If Noam Chomsky is talking about an economic system where the workers own the company that they work meaning the central government, meaning state ownership of the means of production of society, meaning, or economic Marxism, then I think he’s dead wrong. There isn’t a large developed country in the world with that economic system. But if he’s talking about an economic system where the workers each own a percentage of the company that they work at, like with private stock options, not just for executives, but the entire workforce, then I believe Dr. Chomsky is on to something.
In a system like that no CEO would make a hundred or thousand times more than the workforce. Each CEO would be paid based on the job they are doing good, or bad and wouldn’t set their salary. The Board of Directors made up of the stockholders and the workforce would determine this. And no one person or a small group of people would own an entire corporation. But the CEO like the entire management and workforce would own a piece of the company based on what they contribute to it. So they would all get a base salary, plus their stock options. When the company is doing well, so are they, when the company is doing poorly, so are they.
Which would give plenty of incentive for the entire management and workforce to work as hard and be as productive as they possibly can. Because there’s plenty of financial incentive for them to do that. I could see an economic system developing like this in America if there enough people who want it bad enough and will work hard and well enough to make it happen. The Green Bay Packers of the NFL have a similar system to this. Where essentially all the Green Bay residents own at least a piece of the club. Not the city government, but the individuals each own a private share of the club.
They don’t have one person whose the owner of the club or the general partner of a small group running the club, but a CEO who has to report to the Board of Directors and the stockholders in the club. And they have been not only one of the most successful NFL franchises since they’ve been in existence, but in pro sports in general. What I would like to see in America is that we move away from cowboy capitalism, where there’s basically no taxes and regulations for company’s and wealthy people and a lot of corporate welfare. But instead where company’s are able to stay in business by the quality of services they provide.
A system of individualism that I would call American capitalism, where people can make as much money as their skills and production will allow. Pay taxes based on how much they make with the wealthy paying the most and going down. But where taxes aren’t so high that there’s not enough incentive for people to work hard, be productive and earn a good living. And where the economy is not over regulated or under regulated, or where regulations aren’t enforced like the last ten years. But where the economy is well-regulated to protect company’s and individuals from abusing each other.
Where we have a public education system producing enough good workers for the highly skilled jobs. And a safety net that catches people who fall through the cracks, but helps them get up on their own feet to be self-sufficient. If company’s on their own, or new startup company’s want to move to a system where the entire management and workforce owns a piece of the action so to speak, great. Thats their call, but that shouldn’t be forced on them. Let the market decide how these company’s are run. Instead of state planners and have government there to help people back up who fall and prevent and punish company’s and individuals who abuse others.