Comment on Boeing says it can’t make money with fixed-price contracts
agitatedpotato@lemmy.dbzer0.com 10 months agoThis problem could be solved even with a co-op structure even withing a free market. If ten workers in a co op produce $100 bucks of extra money, they all get ten and as long as any new hires can carey their weight so everyone still gets ten bucks bonus, they will hire them. Ones companies get big enough to have diminishing returns, like a new employee could only produce 5 bucks of surplus, then hiring that person would make everyone have a smaller piece of the pie. If the pie all goes to one person they can keep adding workers until the worker doesn’t produce any surplus over the cost.
KevonLooney@lemm.ee 10 months ago
You are assuming two things:
In a small company, none of this is true.
agitatedpotato@lemmy.dbzer0.com 10 months ago
This is a proof of theory, the same way capitalist economists show what options and game theory incentices exist. Its quite literally a textbook example.
HobbitFoot@thelemmy.club 10 months ago
Also that each worker supplies the same surplus. While forecasters will assume this, this is rarely the case in engineering.
agitatedpotato@lemmy.dbzer0.com 10 months ago
All I said was 10 workers produce 100 dollars of surplus. Nowhere does that imply each produced 10 dollars. Only that their voting power commands 10 dollars of surplus. Read it again.
HobbitFoot@thelemmy.club 10 months ago
So you have a system that doesn’t reward increased productivity between members, or even provides some metrics for measurement. You can have a successful project with non-performing members.