[lbo-talk] The SMB in a socialist economy?

[John Thornton]

Charles Brown wrote:
> Fernando Cassia :
> Recent talk here on this list made me wonder what people here think is the role of the small and medium sized business in a socialist economy. 
> Should cooperatives be encouraged by the government, or is there still room for the small for-profit capitalist style business? Cases in point: 
>
> a) a wood/timber firm which is the only/major employer in a given town b) the owner of a pizza shop whom wants to expand and open 4 other locations in town c) two graduates wom want to start their own ISP using a creative/innovative technology not available untl then. 
>
> I have my own ideas with regards to this and I think the biggest problems of this world are caused by the largest corporations. I'm not sure socialists should suffocate small style innovation and entrepreneurship.... 
>
> Thoughts? comments? expletives? ;-) FC 
>
> ^^^^^^
>
> CB: From your previous post, I think you are trying to preserve competition
> as an important way of having innovation and creativity.
>
> Couldn't there be competition but not motivated by getting money ? Amateur
> sports have competition without money rewards to the winner.
> It is conceivable that a whole new system of motivation for
> innovation could be developed.
>
> Before capitalism, all previous forms of human society had sufficient
> innovation to survive and thrive.
>
> Capitalist innovation has produced as many new menaces as happy things.
>
> Do we really need to constantly revolutionize the instruments of
> production and forms of use-values ?
> As long as necessity mothers sufficient inventions, we'll be fine.
>   

The capitalist imperative to push technology forward also carries with 
it the downside risk of failure. Failure can be extremely costly under 
capitalism.
If freed from this risk we may find that the drive to innovate will be 
increased in areas where it will do more social good rather than merely 
drive increasing consumption or increasing productivity.

John thornton