Workers' share of profits

I don’t know why I didn’t respond to the response to me, in this thread. I must have lost it in time..

Either way; workers are not “entitled to a share in profits” according to Marxist, and general socialist, theory. In fact, profit cannot exist without the capitalist/worker relationship. “Profit” in the socialist sense is not simply a positive income/expense ratio for the business. “Profit” is the income claimed by the capitalist after such ratios have been established.

As long as the capitalist/worker framework exists, workers are entitled only to what they can bargain from their employer; which is why the capitalist system must be wholly abolished according to Marxism, and why mutualims, the USSR, and free market libertarianism are all just seperate forms of capitalism (Capitalism being defined by the rule of capital, or more specifically the holders of capital as a class; or generalized commodity production).

There can be no “proletarian profits” as the concept is wholly absurd… at least defined as it is by Marxists and general socialists. Surplus != profits.

A marketplace full of cooperatives, tho from a prole perspective would probably be far more accomodating than current capitalism, is still just capitalism. The workers are now the capitalists. Production is still based on exchangeability, not need. And whether or not specific workers run their workplace, workers as a class are still under the domination of capital.

So…

Is anyone here familiar with the Marxist argument that workers are entitled to a share of the employers’ profits because they are being exploited, i.e. are not being properly compensated for their contribution?

They’re not being exploited because they recieve an unequal share in income. They are being exploited because they are alienated ; sort-of like how slaves aren’t exploited because the slaver takes their wealth, they are exploited because they have no freedom to decide for themselves. Wage laborers are in a similar, if less extreme, situation, in which their entire livelihood and contribution are tied to their labor; having no “property” with which to claim as their own. (Of course, we are not defining property as possession and control (which a theif has, you wouldn’t consider a thief’s possessions as property tho), but as a specific legal title to monopoly status over the direction of that property).

First, did he not sign a contract, meaning voluntarily? [And I hope we agree the old “What should the poor worker do? Starve?” argument is fallacious. Symbiotic relationship is the way to look at it] Second, do not most people prefer it that way

It depends on how we’re defining voluntarily. Slaves and serfs could often buy their way into free men. Were they, then, voluntary slaves and serfs? I would say it is easily apparent that most people do not want it that way, seeing as how the few that do almost universally stop being wage laborers the moment they are financially able to (and either retire, become salaried, or become capitalists).

The “sic” is about your “risk free” assertion. In reality he is at just as much if not greater risk than his boss. The capitalist loses $250k, and this is bad for him, sure. But he still has $x in his bank account, etc. I mean, some capitalist go belly up when their business fails, but not many. If the business goes under, the worker loses all his money (assuming he lives paycheck to paycheck), or at least his financial stability, and must now begin the long and greuling process of finding a job that provides for him as good or better than his last job.

i. Playing a game of chance with immediate payoff involves risk, but not getting paid earlier than one should. Meaning we have a case of the second concept [bird in the hand] and not the first [gimme now].

So that the worker, if he is in an industry that sells its product the moment it is produced, or not at all, has benefit the second even if he doesn’t have the first. He gets paid win or lose.

He doesnt’ get paid at all if the business goes under.

Regardless, this is more of a symptom than the illness itself. The illness is “capital:” private ownership (as opposed to reasonable and accountable possession and control). Capitalists are merely the beneficiaries of the real exploiter, which is the legal establishment of capital. Entrepreneur with ideas are not necessarily capitalists, and often just as exploited by capital as workers. Your whole reasoning for “why he is not exploited” rests on the assumption of the existence of capital, and therefore assumes its consequence (and is fallacious, but I’m sure I didn’t need to explain that).

But… alas… now that I have read the thread further, I see that Nero and Filc have explained my position for me: that workers and capitalist don’t “share profits,” and that if they did the workers are just capitalists, not workers.

is that labor is a commodity whose price is determined on the market.

