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On being the right size (1928)

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Re: On being the right size (1928)

#101
post #93

Earlier quoted context omitted.

German unions also own stock and sit on the board of their employers, which is the real difference. American unions are much more parasitic as they have zero vested interest in the hosts they infest.

Do the American unions eschew financial interests in their employers out of choice?

Well, the first problem is its not true, or at least badly out of date. The UAW is close to gaining control of Chrysler aka over 50% ownership. Sounds insane, yet its true. Also I think UAW is a hair under 20% stock ownership of GM at this time. Of course there are innumerable smaller unions who own no stock and pretty much have no assets on the balance sheet, which at least makes them judgment proof if nothing else. Another problems is the concept of the local electricians union owning stock in a sole proprietorship small industry where one union card carrying industrial maint electrician works part time, and spends the rest of this time freelancing at residential small jobs, doesn't even make sense.

The fundamental problem is you really can't have two masters. So you work to optimize your stock profits; or employees? You might have to screw over some employees to boost the stock price to pay for health insurance for the retirees? So you want to move into Toyota plants but honestly, frankly, the best thing you could possibly do financially for your GM stock ownership would be to completely screw up the Toyota plant IF you moved in? Are you a non-diversified mutual fund representing the financial security of retirees, or a labor union representing the desires of the workers, or as a major owner you are by definition management representing the interests of management? If unions start owning lots of stock, who exactly is representing who and when? The game is a lot simpler if each player only has one master.

You could probably make an interesting startup game and/or cardboard eurogame of the whole crazy situation where multiple player factions represent multiple other player factions but you never really know who's representing who at what time as the game progresses.

Re: On being the right size (1928)

#102

Earlier quoted context omitted.

Before there was minimum wage established in the US there was this job of pump attendant. Pump attendant was someone who would pump your gas into your car. These were jobs that paid next to nothing. These jobs disappeared almost immediately after the minimal wage law was enacted. Now, think about it. A 16-year old would come to the gas station after school and pump gas for (let's say) 2usd/hour. But he would also lea…

Amusingly that job still exists in my neighborhood of Boston for reasons that I cannot explain. I suspect there may be a law about it but I'm not certain.

In New Jersey it is illegal for you to fill up the gas on your own. It has to be done by the pump attendant. That's the law. Not sure about Boston ;-) It might be that it makes business sense for the owner to have pump attendant at the rate or above of the minimal wage. Which is nice.

Re: On being the right size (1928)

#103
post #91

Earlier quoted context omitted.

One problem with the bootstrap argument is it ignores the pyramid. So there's 5 pump attendants and one of them has the brains, motivation, luck, family connections, whatever to get promoted to be the next $7 car mechanic. Well that's just awesome for that one kid... and what is your proposal for the other four, let them eat cake? Wait for the local version of "arab spring", let the cops shoot them, hire the next bat…

> So there's 5 pump attendants and one of them has the brains, motivation, luck, family connections, whatever to get promoted to be the next $7 car mechanic. They all move on. Not necessarily to become car mechanics. The other one could be helping at the cash register at times, yet another one help to put merchandise on the shelves. Yet another one hand-wash cars. The fallacy of socialism is pointed out by you exactl…

"can't do better in life and need the Government protection."

I mostly agree with your points, but this one fails. I say there's a pyramid. You say thats a politically incorrect concept to think about from a psuedo-right perspective, therefore it surely doesn't exist and all topic change-y. Bzzt try again. Is there or is there not a pyramid of skills, and if a working definition of the level of civilization is looking at how the downtrodden are treated, what are you proposing?

There is another issue that as a civilization we've decided civilization means citizens will have police, fire, libraries, schools, national defense, unemployment, welfare of some forms, foreign aid, all that stuff (More civilized nations or more civilized people believe health care belongs on this list, and I agree). Anyway it takes $X to provide those services privately or via taxes, or the govt at an overhead cost of Y*$X will provide those services by taking extra money from everyone else and redistributing from each according their ability and to each according to their need. The "welfare queen" in this situation is the service station, getting labor hours at a below civilization market cost. Essentially the welfare queen service station is stealing money from me as a taxpayer rather than paying their employees a legitimate fair wage. This is the well known "walmart effect" where poverty increases when walmart moves in, because the employees are below poverty line so the net effect is negative on .gov and the residents of that .gov who know have to pay higher taxes so Sam Walton's heirs can become richer, all while being told this is fairness, capitalism style. Why should I as a 3rd party be impoverished to make a rich welfare queen business owner richer, because a welfare queen business owner doesn't feel like paying his employees what has been determined to be a fair minimum wage? I legitimately and legally and ethically earn enough income to pay enough taxes to pay my share of national defense; why should I have to chip in more than my share because some welfare queen business owner isn't competent enough to match my level of business skill and pay his fair share of taxes via paying his workers a fair wage?

