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

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441–450 of 476 posts

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

#441

I find it very disappointing that the most reliably lucrative career arc for a programmer nowadays is to get hired by a tech giant and stay there as long as possible. And the second most is probably to go to work for a company that could get gobbled up by a tech giant. I've made a career out of small startups, and I wouldn't trade it for a thing. On the other hand, if I'd gone to work for Amazon straight out of colle…

Emphasis on "reliably". I have two classmates who went the startup route and retired around 30 (and not on a beach in Thailand).

Why would anyone ever work for the big company if startups were both more potentially lucrative and more reliable?

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

#442

Earlier quoted context omitted.

Telephone lines were almost always built following existing public roads or private railroads (that were built with government assistance and government land grants) even in the early days. There is no history of a successful, large scale infrastructure project built without government assistance. Either directly or due to the fact that much of it was built on government land. (unless maybe you consider some case whe…

An awful lot of railroads were built without government assistance. Of course, it was easier to build them if one got government financing. Even so, a railroad is private property and they can choose to allow or not someone stringing wires along it.

railroads were given the go-ahead by the federal government back when they were built, because the federal government granted the land to both sides of the rails to the rail builders (if they built it).

It's hard to argue that the railroad builders were not given "assistance" (the granting of land).

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

#443
post #388

Earlier quoted context omitted.

Those were all local municipalities, responsive to their electorate - if the surfers in a community wanted Google fiber huts, they could elect councils who would allow them. I think it's reasonable that people should have local control over their city environs, even if it means a multinational like Google can't come in and build new infrastructure. It's not a "will of the people, unless Google wants to build fiber hu…

>Those were all local municipalities, responsive to their electorate - if the surfers in a community wanted Google fiber huts, they could elect councils who would allow them This is an idealistic line of thinking, but as a practical matter, is completely untrue. Essentially 0% of America understand their county commissioners' stance on ISP competition, myself included. No one campaigns on those things. It's a lot lik…

Not doing your civic duty is not illegal, but the residents has to take ultimate responsibility for failing to do their civic duties.

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

#444
post #440

Earlier quoted context omitted.

> I don't find much value in hypotheicals. Your opinion doesn't change the fact that your response was invalid. You are responding to a normative, idealistic statement about universal values with your own slightly more concrete hypothetical. A misapplied exercise in practicality. > Audi workers would never agree to convert their factory to EV had Tesla not already proven that EVs are something consumers actually want…

> You are responding to a normative, idealistic statement about universal values with your own slightly more concrete hypothetical. What's your point? I obviously don't think the purpose of life is to maximize shareholder value. I'm merely illustrating where I find such idealism falls apart. I could be more specific, but I'm not trying to write a book. You don't need to be a Nobel economist to know how people respond…

> An average family person doesn't want to risk their time, money, and health on helping to pivot Audi to a company that makes bleeding edge EVs.

That article is from 2017. EVs were already more or less an accepted mainstream technology, even though certainly not the majority of the automotive market yet. You're making it sound like it's as difficult as it was for Tesla back in 2003- the union was simply demanding Audi management to respond to the needs of the market and expand its product line, for the betterment of the company and to protect their livelihoods by staying competitive. Audi building EVs does not require, as far as I know, a pivot.

Theranos is also a good example to mention. Perhaps if it was a worker-owned co-op or a union there, some sort of countervailing force against both managerial and investor incompetence, that fiasco could have been averted. Perhaps with a system in place to provide support against those powerful forces, and someone sympathetic to listen to whistleblowers, Ian Gibbons would still be alive.

It's all well and good to lionize Randian revolutionary lone geniuses, but the creative destruction they tend to wreak in their wake tends to fall upon a lot of the little people. And worse off, these geniuses at world-changing companies are few and far between, and far outnumbered by copycats and wannabes who cause more damage through imitation. We have checks and balances in our societal governance; why not likewise in our corporate governance?

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

#445

Earlier quoted context omitted.

