Outside the firm, price movements direct production, which is co-ordinated through a series of exchange transactions on the market. Within a firm, these market transactions are eliminated and in place of the complicated market structure with exchange transactions is substituted the entrepreneur-coordinator, who directs production. It is clear that these are alternative methods of coordinating production. Yet, having regard to the fact that, if production is regulated by price movements, production could be carried on without any organization at all might we ask, why is there any organization?
Ronald CoaseRelated topics
alternative ask carry clear coordinate direct exchange fact firm having market might organization outside place price production regard series structure yetRelated quotes
The natural effect of unfettered market competition is socialism. For a short time the innovator receives a large profit, as a reward for being first to the market. Then, as competitors adopt the innovation, competition drives these profits down to zero and the price gravitates toward the new, lower cost of production made possible by this innovation (that price including, of course, the cost of the producer's maintenance and the amortization of her capital outlays). So in a free market, the cost savings in labor required to produce any given commodity would quickly be socialized in the form of reduced labor cost to purchase it.
Kevin Carson
Philosophers might care to ask themselves ... how often they are accomplices in increasing the audience for a second-rate article simply because their introductory course needs a simple-minded version of a bad idea that even freshmen can refute. Some of the most frequently reprinted articles in twentieth-century philosophy are famous precisely because nobody believes them; everybody can see what's wrong with them. ... The confirmation of this claim is left as an exercise for the reader. Among the memes that structure the infosphere and hence affect the transmission of other memes are the laws of libel.
Daniel Dennett
The gospel of St. Matthew told of the angry Jesus driving the merchants and money-changers out of the temple, knocking over the tables of the money-changers and spilling their coins on the floor. Jesus was not opposed to capitalism and the profit motive, so long as economic activities were carried on outside the temple. In the parable of the talents, he praises the servant who used his master's money to make a profitable investment, and condemns the servant who was too timid to invest. But he draws a clear line at the temple door. Inside the temple, the ground belongs to God and profit-making must stop.
Freeman Dyson
Socialism is, essentially, the tendency inherent in an industrial civilization to transcend the self-regulating market by consciously subordinating it to a democratic society. It is the solution natural to the industrial workers who see no reason why production should not be regulated directly and why markets should be more than a useful but subordinate trait in a free society. From the point of view of the community as a whole, socialism is merely the continuation of that endeavor to make society a distinctively human relationship of persons which in Western Europe was always associated with Christian traditions.
Karl Polanyi
I also know that Christianity has held back any further advances in human consciousness for the past thousand years. And for the past century it's been in direct conflict with its illegitimate offspring, Communism (again with a capital C). Both ask the individual to sacrifice his self-interest to the higher goals of the organization. (Which is okay by me as long as it's voluntary; but as soon as either becomes too big-and takes on that damned capital C-they stop asking for cooperation and start demanding it.)
Any higher states of human enlightenment have been sacrificed between these two monoliths.
David Gerrold
