- #176
TheStatutoryApe
- 296
- 4
It would seem to be the ideal capitalist model though as I have already stated I am not of the opinion that capitalism is the be all and end all of economic systems.Vici said:It seems that you think that small business owners are capitalists and ideal society would be small businesses competing with each other in perfect competition.
You are right that I do not see the point of a business as eliminating competition. One might even suggest that competition is good for the business owner as each business may then find their niche in the market and prosper side by side where as constantly eliminating competition will constantly create vacant niches to be filled by new competitors requiring more and more work to maintain ones own niche in the market.Vici said:Government role would be preventing big corporations coming into existence, since it seems that you are aware of the fact that perfect competition leads to monopolies, because the natural goal of any business is to eliminate competition and become a monopoly in its market. You may say that majority of small businesses do not want to become monopolists and their goal is to make end meets or just live comfortable life offering a reasonable service to community. It may very well be so, but logic of the market is not so obliging to such intentions. Either they would have to expand or they would be constantly threatened by whose who will and eventually will have to stop to be small businesses.
As well certain businesses may necessarily be required to be monopolies such as the railways. You can not simply allow anyone and everyone to start their own railways or the whole land would be crisscrossed with them and most would be hardly used if used at all or even completed.
Some small scale local monopolies may even occur naturally when there is only one small niche for a certain type of business. If you have a local baker and everyone knows and trusts the baker the likelihood that any competition would occur is fairly slim, except with corporatism.
You are misconstruing my argument. I have only argued that the employer and machines obviously add value to the labour of the workers otherwise they would not work for the employer. The employer offers an opportunity which they can not find or create themselves otherwise, again, they would not be working for their employer.Vici said:On another issue, you seem to have a patronizing view of those who work for wages. That the fact that some people are workers says something on their inability to manage and hence they cannot collectively manage themselves and have control over their work, hence they need 'entrepreneurs' and democracy at workplace is impossible. I hope I misunderstood you, otherwise it is similar to claims of slave owners and aristocrats that slaves or peasants cannot manage themselves and need more educated , better human beings such as owners and aristocrats to manage them.
As far as workers coming together and working for themselves imagine that we have a few people who decide to do just that. Their business becomes successful and they find that they can not keep up with the demand for their product. They decide to expand and admit more people into their fold, perhaps more in number than they are themselves. In a purely democratic model what happens if the new members decide that they do not like the business plan as it stands and decide it should be changed? If they have more votes than those who created the business then they may change the business as they please. The creators of the business now have no control over their creation after spending perhaps a few years of their time and effort in creating it. Their experience and knowledge of the business is now of little account and if the new workers run the business into the ground because they do not have the benefit of that knowledge and experience they ruin the people who gave them their share in the business to begin with as well.
So perhaps we consider that these creators of the business should have some greater level of control of the business than the new workers. Perhaps we see that their investment of labour into creating the business, as well as their continued input in the form of knowledge and experience, privileges them to some higher level of compensation. But if we decide these things are true then how do we justify believing that "the capitalist" is not justified in receiving similar considerations?
I think that it is fairly obvious that the emergence of large corporations was for the purpose of enabling large scale industry and the "saving capitalism from collapse" aspect is a self fulfilling prophecy as without the existence of large scale industry and corporations the system would not likely have come to the edge of collapse. Practical considerations will trump theoretical considerations. The likelihood that anyone worked out the math of a theoretical system for a burgeoning technological revolution with considerations for details of which they hardly could have had any knowledge is pretty far fetched and borders on conspiracy theory. That the systemic model necessarily found its balance in any particular form is as indicative of intent as the human eye is indicative of a "watchmaker".Vici said:I think it is important to look at reasons why corporations have appeared. Was it inevitable for preservation of capitalism?
The rise of corporation related to the emergence of large-scale industry, but it maybe that the corporation emerged not to enable large-scale industry but to prevent it from becoming excessively productive.
Most small businesses fail within the first year. They do need to take out loans but this primarily due to the corporatist system. They can succeed, pay off their debts, and be as autonomous as one can be considering the circumstances that they are operating in. And no, not everyone can be a successful business owner the same way that not everyone can be a doctor, or an engineer, or a rock star. It is merely a circumstance of reality. No system in existence can make sure that every person has the equal chance to any occupation that they desire so I do not see how this effects the viability of a capitalist model.Vici said:In any case small businesses are under stress of competition, many of them fail. Since people have to borrow money to open business, they are indebted to the banks. In recent times especially, many relay on credit cards. Banks usually like to be sure that business will be successful and will grow, hence there is pressure from banks on small businesses to grow.