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Title: Slovenia's transition from labor managed economy to privately owned capitalism
Essay Details
| Subject: |
Business |
| Author: |
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| Date: |
June 24, 2004 |
| Level: |
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| Grade: |
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| Length: |
6 / 1556 |
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0 |
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Essay text:
The problem with this system is that to maintain socialist economic principles there cannot be an individual owner of the corporation. This presents the problem of ownership and in many cases the government maintains ownership creating soft budget constraints... Showed first 250 characters
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There is also the problem of defining a socially owned firm. Labor-managed enterprises can somewhat mitigate the lack of motivation associated with pure communist regulate firms because the workers feel like they are working for themselves. The inefficiencies associated with this system come from the lack of free entry for firms which is due to the economic planning system and prevents the market from achieving long run equilibrium... Showed next 250 characters
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