Historically speaking, question is, what makes Capitalism superior, more efficient and more successful over other economic ideas and systems? The answers are very simple: Profit potential, competition and fruits of labor and hard work. The main reason why collective, state run, centrally planned systems like Socialism failed is that there is no incentive for anyone to work hard. If all you are going to earn is a low, fixed wage like everyone else than why one should be more dedicated, more hard working and else. The way we see entrepreneurs giving up and risking everything they have, for their dreams, is simply not possible in a centrally planned and owned system.
Now look at the benefits of democracy. Why democratic countries have been far more successful than others, in every respect like economic prosperity, social order, stability and growth? It is the sense of ownership and sharing which Democracy provides to everyone. People have the feeling that their existence matters, and they can vote in or out anyone. People believe that governments are their servants, not rulers. They also believe, since they have to come back for votes after a set period of time, they will govern in accordance with the wishes of voters.
We totally believe that capitalism is the best economic ideology and system, available to mankind, to the date. The richest economics generated by Capitalism in last over two hundred years, and largest and richest middle class, ever, in Capitalist countries is an undeniable proof of success of Capitalism which is unmatched in human history. Having said that, in spite of all that success and belief, we all realize at some point in our lives that Capitalism is still not a perfect system. While keeping most people better off, in long run it does create an unacceptable income inequality.
In many cases, employee performance is not as good as it might be expected. Work environment may not be ideal, as well. Complaints about bosses are common. Have you ever thought about it? Probably, yes. Do you realize, what are the reasons for these drawbacks? Of course, there are some inherent issues attached to these problems. Issues that have their roots in history, tradition, evolution, beliefs and class structure of societies. Hayek’s theories prove that Capitalism is the result of gradual evolution in human economic systems. But, the current evolutionary stage may not be final or ultimate. May be, we need to get this evolutionary process going.
Capitalism evolved from Feudalism and slavery. The basic idea in both of those systems was that there are two separate and distinct classes of human beings. One being the privileged masters, lords, rulers, royals and elite, by birth, and all the others who are supposed to manual workers, subjects and common people. The purpose of commons was to serve elite. This distinction was a writing on stone. No one could cross the line drawn between classes. If you were born common, doesn’t matter what you do, and what you prove, you will always be common. On the other hand, even the murderous elite would always remain elite.
So, when Feudalism gave the way to Capitalism, in the midst of intensive industrialization and urbanization, and slavery gave way to equality of all men, elites still found a way keep themselves separated from despicable commons. This was through a new concept of business ownership. As per this concept, there are no more elite and commons, and master and slaves. But, still there are owners and owned. There are business owners, who run their business through paid managers, and instead of buying labor, in the form of slaves, they would now “hire” or in other words “rent” the labor.
Very much like slavery, labor is still a commodity, product or service, whatever you want to call it, which is provided to business owners at a certain market price, set up by the principles of supply and demand. Now, what does hiring an employee means? Hiring an employee is very much like hiring a taxi. When you enter into an employment contract, you very much sell away certain number of hours every week from your life, depending upon your contract of employment. During those hours you do not have your own will, you do not have your own choice. You have to show up at work on a certain specific time. You cannot be late, you cannot be absent, without the approval from your employer or the owner of those hours of your life.
You have to have a certain set of education and skills. You have to get and pass the employer’s training program. You have to learn and follow the increasingly getting heavier policy manuals. You have to be completely obedient to your bosses and do whatever is expected or ordered. You go to break, even for eating when your boss wants you go, and come back within a specific period of time.
Now, what is different between this and slavery? Slavery was involuntary. People were forced into slavery without any consent. Employment is voluntary, at least on paper. In presumably, free market countries like United States, at least by law you cannot be coerced into any type of employment, and in most cases, you can quit anytime, unless your contract mentions otherwise, for example, military service and other contractual bindings. This on paper situation is, of course, very different from the actual and factual situation, and everyone knows that. Just like most slaves, many studies show that about 70% of employed people hate their jobs.
There are several reasons for this apathetic situation. The central theme of all those reasons, and you must be very well aware of those, if you work, is that current work environment seriously violates the basic foundation principles and rights in our society. Those are freedom, rights on the fruits of your labor, and democracy. The notions like “Oh! its Monday”, “TGIF”, “I hate my boss”, “My hard work is making other people rich”, “My job can’t even take care of my bills and my family”, “I fell like a number”, are proofs that this owner and employee relationship must end, now, and we must have system based on employee ownership of businesses.
Employee Shop
