Problems with business

[Uncle Marx]

http://www.nyu.edu/projects/ollman/images/cartoon01.gif

[ben says]

Love it

[acme54321]

I think that is missing a few important pieces.  Building O&M, supply chain management, training, benefits, etc.

[Uncle Marx]

So let's take our cartoon as the basis to analyze your claims acme. The gentleman in the suit puts forward $105 on training and benefits for those doing the work. In 3 days, subtracting the $15 a day (in wages), and adding the $35 the workers have produced, they have paid back the initial $105 invested in his training and benefits. On day 4, the cartoon remains true. Inset anything else you like, an office, a camera to monitor the workers, tools and equipment, even a large bank loan, etc. So long as the business is profitable, at some point the surplus produced will be larger than the initial capital invested, and the 'punch line' of the cartoon remains sound.

[FSBA]

I think that is missing a few important pieces.  Building O&M, supply chain management, training, benefits, etc.

Not to mention property and business taxes to pay for things like bike lanes, parks, street cars, and assorted other goodies.

[Uncle Marx]

Okay, so now let's say the man in the suit has invested $140 into the business, since we must take into consideration his investment into government programs (although that's not really how things work), on day 5, the cartoon remains true.

Of course in reality what's going on is that - to stay true to the cartoon - the man in the suit has $50 at the end of the workday, at his disposal. $5 goes to the taxes you referred to, $30 to himself and maintaining his investments, and $15 to the workers. So by the end of day 1, the workers have paid for the bike lanes and taxes.

Taxes paid in the initial investment are replaced, if the business is profitable, after X amount of days. And taxes on profits are payable specifically because of the $35 surplus in the cartoon.

[Non-RedNeck Westsider]

I guess the cartoon doesn't cover the fact that the employee making the products had asked for a raise and was told the company couldn't afford it.  He thought about making the products on his own, but was afraid to carry the entire burden of owning a business on his own.  So then the employee making the products really started working faster and began, not only meeting his quota, but also making enough so that he could take $75 worth of product home daily and selling them at  a deep discount on a reputable online auctioning site.  Thus making approximately $45 daily on his side job.

The owner, unsure of why his inventory is out of control, sales are stagnant yet the shop seems to be working at full capacity hires an inventory control manager to solve the issues.

It doesn't take long before the ICM and the worker are in cahoots, cooking books and both are now making twice what the owner is and slowly putting him out of business. 

Creditors are calling, sales are abysmal and the company turns belly up.  Now all three are unemployed.

Who's going to end up on their feet first and why?

[Uncle Marx]

The cartoon covers the general operations of capitalistic production, whereas your contrived story covers something extremely particular and fastidious. The story also didn't consider what would happen if King Arthur and his Knights stormed Human Resources. Nevertheless, even in your story, if the particular employee earns $45, instead of $15, then the man in the suit earns $105, instead of $35. And the cartoon yet again remains true.

[Non-RedNeck Westsider]

What's the point again?  That business owners aren't supposed to make money?  That his motivational skills are lacking?  or WTF is the tall skinny dude walking around asking questions?

Ooohhhh!!!!  Shiny....

[acme54321]

So in the cartoon what's stopping the worker from going out and producing this product on his own?

[Cheshire Cat]

So in the cartoon what's stopping the worker from going out and producing this product on his own?

Start up capital most likely. A Mfg business is not cheap to get of the ground.

[Uncle Marx]

or who paid for the roads, the rails or the ports?

or any of that public infrastructure.

The public in general pays for the infrastructure, which includes docking $ out of the $35 and $15. That too is entirely congruent with the cartoon, and was already explained above. We can list all the taxes you like, the explanation is still sufficient.

[Uncle Marx]

What's the point again?  That business owners aren't supposed to make money?  That his motivational skills are lacking?  or WTF is the tall skinny dude walking around asking questions?

Ooohhhh!!!!  Shiny....

If you struggle to understand the point of a generalized cartoon, I don't think a longer and more detailed elaboration will be to your benefit at this time.

[Non-RedNeck Westsider]

What's the point again?  That business owners aren't supposed to make money?  That his motivational skills are lacking?  or WTF is the tall skinny dude walking around asking questions?

Ooohhhh!!!!  Shiny....

where do you het the idea that he isnt  supposed to make any morey at all?

Not at all.  Is there a min/max that an owner's supposed to make?

[Uncle Marx]

So in the cartoon what's stopping the worker from going out and producing this product on his own?

The privatized means of production are generally owned by a few. In a feudal society, the answer to your question would be not much. In a capitalist society, if the workers try to take over the productive operation...well we all know which side the cops will be on.