13 March 2011

The corporation & the soviet

The corporation is an objective institution that builds upon the objective measure of the objective valuing of productivity. 
  • The objective valuing of productivity happens in markets; 
  • the objective measure of productivity is profit, net income; 
  • the objective institution is one that delegates power, which is to say, it runs on authority and official duties. 
The corporation is the fundamental unit of capitalist enterprise. The corporation allows people to free themselves from the honor/shame system of power/challenge and to renounce the feelings of alienation and disempowement and replace them with the feelings of accomplishment and self-possession which come with hard work and a dilligent membership in honorable collective enterprise. 
The question of the 20th century was which system was the more effective in promoting the most wide-spread sense of empowerment and membership – the corporation of capitalist enterprise or the soviet of communist enterprise. 
In the 21st century the question is even more elementary: does a sense of empowerment and membership even matter? The two systems in opposition with each other differ on whether delegation and coordination of power is a more effective way of distributing power than submitting to the superior power of the local strong man: delegation as an act of the exercise of one's own power and authority versus submission as the demonstration of the higher power's strength and honor. 
Delegation versus submission fundamentally reverses the flow of power from the bottom to the top. Start-ups delegate creativity upward. 

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