Originally Posted by contracycle
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That's not a good enough challenge though; prestige products do not and cannot make up the bulk of the economy.
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But the trick is that product differentiation can be applied to all kind of products, not just "prestige" product. When they sell you a Arsenal t-shirt at 5x the price of a non branded t-shirt, this is product differentiation.
We can have a look but a lot of products don't compete on price. Commodities such as oil and the like do but stuff for consummers is all about market segmentation etc etc. Competing on price is the last thing a company wants to do.
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Yes I know. But thats a very different case to not being able to produce enough stuff. The point remains that every other system suffered from under-production, while capitalism suffers from overproduction, and therefore, "underconsumption".
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Well, I agree but I don't see this at being in any particular way "systematic" or solution-less.
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Which is impossible. If there are say a million units of cola drunk perr week in a given market, then CocaCola and Pepsi are each going to produce quantitites that increase toward a million units, so they can sell them at the most competitve price. Which means that production will ALWAYS outstrip consumption, no matter how much money consumers have.
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I can bet you whatever you want that if there is a million cola units to be drunk and 2 competitors, the optimum point of production does not lie at one million. It's an iteration game and while the production number may start high, they will both tend to produce in function of their market share - And try to find new ways to increase said market share.
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What are you confused by?
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The fact that people sell D&G t-shirt and C&K ones show that we don't need t-shirts? That doesn't make much sense...
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... for exactly as long as you can stop your politicians being bought. How's that working out?
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Right now, not so well, by and large. But that's emminently fixeable. After all, the rich also have an interest in not crashing the system.
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Every single worker who turns up every day.
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Then how come Enron, WorldCom and Lehman went bankrupt? I assume their workers turned up every day as well?
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See, this is the hero thing again. Capitalism concentrates power, and then takes personal credit for what that power achieves. Even though it was actually the work the masses.
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So I disagree with the 'work of the masses' bit but you're right about the first part. Leaders have power and thus take personal credit for what power achieves. What pisses me off more is their tendency to try and avoid taking the blame. Normal enough, I guess - but we do have ways to see, in hindsight at least, whether they were responsible or not...
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I'm sure thats true. Just like its true that a pilot has the fate of hundreds of people in his hands. But that doesn't mean that the pilot is more worthy than his passengers, it is just the consequence of the control system.
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Yes, sure. Just as a king ain't more 'worthy' than a beggar. But when it comes to attributing blame/laurels for the running of the country, the king is the one we judge, not the beggar. Ditto the plane/pilot. He is not a greater human being than his passengers but, if there's a problem and he manages to land the plane safely, he gets the credit, not the passengers. Sounds logical to me.
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How about: as soon as we give them sufficient control that they are actually in a position to make decisions. But at the moment, all they can do is what their bosses tell them to do.
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Well, even if I see your point and would have only practical objections rather than fundamental ones, I think you just picked the wrong company to make your case of "employees are way way smarter than management"...
From
FT.com / Management - Inside Nokia: trying to revive a giant
"Nokia, a case study in corporate turnrounds under Jorma Ollila in the 1990s, cannot be turned round this time, they claim.
Poor leadership and complacency bred of success, compounded by an over-consensual culture, caused Nokia to miss the smartphone revolution"
From Wiki:
Nokia's official corporate culture manifesto, The Nokia Way, emphasises the speed and flexibility of decision-making in a
flat, networked organization, although the corporation's size necessarily imposes a certain amount of bureaucracy.
In May 2007, Nokia redefined its values after initiating a series of discussions worldwide as to what the new values of the company should be. Based on the employee suggestions, the new values were defined as:
Engaging You, Achieving Together, Passion for Innovation and
Very Human.
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Basically, Nokia was known as indeed a flat organisation where its employees were given quite a chunk of responsability. I think they even try the internal project voting system where projects are given resources according to how many people want to work on a project i.e. via popularity...
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Of course not. There are far too many. But under capitalism, being smart and productive is unimportant. Only having control of capital is important.
