Libertarian-Communist Economic Model (Collaboration)

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rhodri powell's picture
rhodri powell
Joined: 5-02-18
Feb 6 2018 07:53
Libertarian-Communist Economic Model (Collaboration)

Collaboration is a new model economy, a market system with a democratic state profit maximising through investment to fund social understandings. There is competition between firms but collaboration within the firm with revenue-income divided up, not fixed wage-profit system. Collaboration is mutually beneficial voluntary cooperation where one party, the one who achieves, gets more ( Seen as incentivised cooperation ). Its a new relation within the enterprise, some income shares fund social operations by the state and independent institutions.

The system is based on freedom, guarantees property and rights under law and is designed to fullfill micro-economic, macro-economic and social-economic essential and ongoing operations to reach objectives. Basic micro-economic satisfaction of buying what you want and doing what you want (satisfactory supply and demand), macroeconomic objectives of high output, efficient allocation of output, sustainable development, productivity, sustainable growth, low inflation, low unemployment, satisfactory balance of payments (satisfactory aggregate supply and demand). Social-economic concerns like equality with justified inequality and satisfactory institutional expenditure to reach social objectives, such as fully funded OH/CAB/Union help.

The state is a single investor not tax collector. It mobilises resources to satisfy consumer demands efficiently by investing in profit and workers' demands by investing in humanity also. It possibly considers macroeconomic and social policy in its investment strategy2, or profit maximises for funding and allocative efficiency.

Wage system is abolished as currently work is social but income distribution inequitable. Workers and managers should receive a share of firms' income, the share decided by hours worked and achievement. The income is a cake, and its divided up. This is not hierarchical predetermined income distribution as with liberalism or traditional communism. Income goes up and down according to demand, productivity, cooperation and other things. The fact that workers and unions get an income share not wage means income growth not inflation from their power/solidarity.

29-24% STATE PROFIT-SHARE (For public services (24% min, humanity deducted)
24% PROGRESSIVE-OPPORTUNITY-SHARES (divided according to achievement)
44% COOPERATIVE-SHARES (divided according to time worked)

This is income per time period3. The state profit and VAT replace all tax paid by individuals except road tax on cars, alcohol, fuel and tobacco duty. People achieve (“Progressives”) and this grows income for all. Managers achievements are greater in value, skilled achievements also4. Achievements get promotion growing income again. Interdependence leads to solidarity and achievement incentivises efficiency by rewarding fixed cost minimisation and income maximisation. Cooperation leads to growth in income thus opportunity bonus, incentivising to grow income again. If you fail to achieve and someone else does- your cooperative share still grows. Unions (who get income from client enterprises) and Citizens Advice Bureau provide help at home. The workers pay no tax as government gets the profit. This flat rate (29%) adds greater incentive to grow income than progressive tax ( The profit paid to government is a fixed percentage, no matter what you earn ). All this incentive and efficiency leads to 8% growth in income in the first year, 20% after, equitably distributed. This drives demand, accelerating growth in income further. Bad workers fired (how it is now).

The state has no say in the running of the business - it merely takes its share of the profit. Also, the business is not necessarilly a profit (or in this case income) maximiser; it can be ran according to the will of management. However, remember that the state invests in profit - negotiating a guaranteed fixed minimum amount as a return. You can either pay the minimum amount, or do with the business what you want (paying the 29% state share along the way), or income maximize and thus maximize state share (possibly for further investment). In accordance with the principals of libertarian-socialism the state and the individual do business rather than have a tax collecting relationship.

The relation is cogeneration (opposite of degeneration) where we grow each others income (you achieve or I achieve - growing each others income), as opposed to being employed in a sometimes conflicting relationship.

Risk. The entrepreneurs face little risk, as when they open a business and it fails, labour covers itself and the government covers capital. Equality of risk (workers entrepreneurs etc get welfare for the first month of a new enterprise). Government invests in fixed costs in return for profit. Entrepreneurs thus open multiple businesses creating jobs.

Also, the entrepreneur defines and distributes progressive-opportunity bonus - meaning alot of your work, not other peoples, can be defined as an achievement. You could get alot of money. However, he may pay himself alot, human nature. In practice if he does, you can work for another business on the market who doesnt. Also, in some cases unions will negotiate the distribution of opportunity shares with the management, remember they have a stake thus want money going to those who achieve.

Which union is decided by the communists in the business. They choose one of three, interested in getting a good service. The CAB is broken up into three and get shares too. The three Comrades’ Cogenerative Association’s provide childcare and free services (university type clubs - academic, languages, arts, music, travel and sports5) as these can be provided without need for a big government. The CAB is a problem solver - dealing with legal, financial and other problems. Welfare claimants can give-up 3% of their income, or not, for union services.

