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Declining worker power vs. rising monopoly power: explaining recent macro trends

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Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#361

Earlier quoted context omitted.

The bigger problem with estate taxes (and btw estate taxes often imply death taxes in US law) that you may not see is how they effect smaller players. One of the things fueling corporate consolidation is asset liquidation upon death. If I start and own a small company that’s worth $10million, when I die, there is likely a strong desire to liquidate that company in order to allow for some inheritance to multiple peopl…

Why not just split the estate? A single person should not inherit more than 50% of the value of the estate.

In businesses, including farming, splitting it wholesale can kill the business while diluting control can paralyze it.

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#362

Earlier quoted context omitted.

It seems that all the forms of collective control you listed are perfectly legal. If the majority of workers prefer workplaces like that then those places will thrive. What you are implying though, is that the government forces all workplaces to conform to your desired control scheme. So fuller democracy equals government limiting choice, as long as it is your desired choice.

>If the majority of workers prefer workplaces like that then those places will thrive The majority of workers have probably never even heard of worker coops and those that have probably imagine it to be related to socialism and therefore un-American. >So fuller democracy equals government limiting choice, as long as it is your desired choice So more democracy actually == more authoritarian. Astounding logic.

So people are dumb, they just need to listen to me.

That is the lazy way. If people are uniformed, we need to do more to inform them. People have power to choose where they work and where they spend their time and money. No one needs to come in and force Amazon into becoming a co-op. If top talent wants to work for co-ops and consumer prefer to get their good from co-ops, Amazon will adapt or die.

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#363

Earlier quoted context omitted.

I've long argued for massive estate taxes on the very rich that forces a partial reset on wealth and avoid medieval times when land ownership was just passed down generation to generation. It's the only fair and practical wealth tax I can think of. I have no problem at all with Bezos being filthy rich, however, I have a giant problem with his kids and all descendants being billionaires. A huge estate tax would also m…

The bigger problem with estate taxes (and btw estate taxes often imply death taxes in US law) that you may not see is how they effect smaller players. One of the things fueling corporate consolidation is asset liquidation upon death. If I start and own a small company that’s worth $10million, when I die, there is likely a strong desire to liquidate that company in order to allow for some inheritance to multiple peopl…

Personally, I hate the idea of corporate income taxes - they're literally stupid. You can't tax corporations, you can only tax people. At the end of the day, it's always a person somewhere that is paying the tax, whether it's an employee, supplier, shareholder...and that person is already paying their own income taxes. Also, the tax code favors big companies at the expense of small ones, it's a system that can be gamed in a bunch of ways. I say get rid of it, it's dumb.

I would put some limits on estate tax rates at certain thresholds. Like, anything above $50 million, tax at 90%. And hey, the kids will still be rich, just not crazy billionaires. For private companies this gets tricky and for many companies they would be forced sellers, that's one of the big trade offs. Exempt farms if necessary?

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#364
post #218

Earlier quoted context omitted.

This is not a concept, but an observation. What you're talking about already exists. It's the capitalist cooperative, where people voluntarily come together to pool capital in order to build some company that produces things or services that are of benefit to the collective owners and/or their customers. However, while the price of membership in such a unit decreases with every new participant, the ownership is also…

Right, so the point that it is a matter of degree stands, and the point that you are not powerless in a state where you are part of the government also stands. Given those points, it is not impossible to imagine a future state deciding to use some of its resources to constructing an automated production system. Its legitimacy is backed up in two ways: once, by the consent of the governed through the democratic proces…

> Right, so the point that it is a matter of degree stands, and the point that you are not powerless in a state where you are part of the government also stands.

Not really. The more people who get to vote, the less individual control you get yourself over the outcome, and so the more powerless you become. More votes do not equate more democracy, only less individual power to influence your own future or leadership through the ballot, especially if your choices are limited. Unless you take a more direct action, and go into politics yourself, that is. But who has the time for that?

This is why people are rioting in the streets now, instead of patiently waiting until the voting booths open. It's because deciding between two candidates wouldn't resolve the matter in any meaningful way. Especially since there are no real candidates to vote for, that would make anything but token change for you. Nevermind an independent candidate, who just wouldn't gain any traction at all, or at least not under the American system.

Call me cynical, but representative democracy only works because it gives people the illusion that they have an individual say in politics, but they really don't. However the illusion keeps them blissfull enough to not want to rise up. If it actually mattered, I'm sure there wouldn't be a discussion on whether the Brexit vote should be respected (many wanted to disregard it entirely), or even that my own country of Norway perhaps shouldn't pursue relations with the EU, since a majority voted against membership. Yet here we are, with a de-facto membership of the EU through the EEA. Voting against it really worked. Yay... /sarcasm. So I can full well understand why some people think rioting is a better choice. I don't condone it, and I think there are better ways to protest, but I still understand it.