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Steve Jobs' share of Apple is actually quite small... And it remains that all those smart Nokia employees couldn't save their company when its products turned out to be less popular than Apple's...
Again, in any system that isn't purely stagnant, people will fail. It's not that they don't work. Or that they are not smart. Or whatever. It's just that their work has no value because people don't want to buy the stuff they're offering. And I don't believe you can avoid that. Thus economic activity will always incorporate a degree of (financial) risk. And thus, how you split that risk matters.
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Lol. How big is the market in art prints? Pretty damn large.
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Yeah and they don't command the same price as the original. So? People are willing to pay more for the original and people are willing to pay more for a Picasso's 10-labour hour painting than any of mine, no matter how long I work on it.
What are you going to do to stop that? Re-wire their brain or forbid them to buy?
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Often! But thats not becuase they WANT to pay more. If it were on sale at the lower price, they would have been happy to buy it at that lower price.
See? When you said that people "want" to pay more, you were really describing the situaiton wewre people were compelled to pay more. You deduce that the fact that they "wanted" to do this becuase they actually did it. But that isn't what they wanted at all, what they wanted was the goods.
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Well, obviously. Sure, I want a bentley, a 20m sailing boat and a 350 sqm condo with a view on Green Park, all for free. Me and millions others. How much money we're able & willing to part for these is the discriminating factor.
How are you going to decide who gets the flats around Green Park? By definition, they're limited supply and demand vastly exceed it...
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What is unfun is having no control, and not profiting from our work.
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As the Flow book points out with examples of people working on a factory line, control is mostly within your own head. And money is a secondary factor at most.
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How different it would be if we were all working for oursleves, in our interests, as a demonstration of our contribution to humanity?
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As soon as you move beyond artisan-type of work, teamwork makes individual contributions unclear, at the very least to the outside world and I certainly have had the case of my own performance within a team being valued differently by 2 different team members...
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Yes, but only becuase it can lose THEM a few billion, not becuase it is to the benefit of US.
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Sure. So? Enlightened Self-Interest tends to be generous and cooperative because, long term, it works better than the alternative...
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But we still don't get any EQUITY for our RISK.
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Would you want equity for your risks? That's my point. I am all for a greater involvement of the workforce via equity and greater use of the cooperative structure. OTOH, I am not blind to the dangers... Again and again, equity goes DOWN as well as up...
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Not at all. See gift economy. If it were inbuilt, it would never have had to have been imposed by force. That shows that it is profoundly un-natural.
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Really? You see many people taking risks without any reward of some sort at the end? Where?
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good! So that's a win-win scenario then.
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How? We got students studying all kind of bullshit to avoid working and being supported by the rest of us? How's that win-win?
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Yes of course. And I haven't proposed abolishing it - only that there are at other needs at play. There are, in short, other needs the trump the mere efficiency of division of labour. None of this applies in capitalist production, of course becuase workers are no more significant than machinery.
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None of your companies ever trained people? Or moved them from jobs to jobs? C'mon, this is becoming a cartoonish evil version of what real work within corporations look like...
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Remember, I never said that But who the fuck listens to what I have to say, eh?
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I mentioned 'small variations'. As you said, in terms of tangible output per hour, there is a limit to how much more stuff someone more trained/competent/talented can produce. OTOH, this is the least of the concern of most people. What people care about is whether the product is of interest, not how long it took to produce...
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Absolutely not! Look,yoi often see people praising the "entrepreneurs" work ethic; up at dawn, hard working, engaged. And this is contrasted with the workers: stoop shouldered, resentful, doing the minimum to get by. Of course! Because the owner knows they are benefitting. They know that however shitty the work they do, every bit of it counts. While for the employee, every bit of it is a burden, an imposition, and the rewards do not in any way matchy up to the effort.
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As I said, you won't find me arguing against a greater equity culture. OTOH, it's not going to be a limitless future with singing tomorrows. There'll be plenty of people begging to be left in their wage slavery...