloodshed here will have the same effect it has had since Bush 43? OR, is there more to this?
I am entering the medical field and want to work as a physician with purpose. I was wondering about the logistics of health insurance cooperatives and how effective they are at providing cheap care for low-income communities. How does one go about making one of these coops happen?
According to economist Benjamin Ward if you assume a homo oeconomicus, who wants to maximize his income, and that workers get not only a standard salary, but a bit more/less if the company makes a profit/loss, you have the problem that if there's high demand and the company makes a profit, if it takes on additional workers the profit has to be shared by more people. The other way around, if the demand is low and the company is operating at a loss, it would be logical to take on more workers to share the loss among more people. So this incentive is very counter-productive. Coincidentally the Yugoslavian economy consistently had problems with high unemployment. Is there a causal relationship? How large is the practical impact of the problem described above?
Steve Banon claims to be an "Economic Nationalist" rather than a White Nationalist. What is Economic Nationalism?
this has seemed so obvious to me for some time. as well, the fact that we in the US have now been "colonized" using the same model imperialists have inflicted on other countries. Please expand this discussion with concrete examples that relate to people's lived experiences today.
Is it possible to comapre the economic situations of the people as to at which point the status quo became unbearable in tems of income and wealth inequalities, peoples' pain, national debt etc.....this will tell us where we are now!
Hi Professor, I'd like to have your take on something lots of people say, that only finance capitalism is bad and productive industrial capitalism created lots of good things; that if we could go back to regulated capitalism, the kind that existed from 1945 to 1975 ( coined as the Glorious thirty in France), we wouldn't have the problems of inequality we experience today.
I conclude that we would not have a stock market in a socialist (co-op) economy as "shares" in the enterprise would presumably not be bought & sold as they are under capitalism. But various kinds of financing would still be necessary, i.e. loans of various sorts & arguably bonds. For small scale I can see credit unions functioning well. But what about major investments such as pubic infrastructure? Local governments may not be able to raise the tax revenue. Is pubic banking the answer? We would still need a finance sector of some sort, but what might it look like? Thank you.
Obviously, the rich and corporate tycoons are attacking the middle class....why? because these were the people who formed unions, and built parties like socialists and communists that made them pay their fair share ,,,but they think since they already destroyed the troublesome ones, if they are squeezed further they will still be unable to do anything about it......until only poor and rich are left and the only possible stepping stone between them will be non existant. Then they get back to their business of LEADING the rest of the world to the same conditions. This way there will never be a challenge to white man's superiority.....This calls for immediate action...Thus urgency need to come out more forcefully in Mr. Wolff's talks, videos etc. ...will you please do it or depend on american's desire to fight back or close their eyes?
My idea is to spread a theory that a population reducing its need for income would create a need for workers in the society. It would in essence try to recreate a labor shortage. The money and bills targeted would be the most wasteful costs (and traditions) that produce the fewest jobs, and it would support the creation of efficient social systems to meet people's needs. The people, working half as many hours, would be scarce and worth more. Is this even a valid argument to make in a modern capitalist labor market (in the U.S.)? By that I mean, have we come too far from being scarce to have an effect? Also, does this theory have a name?
Prof. Wolff, you mentioned a couple examples of this in a recent Economic Update so I thought I'd give you another example. Iowa is one of a few states that is trying to woo Toyota into building a factory in their state by offering various tax-payer funded incentives. http://www.desmoinesregister.com/story/money/business/2017/08/15/toyota-plant-could-cost-iowa-hundreds-millions-incentives/556224001/
Taken from the 'World News' subreddit: **This guy is one of the smart people on this thr... https://www.reddit.com/r/worldnews/comments/6tvmif/blackwater_founder_erik_prince_cites_east_india/dlo586k