Monday, December 6, 2010

How Capitalism Will Save Us: Why Free People and Free Markets Are the Best Answer in Today's Economy Buy Now


Dear Steve Forbes and Elizabeth Ames:

To be honest, I did not buy your book. I peaked into the part Amazon offers to read and concluded that my views about the economy jibe with yours to the T. It may well be that people who hold opposing views will be persuaded by your real-life arguments. Amen!
I want you to pay closer attention to a few of your phrases:
1. "an economic environment that gives those people sufficient freedom to take risks and pursue their visions."
2. "few revolutionary inventions have originated in authoritarian nations."
3. "corporations are seen as mechanistic oppressors of human spirit."
The above phrases relate to countries, not to individual enterprises.
Now, let's relate them to an individual enterprise.
If 1 is true, the workers will turn the enterprise much more productive and profitable. However, inside the capitalist enterprise a command-and-control economy is practised, hence productivity of the workers is limited by peer pressure and the union.
If 2 is true, workers of all levels use their brains individually and as a team, hence the products and processes of the enterprise are improving all the time. However, inside the capitalist enterprise, due to the authoritarian relations, only the top level employees use their brains, hence revolutionary inventions come only from them. So there are only a few.
Indeed, corporations (with slight easements in a few of them) do oppress human spirit, indeed.
Should employers replace their benevolent command-and-control style of management that turns their enterprises into mechanistic oppressors of human spirit and curtails the freedom of workers to take risks and pursue their visions, thereby limiting the brain operation of the workers to the few at the top level and consequently severely depriving the corporation of productivity and profits, by another style?
What is the other style?
The other style is the next natural after-employment Mode of Labour Utilization (MLU), where a worker, instead of selling his labour for a wage (employment), is investing the value of his labour for personal profit (entrepreneurial MLU). With the new MLU, the adversarial employee-employer relationship is replaced by a symbiosis relationship: the corporation owns the means of production and makes a profit (loss) on this ownership; the worker owns his labour and makes a profit (loss) on investing this value. Where is the symbiosis? The corporation cannot make a profit without the worker utilizing its means of production. The better the worker is utilizing these means of production, the more profit the corporation makes and the more profit the workers makes on his invested labour. The corporation has the incentive to supply the worker with the most suitable means of production and the worker is interested to invest labour of the best quality. Only then both end up with most profit.
For details, get hold of my book here on Amazon, Smiling for Profit.
Smiling for Profit: Good-bye, employment. Hello, entrepreneurship on the jobGet more detail about How Capitalism Will Save Us: Why Free People and Free Markets Are the Best Answer in Today's Economy.

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