[MD] growth and sustainability

[craigerb at comcast.net]

[gav]> is profit inherently unsustainable? or is > there room for profit in a sustainable economy? Gav,You’re comparing two different things: the structure of the workplacevs. its profit status.  The structure of the workplace can be egalitarian(everyone has an equal voice) or it can be hierarchial (either top-down orbottom-up).A company can be for-profit or non-profit.  All combinations are possible.For instance, a for-profit company can have an egalitarian structure.If investors find this structure more efficient (= more profitable)they will prefer it.  On the other hand, a non-profit hospital will generallyhave a chief administrator (with an advanced degree in hospitalmanagement) & won’t consult the janitorial staff on new medicalequipment purchases.What happens when an employee controlled, non-profit companycompetes against a for-profit one?  Assume they are bothmanufacturing companies, competing in the same market,selling the same product for the same price.  The price gets al
locatedinto 4 categories:I)                variable costs (utilities, raw materials)II)              capital costs (land, building, machines)III)            wageIV)            “P-factor” (to be explained).To simply: Assume the rates for I) & II) are the same.In the for-profit company, investors provide the capital.In the non-profit company, the money for the capital is borrowed.The amount allocated to III) & IV) vary inversely.In the for-profit company, the lower III) wages get,the higher IV) the “P-factor” (= profit) is.In the non-profit company, the money for capital costs (+ interest)is repaid from IV) the “P-factor”, the rest goes to III) wages.The capitalist puts downward pressure on wages,while the employee controlled company puts upward pressureon them.            Craig