Capitalists invest through intermediaries in the state, getting 25% of the profits from subsequent state investment in the economy (think of it as indirect investment ) Risk free, tax free. State can act as risk-sieving broker between capitalist and entrepreneur. Also, businesses and households save with existing banks. People can have additional pensions (on top of state pension from profit) - that is then invested in the government or abroad. Taken together with state shares and VAT (after government spending) this should mobilize massive financial resources for, in effect, investment in cooperative shares6.

Existing bourgeois will have to by law sell there business to the government, then by law invest 100% of that money in the government ( receiving 25% of the profit risk free from this) and operate their business again risk free - yet receive opportunity share. This is humane transition.

This distribution is an attempt to satisfy everyone. We decide whether to compete or cooperate, optimising relations in-line with interests. Progressives are rewarded straight away and dont have to climb the ladder, but achievement gets you promoted anyway. Everyone likes them as they grow the cooperative payment - its in peoples interest to see you succeed. People are incentivised to grow state/outside institutions. Unions and the CAB get a share of every business. Neoliberal types will see it as “progressives and everyone else” while left-wing types see it as achievements benefiting society.

The income share is calculated per time period. The workers etc get a share of cooperative income, dependent on hours worked. If all work same hours, all get equal share ( share of the 44% after VAT and fixed costs ). If they achieve and earn revenue, then get a relative share of the opportunity bonus (percentage of bonus depends on percentage of income earned).

So, the state invests in profit and humanity. Humanity is deduced by the opportunity cost in profit. This is done by workers, managers and komrade entrepreneurs (all Specialists) having a solidarity card, with flexi-time. Sometimes they have days off, recreating or going on holiday and the time spent on the card is deducted from enterprise profit. Humanity is deduced in the system, the cost in profit. Improving the credit rating with the bank/state.

The amount deducted from profit is the amount usually earned pro-rata by the individual that would be forgone, ( but they get paid anyway) with work done by the other. For example, if a worker takes monday off and someone else works making £100, they both get £100 as £100 is taken from the profit. They dont take £120 from profit as thats too much by law, gets a bad credit rating and they lose OH priviledges.

losses are avoided by over-employing. Too much gets a bad credit rating, costs opportunity and cooperative income, and limited by state. Not too little as enforced by union. Monopolies cant have solidarity card. All this ensures true allocative efficiency in terms of positive conditioning and endows social compensation as opposed to regulation. (We can reduce regulation and law for business while still considering single parents etc).

State invests in both but this can change. The solidarity card has an agreed limit at the start of each month, no more humanity counts than the limit meaning losses cannot be written off as humanity. Also, losses over agreed limit are losses in progressive-opportunity and cooperative share. CAB enforces limit negotiation. At first we invest in material profit and grow income, but After successive years of growth state can adjust to an investment strategy.

There is no taxation yet government is properly funded. We have a democratic say on what is done by the government with the profits; as opposed to the capitalist profits of capitalism. Poverty can be abolished as there are massive incentives to work. The six welfare concerns are the sick, single parents, pensioners, the family generally, carers and the unemployed. The first three get 40% of the average cooperative share, the family get 10% per additional child - 5 % for every child in the family, if working. Carers get 15% and the unemployed also get 20% of the average cooperative share. Orphans and other disadvantaged people are the responsibility of social services (how it is now).

Socialists7 from Organisation Humanity are managerial consultants and a pool of appropriately mobilised personnel with experience who turn round failing businesses or reallocate resources. This is because most failures are actually profitable. They do this because its what the workers/managers etc want to do, and its profitable. They wont abuse power as they take the firms opportunity bonu, and reach a target to grow income also. The firms wont depend on OH as thats wrong (reputation), gets them a bad credit rating and they may reallocate resources. Bad firms are classed as not profitable.

Social operations coordinated to reach social objectives funded with adequate state income. Beautification, housing, infrastructure and development, police, welfare, family help, social services, council, NHS and Education. They cogenerate with a different form of corporate government. With the NHS for example, (They are paid 65% cooperative payment and 35% progressive-opportunity), they reach realistic common sense targets, targets in treatment or reaching standards, achievements that guarantee income growth from the government (or the whole thing is neoliberal, competing over given bonus)). There are everyday targets that reached by doing the job well, hard targets for hard workers and optional big targets with big bonuses where opportunities represent themselves. Lower paid (cleaners etc) contracted out to their own enterprises.8

Beautification is development based on housing and city centre rejuvernation with necessary expansion of infrastrucure in and out. City centre accords with traditional architecture, beautiful but different 16th-19th century architecture as opposed to a corporate and surburban nightmare. The city centre offers choice facilitating competition and ease of doing business. Infrastructure fosters growth, housing contracted out to collaborating enterprises, with an emphasis on quality control as this is the benefit of the market missing.

