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" "But the point, as I argued with Caplan, is not that managers are inherently less intelligent or capable as individuals. Rather, it’s that hierarchical organizations are—to borrow that wonderful phrase from Feldman and March—systematically stupid. For all the same Hayekian reasons that make a planned economy unsustainable, no individual is “smart” enough to manage a large, hierarchical organization. Nobody–not Einstein, not John Galt–possesses the qualities to make a bureaucratic hierarchy function rationally. Nobody’s that smart, any more than anybody’s smart enough to run Gosplan efficiently–that’s the whole point. No matter how insightful and resourceful they are, no matter how prudent, as human beings in dealing with actual reality, nevertheless by their very nature hierarchies insulate those at the top from the reality of what’s going on below, and force them to operate in imaginary worlds where all their intelligence becomes useless. No matter how intelligent managers are as individuals, a bureaucratic hierarchy makes their intelligence less usable.
Kevin Amos Carson (born 1963) is an American author, anarchist and political theorist.
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. The central theme of contemporary autonomist Marxism is a shift from giant organizations and insurrectional seizure to gradualism and Exodus. The rapid transformation of the working class, the blurring of the lines between work and the rest of life, and the shift in meeting a growing share of our needs into the informal and social economy, mean that the Old Left’s workerism (and like Harry Cleaver, I include syndicalism and council communism in the Old Left), its focus on the production process as the center of society, and its treatment of the industrial proletariat as the subject of history, have become obsolete. In this regard, read Toni Negri’s contrast of the Multitude to previous Old Left ideas of the proletariat. Mostly, I call it a heroic fantasy because any model that envisions a post-capitalist transition based on the universal adoption of any monolithic, schematized social model is as ridiculous as Socrates and Glaucon discussing what musical instruments and poetic metres will be permitted in the perfect state. The real world version of the post-capitalist transition — just as with the transition to capitalism five centuries earlier — isn’t a matter of any single cohesive social class, as the subject of history, systematically remaking the world guided by some single, comprehensive ideology, and organized around a uniform institutional model. It’s a matter of a wide variety of prefigurative institutions and technological building blocks that already exist in the present society, continuing to grow and coalesce together until they reach sufficient critical mass for a phase transition — a phase transition whose outlines can only be guessed at in the most general terms. This is the model advocated by Michel Bauwens, by Paul Mason, by John Holloway, by Peter Frase, and by a lot of other people who can hardly be fitted into any American individualist ghetto.
Capitalism could not have survived at any point in its history without state intervention. Coercive state measures at every step have denied workers access to capital, forced them to sell their labor in a buyer's market, and protected the centers of economic power from the dangers of the free market.
The natural effect of unfettered market competition is socialism. For a short time the innovator receives a large profit, as a reward for being first to the market. Then, as competitors adopt the innovation, competition drives these profits down to zero and the price gravitates toward the new, lower cost of production made possible by this innovation (that price including, of course, the cost of the producer’s maintenance and the amortization of her capital outlays). So in a free market, the cost savings in labor required to produce any given commodity would quickly be socialized in the form of reduced labor cost to purchase it.