What are the drawbacks to a form of capitalism built on profit sharing?
I’m of the opinion that the distribution of wealth in this country is top heavy. 1% of the population controls approximately 90% of the wealth! A lot of this disparity comes from the fact that people work hard for low pay. The owners or stockholders get to keep most of the wealth generated from these peoples’ work. What if you were to pass legislation that required businesses to not only pay salaries, but also to share profits. The business owners and stockholders would still get a share of the profits, but now the workers would too. This would certainly inspire workers to try to help the business to work better. I am considering starting a business for the sole purpose of leading by example. To me this could be a revolution of a more socialist form of capitalism. It compromises away the weaknesses of capitalism and socialism and sort of puts their strengths together. Is our society too much of an oligarchy for such a thing to even happen? Comments? Suggestions?
I wish you had cited a source for your distribution of wealth numbers. Can’t find distribution stats, US is 92nd most equal wealth country according to Gini coefficient.(wikipedia) The wealth is still largely controlled by a small group of people. I am not asking this question for selfish reasons. I am a mechanical engineering student who is about to graduate and should make somewhere around 45-50k per year. I’m going to do fine. I just look at minimum wage workers and see them working much harder than the wealthy and I see it as an injustice. In this country simply having money is a talent. The owner of a restaurant doesn’t really work very hard but he makes more from his employees than they do. Profit sharing does not reduce the desire to own a business siginficantly. They would still be the upper class. I’m still looking for drawbacks. Are there any economists out there? Any examples of this type of thing failing? Please criticize the idea and not me.
nice theory will it work? logic is there
February 4th, 2010 at 4:56 pm
nice theory will it work? logic is there
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February 4th, 2010 at 5:35 pm
Your numbers start off wrong. 1% of the population control 35% of the wealth. 5% of the population control 50% and 10% of the population control 70%.
Start your number out correctly, then you can have a valid debate. Until then it is all speculation and to me it shows that you have some issue against people who have money.
Also, if we where to just start passing out the profit to everyone, then who would be the one to create the next company? You want more money, I understand, but earn it! If you want to get rich, you can never do it by working for someone. Not unless you have a masters or a major degree in something that will pay huge amounys of money. Yet again, they worked for it.
Envy is soooo wrong… Wanting something for nothing gets you nothing except hate and rage.
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