TITLE:
Competition in a Democratic Firm System: Failures and Constraints
AUTHORS:
Bruno Jossa
KEYWORDS:
Labour Managed Firms, Failures, Solidarity, Comparative Economic Systems
JOURNAL NAME:
Modern Economy,
Vol.8 No.11,
November
30,
2017
ABSTRACT: Considering that businesses face bankruptcy when
their aggregate costs exceed their revenues, the cancellation of the largest
production cost item—wages and salaries—in an employee-managed firm system is
an effective safeguard against bankruptcy. For this and other reasons, the
author argues that risks of insolvency are unlikely to scare democratic firms
into accepting the capitalistic logic of cut-throat competition.