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WalterBright parent
> The owning class will use it to reduce payroll costs

Of course. That's been going on since the invention of the plow. That's why today we can do more interesting things than turn over the earth with a pointy stick all day every day.

> economic democracy, where average people regain control over their lives

History shows us that this inevitably means people lose all control over their lives, because the state will make your decisions for you and assign you your job.

For example, let's say the color of cars produce by car companies is determined by democracy. 59% vote for the cars to be green. And if you want a red car? Too bad. What if you want a 4 seat car? No dice, 53% voted for 2 seaters to be made. What if you didn't want a car stereo? You're stuck paying for it anyway, as 73% voted for it.


asmxyz
There are _other options_!

You're argument is that the only two alternatives are that the ruling class and owning class be separate groups of people, or the same group of people. And either way the labor class if F'ed. You're right that having the ruling class and the owning class being the _same people_ is terrible. That's what we're living in right now!

But what about the labor class being the owning class? What if Amazon was owned by the people who work at Amazon? Instead of Bezos?

WalterBright OP
The labor class is free to form collectives and cooperatives. There's no law against it.

Bezos started Amazon with $300,000. I'm sure it wouldn't take too long for workers to raise that kind of money, after all, $300,000 to buy a house is considered cheap.

On the other hand, the history of businesses being confiscated and handed over to the workers has not been a successful one.

whatshisface
But startups are worker-owned, insofar as the founders are able to profit from it.
WalterBright OP
Some startups are worker-owned through stock grants, but those grants are rarely evenly distributed. The founders hold the majority as long as they can.

It is a good practice for companies to include stock as part of the pay package. It encourages alignment of the company with the employees. Very, very successful companies follow this model, such as Microsoft, Apple, Amazon, Google, etc.

whatshisface
It seems to indicate that if Amazon was employee-owned today, the first thing they would vote to do is convert future hires into non-owners, because that's what the founders did when it was actually employee-owned.
mm263
$600,000 after inflation
Aurornis
> But what about the labor class being the owning class? What if Amazon was owned by the people who work at Amazon? Instead of Bezos?

I wonder how many people who repeat things like this know that Bezos owns less than 10% of Amazon. About 2/3rds of Amazon is owned by institutional investors, much of which is in turn owned by individuals in their 401ks and other retirement plans. So "the people" own more of Amazon than Jeff Bezos already.

If you're implying that the government should confiscate Jeff Bezos' personal ownership stake in the business he created and redistribute it to other people, that's a very different topic. It's in the realm of fantasy, not reality, so I don't consider it very interesting. At minimum, it should be noted that if the government gets into the business of confiscating shares from people, the value of those shares will plummet as investors move their money into safer investments, so it wouldn't be a simple numerical wealth transfer from Bezos to others.

Regardless, there's nothing stopping people from getting together and starting an employee-owned collective company that enters the market. They can compete in the market and try to hire away talent from the other corporations.

asmxyz
Yes, Bezos only owns ~10%, but I think it's fair to say that, of Amazon employees and owners, he has more than 10% of the power within Amazon.

If warehouse workers want better conditions they have to solve a national coordination problem without getting crushed. If Bezos wants their working conditions to be more efficient he has to write a memo.

Edit: to connect this back to ownership. This disparity is directly responsible for determining whether profits pay fair wages or got to Bezos and the other owners.

worik
Given the low pay and harsh conditions of the people who create the wealth of Amazon, I do not see confiscating it from the current owners as a Bad Thing

There are probably better means to achieve better ends, but the status quo is very fucking rotten

egypturnash
"2/3 of Amazon is owned by institutional investors" is a long-ass way from "Amazon is owned by the people who work at Amazon".
kevincox
The problem isn't reducing payroll costs and increased productivity, it is the consolidation of wealth.

