Thursday, November 17, 2016

Latest craze:maintaining homeostatic compensation by social/ firm share shifting

Some times the system needs to reduce firm wage bills

As if system had wage flex ala neo classical macro

Using the transfer system the per hour social contribution can be increased to cover the firm cuts
On an average if not on each individual job holder
By maintaining full hours and job positions the movement between jobs should allow adjustments at the firm level to continue a pace

The potential uses of a socialized surplus both macro and micro
are a marvel ?

Sector crunches ?
Managers of the firms
Can slash wages during a share shift at the average without jobs tear reaction
Even under MIRV ( multiple independent return vehicles )  socialism ....of course
Firm residues still need the flex to self optimize
Come a crunch basic wage rates may require cuts

The bonus out of profit share should not be cut !

If we intend to obey holmstrom's  rules