You say the workers have a "duty" to maintain the value of their capital.
> But isn't their incentive to run it down for the
sake of their income? How does one know if they
are doing their duty? Doesn't Hayek's problem
return w/a vengeance?
There's a principal-agent problem here that is related to Hayek's problem, but it is weaker, since there is no problem about somebody having to know everything. The problem about knowledge here is one of accounting; and any system will require accountants and auditors. This ids true of planned socialism as well.
Once again, I do not claim that MS is perfect, just better.
Procapitalsits will argue that the P-A problem you highlight favors private ownership, but with the dominance of the corporate form, this is not so plausible, since the onwers do not supervise their property in corporate capitalism.
--jks