If we can do twice as much with half of the labour people should work 20h weeks, not be unable to afford a home.

schmidtleonard
I have a whole list of things I'd like from my car that the market does not provide because it is more profitable not to. Why do I get the feeling that instead of seeing this as a horror story you would scold me for unreasonable expectations, even though it is the identical mirror form of the horror story you just told?
WalterBright OP
Mass production reduces costs by standardizing things. But still, car companies offer a wide range of options if you're willing to wait for your order. If Ford doesn't provide what you want, there's GM, Toyota, Hyundai, etc. There's no shortage of variety.

There's also a small cottage industry of people who will make fully custom cars for you. They're pretty expensive, though, as they don't benefit from economies of scale.

stego-tech
Because Mr. Bright has a long, storied comment history of neolibertarian fantasies being wielded as a cudgel against anyone who dares envision a future that does not align with his own.

Speaking from experience with them in another thread. Your best bet is to ignore the bait and move on to more fruitful discussions.

WalterBright OP
I merely point out that economic history shows that economic freedom works better than any other system.

Besides, I enjoy debate, like other people enjoy playing football. If you don't, why are you here?

fragmede
With all due respect, and I mean that sincerely as you've accomplished far more than I have, you aren't here for debate. Your viewpoint is stuck in the cold war mentality where Soviet communism was a failure (it did, but that doesn't mean that everything they touched was bad) and America and its brand of Free Market capitalism is perfect (it isn't) and responding to your comments is like talking to a brick wall for all the "debate" that actually occurs. Other long time posters here know better than to engage, but hey, you caught me waiting on Claude.
dh2022
Having lived through communism I can say the only good things were equality of men and women (in my communist country there were just as many women doctors, engineers, managers, accountants as men) and equality between people (students from Africa were very much welcomed). Everything else though was miserable: our free healthcare, our free cold apartments that had electricity 2 hours a day, our free education, our cheap on paper but non-existent food and medicaments.
WalterBright OP
All attempts at communism failed. Did you know that there have historically been 20,000 communes founded in the US? I wonder what happened to them!

I never said American free markets were perfect. They certainly aren't. But they are very successful.

> responding to your comments is like talking to a brick wall

I could say the same of the people I respond to! I don't expect to change anyone's mind here. The average stay at a commune is about 2 years, after which the members leave, cured of the notion that communism is better. I encourage you to join one.

vinoveritas (dead)
derektank
My take would be to scold you to start your own company that provides the features you want from your car if it's not already being provided by the marketplace
schmidtleonard
I'd have more luck petitioning the Central Car Design Committee because

> it is more profitable not to

...and if anyone thinks this is ridiculous, I'd ask them if they are for or against repealing all of our current motor vehicle regulations. If "for," they have admitted to being a hopeless libertarian, and if "against," they have acknowledged that important reasonable features can be incompatible with the profit motive of a free market and it no longer seems so strange that I might have a list which is more of the same.

jack_h
> I'd have more luck petitioning the Central Car Design Committee because

Highly doubtful. Command economies have far less variety in what they offer. This isn't theoretical either just look at western cars vs Soviet cars. There's this mistaken belief that if the free market can't provide some good then a command economy could, but the reality is that if a free market can't provide a good then the chance that a command economy could is even more doubtful. Command economies tend to be very bad at allocating resources efficiently as outlined by Hayek in "The Use of Knowledge in Society".

whatshisface
That's kind of a silly example, your congressman could write a bill allocating 53% of cars to the two seater lobby and 47% to the four seat lobby.
WalterBright OP
And what if 62% wanted two seaters?

Back in the 70s, the Department of Energy was tasked with allocating gas to the gas stations. A gas station had to apply for an allocation, and the DoE doled out the gas. The DoE doled out gas based on the previous year's usage patterns.

Sounds smart, right?

What happened is that gas consumption varies year to year due to a number of factors, like weather patterns, population changes, etc. The result was massive misallocation by the DoE - Californian had shortages of gas, Florida had gluts. That sort of situation has never happened before.

All that nonsense disappeared literally overnight when Reagan repealed all gas price and allocation controls with his very first Executive Order. I remember than wonderful day very well - at last I could drive right up to the pump and get gas, rather than wait in line. The gas lines never returned.

