Communist/Socialist policies transferrable to non-centralized economies?

May 2008
1,299
Bangkok
#1
SHORT VERSION: What would be so wrong with Congress/Parliament legislating that American/English/European corporations are not allowed to pay managers more than, say, 6 or 8 times what their underlings make?

LONG VERSION: Was just on a trip which included Slovenia and a Slovenian who was ranting about capitalism and how good things were under Tito. He explained that under Tito a manager could only make 4 times the salary of the workers and/or staff. He then said that now things are much worse for many working Slovenians; managers commonly make 1,000x the salary of the workers and/or staff.

Coming from America where I think this same phenomenon (managers making >10x as much as staff) is more than a little prevalent, I'd like to know if it is necessarily a communist/socialist/centrally-planned-economy characteristic (that is, having policies on salaries), and why more open countries can't pass laws to moderate the (seemingly) ever-increasing discrepancy between workers' and managers' salaries, IF in fact there's more to it than market forces or dopey boards of directors setting dangerous precedents.
 
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Toltec

Ad Honorem
Apr 2008
7,923
Hyperborea
#2
It would be unworkable, companies would make secret cash deposits into Caymen Island bank accounts and use other loopholes to continue to line these fat cat's pockets.

A much better system is no-one gets paid by the company. All company profits go to a fund run by the government and every person in the country gets an equal share regardless of job (or not).
 

KGB

Ad Honorem
Apr 2011
3,385
#3
Where is Tito`s country now? That`s because of his socialism and his limits.

People must not be limited. If there is limit of paymenst, managers will find a way to get the money, but it will be just dark economy.

I have lived half of my life in a country, where the managers took a little bit more than their underlings. All the companies state - owned, of course. The result was, that they stolen as much as they can and now my country is ruled by the mafia, because of that.

Congratulations to all the "limiters".
 

Toltec

Ad Honorem
Apr 2008
7,923
Hyperborea
#4
Problem is however bad having limits is, not having them is worse. If ever we moved from a mixed economy to a free one, the result would be something worse than anything we can possibly conceive. I'll let Chomsky elaborate.

[ame=http://www.youtube.com/watch?v=RxPUvQZ3rcQ]YouTube - Chomsky refutes "libertarian" "anarcho"- capitalism[/ame]
 

KGB

Ad Honorem
Apr 2011
3,385
#5
Chomsky is really great, but I will believe him when he moves from the corporation paradise of America to North Korea.

It is so easy to speak, living in capitalism...
 
Oct 2009
913
Moscow oblast
#7
Where is Tito`s country now? That`s because of his socialism and his limits.

People must not be limited. If there is limit of paymenst, managers will find a way to get the money, but it will be just dark economy.

I have lived half of my life in a country, where the managers took a little bit more than their underlings. All the companies state - owned, of course. The result was, that they stolen as much as they can and now my country is ruled by the mafia, because of that.

Congratulations to all the "limiters".
From the pay rate schedule of Soviet Ministry of Medical Industry and Biotechnology:

Director of a research institute – 600 rub. (without extra payments!!!)
Researcher – the head of a group – from 280 rub.
Researcher (a doctor) – from 220 rub.
Engineer – from 120 rub.
Cleanup man – 80 rub.

Director / Cleaner = 600 / 80 = 7.5. I cannot say that Soviet society was absolutely egalitarian. The income inequality is not so bad, I do not think it is too small, at the same time it is not too big.

People must not be limited.
A-a-a!:zany: Now I see! That is why the hired managers of American private corporations set for themselves bonuses of many millions when their enterprises are unprofitable!
 
Apr 2010
16,748
Slovakia
#8
I have lived half of my life in a country, where the managers took a little bit more than their underlings. All the companies state - owned, of course. The result was, that they stolen as much as they can and now my country is ruled by the mafia, because of that.

Congratulations to all the "limiters".
Congratulation. Now you live in a system where corporate managers are bailed out by tax money anytime they manage to ruin their business. Larger the failure, bigger the bailout.

Now that is what I call system without limits ...for managers that is.

Some people however might call it robbery. Obviously they are "limiters".
 

Toltec

Ad Honorem
Apr 2008
7,923
Hyperborea
#9
Chomsky is really great, but I will believe him when he moves from the corporation paradise of America to North Korea.

It is so easy to speak, living in capitalism...

And I'll believe you when you move from the mixed economy of Bulgaria to early 19th Britain where you would work 12-14 hours a day, 6 days a week, for barely enough money for food and housing and nothing else. Where there would be no health and safety or as it gets in the way of company profits and no compensation if you had an accident, no pension, no sick pay, no prospect of promotion because all top jobs come from nepotism, no job protection and if you tried any kind of collective bargaining let alone form a union, you would be get 5 year hard labour. That is if you managed to get a job, if you were too sick to work or unemployed, it would be the work house or begging.


There's your corperate utopia. And if you think I'm exagerating, check out a few sweatshops in the third world where the coperations are moving the jobs to. A human rights group in Cambodia recently filmed one manufacturing for western brand names. They didn't pay the workers, they were all children they had bought off the parents and they were kept chained to the machines.
 

KGB

Ad Honorem
Apr 2011
3,385
#10
But I do not criticize the economy of Bulgaria or I do not admire the 19-th Century Britain practices... Hm, now when I think about it, wasn`t UK the country, which applied the limits of the working day first? And Germany?

You know, ppl achieved that without Chomski..

Corporate history is not utopia, it is reality! Reality, which gave us internet, for exampe and the briliant posiibility to discuss with you, beeing so far from each other and unknown, the ciriticizm of Mr.Chomsky...

I can understand him - the anticapitalist countries remained a few... North Korea is too far, Cuba is too warm. He has to stay in America, poor him.. :)

And seriously - Chomski or others, they just critizise and do not give any real oportunity.

Yes, the corporations do some bad things, yes, as well as other sujects of the eceonomy system, like individual, for example. But that`s whe West has courts and laws, and free of speech, to correct them.