> even in the most selfish system, any bureaucrat who takes the time to "remove" you will have to face the consequences. And therefore, there can exist a state that does not demand everybody work.

Depends on the system in place. And it would be at the eternal scorn of those who have to work, but still pays the full cost of all those who don't. Because UBI isn't "free." And let's face it, such a machine wouldn't be "free" either, although it stands to reason that if it was made really big, then it would certainly be cost saving enough as to preclude all competition from all those who don't have the means to build such a machine themselves. As such, it would be clearly monopolistic.

In essence, it would be unfair to all those who would otherwise compete by baking bread of their own, because it would make bread-baking entirely unprofitable for everyone, just like slavery made low-end work unprofitable both in Rome and in pre-civil war USA. People somehow forget to mention that the war wasn't just about emancipation, but also because slavery gave slave owners such an unfair advantage that it put a lot of people out of honest work. Thus there would be something in it for every baker to throw a wrench into such a monopolistic machine.

If the only way to build such a machine, is to build it big, then it stands to reason that only big players can build it. So what makes you think they'd do it out of pure benevolence, without anything to gain from it? Surely, giving elites peace from the "rabble" might be a good enough reason? In fact, large swathes of the people would become complacent and dependent on the machine. So anyone who could gain control over it, would also stand to gain untold power for themselves and their group.

I think a fair few people would aspire to such power, and some might even be willing to murder for it. If you were somehow able to defend that coup, either diplomatically or by force, you would in effect gain dictatorial power over anyone it served. And nevermind democracy. You now have the power to decide what people vote, or no bread for you! And so, even if it was made with good intentions and for benevolent reasons, the machine may well come under the control of evil. Worst of all, if evil ever got control over it, many would come to their aid, simply to make sure they would continue to come first in the bread-line.

Now consider a crisis sweeping the world, say, destroying crops around the world; the guys who are getting stuff for free, would be the first to be cut out of the service of that machine. Only those who worked and saved would afford bread in such a time, as everyone would be made to pay. Except those who relied solely on the machine would starve, because they wouldn't have anything saved up to pay for bread. And so you'd have new upheavals.

The only way to alleviate such an extreme amount of power, would be to make sure there is competition for it, so that several machines were made to compete with each other to offer the best bread. And for that to be possible, you need people who also add value by working in various ways.

But without any incentives to do so, one might revert to letting the state do it. And then it would be in the interest of the state to keep that power to themselves, and prohibit anyone else from having it. Good luck saving it from the psychos and sociopaths that usually want to climb to those heights.

> If the people of such a future state decides to create a common automation infrastructure, then they may also reach the conclusion that not everybody needs to work.

If they provide no value, then they are also worthless and expendable. If their worth is only potential, then don't be surprised if they're treated like cattle by those owning or controlling that infrastructure.

> To some extent, that already exists today. Welfare states protect (or are intended to protect) people who can't work. The people in a welfare state do not want to leave those who can't work to starvation, and so the state doesn't, either.

Except it's an inherently unsustainable system unless most people in that country also contributes to it. We're now in a situation where more and more countries cannot afford the welfare states they once created. And now while the coffers are empty, and the jobs are drying up, people want UBI? Who's gonna pay for it? The only reason rich people would pay for it, is to insure safety for themselves. So in essence, they would pay for security against the masses. It's the same reason the patricians of Rome did it. Well, Ok, whatever you say, it did work for a time... For that reason. So that's at least something, I guess. But whatever that was, it wasn't freedom.

There is already solutions that lets people stop working, however: Income based on interest, dividends and rising asset values. This is when the value you add back to society has become intrinsic to the property that you own. But most people have neither the means nor the knowhow for how to get there. Perhaps this is what schools should focus on in the near future, then?

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#365

Trying to break the conditioning here but government should always tax in a way that it incentive WORK. The way things are Wealth is no longer being produced, so those who have it will be on top because income will never be enough to prop you up. Therefore we should want a Growth market so that more wealth is produced and risk averse people will still be rich but more people will become as rich as them. To resolve In…

I think your point mirrors Scott Galloway's and Warren Buffet's philosophies. Why is sweat, regular labor, taxed much more than capital gains? Why do CEOs who are fantastically rich need lower taxation rates than the 100s of laborers their lifestyle relies upon? We tax sweat, we let riches run free.