What you're suggesting is called "central economic planning". It is constantly tried again and again, and it never ever works. (The failures of it are always classified as "unintended side effects", though they are entirely predictable.)

ta1243
> I remember than wonderful day very well - at last I could drive right up to the pump and get gas, rather than wait in line. The gas lines never returned.

Not in the UK, due to a fragile supply chain.

https://news.sky.com/story/supply-crisis-catastrophic-panic-...

We saw it when the Evergiven closed the Suez. We see it whenever irational consumer behaviour caused unpredicable behaviour.

The Randian world you are so enamoured with is one of fragility, because buffers and margins reduces profit.

Or are those "unintended side effects"?

AnIrishDuck
There were ... many other factors involved in the gas shortages of the 70s.

https://en.wikipedia.org/wiki/1979_oil_crisis

I don't think the history here is as neat as you have laid out. To be clear: this is not a defense of central planning.

WalterBright OP
I lived through the gas shortages. I remember the day the gas lines ended. They never returned in the 45 years since, despite all sorts of wars and global crises and exploding oil refineries and Hooties shooting at tankers. All gone literally overnight with the stroke of Reagan's pen.

The gas shortages never existed before Nixon imposed price and allocation controls on gas, either.

(Except during WW2, where gas shortages were caused by gas rationing.)

AnIrishDuck
Well first, we have this:

> The Jimmy Carter administration began a phased deregulation of oil prices on April 5, 1979, when the average price of crude oil was US$15.85 per barrel ($100/m3).

So, the process wasn't really an instant wave of a wand, or stroke of a pen. We also have this:

> Starting with the Iranian revolution, the price of crude oil rose to $39.50 per barrel ($248/m3) over the next 12 months (its all-time highest real price until March 3, 2008).[11] Deregulating domestic oil price controls allowed U.S. oil output to rise sharply from the large Prudhoe Bay fields, while oil imports fell sharply.

We also have silliness like this:

> Due to memories of the oil shortage in 1973, motorists soon began panic buying, and long lines appeared at gas stations, as they had six years earlier.[13] The average vehicle of the time consumed between two and three liters (about 0.5–0.8 gallons) of gasoline an hour while idling, and it was estimated that Americans wasted up to 150,000 barrels (24,000 m3) of oil per day idling their engines in the lines at gas stations.

So we have counterfactuals: if there was no Iranian revolution, would the effects of Carter's gradual deregulation have been felt sooner? If there was no 1973 oil shortage, would the reduction in waste have made a difference? What effect did people simply believing that the crisis was over have?

I don't propose answers to these questions; they are, in my opinion, unknowable.

I suggest that economic narratives such as the one you propose do not capture the entire picture. You had downward pressure on prices due to deregulation and expanding supply, and upwards pressure due to geopolitics and waste.

These processes do not resolve instantly, they take time to play out. I suggest caution when attempting to derive cause and effect from single events in complex systems.

whatshisface
Doesn't every nationwide firm engage in central economic planning?
dh2022
Yes and no. A large national firm like Starbucks has a national annual plan. However, this national plan is made up of a lot of little regional plans which are then combined together. This national plan is then executed. Execution relative to plan is assessed every quarter; and every quarter the plans (both national and regional) are adjusted. This assessment and these adjustments are done at both national level and also at regional level.
immibis
Were the Soviet Union plans not also made of the plans of individual regions? (did you ever wonder what the Soviet Union was a Union of?)
WalterBright OP
Yup. But they have competitors!
whatshisface
It sounds like the issue is competitors or the absence thereof more so than central allocation based on market forecasts being possible or impossible.
WalterBright OP
> It sounds like the issue is competitors

You nailed it.

brooke2k
I feel this is a slightly disingenuous argument - mismanagement and poor planning can happen in both the public and private sectors. The US healthcare system is just one fantastic example of the private sector absolutely failing to deliver even a bare minimum standard of service. Gas lines are one thing - waiting fifteen hours in the emergency room to be seen, only to be charged thousands of dollars for some tylenol and a pat on the head is another.
WalterBright OP
> mismanagement and poor planning can happen in both the public and private sectors

Absolutely correct. But public regulation is quite resistant to course correction. Private companies have to face competitors and adapt or fail.