Collaboration is communism working based on incentivised cooperation and competition, on self-interest and freedom. Micro-economically it means comrade entrepreneurs, managers and workers do what they want due to a choice of jobs with flexi-time. Consumers buy what they want due to consumer sovereignty. Macro-economically it means massive and efficiently allocated/produced output, with the government in a much better position to satisfy objectives. There would be investment in efficiency and productivity, not in cost-minimisation with the other (cutting wages). Social-economically it means around 44% equality and strong social institutions.

We are free, equal and in order (economically - effective operation arranged for rational self-interest as vocationally theres effective positioning, arranged for achievement and progress). We do business with the government, not pay taxes ( instead of earning a wage and paying tax on it, we earn tax free shares). There is opportunity with most jobs. Women and ethnic minorities are equal unless they achieve, we are helped with social operations, helped by a "problem solving" CAB, helped by unions and OH, we have prosperous growth, have consumer sovereignty, live in a beautiful home and have equality of opportunity with the opportunity bonus. We work around our social/family lives with flexi-time, We pay no tax yet have properly funded public services. We have secure welfare and can invest in the state for a secure retirement, with little (aggregated) risk. Inequality is due to achievement, not ownership and control. Party-people can work part time but achieve - work hard play hard.

Collaboration and democracy optimise liberty and equality given human nature. We are subordinate to cooperative conditions not state or private authority. Individuals are free from government and capitalism. Individuals decide free from government (where to work, how much work to do, what to buy, voting and rights). Individuals decide free from private profit ( whether to achieve and grow income for ourselves - not expected to grow profit for an other). The state income is in the hands of individuals as shareholders. The business income is in the hands of individuals as progressive-achievers. The state and capital is in the hands of the people9.

We will grow income 90-100-110% through mobilised resources for profit maximisation, and to be sensible, accumulate a surplus to deal with recessions and possible problems. Then possibly change to an investment strategy, launch solidarity card and launch massive operations (beautifying Chester into a Vienna or Venice and turning London into a US style city to cope with growth, for example). Once we have optimized government spending and development, VAT is gradually abolished as its regressive.

However, to be honest, we risk achievements not paying off and some positions have no opportunities (You may build a house, an achievement, but it might not sell). You lose the right to start a business with your own money - you have to go through the government. The gov. attitude is job creation though. Individuals will have to think for themselves with new business start-ups, they will judge whether theres more or less money involved (You might not make as much money as you hoped). Egoistic and arrogant types still want power in a business. We still have recessions because we are essentially free. We can deal with these with borrowing to invest and expand humanity org. ( Temps ). There will still be class, the investor, progressive, equality, welfare classes. We are tied to cooperative payment, as opposed to inefficient tax, tied to state profit not private profit. There will still be inequality between progressives in successful skilled vocations ( law etc) and cooperatives in unskilled enterprises.

We will have though the benefits of the former Soviet Union (equality, mobilised resources, effective society, easier life and solidarity) and the USA ( freedom, independence, markets and democracy). Synthesis achieved, objectives achieved.

So, you turn up for work for your cooperative share, and if its worthwhile - a progressive share too. Achievements grow both. Also, tax free help.

We are equal unless we achieve! We are partners in society!

9We are not anarchists - there is rule of law with the government and the entrepreneur/manager decides on opportunity bonuses. However, the government is democratic and the law reflects this. Also, the entrepreneur and the worker are in a business relationship not a predetermined hierachical one. With capitalism, bosses always earn more, here it is possible to earn more than the boss.

8It is to be the best of the United States ( best service) and the United Kingdom ( free at the point of use ). Hospitals are incentivised for efficiency and achievement yet publicly funded.

7Sociable word, reflects culture of Org. Humanity

6Current Investment and tax as percentage of gdp -

5Sports teams divided between fee-paying amateurs, and semi-professional ( free but demanding) sides to prevent over subscription

4A managers achievement will yeild greater revenue compare to a check-out assistant, for example. Naturally this means greater rewards.

3Construction etc may be per job

2Invest to reduce unemployment, eg - business X will employ ten people, but the government could invest in an enterprise employing a hundred people even though theres less profit (Eg - invest in jobs in run down areas of Detroit, not chasing profits by investing in New York).

1The best of both

darren p's picture
darren p
Joined: 5-07-06
Feb 6 2018 16:19

This is neither libertarian nor communist.

klas batalo's picture
klas batalo
Joined: 5-07-09
Feb 6 2018 19:30