An outspoken advocate of free-market economics and fan of the novelist Ayn Rand, he created the model because he expected the invisible hand of the market to drive better results. If the company’s leaders were told to act selfishly, he argued, they would run their divisions in a rational manner, boosting overall performance.Instead, the divisions turned against each other — and Sears and Kmart, the overarching brands, suffered. Interviews with more than 40 former executives, many of whom sat at the highest levels of the company, paint a picture of a business that’s ravaged by infighting as its divisions battle over fewer resources.
Sears became a miserable place to work, rife with infighting and screaming matches. Employees, focused solely on making money in their own unit, ceased to have any loyalty to the company or stake in its survival.We all know the end of the story: Sears share prices fell, and the company appears to be headed toward bankruptcy.
As part of this process, the Honduran government passed a law in 2013 that created autonomous free-trade zones that are governed by corporations instead of the countries in which they exist. So what was the outcome? Writer Edwin Lyngar described vacationing in Honduras in 2015, an experience that turned him from Ayn Rand supporter to Ayn Rand debunker. In his words:
The greatest examples of libertarianism in action are the hundreds of men, women and children standing alongside the roads all over Honduras. The government won’t fix the roads, so these desperate entrepreneurs fill in potholes with shovels of dirt or debris. They then stand next to the filled-in pothole soliciting tips from grateful motorists. That is the wet dream of libertarian private sector innovation.
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On the mainland, there are two kinds of neighborhoods, slums that seem to go on forever and middle-class neighborhoods where every house is its own citadel. In San Pedro Sula, most houses are surrounded by high stone walls topped with either concertina wire or electric fence at the top. As I strolled past these castle-like fortifications, all I could think about was how great this city would be during a zombie apocalypse.
In each workplace the assembly of all the workers was the basic unit. Within the factory workers would elect delegates to represent them on day-to-day issues. Anything of overall importance had to go to the assembly. This would elect a committee of between five and fifteen worker, which would elect a manager to oversee the day-to-day running of the workplace - Within each industry there was an Industrial Council which had representatives of the two main unions (CNT and UGT) and representatives from the committees. Technicians were also on these committees to provide technical advice. The job of the Industrial Council was to set out an overall plan for the industry.Within workplaces wages were equalised and conditions greatly improved. Let us see how collectivisation actually made things better. Take for example the tramways. Out of the 7,000 workers, 6,500 were members of the CNT. Because of the street battles all transport had been brought to a halt. The transport syndicate (as unions of the CNT were known) appointed a commission of seven to occupy the administrative offices while others inspected the tracks and drew up a plan of repair work that needed to be done. Five days after the fighting stopped 700 tramcars, instead of the usual 600, all painted in the black and red colours of the CNT, were operating on the streets of Barcelona.With the profit motive gone, safety became more important and the number of accidents was reduced. Fares were lowered and services improved. In I 936, 183,543, 516 passengers were carried. In 1937 this had gone up by 50 million. The trams were running so efficiently that the workers were able to give money to other sections of urban transport. Wages were equalised for all workers and increased over the previous rates. For the first time free medical care was provided for the work force.
Extensive reorganisation took place to make industry more efficient. Many uneconomic small plants, which were usually unhealthy, were closed down and production was concentrated in those plants with the best equipment. In Catalonia 70 foundries were closed down. The number of tanning plants was reduced from 71 to 40 and the whole wood industry was reorganised by the CNT Woodworkers Union.In 1937 the central government admitted that the war industry of Catalonia produced ten times more than the rest of Spanish industry put together and that this output could have been quadrupled if Catalonia had the access to necessary means of purchasing raw materials.It was not only production that was taken over. Many parasitic ‘middlemen’ were cut out of distribution. The wholesale business in fish and eggs was taken over as were the principal fruit and vegetable markets. The milk trade in Barcelona was collectivised which saw over 70 unhygienic pasteurising plants closed down. Every where supply committees were set up. All of this made the middle classes very unhappy. To them, with their notions of becoming bigger bosses, the revolution was a step back.Again equalisation funds were established to help out the poorer collectives Indeed there were many problems. Many markets were cut off in the fascist zone and some foreign markets were also temporarily lost. Raw materials were short as sources of supply were cut off. and when they could be obtained funds were held back by the central government. This was one short-coming of the collectivisation.The banks had not been seized and the gold reserve already referred to stayed in the hands of the government. (The CNT did hatch a plan to seize it but backed down at the last moment).Despite all this production was increased and living standards for many working class people improved. In October 1936 the government was forced to recognise the collectivisation by passing a decree that recognised the fait accompli. It was also an attempt to control future collectivisation.
@Angrybrony
The companies succumbed to infighting since no one cared about any paycheck but theirs and the employees became les effective because of crushed moral,
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