Your more fundamental failure is not recognizing that when .gov and .com merge, as they've done globally, a marketing game of divide and conquer makes losers out of people fighting on either side. The goal is the destruction of the middle classes globally. They're winning. Some countries are trying a PR campaign where .com and .gov merge and pretend .gov is in the drivers seat of the prison wagon, and some countries have a PR campaign where .com ang .gov merge and pretend .com is in the drivers seat of the prison wagon. However, if you're the guy in the prison wagon at the start of a real world "skyrim" game do you really care about which PR campaign is superior and who's pretending to drive that prison wagon?

Re: On being the right size (1928)

#104

This is really an argument against socialism as the communists tried to implement it. Where the state nationalizes every industry and all workers become employed by the state which plans everything centrally. Most socialists have moved beyond that model and would instead prefer to see a system of enterprise that uses co-op's instead of privately or publicly owned business. Some industries would probably be nationaliz…

> The main problem with capitalism is that someone other than the people doing the work get to decide how the work is done and how to spend the surplus of value that work generates.

I think that the main problem with capitalism is that a free market system (assuming it works, though it doesn't in practice because competition doesn't quite behave according to the abstract models) strives to maximize economic output rather than welfare. Some capitalists care enough to hope that a system that maximizes product would also improve welfare, but that is not the goal; at best, it's a desirable side effect. That is why many critics of capitalism point out that under capitalism, people serve the "economy" rather than the other way around.

Re: On being the right size (1928)

#105

This is really an argument against socialism as the communists tried to implement it. Where the state nationalizes every industry and all workers become employed by the state which plans everything centrally. Most socialists have moved beyond that model and would instead prefer to see a system of enterprise that uses co-op's instead of privately or publicly owned business. Some industries would probably be nationaliz…

You're describing syndicalism; it's not true that it was never implemented by the communists. The Soviet Union had a very serious go at it, allowing the artel as an economic unit (essentially a kind of co-op), and allowing people to freely sell products of their own labor. Within months, this led to a renewed stratification of society, the emergence of a nouveau rich class, and something approaching a return to capit…

Israel has had several interesting attempts with socialist economic units, most notably the Kibbutzim, whose decline will give economists and social psychologists enough fodder for years. Most of these attempts indeed failed (some more so than others), but they worked quite well for a few decades.

One could argue that an economic structure – any economic structure, including capitalism – cannot survive without a supporting value system. In Israel, all of these attempts took place in a capitalistic environment, both inside Israel and in international markets. It is worth mentioning Max Weber's observations that it took many years for society's value to change enough to support free-market capitalism. For example, he describes how workers traditionally worked less hours when offered a higher wage.

Re: On being the right size (1928)

#106
post #103

Earlier quoted context omitted.

> So there's 5 pump attendants and one of them has the brains, motivation, luck, family connections, whatever to get promoted to be the next $7 car mechanic. They all move on. Not necessarily to become car mechanics. The other one could be helping at the cash register at times, yet another one help to put merchandise on the shelves. Yet another one hand-wash cars. The fallacy of socialism is pointed out by you exactl…

"can't do better in life and need the Government protection." I mostly agree with your points, but this one fails. I say there's a pyramid. You say thats a politically incorrect concept to think about from a psuedo-right perspective, therefore it surely doesn't exist and all topic change-y. Bzzt try again. Is there or is there not a pyramid of skills, and if a working definition of the level of civilization is lookin…

> I mostly agree with your points, but this one fails. I say there's a pyramid. You say thats a politically incorrect concept to think about from a psuedo-right perspective, therefore it surely doesn't exist and all topic change-y. Bzzt try again. Is there or is there not a pyramid of skills, and if a working definition of the level of civilization is looking at how the downtrodden are treated, what are you proposing?

