thereisnospoon
Gold Member
Labor is EVERYTHING. Everything you see around you is created by labor--every road, every pencil, every magazine, every CD, EVERYTHING. All wealth is created by--and ONLY BY--the labor of productive workers. It would seem fundamental, then, that labor should decide how the resultant profit is distributed.
And eventually, that will be how things evolve economically; remember, feudalism used to be the prevailing economic practice.
ALSO, the former USSR was a military dictatorship that talked of socialism but practiced totalitarianism. That is indisputable.
Which in no way makes it not a commodity. It just makes it a very valuable one.
And those who labor decide how THEIR SHARE of the profit is distributed. Please understand that, while YOU are unequipped to perform any labor more intellectual than what could be performed by a well-trained chimp, that does not mean that that is the ONLY thing in the world that qualifies as labor. There is such a thing as a intellectual and emotional labor, consisting of the intelligence, foresight, and training to plan and guide an enterprise to profit, and the willingness to risk one's resources in putting it into action . . . and then hiring menial mouthbreathers like you to stand around the water cooler while on the clock and complain about how you're the ones who REALLY make the company work.
Labor is unique in economics for a lot of reasons. Any analogy tends to have a weakness so why not just call it what it is?
Labor is a commodity..
I own a factory that makes cardboard boxes. Everyone who ships or packages stuff needs them.
My annual gross sales are $1mil per year.
One of my sales people lands a big contract. I have a couple problems. One, with the new deal, I have to increase my production to meet the demand. But my facility does not have the equipment or manpower to accomplish the tasks to fulfill the orders.
So, I must hire more people to get the work done. I also need a new production line.....In my quest to find the machinery, A sales guy from the ABC machinery Corp shoots me an email. Tells me he wants to set up a meeting to discuss this new equipment that will cut the time of production in half. The machinery is expensive, but with the favorable terms offered by the company, I run the numbers and I can afford it. In fact, with the new contract, it's paid for in 6 months. I meet withe ABC Machinery Corp guy and sign up....The following week the people come in and install the equipment. They demonstrate how it works. I am impressed. Now I can produce twice as many cardboard boxes in half the time.
Guess what? I no longer need to hire new people. In fact this new equipment requires fewer workers on the floor. Oh but wait....Instead of laying off people, I can send to them to school and they can learn to operate the new machinery. However, I am not going to need the 6 people it takes to run my older machines. I only need 3. One for each shift.
I decide to keep 4. One is a spare for vacations, sick days etc....This person can also work varied shifts. I have to let two people go because their job no longer exists. There is nothing in the plant for them to do. Now are they qualified to go to the tech school because they simply lack the skills and education to learn the new equipment. Sorry, they have to go. They get severance pay and references. I write each person a letter of recommendation to carry with them to interviews.
See how this works? This is business. I spent money to make money. In the process I dramatically increased my production, I reduced labor costs. I also discovered not only did I not have to hire 12 more people, I needed two fewer workers.