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Effect of a nonprofit market? - Just One Of The Billions - 01-20-2013 02:01 AM
What would be the effect of a nonprofit-only market? Assuming no corruption, what would an economy be like if salaries were based on the necessary spending and income of an organization? Let's say in this model, maximum salaries are restricted. Because of more leveled wages, promotions would mean greater increases in salaries. Aside from the obvious freedom restriction, wouldn't this increase minimum wage, lower poverty, and provide more incentive for workers?
Not looking for opinions. Looking for predicted effect. This question is not about rights, It's about the effect on the economy. Again, this assumes no corruption.
Thanks
Rachel: That was mostly opinion.
- Rachel - 01-20-2013 02:09 AM
You're looking at this from the point of the employees, not the businessmen who have to take the risk of starting a business. With great risk and skill should come great reward. If that doesn't happen then they lose incentive to start a business therefore not having jobs for prospective employees and getting us into the depression we're in.
- Pat - 01-20-2013 02:09 AM
This is an interesting question.
Where did you get it?
I don't agree with the other guy.
Yes, SOME people would lose incentive - the greedy and selfish ones.
But many more would rise to the challenge to create a better, more stable and equitable society.
Instead of having a selfish, profit-based mindset drilled into them from birth, children would grow up with a cooperative nature, and would be willing to live and work that way.
we would have to change the laws that define "nonprofit".
As they stand now, restaurants, most stores, airlines, car companies, banks, insurance companies, and most other businesses would cease to exist because they don't meet the legal definition.
That would abolish tens of millions of jobs.
And we would have to do without all of those services.
Would the nonprofits be able to handle the increased demand?
Would government's role in social services remain the same?
You're assuming "no corruption", but there is another assumption.
You're assuming that "nonprofit" means that there's no money left over, that all expenses must equal all revenues.
That is not the case.
MOST nonprofits have money left over at the end of the year.
Instead of "profit", it's called a "fund balance".
And they are required to use it for the organization's purposes. They can give staff bonuses or raises, buy new equipment, or expand their services, or save it for emergencies.
Most organizations do a combination of those things, depending on how much the fund balance is.
How would your new society treat that money?
And what is this "obvious freedom restriction" that you're assuming?
Business profits fund about half of all nonprofit activities.
How would you replace that lost revenue?
This is way too much for my brain at this hour of the night.
By the way, I have been a staff, manager, board member, board president, lobbyist, and consultant for nonprofits for 30 years.