[gav]> is profit inherently unsustainable? or is > there room for profit in a
sustainable economy? Gav,Youre comparing two different things: the structure
of the workplacevs. its profit status. The structure of the workplace can be
egalitarian(everyone has an equal voice) or it can be hierarchial (either
top-down orbottom-up).A company can be for-profit or non-profit. All
combinations are possible.For instance, a for-profit company can have an
egalitarian structure.If investors find this structure more efficient (= more
profitable)they will prefer it. On the other hand, a non-profit hospital will
generallyhave a chief administrator (with an advanced degree in
hospitalmanagement) & wont consult the janitorial staff on new
medicalequipment purchases.What happens when an employee controlled, non-profit
companycompetes against a for-profit one? Assume they are bothmanufacturing
companies, competing in the same market,selling the same product for the same
price. The price g
ets al
locatedinto 4 categories:I) variable costs (utilities, raw
materials)II) capital costs (land, building, machines)III)
wageIV) P-factor (to be explained).To simply: Assume the rates
for I) & II) are the same.In the for-profit company, investors provide the
capital.In the non-profit company, the money for the capital is borrowed.The
amount allocated to III) & IV) vary inversely.In the for-profit company, the
lower III) wages get,the higher IV) the P-factor (= profit) is.In the
non-profit company, the money for capital costs (+ interest)is repaid from IV)
the P-factor, the rest goes to III) wages.The capitalist puts downward
pressure on wages,while the employee controlled company puts upward pressureon
them. Craig
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