Labor cannot be a commodity. It cannot be produced simply for its aiblity to be explained (it can’t really be produced or exchanged at all. It is, in fact, the producer and exchanger). The “price” that is determined on the market is a worker’s labor time, not her labor.

So we can see that:

If labor is a commodity whose price is determined by supply and demand then whatever a laborer chooses to work for is the “just price” and therefore they are duly compensated.

Is not true. But again, exploitation theory is not about who gets paid what. It’s about who controls what.

Well that was the point of my post (because the concept is also completely absurd in non-Marxist circles). I was implying that something was gravely wrong with the formulation and terms of the original question.

On a second reading of the OP though, I wonder if maybe he was referring to a social-democrat as opposed to a full on socialist…

Marxism has a distorted concept of labour. However there is nothing stopping a company owner from offering such incentive schemes to their workers, if left to the free market these sorts of incentives can exist. They don’t necessarily require a union or a government law or collective form of coercion for it to exist either. These sorts of incentive schemes can exist to give the employer a competitive advanage over the competition by enticing the most skilled workers to his company over another company that does not offer such a generous incentive scheme.

Alas, they almost always are

Wage laborers are in a similar, if less extreme, situation, in which their entire livelihood and contribution are tied to their labor; having no “property” with which to claim as their own.

1*. …having no property…*

I don’t get this. Wage laborers cannot and do not own houses and cars and clothing and shares of stock? We must be talking about different wage laborers than the ones I know. Those guys own plenty of stuff.

  1. they are alienatedtheir entire livelihood and contribution are tied to their labor…

I imagine being “alienated” is bad thing. So that a capitalist, as opposed to a wage laborer, is in a good situation, one that the alienated wage laborers should aspire to so they can stop feeling alienated and being enslaved.

But socialists want everyone to be alienated and enslaved. They don’t anyone to own anything.

  1. Production is still based on exchangeability, not need.

Sadly, when I asked a prominent socialist here about my needs for a yacht to be hand washed every day by others and set aside for my exclusive use, [and I may as well add my need for a harem full of dancing girls and the Taj Mahal to live in, indeed my need for a continent, nay a planet, of my own], he got very emotional. He tried to explain that I have to grow up and that I don’t really need all that stuff, that I am being [and i assume he meant this in the best possible way] a childish baby saying I need all that stuff. He recommended that I grow up.

I replied that he had earlier stipulated that under socialism, my needs will be self determined. Why is he now saying that my self determined needs are not needs at all?

For some reason, he did not reply to this, but left the forum in a huff, and by “huff” I mean a flood of insults aimed in my direction.

Who, in your version of socialism, decides what I need? Me? Will I get my planet then, all to myself? I need Earth, by the way.

Or will you decide for me? If so, will I also get to decide what you need? Can we do a deal here? You decide I need half of Earth, and i’ll decide you need the other half, with everyone else needing nothing but to serve the two of us.

  1. “Profit” in the socialist sense is not simply a positive income/expense ratio for the business. “Profit” is the income claimed by the capitalist after such ratios have been established.

I call BS. Where did Marx or anyone else, make this distinction? And given that this distinction exists, how do we know that what you call “profit in the socialist sense” exists at all? I claim that the only thing there is, is a positive income/expense ratio. What is your proof otherwise?

Not only that, where does the posistive income/expense ratio come from, according to the labor theory of value?

What I see here is a feeble attempt to rewrite a provenly false and absurd doctrine to fit the facts a little better. Socialist Russia was a disaster, in human as well as economic terms? Well, that’s because it was capitalism running the show there. How ridiculous.

I think these communist ideas gorw out of frustration. Today, its probably fustration on the increasing difficulty of making a living. And alot of that has to do with government controlling more and more resources, which means less resources for the people. And, people who have more resources from government contracts, which means less resources for the people.

The answer isn’t more government control of more resources, its less government, free up resources from government so people have more resources. Of course, government has already screwed things up, as there are alot of people who have made alot of money from the government, and when the government does release its resources, they’ll be able to buy more of them, unfairly.

