If all people owned equal stock in all businesses what would happen?

Question

I am not talking about communism, where the government owns everything and dishes out the scraps to the people. I am talking about the people themselves owning stock in all businesses directly and instead of trading (which would not be legal, hypothetically) the people get to vote on hiring and firing managers, board members and CEO's and on whether or not they want to close down a business, sell it to another country or open up a new business. Generally speaking no individual would be allowed to own a business unless it was owned by everyone equally. The theory is that public things (such as businesses) would be handled by the public and private things (such as your own privacy, liberty and personal affairs) would be handled by the individual. Before you scream MARXISM, this is different because everything else would stay exactly the same otherwise, you could own as much real estate as you want, you could still make alot more money than other people and be a success, etc..

nonalcoholic2 doesn't seem to have an answer...next

Hey Jeff P, how would everyone owning businesses "kill creativity and new ideas", I think it would get everyone talking about it and ideas and creativity would flourish. I also don't understand what you mean by "pour your life savings [into an idea]", everyone would be contributing equally so I don't understand what you mean, I don't htink you read my question fully, nobody would be allowed to invest in a business alone. The reward of building the next big thing would be that EVERYONE would benefit and I think that is ALOT more driving than one person benefiting...

Magime, if no two people don't agree that is what voting is for so it wouldn't require everyone agreeing. The temptation to have more would still exist and that is fine, if you want more you go back to school get a better job or position and make more money (temptation solved). I don't understand what you mean "land is useless without the capital flow of things" that does not make sense, so I can't reply to that statement. I also don't see why there would be no need for money I don't see your reasoning, why would there be no need for money? Sorry, you didn't come up with a logical reason why this would not work either.

I meant "if two people don't agree" above...not if "no two people don't agree" (yahoo doesn't allow you to go back and fix errors)

I honestly am glad to get a real answer Santabud, but still I have to disagree with you...businesses are public things because they involve consumers which are groups of individuals (the public). There are "individual rights" and "public rights", we as a society have a right to control things which affect us as a society (as a group). I don't think you read my question correctly, because only the society would invest in businesses not the individual, so you would not have to invest in anything that anyone would take away from you. You would always own the businesses you invest in, as would everyone else, they would just do everything as a group via voting. Everything else would remain the same however. This is not communism...in communism everyone owns the exact same of everything (property, wages, clothes, supplies, etc) and it is through the government, I am only talking about business and them being owned directly through the people.

Santabud, yeah I first want to establish whether or not it would work properly before I could come up with some peaceful means of bringing about the idea (not revolution). I actually want someone to give me a logical reason why it wouldn't work...Because I can't find a hole in the theory.

Removing my ideas from context and putting them under the generic umbrella term "socialism" (my idea is not practiced in any socialist countries I am aware of) and then saying "socialism doesn't work" is just avoiding answering why, in specific, it won't work. I'm waiting for somebody to give me a specific reason why this idea would not work (I really want a reason so that I can think this through throughout all debate)

I wrote that before you answered...

Answer 1

Your answer is coming, but the basic premise is not correct. Businesses are not "public" things.

I invested my money to buy furniture,computers, phones, rent the office, buy advertising, postage machine, copier, office supplies, sign out front, numerous addl expenses before I opened for business. Would I give up ownership so everyone gets a part of it? I presume you didn't mean that....cuz THAT is communism.

Over 50% of businesses in America are founded and owned the same way basically, are those businesses also public.

I'm not trying to be difficult, just looking for a way to make your idea for the question work.

OK ,read the proposition again, & we're playing John Lennon right? (Imagine) So kind of recreating from scratch in a new utopia...right? Or are you going to buy/seize my current business and divy it up?

Anyway I cut this loaf it's a model of a socialist community, but don't run away yet just cuz folks grew up w the noyion Socialism is bad. We're getting into my degree studies now.

Socialism isn't BAD, in & of itself....the only thing which makes it bad is it doesn't work efficiently, however well intentioned.

For instance the creativity might only be off a bit to start, but under a socialist model there is no competition, a fundamental engine driving our capitalist system. No competition means growth is unlikely, & eventually causes efficiency as the lack of any reason to be "lean & mean" causes bloated budgets & plodding employees( see: our present govt offices) as there is no more efficient better operated company to keep you improving.

Motivating employees at all levels would be tougher as well. No competition means you have no way to reward varying levels of commitment.

Some would always work harder than the barely motivated employees, & I would be at home drinking beer & sorting thru Yahoo answers!

Email me if you think of a way socialism will work long term, cuz what will happen is the community will deteriorate and likely morph into a communist model & voila you hve a work motivator...Big Bear!!

Answer 2

that would kill creativity and new ideas. Why pour your lifes saving into a company and the next big idea if you cant reap the rewards of it (or have to share it with everyone).
If there is no reward for building the next big "thing" , no one would do it and things would come to a standstill

====FOLLOW UP:
I read the entire question, it wouldnt work. Who will setup the system whereby everyone contributes equally?? The government?

I wouldnt agree to contributing to 90% of the businesses in existence today.

It would KILL creativity because those people that start the Googles , microsofts, intels of the world would not have invested a large part of their lives to build those companies. Basically, everyone would be on the sidelines and live simple lives, No reason to get up and design the next google, let someone else come up with the idea and figure everything out.

So You will get a few people with all the ideas and putting the "work" into the biz, and the majority will sit back and reap benefits for doing nothing.

Answer 3

It all looks and sounds good on paper now act it out and see? Play monopoly and see what happens? Actually it would not work at all. It would flatten capitalism totally? No two people over money agrees, ha ha and there would always be the temptation do have more? Land is useless without the capital flow of things and you would stifle that with equal shares. There would be no need for money. Sounds like the Bill Gates methods, have you been tapping into his thoughts with his smart card theories?ha ha no way .

Answer 4

you're incorrect on your question - you're saying you GET a dividend from the agency? No - you shorted, meaning you OWE a dividend to the lender of the stocks. On ex dividend day, your shorted stocks do regulate down, so that you "income" from the adjustment because you shorted earlier that day. In that experience, you do "get better" that dividend charge. You broking service will debit your account for the charge to the lender of the stocks you borrowed. optimistically, in the adventure that your feeling is authentic, the inventory will proceed to bypass down after ex-div, so that you may make a income.