Let me put it this way. For the simplicity sake let's present workforce as the pyramid. So you have 1% who enjoy 50%+ or more of the wealth. You have 80% who are doing just fine. And you have 20% who are rock bottom poor and screwed over big time. The problem I have with socialism is that it obsesses about the poorest 20% so much, that is screws it over for the rest, the 80%. And at the end of the day everyone is poor because none of these socialist policies really work well. They just make everyone poorer. Margaret Thatcher is a great example of that on works. When she was the Prime Minister the income of the poorest 20% has been growing the fastest since the end of the WW2. The problem is that the other 80% was getting richer even faster. So poor felt like they are not getting their fair share. Without understanding that if you start introducing policies wealth transfer from 80% to the poor 20%, the poor won't get richer! They'll be still poor. You are so obsessed with this one pump attendant who made it big that by introducing the laws to take some wealth from the rich attendant, you don't see that the same law makes the other 4 attendants poorer too. The problem with socialists is that they want to feel so much, they forget to think.

>There is another issue that as a civilization we've decided civilization means citizens will have police, fire, libraries, schools, national defense, unemployment, welfare of some forms, foreign aid, all that stuff (More civilized nations or more civilized people believe health care belongs on this list, and I agree).

Equaling civilization with socialism doesn't work in my book. What about equaling the amount of freedom and responsibility with being civilized. So, if you - like one of my coworkers - eat, eat, eat and eat all day. She is fat, I tell you. And then - no excercise. Zero. Nada. Nothing. And then cigarettes. And then you go there and tell me it is civilized that I'm taxed higher to pay for her doctor, so I don't have money for my kid's school supplies? Nice. Very civilized. And where is her responsibility here? And where is my freedom to spend money on what I want, not what you want, my coworker wants, or the Government wants? What happened with this in our civilization?

>Anyway it takes $X to provide those services privately or via taxes, or the govt at an overhead cost of Y*$X will provide those services by taking extra money from everyone else and redistributing from each according their ability and to each according to their need.

And we know it doesn't work. 20 years after communism failed there are still people who believe that you can run economy on a premise of Marxist "redistributing from each according their ability and to each according to their need. " Again, go back to your history books. Don't listen to me. Even hard core communists like Slavoj Zizek will tell you that economically that didn't and can't work.

>The "welfare queen" in this situation is the service station, getting labor hours at a below civilization market cost.

And what is "civilization market cost" ? 1usd/hr? 2usd/hr? 50usd/hr? 1000usd/hr ? Can you define this nonsense?

> Essentially the welfare queen service station is stealing money from me as a taxpayer rather than paying their employees a legitimate fair wage.

If there wasn't welfare state, nobody would be taking money from you.

>This is the well known "walmart effect" where poverty increases when walmart moves in, because the employees are below poverty line so the net effect is negative on .gov and the residents of that .gov who know have to pay higher taxes so Sam Walton's heirs can become richer, all while being told this is fairness, capitalism style.

Why these people work at WalMart? Because they couldn't find a better job! So WalMart is doing the a favor because without WalMart they would have ended up at even more shitty job. And shitty jobs are good. I had one - was sorting out garbage. Once you do that type of job, you'll learn how to move up, without any stupid Government program. And if you stay at that level. It's 20% of the poorest. Why would you rather screw it for the 80%, to have it better for 20%. And then the 20% would be still poor too. That's what communism taught us. Everybody became poor. They made everyone equal. In their poverty.

>Why should I as a 3rd party be impoverished to make a rich welfare queen business owner richer, because a welfare queen business owner doesn't feel like paying his employees what has been determined to be a fair minimum wage?

Nobody told you to vote for leftist welfare programs. If you voted for them, yeah, you need to pay for them. I know sucks, to have people voting for that nonsense that cost me money too bro, so we're in it together.

>I legitimately and legally and ethically earn enough income to pay enough taxes to pay my share of national defense; why should I have to chip in more than my share because some welfare queen business owner isn't competent enough to match my level of business skill and pay his fair share of taxes via paying his workers a fair wage?

What is fair wage? 5usd/hr? 10usd/hr? 50usd/hr? Is it fair when a guy cleaning WalMar makes as much as software developer? You think?

>Your more fundamental failure is not recognizing that when .gov and .com merge, as they've done globally, a marketing game of divide and conquer makes losers out of people fighting on either side. The goal is the destruction of the middle classes globally. They're winning. Some countries are trying a PR campaign where .com and .gov merge and pretend .gov is in the drivers seat of the prison wagon, and some countries have a PR campaign where .com ang .gov merge and pretend .com is in the drivers seat of the prison wagon. However, if you're the guy in the prison wagon at the start of a real world "skyrim" game do you really care about which PR campaign is superior and who's pretending to drive that prison wagon?

