Re: [OPE] socialist planning in capitalist firms

From: Alejandro Agafonow <>
Date: Mon Apr 05 2010 - 07:25:51 EDT

Do you mean Paul backed by empirical research? The phenomenon of diminishing returns to scale in production is backed by empirical research, though diminishing returns to management may have motivated less empirical inquiry. However, to think the world as one where there are only constant or even increasing returns to scale and management is like thinking in a world without friction.  A. Agafonow ________________________________ De: Paul Cockshott <> Para: Outline on Political Economy mailing list <> Enviado: lun,29 marzo, 2010 20:52 Asunto: Re: [OPE] socialist planning in capitalist firms how much of this is theory and how much is backed by quantitative research ________________________________________ From: [] On Behalf Of Alejandro Agafonow [] Sent: Monday, March 29, 2010 6:07 PM To: Outline on Political Economy mailing list Subject: Re: [OPE] socialist planning in capitalist firms Diminishing returns to management are yield rates that after a certain point fail to increase proportionately and start to decrease to additional outlays of management. Should certain degree of centralization reached this bureaucratic inefficiencies start to increase disproportionately. A. Agafonow ________________________________ De: Gerald Levy <> Para: Outline on Political Economy mailing list <> Enviado: jue,18 marzo, 2010 15:09 Asunto: Re: [OPE] socialist planning in capitalist firms > So, what does make conflicting interests in capitalist economies more > powerful than conflicting interests in socialist > economies that prevent the former to go further in a centrally capitalist > economy? Hi Alejandro: The profit system. Also, while there can be conflicting interests in a socialist system, there can and should be a certain level of coordination among different producers. For instance, consider how the diffusion of new technologies is often retarded by the system of proprietary rights, such as the patent system, under capitalism. This incredible inefficiency would (or, at least, should) be overcome in a socialist system where producers would share knowledge about technologies. In any event, there wouldn't be the same people vs. profit equation in which the requirements of the latter trump the former under socialism. > Nothing in my criterion. Therefore the issue of diminishing returns to > management. What do you mean by diminishing returns "to management"?  There can be - and are - bureaucratic inefficiencies wherever there are bureaucracies. A capitalist corporation is an inherently bureaucratic and hierarchical organization and there are many inefficiencies that arise from this. In  solidarity, Jerry _______________________________________________ ope mailing list<> The University of Glasgow, charity number SC004401 _______________________________________________ ope mailing list

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