Are you saying Windows is inferior to Linux on the desktop?

In terms of not crashing, fewer security issues, no telemetry, or having to pay money for it, sure. Point is it's an alternative that could potentially serve the needs of some users better than Windows does, but will likely never be considered by them just because it's almost unknown to the general public. I'm sure better examples exist.

That's great and all, but people don't really care - they want to run the applications that they want to use. They want it to support their hardware.

OSX and Windows work because the make it easy for end users to use them; and run the applications/games they want to play.

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

#446

Earlier quoted context omitted.

In terms of not crashing, fewer security issues, no telemetry, or having to pay money for it, sure. Point is it's an alternative that could potentially serve the needs of some users better than Windows does, but will likely never be considered by them just because it's almost unknown to the general public. I'm sure better examples exist.

That's great and all, but people don't really care - they want to run the applications that they want to use. They want it to support their hardware. OSX and Windows work because the make it easy for end users to use them; and run the applications/games they want to play.

Sure, but the point is that it's possible for a market to be dominated by a brand- or, in our original discussion, by a way of thinking or governing- that might be inferior to a lesser known choice.

There are a good number of hackers who would consider Linux superior to the dominant OS's, which is why I made that arbitrary comparison.

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

#447

Earlier quoted context omitted.

Because the amount you pay into social security and Medicare are quite large in terms of percent of income, if you make less than $100k. Of course, you later get paid SS or receive Medicare services, which makes it less clear that these items should be considered taxes.

Sorry, but I genuinely am missing the point you are making. I agree that SS and medicare are large taxes for those making less than 100K. Are you saying that this is a reason we should not increase capital gains and should instead increase SS and MC?

I was pointing out that you would have to increase CG rates by a lot if you wanted them to be higher than OI rates (and you count SS and Medicare in the OI tax rate).

If you do that, you would want to increase the rate on OI as well, otherwise people would play games because of the rate differential (take money out of a business as salary instead of CG, for example).

And lurking in the background you have the timing/inflation issue, which is that OI is taxed every year and CG is taxed in nominal terms upon sale. So you end up potentially paying lots of tax on nominal increases in value that are actually just inflation. The fact that CG is not inflation-adjusted is one of the rationale for having a lower CG rate.

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

#448

In almost all USA industries, there is increasing amount of consolidation. The top 4 companies' in almost any industry has a larger share of the total market: https://www.economist.com/briefing/2016/03/26/too-much-of-a-... Some consolidation is natural, but a huge part is caused by mergers and acquisitions (M&A) fulled by Private Equity. The M&A benefits the shareholders of participating companies at the expense of c…

Actually M&A companies underperform in the stock market so it mostly benefits the executives doing the merge.

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

#449
post #52

Does anybody here know of a good modern book about land value tax or Georgist economics in general? Any (constructive) opinions would also be welcome.

https://www.amazon.com/New-School-Economics-Platform-Physioc...

The New School of Economics (2018)

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

#450

In almost all USA industries, there is increasing amount of consolidation. The top 4 companies' in almost any industry has a larger share of the total market: https://www.economist.com/briefing/2016/03/26/too-much-of-a-... Some consolidation is natural, but a huge part is caused by mergers and acquisitions (M&A) fulled by Private Equity. The M&A benefits the shareholders of participating companies at the expense of c…

Monopolization almost certainly is occurring. The left usually cites weak antitrust enforcement. The right usually cites regulatory barriers that make it expensive to compete without economies of scale. I actually think both sides are at least partially correct. However what almost everyone overlooks is the demographic transition. The US, along with every other developed economy, is significantly older today than it…

> The left usually cites weak antitrust enforcement.

Personally for a left view I would add cash/capital accumulation. It's kind of the same thing happening for individuals with wealth and real estate. Regulation is failing to bring the balance between the revenues of capital (which are exponential unregulated) vs the revenues of work. At one point you can't even compete anymore if you start from scratch. Competitors with billions in cash can pretty much "kill" any new business they want.

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