[The Typing Baker] Public Ownership of 'Socialization of Production' Enterprises to Share the Fruits with Everyone

"Even with Interdependent Production, Benefits Go to Few... Private Companies Should Be Publicly Owned for Everyone to Enjoy"

[Asia Economy Reporter Byunghee Park] "It is deeply shameful that even though production activities in the economic sphere are becoming increasingly socialized, 1% still dominates our economy."

Paul Adler, a professor of business administration at the University of Southern California, argues in his new book The Economy for the 99%, Not the 1% that private companies should be publicly owned. This is a claim that directly contradicts capitalism, which allows private ownership of goods. Paradoxically, Professor Adler’s view of capitalism is very positive. He explains that from a long-term perspective, the capitalist system has brought humanity great benefits that previous systems could not even dream of.

"With the growth of the capitalist system, each business independently engaged in commercial exchanges. Technologies and ideas from around the world met each other, and companies innovated to discover new demands and satisfy existing ones. Capitalism has greatly improved the material living standards and quality of life for countless people worldwide. The average life expectancy of Americans, which was only 40 years in 1880, has increased to 79 years today. The global average life expectancy has also risen from 30 to 71 years."

However, Professor Adler points out that the fundamental problem with capitalism is that it is based on private enterprises and production for profit. Competition paradoxically leads to concentration. As companies that lose in competition are eliminated, the market becomes monopolized or oligopolized. The advantages of vigorous market competition fade into the disadvantages of monopoly markets. Corporate monopolies exert significant influence over the legislative process in legislatures and regulatory processes in the executive branch. Politics becomes subordinate to the economy. The government, wary of corporations, cannot listen to the voices of ordinary citizens or workers. Public issues like global warming are pushed aside by economic logic.

Professor Adler summarizes the crises we face today under capitalism into six categories: economic irrationality, worker alienation, unresponsive government, unsustainable environment, worsening social division, and international conflicts.

As a solution, he advocates replacing private companies with public ownership. He bases this anti-capitalist logic on the socialization of production.

To maximize profits, companies rely on cheaper raw materials, parts, and labor. In this process, they benefit from the expansion of social infrastructure and government legal support. Moreover, as educational opportunities expand, companies receive more skilled and intellectually capable workers. In short, companies today maximize profits with society’s help. Professor Adler calls this ‘socialization of production.’ The interdependence of companies receiving external support in the process of improving economic efficiency under capitalism inevitably grows.

Professor Adler points out that while production is increasingly interdependent, property rights still belong to the private domain. With the strengthening of intellectual property rights (IP) such as patents, private rights over property are reinforced. Production is socialized, but the opportunities to enjoy the fruits of production are concentrated in the hands of a few. This causes many social conflicts.

Therefore, Professor Adler argues that it is necessary to adjust ownership and control rights over production resources according to the socialization of production. Measures must be taken so that the fruits of interdependent production benefit everyone. Those who own the means of production will naturally resist. Professor Adler explains that social consensus through appropriate compensation measures, such as long-term pensions, is necessary.

Professor Adler emphasizes that the operation method of companies converted to public ownership should follow the existing methods of large corporations because they are efficient. Large corporations, which have nurtured capitalism, are efficient. Thanks to the excellent management systems developed by large corporations, if the state applies the management methods of large corporations as they are, it can be sufficiently efficient. Professor Adler argues that if the state attempts a planned economy now, it can implement it far more effectively than the former Soviet Union due to advanced software and management techniques.

(Written by Paul Adler / Translated by Yunjin Kim & Eunkyung Han / Supervised by Wonjae Lee / 21st Century Books / 20,000 KRW)

This content was produced with the assistance of AI translation services.