From: Zeynep Tufekcioglu <zeynept-AT-turk.net>
Subject: Re: M-I: Cooperatives?
Date: Wed, 8 Jan 1997 00:42:35 +0000


Doug, are you saying capitalists can't plan very efficiently because of the
market? I agree wholeheartedly.

What I'm saying is that there are better alternatives to the market convey
information from the consumers to the producers. That function of the market
can be taken over. The other function of the market, "the disciplinary"
function is there because firms have the right to fire their workers, not
solely because GM and Ford compete with each other. The word competition has
no special meaning unless one defines what the loser does lose. Under
capitalism, you get fired. Under socialism?

Anyway, that's one of the main indicators I use to separate state-capitalist
countries from socialist (or call-them-what-you-want countries), can a
worker be fired? Is unemployment legal?

What I'm objecting to is the claim that the "hard-to-plan,
not-withing-the-firm" stuff is, by itself, a positive aspect of the market.
That has nothing to do with "conveying information" or "allocating resources
efficiently". It's inefficient. 

Zeynep



At 16:33 7/1/1997 -0500, you wrote:
>A reaction to Zeynep's remarks on capitalist planning.
>
>Yes, capitalist firms plan, often for the long term (Mitsubishi reportedly
>plans for the next 250 years), and they use computers to do it. But don't
>forget the role of competition in regulating the relations among
>enterprises. Ford may plan, but it always has GM to worry about.
>Competition is a very messy and destructive way of sorting out success and
>failure, and forcing technological change. These are the hard things to
>plan, not the within-firm stuff.
>
>Doug
>
>--
>
>Doug Henwood
>Left Business Observer
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>
>
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