Sunday, October 16, 2005

a libertarian approach

- thirty years ago, in a time of free and wide political debate, i proposed in high school a model for retribution not based on hourly wages, but on production

- the basic idea was a new type of share, "labor share", tightly coupled to exchange capital stocks and shares of the company in a relation like ls=k(es) with a fair empiric k , a portion of, could be paid in times of economic expansion, in capital shares or stocks, as reserve and pension plan

- the reduction of fixed costs associated is beneficial in times of crisis to keep companies competitive, and most likely should, in the long term reduce bankruptcies

- the effect of such a system is incentivating the production of the business entity, trough optimizing the production of every single member, kind like the reversed process of reduction of single cost drivers in cost analysis

- any comments welcome, as usual ...

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