News for hackers. Stuff that matters.
Re:Every company should be owned by its employees by arrowsmith on Thursday July 25, 2024 @04:20AM (#41066172)
Overoptimize on worker happiness -> underoptimize for profit -> company goes bust -> workers lose their jobs -> no worker happiness
Re:Every company should be owned by its employees by rakoo on Thursday July 25, 2024 @04:43AM (#41066323)
> underoptimize for profit -> company goes bust

That's a wild statement that is going to need some strong proof

Re:Every company should be owned by its employees by CodeGroyper on Thursday July 25, 2024 @05:10AM (#41066497)
How is it a wild statement? The whole point of a company is to make money. It's like asking why workers care about their salaries.
Re:Every company should be owned by its employees by olex on Thursday July 25, 2024 @05:38AM (#41066659)
This is an often stated postulate, but I'm not sure I agree. Sure, making money is necessary for a company to survive, but it doesn't have to be an end goal, and imho it's detrimental when it is. The goal can and should be to make a great product, create and make available something that otherwise would not exist, improve some product or process, etc - money and company itself are or should be just a means to a goal like that.
Re:Every company should be owned by its employees by Gormo on Thursday July 25, 2024 @08:02AM (#41067599)
And the measure of how well you are making a great product, creating something that would otherwise not exist, or improve some other product or process is how much your customers are willing to pay you for what you are doing. If you are creating value for other people, you are making money -- money is a measuring unit that quantifies transferable value.
Re:Every company should be owned by its employees by rakoo on Thursday July 25, 2024 @08:10AM (#41067675)
No, because that falls under the fallacy that every market is a perfect market, where none is.

A perfect market is one where

- alternatives can be created for little to no money so they can easily exist

- consumers have an infinity of time, money and energy to analyze products

- consumers have total agency over their decision

- picking an alternative has no cost, no drawback

- it is possible to buy nothing and still be content

There are 0 markets that fall under those conditions. The measure of how good your product is is not in its sales figures it is in... reviews.

Re:Every company should be owned by its employees by Gormo on Thursday July 25, 2024 @08:52AM (#41068090)
>No, because that falls under the fallacy that every market is a perfect market, where none is.

No, it doesn't. We live in a stochastic world, not a deterministic one, and nothing perfectly fits any speculative model. There are always outliers and edge cases, and that's fine -- the world doesn't need to perfectly adhere to any model in order for the model to be more accurate than not in the general case.

And the proposition that business profits are largely aligned with consumer interests in the general case, even despite outliers to the contrary, is very obviously true.

Re:Every company should be owned by its employees by rakoo on Thursday July 25, 2024 @09:56AM (#41068747)
> the world doesn't need to perfectly adhere to any model in order for the model to be more accurate than not in the general case.

But that's my point: the world is so different from that model that it becomes inaccurate. You might be privileged enough to have a good enough approximation of a perfect market, leading you to believe that the model stands, but you are not representative of the population. Not even close to the median.

> And the proposition that business profits are largely aligned with consumer interests in the general case, even despite outliers to the contrary, is very obviously true.

I don't know why I'm debating this in the hyper-capitalistic forum that Hacker News is, but no, business profits are not. If they were, no advertising would be necessary, because products would naturally be sold. If they were, every consumer would have access to everything. If they were, no lobbying by any company to soften laws seen as too restrictive would be necessary. If they were, companies would not emit a single gram of CO2.

The whole point of business profit is to profit. Aligning with consumer interests is lucky happenstance, not a necessity. A fringe outlier, as you say. You cannot say "it is true because I see it". It needs to be backed by strong analysis.

Re:Every company should be owned by its employees by UncleMeat on Thursday July 25, 2024 @10:14AM (#41068927)
I don't think that this is true. There are plenty of businesses that make shitloads of money off of frustrating or downright crappy products because of captured markets, constrained customers, lack of transparency, and more.

Look at something like Dark Patterns. These make a business more money by making a product worse.