I don’t get this. Wage laborers cannot and do not own houses and cars and clothing and shares of stock? We must be talking about different wage laborers than the ones I know. Those guys own plenty of stuff.

That’s the problem tho, and why so many fail at refuting Marx; cars and clothing (even shares of stock to a limited extent, if it’s still connected to the job contract) are not really private property, they are personal possessions. Private property is a specific form of possession (in Marxist terms, at least) over productive items which entials the legal justification for monopoly status over said possessions. We can argue semantics, or just leave it at that.

I imagine being “alienated” is bad thing. So that a capitalist, as opposed to a wage laborer, is in a good situation, one that the alienated wage laborers should aspire to so they can stop feeling alienated and being enslaved.

Yes, and slaves should aspire to be slave masters, not to crush the slave system and its perveyors.

Sadly, when I asked a prominent socialist here about my needs for a yacht to be hand washed every day by others and set aside for my exclusive use, [and I may as well add my need for a harem full of dancing girls and the Taj Mahal to live in, indeed my need for a continent, nay a planet, of my own], he got very emotional. He tried to explain that I have to grow up and that I don’t really need all that stuff, that I am being [and i assume he meant this in the best possible way] a childish baby saying I need all that stuff. He recommended that I grow up.

That’s because he’s a moralist and idealist. If I could help them all out of that, I would glady do so. The fact is you may or may not have that “need” or want. In a monied system, you can obtain it. Good luck obtaining it when something of that magntitude of production cannot be claimed exclusively.

I replied that he had earlier stipulated that under socialism, my needs will be self determined. Why is he now saying that my self determined needs are not needs at all?

Your needs will be largely self-determined, as most production can go on without a hitch leaving us all with basically free access to consumption. But your largely self-determined needs will be subject to reasonable democratic accountability and control. This is already the case with capitalism, will be the case in ancapistan, and only strengthened in a (true) socialist system. (Yes, I define Marxist-Leninist government, state capitalism, as capitalism)

Can we do a deal here?

Yes. The one caveat is that you cannot use unequal access to production and legality against me.

I call BS. Where did Marx or anyone else, make this distinction? And given that this distinction exists, how do we know that what you call “profit in the socialist sense” exists at all? I claim that the only thing there is, is a positive income/expense ratio. What is your proof otherwise?

Go back and reread Marx with this is just a given. Why is it a given? Because it is literally the classic definition of “profit” as used by Smith (et al); interest from stocks. Your comrades here (filc and nero) agree with me on this point. Profit is not the income/expense ratio of the company, but the interest a capitalist gains by his ownership of stock.

A financial gain, esp. the difference between the amount earned and the amount spent in buying, operating, or producing something.

Normal profit represents the total opportunity costs (both explicit and implicit) of a venture to an investor or entrepreneur, whilst economic profit (also abnormal, pure, supernormal or excess profit, as the case may be monopoly or oligopoly profit, or simply profit) is, at least in the neoclassical microeconomic theory which dominates modern economics, the difference between a firm’s total revenue and all costs, including normal profit.[1] Economic profit is thus contrasted with economic interest which is the return to an owner of capital stock or money or bonds.[citation needed] A related concept, sometimes considered synonymous in certain contexts, is that of economic rent - economic profit can be considered as entrepreneurial rent.[citation needed] Economic profit in contemporary neoclassical economics should be differentiated from that of the previously dominant school of classical economics and Marxian economics, which defined profit as the return to the employer of capital stock (such as machinery, factories, and ploughs) in any productive pursuit involving labor

[The USSR ran itself like one giant corporation. It still produced commodities (production based on exchange) for sale on the world market. It retained the boss/worker relationship, tho with a tad more democratic accountability (in this regard. It is far less accountable, and far more deplorable, than liberal democracy in most regards) It was not liberal capitalism, that is for sure. But it was capitalism.]

@ OT: It’s called exploitation theory.

See Eugen Böhm von Bawerk’s work where this is directly addressed