I was always told the reason was to encourage investing, to increase the velocity of money. Interest income from parking your money in the bank is taxed as ordinary income; lower taxes on investment income (capital gains) helps make investing more attractive vs parking the money.

This may not make a lot of sense right now when interest rates are close to zero, but there was also a time when interest rates were 20%.

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#366

Earlier quoted context omitted.

Yeah, they are unenforceable in other states, and in all of them if they are determined to be unreasonable in court. https://www.legalnature.com/guides/are-non-compete-agreement...

>Yeah, they are unenforceable in other states Yes there are other states that have similar limits, and many other states that don't. >and in all of them if they are determined to be unreasonable in court That's a tautology. A court can refuse to enforce any contract for many reasons. The problem is that what may be considered unreasonable in California might not be in Georgia. It's also not super helpful for someone…

Courts tend to take a dim view of well-monied people bullying the not-monied in courts. Larger companies are well aware of this, so are their employees, and the companies get sued constantly by those employees, and the companies usually settle because it's cheaper.

I personally know of many, many cases of this.

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#367

Earlier quoted context omitted.

> Low tax dividends and capital gains benifit individuals without active participation in the value creation. Presumably, actively working (like with a job) to generate wealth to invest in other enterprises is 'active participation in the value creation'. I mean, sure, if you want to introduce steep capital gains on invested capital that was inherited, or won, or whatever, that's fine.

>Presumably, actively working (like with a job) to generate wealth to invest in other enterprises is 'active participation in the value creation'. This is my exact point. Working (like with a job) creates value. Investing money in a secondary market for stocks generates no value whatsoever. Perhaps it keeps some stock brokers emplayed

> Investing money in a secondary market for stocks generates no value whatsoever.

Great, then let's open the primary market (which does generate value) up to individual investors. Unfortunately, this value generating mechanism has been legislated away.

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#368

Earlier quoted context omitted.

>Yeah, they are unenforceable in other states Yes there are other states that have similar limits, and many other states that don't. >and in all of them if they are determined to be unreasonable in court That's a tautology. A court can refuse to enforce any contract for many reasons. The problem is that what may be considered unreasonable in California might not be in Georgia. It's also not super helpful for someone…

Courts tend to take a dim view of well-monied people bullying the not-monied in courts. Larger companies are well aware of this, so are their employees, and the companies get sued constantly by those employees, and the companies usually settle because it's cheaper. I personally know of many, many cases of this.

>Courts tend to take a dim view of well-monied people bullying the not-monied in courts

Even if this is true in theory, it's so completely untrue from a practical perspective that it's pointless to debate.

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#369
post #274

Earlier quoted context omitted.

Democracy is not an efficient way of running a business. Look at the multi-trillion dollar deficit as an example. Workers are incentivized to choose themselves over the health of the company or the customer. Also, people overwhelmingly would rather exchange their stake in the company for the equivalent value in cash. It's only when the company's valuation skyrockets when they retroactively declare this to be unfair.

>Democracy is not an efficient way of running a business Have any data to back that up? Comparing a democratically run corporation to the US government is a non sequitur. Outside VC there is no business model that will allow you to run at a loss for decades. So it's a scenario that's not even possible hypothetically. Somewhat anecdotal but there is a Worker Co-op in Spain, Mondragon, that's been a very competitive co…

Part of this is that VCs as you describe. It doesn't matter if a democratic social media company is more sustainable than Facebook when Facebook receives a half a billion dollars in VC funding to patch up its problems.

Anecdotally, I hear that Ford's biggest problem right now is the union's resistance in adopting the Toyota production system. If I were a factory worker, I wouldn't want to change the way I do things just so the shareholders get richer. That's a perfectly reasonable attitude to have, but it does place Ford at a disadvantage to car makers without unions like Tesla and Toyota.

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#370

Earlier quoted context omitted.

>They respond saying it's too risky Well it literally is. If they are talking about Wall St. bankers they have no way to replicate the results of those people. Wall Street can make poorly thought out multi-trillion dollar bets on housing bonds and when they go bust they get bailed out and still get their Christmas Bonuses. There is no similar mechanism to protect a non-institutional investor from similar levels of ri…

There are plenty of stocks besides mortgage derivatives, and plenty of ordinary people making money off of stocks. If you want to sit on the sidelines because it's too risky for you, that's fine. But don't then complain that others make money on stocks. You, and anyone else, can buy FAANG stocks, index funds, or whatever.

The problem is you need capital to begin with, and the median American barely has enough on hand to cover an emergency, nevermind build significant investments.

Many of us might be fortunate to have well paid jobs, and the ability and capital to invest, but it's understandable how someone could view the ability of those with capital to generate further capital without any labour to be unfair.

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