Re:Every company should be owned by its employees by rakoo on Thursday July 25, 2024 @08:06AM (#41067639)
My point isn't that a company shouldn't optimize for profit. My point is that the supposed logical conclusion stating "if it doesn't optimize for profit, then it will die" needs to be backed up by strong arguments. There are myriads of examples of companies not optimizing for profit and still surviving, and there are myriads of examples of companies optimizing for profit and still going bust.
Re:Every company should be owned by its employees by randomdata on Thursday July 25, 2024 @10:08AM (#41068863)
> and there are myriads of examples of companies optimizing for profit and still going bust.

Do you mean there are myriads of example of companies who say that they are optimizing for profit, but don't actually follow through in their actions? Humans do, indeed, have a penchant for saying one thing and then doing another. But if they are truly optimized for profit, how could they possibly go bust?

Re:Every company should be owned by its employees by mkbosmans on Thursday July 25, 2024 @11:12AM (#41069628)
It is not an unconstrained optimization problem. The constraints in which the company operates might result in a feasible region where even the most profitable point is still a net loss. Those constraints may of course be self-imposed, like e.g. choosing a market to operate in.
Re:Every company should be owned by its employees by randomdata on Thursday July 25, 2024 @11:41AM (#41069950)
> It is not an unconstrained optimization problem.

Of course not. The constraints are exactly what you optimizing against. Choosing to operate in a market that is not capable of supporting profitability is not optimizing for profitability, though. One may claim to be optimizing for profitability, but actions speak louder than words.

Re:Every company should be owned by its employees by UncleMeat on Thursday July 25, 2024 @10:12AM (#41068899)
Why is that the whole point? A company needs enough revenue to pay its employees, but it doesn't need more revenue in any absolute sense.

"Just existing in the world, providing a service to customers and a wage to employees" is a fine and stable way for a company to exist.

Re:Every company should be owned by its employees by JohnFen on Thursday July 25, 2024 @10:18AM (#41068957)
Profit is what remains when you subtract operating expenses from income. Payroll is an operating expense. Maximizing profit is not strictly necessary for a business to operate.
Re:Every company should be owned by its employees by randunel on Thursday July 25, 2024 @04:49AM (#41066355)
Proof of what? Proof that non profitable companies go bust, which is what your quote says? Or proof that over optimising for employee happiness results in under optimising for profit, which you haven't quoted?
Re:Every company should be owned by its employees by glenngillen on Thursday July 25, 2024 @05:01AM (#41066437)
You shifted the criteria here. Under optimise for profit does not mean unprofitable.
Re:Every company should be owned by its employees by rakoo on Thursday July 25, 2024 @05:03AM (#41066450)
Proof that underoptimizing for profit, not being non profitable, means going bust. Exactly what is quoted in fact.
Re:Every company should be owned by its employees by stavros on Thursday July 25, 2024 @04:25AM (#41066204)
Well, there are worker-owned coops, and they haven't gone bust, so how does that work? It's almost as if the workers don't actually want to lose their jobs!
Re:Every company should be owned by its employees by MichaelZuo on Thursday July 25, 2024 @04:37AM (#41066283)
Survivorship bias. You have to compare against all that have in fact gone bust over the same timeframe.
Re:Every company should be owned by its employees by dukeyukey on Thursday July 25, 2024 @05:16AM (#41066534)
If anything, co-ops seem to survive better than traditional companies - https://www.uk.coop/sites/default/files/2020-10/co-operative...
Re:Every company should be owned by its employees by MichaelZuo on Thursday July 25, 2024 @09:21AM (#41068371)
Did you reply to the wrong comment?
Re:Every company should be owned by its employees by _s_a_m_ on Thursday July 25, 2024 @04:26AM (#41066207)
That's the cliché, and I dont think it's even remotely true.
Re:Every company should be owned by its employees by vidarh on Thursday July 25, 2024 @04:40AM (#41066306)
Last time I looked at data, worker coops were less likely to fail than most other corporate structures.
Re:Every company should be owned by its employees by Jensson on Thursday July 25, 2024 @04:47AM (#41066345)
Most worker coops doesn't optimize for worker happiness, they are like any other company, just like how communism doesn't optimize for worker happiness either.
Re:Every company should be owned by its employees by vidarh on Thursday July 25, 2024 @05:18AM (#41066543)
Doesn't generally seem supported by data.

