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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
The Share Economy: Conquering Stagflation

The Share Economy: Conquering Stagflation

Weitzman, Martin L.

Paperback

Series: Conquering Stagflation

Economics

ISBN10: 0674805836
ISBN13: 9780674805835
Publisher: Harvard University Press
Published: Jan 1 1986
Pages: 184
Weight: 0.51
Height: 0.54 Width: 5.38 Depth: 8.24
Language: English

In the pages of this intriguing volume, a cure to stagflation seems to be at hand. Martin L. Weitzman, one of America's leading economic theorists, has hit upon a central feature of our economic life as the cause of this chronic malady: the standard practice of paying workers a fixed wage, regardless of whether a company is doing well or poorly. Weitzman shows in a clear straightforward way that an alternative labor payment system, in which a significant number of firms share profits or revenues with their employees (like the Japanese bonus system), provides immunity against stagflation; an economy of such firms automatically soaks up unemployed labor and resists inflation.

Under the Weitzman system, firms always have an incentive to take on more workers because the additional worker is paid only a fraction or share of the revenue he brings into the firm. General Motors and Eastern Airlines have already taken steps to implement profit and revenue sharing. Here, for the first time, is a lucid explanation and justification of share systems. Eschewing theoretically unsound schemes such as supply-side tax cuts and industrial policy on the one hand and macroeconomic sledgehammer cures on the other, The Share Economy provides a powerful and hopeful account of what may become the most important economic innovation of our time.

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