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The Baker Paradox - Why Socialism doesn't work.
This is a post a did more than two months ago on SocialismVsCapitalism, and I wanted to share with you all.
Introduction and Definition
So, a little less then a month ago I asked here what the hell is Socialism and Captalism (link here), and the democraticly elected answer, THE MOST UPVOTED answer was this one:
"The core distinction is whether the dichotomy of employeemployee exists. If everyone is a part owner in some capacity then that’s socialism. If some people own business (employers) and other people work but do not own (employees) then that is capitalism."(Link for the original post)
I liked this definition because it shows that Socialism is not democracy or shared profits. If the owner let the workers decide stuff but keeps the profit, that is not Socialism. The same way if he shared the profit but still deciding how they should work, still not Socialism. It only works when there is no more relationship between boss and workers, meaning no one have the private ownership over the workplace, no single person has the right to decide upon someone else labor. It is a simple definition and capture quite nicely the idea of collective ownership. And of course it was the winner of my pole.
Now, based on that I will go into a few assumptions about Socialism.
Workers are also owners. There is no more private property of the means of production, now everything is owned by who work there,l and decided between them, this of course means they have an equal share of power and decision making within the business to make sure there is no power relationship or privileges between the workers.
You can sell the business you own. Let's say you are the only worker, meaning you are the only owner, if you are tired and don't want to work you should be able to sell your business. And since Socialism is not necessarily against trades, money or market as a way to allocate resources, then I see no reason to why people wouldn't be able to sell a business in a socialist society.
Decisions inside the company will be made via democratic means, and ties with the assumption 1 of equal share in influence and decision making within the company, to assure there is no privilege or power relationship.
The owners can together, democraticaly decide to fire people. This is to prevent people from slacking off and doing less then they should, of the other workers see a third one doing nothing, they should be able to fire that guy. Because as I talked earlier, if there is one guy making the decision by himself, he could use this power to fire workers to control the MoP and oppress the workers forcing them to produce what he wants, or else he will fire them. That is why every decision must be made by all workers/owners via democracy, even firing someone.
I'm also assuming there would still be money, as a mean to exchange goods and to represent value and how much work is put into given product, good or service. Meaning we wouldn't need to go back to bartering.
The Bakery Paradox
You can check the original post here (Original ideal) but this version is much more complete.
Think of a small business, like a bakery with only one owner, the baker himself. By himself, he is not able to help the clients, do the selling and make the bread necessary to keep the stock, so he thinks about expanding and hire more people.
He hires two guys to work for him, one to do the selling and take care of the money, and the other to help him make the bread. Based on assumption 1 these are now his co-owner, meaning they can decide what bread to make, what price to sell stuff, etc...
Based on assumption 4, these two can newly employed people could work together to fire the baker himself, let's say they are not liking the way the baker runs his bakery... And since they are now a majority, 2/3 of the owners, these two could very well decide that the old owner shouldn't be there anymore.
And now to the worst part, these two new guys can sell the business and share he profit between the two based on the assumption 2. They successful entered a small business, fired the owner and sold just lifelong job for quick and easy money without breaking socialism rules.
This increase dramatically the risk of hiring people, because you don't know if they will work together to fire you for easy and fast money or not. And you can lose the business your workers hard to create and love, breaking hundreds of thousands of small business spread on all neighborhoods.
Possible ways to solve it
This can be done in a few different ways
1° You just belive that people is naturally good and wouldn't do such thing. Meaning the two guy wouldn't fire the baker for profit.
2° prohibit people from selling business.
3° Prohibiting people to be fired.
4° Give privileges to the original owner to prevent this from happening, like not being able to be fired, or keep the owner status even after being fired...
And I'm sure you can see that every one of these "solutions" have its own problem, like the 4° solution makes so the owner can now slack off instead of working, which wouldn't be fair with the other workers. As socialists like to say, "the problem with captalism is that it gives the goods for those who don't work (investors, stakeholders and rentists)" but it is clear that this is doing the exact same thing
I'll only respond to the comments that attack directly the 5 assumptions I made in the beginning, because the logic of workers taking the business stem from those five assumptions, proving then wrong using the definition you guys gave me to Socialism will certainly prove me wrong.
This is a place for debate, pls behave. I would love to see how Socialist in this subreddit would deal with this paradox.
Good luck and have fun.
It has been a while since I last received a new comment on this post, and none of them address the issue of the bakery paradox.
So I think it is pretty much safe to say, that this post killed Market/Coop Socialism.