- Capitalism and Alternatives -

the shift of money from the office to the factory floor would not benefit office workers.

Posted by: Ludwig von Mises ( USA ) on May 11, 1999 at 07:20:28:

In Reply to: Most of the money comes from profits. posted by Red Deathy on May 07, 1999 at 12:17:35:

: : What about when the CEO or board comes up with something that makes the plan even better? Without anyone going over what middle management did, things would be done with less eficiency.

: So, they play a revisory role- surely then they should be paid less than the middle management- something more like an MP's salary.

Maybe if they only looked at two people's projects. However, they are responsible for everyone in middle management, which is one of the reasons that they are payed more.

: : BTW, communism/socialism punish everyone but the factory workers, including middle management.

: Erm, no, it doesn't, the abolition of the wages system would benefit middle management as well as shop-floor workers- management and office staff are workers too.

Maybe, but the shift of money from the office to the factory floor would not benefit office workers. You can't take the money only from the top executives and expect everyones pay to be even, you have to take quite a bit from the middle as well.

: : OK, so they aren't good at giving credit to those that the article is not about. I'm sure that everyone realizes that we need factory workers, and that they do deserve some credit.

: However, the Article was giving all the dredit to the CEO's, which just isn't true.

However, a magazine that is mainly for top executives that gives the credit to top executives is not a good reason to cry revolution.

: : You are correct! Their skills are very rare, the positions are limited and the responsibilities great. HOw many people on the factory floor could do this job? I'm guessing not many, unless they are quite young. Again, as I've said many other times, profit goes back into the business, in one way or another.

: However, teh point is, if they simply recieved their wage, without share-options, bonuses, etc. their income would be a lot less, I'm not disputing that they work, but that they *earn* all their income, which is patently not so (and even teh scarcity of jobs is somewhat artificail, because of the very structure of that sector of the jobs market, I'm sure that pretty much anyone with a BAe and some experience could do the jobs, but that sort of thing isn't on the cards, thus preventing over-supply and a wage crash...).

In most companies, everyone in an office can get a bonus and is gets options as an accepted form of pay, and the factory workers sometimes get a bonus in the form of a raise, which can eventually get them into the office.
Many CEOs haven't even finished college, and go only by wit and experience. It takes a special type of knowledge to be in senior management, something that can't be learned in college or even from experience. A good CEO etc has plenty of experience in the feild and has lots of brain power for doing that type of job. This is why there is not an oversupply, not because a bunch of guys in custom suits are coming togeather figuring out how to stay in power.

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