Max and I have been discussing the design principles of a tax on overtime. Max has been prompting me for price tags, definitions, and close quantifications. I have been averse to multiplying assumptions needlessly. Now, I'd like to retrace my steps and highlight once again the simple hypothesis that underlies the tax. That is John Maurice Clark's hypothetical state, cited by Stabile, in which all industry is integrated and owned by workers: "If all industry were integrated and owned by workers, what would be the relation of constant to variable expense?" Clark's answer is that "it would be clear to worker-owners that the real cost of labor could not be materially reduced by unemployment." [Studies in the Economics of Overhead Costs, 1923, 402] Contrast this humble hypothesis -- of, dare I say a dictatorship of the proletariat? -- with the IMFian solution to the problem of reducing costs: lay off workers. The IMF solution, of course, entirely disregards the perspective of a society made up of workers. It treats the economy as an mere aggregate of individual capitals. It is, to put it obviously, a perspective dictated by finance capital. To see the contrast between the two policy approaches, it's not necessary to have an integrated worker-owned industry or even to subscribe to the political project of establishing one. All you need to do is try to put yourself in Camdessus's shoes -- how do _you_ explain to workers the salutory effects of unemployment? SEOUL, Jan 12 (Reuters) - South Korean President-elect Kim Dae-jung asked International Monetary Fund (IMF) Managing Director Michel Camdessus on Monday to help persuade union leaders to accept layoffs called for under the IMF's bailout plan for the country, said a statement by Kim's political party. ``Union leaders will understand better the need to accept layoffs if you explain,'' the statement by the National Congress for New Politics quoted Kim as saying during a lunchtime meeting with Camdessus. Regards, Tom Walker ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Know Ware Communications Vancouver, B.C., CANADA [EMAIL PROTECTED] (604) 688-8296 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ The TimeWork Web: http://www.vcn.bc.ca/timework/