This what you describe, this merge, is a very fascinating topic indeed. But its proper name is fascism (or corporationism as Duce called it), not capitalism. So, I'm afraid you might be barking at a wrong tree here. Let me give you example here: it were few Republicans, Tea Party sympathizers who voted against big banks bail-outs. All Democrats and rest of the Republicans voted for the fascist state where banks and the Government are in bed together. But not people who are by the left called the 'extreme right'. Tea Party and others, who believe in capitalism, have been and will always be against bank bailouts, or special treatment to big corps. They believe in free market economy and honest competition. If banks have to go bankrupt, let them. That's what capitalist would do. And we all know how left voted on this.

Re: On being the right size (1928)

#107
post #101
post #93

Earlier quoted context omitted.

Do the American unions eschew financial interests in their employers out of choice?

Well, the first problem is its not true, or at least badly out of date. The UAW is close to gaining control of Chrysler aka over 50% ownership. Sounds insane, yet its true. Also I think UAW is a hair under 20% stock ownership of GM at this time. Of course there are innumerable smaller unions who own no stock and pretty much have no assets on the balance sheet, which at least makes them judgment proof if nothing else.…

Thanks for the extra info.

As to your point(s) - I get that having two (or more) 'masters' makes things more difficult, but it seems to me to be a pretty desirable state of affairs.

After human decision making, the next major mechanism we have for optimising economic activity is the market, and whilst it seems pretty good in situations where there are a lot of interactions (allowing it to price things effectively from the aggregate behaviour), I'm really not convinced it can handle these more subtle situations, where single big decisions have to be made that can have large, long lasting impacts.

The game sounds fun, you should try to make it!

Re: On being the right size (1928)

#108
post #41

Earlier quoted context omitted.

True, but maybe we don't need what we are currently buying, but are because the costs are hidden. How much of the stuff we own do we really need?

I don't understand why necessity even comes into this. We don't need a lot of things. We don't need freedom of speech. We don't need more than 2 pairs of underwear or a car either. I don't need more than 2500 calories but I like being able to go eat a big juicy $50 steak sometimes. In the US it's actually illegal to go faster than 65 mph (75 in some awesome places) so why should we make cars that go faster than that…

Tangent: parts of Utah and Texas have speed limits of 80-85 mph. Their speed limit laws are also prima facie, which means you can get out of a speeding ticket by proving your speed was "reasonable and prudent" even if it was in excess of the limit.

Re: On being the right size (1928)

#109

This is really an argument against socialism as the communists tried to implement it. Where the state nationalizes every industry and all workers become employed by the state which plans everything centrally. Most socialists have moved beyond that model and would instead prefer to see a system of enterprise that uses co-op's instead of privately or publicly owned business. Some industries would probably be nationaliz…

Under Capitalism, if a worker disagrees with how their boss allocates their time and labor, the worker is free to start a new business just as the founder once had to. The worker is also free to seek superior employment, if they feel their worth is not being fully appreciated / utilized (and so on and so forth). Workers aren't appreciated at Business X? Start Business Z that treats its employees better. There are cou…

"The reality is, the capital to fund that job comes from someone that had to first create it."

...Starting from first principles (i.e. 'try telling nature'), how exactly is capital 'created'?

Re: On being the right size (1928)

#110

This is really an argument against socialism as the communists tried to implement it. Where the state nationalizes every industry and all workers become employed by the state which plans everything centrally. Most socialists have moved beyond that model and would instead prefer to see a system of enterprise that uses co-op's instead of privately or publicly owned business. Some industries would probably be nationaliz…

One problem with this is people as a group tend to be stupid. What stops the workforce from voting to reduce their work hours to 30 hours per week? Take the Automotive unions as an example. Their demands contributed in many ways to the US auto companies nearly going bankrupt and requiring state bailouts. Moving manufacturing to cheaper places can have a bad local effect in pockets that depend on it, but there is a ne…

> One problem with this is people as a group tend to be stupid. What stops the workforce from voting to reduce their work hours to 30 hours per week?

Seems reasonable to me. How much work (both input and output) is required of humans in a society is that society's choice. Many people think that, e.g., American society has a cultural expectation of working longer and harder than is necessary or appropriate. Especially when you could possibly have rebalancing schemes to employ more people for fewer hours each. shrug

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