E.g. https://www.fiftybyfifty.org/2021/06/workers-at-cooperatives...

Elsewhere I've seen some reporting on cooperatives report lower satisfaction on some metrics, usually suspected to be exactly because worker cooperatives tend to give employees more of a stake and so stress levels around the future of the business may be higher.

At the same time, it is flawed to focus on any purported notion that they don't optimize for "worker happiness" because workers decide what they optimize for. And so that may or may not be "happiness" for any given coop, but it certainly does mean optimizing for what workers care about.

Comparing that to, I presume the notion of e.g. the Soviet Union as representative of "communism", where workers had near no say in what the dicators imposed on them, seems to be a rather crass and gross misrepresentation when used as a comparison for workers coops where they do have a say.

Re:Every company should be owned by its employees by ClumsyPilot on Thursday July 25, 2024 @08:47AM (#41068037)
> just like how communism

There is some kind of derangement in the English speaking West, any attempt to reign in power of capital must be communist.

If free public libraries didn't exist and were proposed today, they'd be accused of communism. If free public legal deference did not exist today, anyone proposing it would be accused of being a communist. Also notice that using public money to hurt a person, i.e. prosecution, is never accused of an ideology.

These sort of comparisons are deeply unhelpful and only betray illiteracy of the accuser.

Re:Every company should be owned by its employees by edm0nd on Thursday July 25, 2024 @11:24AM (#41069774)
I'm just being pedantic but "free public libraries" don't really exist though.

They are paid for by property owners via tax millages rates on their homes.

Most people support this but none are free since the public pays for em.

Re:Every company should be owned by its employees by vidarh on Friday July 26, 2024 @07:22AM (#41077697)
It is pedantic, in as much as when people use "free", we are very aware that it means "free at the point of use", and so pointing out that they are paid for is unnecessary.
Re:Every company should be owned by its employees by havblue on Thursday July 25, 2024 @10:57AM (#41069456)
>There is some kind of derangement in the English speaking West, any attempt to reign in power of capital must be communist.

I do believe corporatism is a problem with modernity. That being said, the article does sound fairly similar to "workers must own the means of production". Are we not in the ballpark of Marx, for better or worse?

Re:Every company should be owned by its employees by consteval on Thursday July 25, 2024 @02:14PM (#41071633)
No, this is socialism as best. Not communism.
Re:Every company should be owned by its employees by tristor on Thursday July 25, 2024 @09:26AM (#41068431)
This criticism would carry more weight if this entire thread wasn't full of snippets of communist fanfic about using legal force to try to upend reality and ending the profit motive for companies and enforcing worker collectives.
Re:Every company should be owned by its employees by ClumsyPilot on Thursday July 25, 2024 @10:31AM (#41069118)
> using legal force to try to upend reality

You mean like how we upended reality in 2008 to save corrupt institutions and/or incompetent institutions? And then again during COVID? And then again to save Silicon Valley Bank?

You pretend that current situation some kind of natural state of affairs, when in reality it is a result of ‘legal force for me but not for the’

Re:Every company should be owned by its employees by tristor on Thursday July 25, 2024 @12:07PM (#41070277)
None of those things are reality, those are how we chose as a society to interface with it. Now that they've happened, they form a part of the fabric of reality, that is the history of the universe and humanity as a species. When I say "upend reality", I mean the idealist delusions that commies hold about the nature of entropy, the nature of humanity (acting like greed doesn't exist, forgetting the iron law of bureaucracy), and the nature of the world (eat or be eaten).
Re:Every company should be owned by its employees by consteval on Thursday July 25, 2024 @02:17PM (#41071659)
Yes some people hold different views on the nature of humanity. That doesn't mean they're delusional, it just means they're different.

Personally, no I don't think greed is intrinsic. I think its learned. I also don't think its eat or be eaten. I think that's learned, ingrained, to benefit the most powerful.

I think 99% of people are good and just want a decent life. They don't care about having more or being better.

