tag:blogger.com,1999:blog-5540355835119482548.post3555699298675489678..comments2024-03-26T04:15:30.559-07:00Comments on Infinite Improbability Drive: Economics: Balancing Corporate Profitability versus National interestsArthur Denthttp://www.blogger.com/profile/02505110975209243852noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5540355835119482548.post-24385057438611112452015-07-03T01:09:57.459-07:002015-07-03T01:09:57.459-07:00It then begs the question, should the ultimate aim...It then begs the question, should the ultimate aim of business be the maximization of profit or the employment of people. This is a tough one as it brings us closer to communism with its ills of lack of freedom, inefficiency, big brother government, no development etc. It has been tried and failed. I think the better way to look at it is, GDP is not the complete measure of the economy's health. There will be a trade-off between the government and private sector on the opposing ideals of full employment versus maximum profit earning capacity. I highlight that my idea is indeed capitalist in essence. If a private enterprise works for its own benefit, then should not the government. However it has to be grounded in fairness. Perhaps a mid way point that can be discussed is that the government cannot legislate full employment, in fact allow companies to have a hire and fire policy. However when efficiency is brought beyond the indifference point I calculate above, then the government may come in through taxes or other levies or rules to ensure that its own interests are not unduly violated. In fact the government can introduce tolerance limits on unemployment levels as well to avoid knee jerk reactions. That will give the private enterprise the signals on how to manage their costs without interference from the government. Additional measures such as mandatory unemployment insurance can be levied on the company that will cost a little bit over a long term but then transfer risks of social security payments from the government to another private enterprise which can then price premiums as per the character of each company.Just a few thoughts. Open for discussion!Arthur Denthttps://www.blogger.com/profile/02505110975209243852noreply@blogger.com