Another potential flaw in current economic theory...

[Jim Choate <ravage@einstein.ssz.com>]

Hi,

It occurs to me that there is another potential flaw in current economic
theory and business practice.

Currently (ala Friedmann) the parties that reap the benefit of a succesful
business are the shareholders, this is currently seen to exclude the
employees in many cases/companies.

This approach undervalues the business worth of the employees commitment to
the business.

A more reasonable approach (and one that might make free-markets more
workable, though not by itself) is to consider the employees shareholders
even if they don't hold a single piece of stock. And no, their paychecks are
not sufficient.

Consider, another way to look at a business' goals is "to make every
shareholder a millionare so they don't have to work at anything else". What
business do you know has the specific goal of making their employees (all
the way down to the janitor) sufficiently wealthy from their commitment to
the business so that at some point they don't have to work any more either
(and we are NOT talking about some measly 401k retirement program)?

What would the impact be to the current business models if we include this
axiomaticaly?


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