Re:Every company should be owned by its employees by tristor on Thursday July 25, 2024 @02:22PM (#41071716)
The problem is those people are trying to intellectualize animals. Humans are animals. We, presumably, have free will. We, presumably, have rationality. While these traits make us higher order animals, we are still animals, and the law of the jungle always applies. It is delusional to act otherwise, because when push comes to shove if it's a choice between starvation/death or nearly any alternative, people will choose the alternative every time, which includes violent acts, acts of greed, and all manner of despicable things. I'm not even making a moral argument here, morals are irrelevant. Morals are a fiction created by people to philosophize our own societies. But the reality of the world transcends humanity and we cannot avoid it.
Re:Every company should be owned by its employees by consteval on Thursday July 25, 2024 @03:59PM (#41072724)
Humans are animals by technicality only. We have higher thinking. Again, what you're stating is an opinion and nothing more. There's nobody anywhere saying you're right. Just you, and your beliefs. Which is fine, but when you act like your beliefs are divined from God, that is what we consider delusions of grandeur.

Yes morals are made up. Everything is made up. Everything is a social construct. "the world" (I assume you mean evil and greed?) does not supersede that. Because if you kill someone you go to jail, and jail is real. Don't believe me? Try it out.

The law of the jungle is... well... something you made up. Sorry. That may apply to your dog. But for the people I know, many would sooner end their own lives than doing something that distasteful. Hell, I've known many to end their own lives for much much less. Point being, it doesn't actually work this way.

Re:Every company should be owned by its employees by tristor on Thursday July 25, 2024 @09:15PM (#41075078)
> But for the people I know, many would sooner end their own lives than doing something that distasteful.

You bring up jail in the same breath you say that. The plural of anecdote is not evidence, and you've provided equal weighting to both that people will do terrible things and that some people will not. At the very least, presumably that's evidence of free will. Either way, it has no bearing on the iron law of nature.

Just because civilization exists, and we exist within it, does not mean that we have overcome our basest nature, we only hold it at bay, presumably by choice.

Re:Every company should be owned by its employees by ClumsyPilot on Thursday July 25, 2024 @04:32PM (#41073069)
> Morals are a fiction created by people to philosophize our own societies.

This is preposterous, and frankly quite uninformed. It is especially ironic coming from you, since you are going round and accusing other people of being delusional.

We have iron-clad proof that cavemen took care of members of their tribe that were born crippled, and of the elderly. For no benefit to themselves. We have evidence of morals going back thousands of years. This is a topic well researched by anthropologists, and is not up for debate.

That's what the word 'civilisation' means - civilised behaviour and ethical standards. The people who think you can have a complex society, but have no respect for morals, are frankly savages.

It is unfortunately quite common to come across people in technology that have great talents, but they are as informed and society and civics as a high-scooler.

The other day I came across libertarians who think parents should have no obligations to feed their children and should not be held accountable if the child dies, because freedom. Might as well be speaking to Neanderthals.

Re:Every company should be owned by its employees by tristor on Thursday July 25, 2024 @09:18PM (#41075091)
> This is preposterous, and frankly quite uninformed.

I actually studied moral philosophy in a relatively well-respected institution (although I did drop out prior to getting any form of degree). Nothing I have learned about the world has ever indicated that there is any such thing as a moral absolute, although there are certain moral principles that tend to be enforced by most societies across history. You are arguing a position that both presupposes moral relativism and presupposes moral absolutism, and both cannot be true at once. At best, you are applying pragmatism towards your own political and economic beliefs and searching for post-hoc rationalizations, but the argument you have made in this entire thread is neither complete nor internally consistent.

Re:Every company should be owned by its employees by defrost on Thursday July 25, 2024 @09:37PM (#41075143)
> because when push comes to shove if it's a choice between starvation/death or nearly any alternative, people will choose the alternative every time

Every time? Nonsense: https://en.wikipedia.org/wiki/Women_and_children_first has multiple documented examples to the contrary.

> You are arguing a position that moral absolutism,

Not by my reading; the argument was that iron clad examples of moral behaviour exist, not that we all share a core moral absolutism.

> although I did drop out prior to getting any form of degree

Not a suprise. To be fair even had you graduated you'd hardly be the Peter Singer of moral philosphy and those that attain such heights are not without counter argument.