> The US healthcare system is just one fantastic example of the private sector absolutely failing to deliver even a bare minimum standard of service

The US healthcare system is massively regulated and interfered with by the law and things like people are forced to buy Obamacare and forced to contribute to Medicare and Medicare massively distorts market forces.

Healthcare in the US was affordable before the government got involved.

brooke2k
Public regulation also course-corrects, it just does so through democracy rather than competition.

I would argue that democracy is a superior method in most instances, because its motives are driven by the motives of the population as a whole, whereas capitalist competition is ultimately driven by exactly one thing: profit for the capital owners.

Where we agree I think is in the assertion that United States government tends to run things very poorly. In my opinion, however, this is not because central planning is inherently bad, but because our democracy is very weak, and we allow politicians to be controlled by corporate interests rather than the interests of the people that they represent.

EDIT: Oh, and for the record I disagree with the take that the US healthcare system is bad because it has too much regulation - but that's an entirely separate discussion that I don't think is worth going into.

WalterBright OP
Democracy cannot adapt efficiently to crises. For example, we elect a President every 4 years. You've got a long wait. A company can adapt overnight.

> capitalist competition is ultimately driven by exactly one thing: profit for the capital owners.

Absolutely correct. And competition is what drives prices relentlessly downwards.

The democratically elected government in the 70s that tried to manage the nation's gas prices and allocations with the best of intentions failed miserably.

Democracy also created the FAA, which used to regulate airline schedules, routes, and fares. Having lived through that era, too, I can attest how costly and inefficient that was. Air fares are amazingly low since, and the scheduling is very tight and efficient at placing airplanes where the people want to use them.

> this is not because central planning is inherently bad

Nobody has ever managed to make it work. Consider rent control. Endless variations of it are implemented, and all produce the "unintended" side effects of higher prices and shortages.

ungreased0675
The US healthcare system is pretty far from privately run. It’s more an example of regulatory capture and incumbents freezing out new entrants via extensive government regulations.
justinrubek
This person is praising Reagan in terms of economics - I wouldn't even call it slightly disingenuous; it is entirely disingenuous. Walter commonly has absurd takes on this site; I wouldn't fight too hard in conversation.
brendoelfrendo
This happens anyway, lol. Go to a car lot and you will see the majority of cars available are black, white, silver, and maybe red. Your car will have a stereo. Your car will probably have 4 seats, not 2. Dealers stock the most common configurations and, maybe this is not your experience, but my experience is that they will twist themselves into knots to avoid helping customers make custom orders for exactly what they want, even though the manufacturer has a fancy configurator page where you can do exactly that.
WalterBright OP
I've never had trouble ordering what I wanted from the options list. That usually means needing to pay more, though.

If you want custom leather seats, you can drive your car off the lot into one of many shops that offer such services, or other customizations. Me, I drove to the stereo shop to put a better stereo in (back when the factory ones were terrible).

There are many reality shows on TV featuring shops what will custom build a car to your specifications.

gnulinux996
> Of course. That's been going on since the invention of the plow. That's why today we can do more interesting things than turn over the earth with a pointy stick all day every day.

Are you suggesting that suppression of wages is what gave us "more interesting things" to do?

> History shows us that this inevitably means people lose all control over their lives, because the state will make your decisions for you and assign you your job.

How is this different from the "free market" assigning me a job?

> For example, let's say the color of cars produce by car companies is determined by democracy. 59% vote for the cars to be green. And if you want a red car? Too bad. What if you want a 4 seat car? No dice, 53% voted for 2 seaters to be made. What if you didn't want a car stereo? You're stuck paying for it anyway, as 73% voted for it.

Concessions are the price to pay for living in a civilized society.

const_cast
It's kind of a meme at this point that any kind of economic control for laborers = communism. That's not just a jump you're allowed to make, sorry. There are a plethora of nations outside the US which have stronger protections for labor, and they're doing quite well. It's not 1965 anymore, we have to start making real big boy arguments.

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