Thursday 2016-12-01

For those who reside in a democracy, it seems odd that most firms are not that democratic. Most of them are organized as petty autocracies with a supporting hierarchy of personnel.

Why is this so? Why do we not have more democratic companies? One answer could be the differences in ability across personnel: companies are interested in performance, and thus organize so as to promote ability.

Part of the answer could also lie in negotiation power. People who live paycheck to paycheck have little bargaining power, so they perforce accede to more demands than they should. This makes them less able decision-makers.*

Universal Basic Income should alter the balance of power in negotiation, and thereby alter the organization of firms. Granted, this is provided that brains, energy, beauty, etc. are not the dominant factors.

* This is an argument direct from SavingsAndOptions

[permalink] What evidence do you have that democracy is a particularly good system for making and executing good decisions? --Theo

[permalink] Well, it's not that democracy is demonstrably better than autocracy over the entire problem space; it's more that collective action generates net benefits over the alternative, and people who depend on those benefits are more likely to be excluded from voice. --Patrick