Maybe lay off the "I'm an (almost) expert and this is my strawman" comments, they're clearly weak and cast you in a poor light.

Re:Every company should be owned by its employees by tristor on Thursday July 25, 2024 @09:39PM (#41075159)
I don't claim to be an expert, just somebody with thoughts and opinions. It was a response to someone saying I was uninformed. I am not uninformed, I am well educated on the topic.

Like most people, I am not an expert in most things, only in a very narrow subset of things. My expertise lies in some areas of technology, not really elsewhere. There is a vast gap between being an expert and being uninformed, it's not a binary distinction.

> Every time? Nonsense: https://en.wikipedia.org/wiki/Women_and_children_first has multiple documented examples to the contrary.

I think it was clear that my statement of 'every time' was not to be taken literally.

I don't think we're going to construct a well-supported moral framework defined in the most literal terms in the context of a set of comments on a website.

Nothing anyone has responded to me with in any way supports the idea that communism is something that aligns with reality and is anything more than a fantasy for idealists.

Re:Every company should be owned by its employees by vidarh on Friday July 26, 2024 @07:44AM (#41077800)
Free will is an utterly delusional, irrational concept driven by religious belief, not logic.
Re:Every company should be owned by its employees by vidarh on Friday July 26, 2024 @07:43AM (#41077796)
It's amusing, because you'd agree more with Marx than with those "commies" with those "idealist delusions" you mention.

E.g. Critique of the Gotha Programme has a whole sections where Marx rips the then still largely Marxist precursor of the SPD for trusting the state too much, for not understanding that equal opportunity means distribution can't be equal, and The German Ideology has Marx pointing out that "eat or be eaten" means socialism according to him is impossible in a society that isn't rich enough to meet sufficient needs to remove poverty entirely through redistribution.

Overall, Marx central thesis is that workers being forced into a choice of "eat or be eaten" is what he believed would eventually force them to rise up and end capitalism once capital gains sufficient upper hand to drive labour costs down so much it's rising up or starving.

These "idealist delusions" about greed not existing annoyed him enough that there's a whole section in the Communist Manifesto mocking them, and the reason Marx and Engels used the term "communist" instead of "socialist" was to set themselves apart from socialist movements that believed that people could just be convinced to stop being greedy.

If society isn't driven by greed, that would invalidate the central theses of Marxist communism. All of his core predictions rests on the assumptions that greed is what drives the evolution of capitalism towards a stage where he believed workers would eventually not put greed aside but understand that the way to maximise their own benefits would be to work together to strip capitalist of power and wealth.

Whether or not we think he was right or wrong about that, it's in any case clear that the major inspiration of communist ideologies explicitly rejected the notion of ending greed.

Re:Every company should be owned by its employees by vidarh on Friday July 26, 2024 @07:21AM (#41077692)
The funny thing is that Marx wanted the working class to be armed, and in Critique of the Gotha Programme, he called out the US school system as far preferable to the state-controlled school system proposed by what is now SPD (he argued the Prussian state was in need of an education by the people and shouldn't be put in a position of providing an education to the people). A lot of the people who call everything communism would be very uncomfortable with how many things they agreed with him on if they read any Marx (not because they are left wing, but because a lot of what was radical policy at the time is settled now, but also because already then a schism was developing between those on the left who favoured the state as a tool to transform society, and those who feared it as a potential oppressor, and Marx got increasingly critical of the state with age; where in 1848 he argued for state monopolies, by 1872, after the Paris Commune he criticised them for not having gone far enough in smashing state institutions, and by 1875 he criticised the now-SPD for trusting the reform potential of the Prussian state too much, such as with respect to education as above)
Re:Every company should be owned by its employees by 6510 on Thursday July 25, 2024 @05:48AM (#41066720)
If with over in overoptimized you mean where it starts cutting into optimizing for earnings it is by definition true.

One could similarly say that the company goes kaput if you over-optimize for profit extraction.

The goal should be to some-how optimize for the sweet spot where the well-being of the company, the employees, investors, the economy and the environment are sufficiently in balance.

I think the customer has a good bit of influence by voting with their wallet but we don't see it in action very often. One could underoptimize for that too!