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Thursday, September 25

Chapter 8- Technical Economic Innovations 2

Summary
Woodhouse lays out the format and problems with the hierarchy and authoritarian nature of most businesses in the modern world in this chapter. He argues that the market playing field should be equal between employees, executives, the government and social organizations or associations. This can be done through an auction mechanism, which raise funds, automatically set market priorities, allow new innovators to decide when/if to progress, and account for exceptions for high-priority innovations, valuable innovations and smaller innovations that needn't be put through the system. In his terms, consumers and innovators need to consider, "is technological society in greater trouble because of a shortage of innovations, or because of lack of attention to those that do occur?" (101) Then the system can take time and effort into making a new, more thorough system of addressing innovations.

Analysis & Synthesis
I feel that there will always be the ongoing struggle with technology of how it redefines our roles in society. Woodhouse highlighted this struggle throughout this chapter, focusing on how our current system often progresses to the disadvantage of employees. His first example was that of environmental solutions. There have been many suggestions to executives to implement more environmentally friendly practices, to which they respond with the threat to our jobs or employment opportunities to pick up the cost. This prevents progression, harms employee relations and shoots down any opportunity given to environmental organizations. Woodhouse's approach to this solution was twofold: first, that "the tax rate might be increased every few years until it became obvious that the contest between business and other social interests became more equal" (97), and having employees act as consumer representatives, the hope being "if it were known that workers had a share in decision making, environmental organizations or other groups might as workers to speak on their behalf" (97). I have two questions in response. First, we have been trying to make tax changes for a very long time, and in recent political battles the discussion of raising taxes as well as enacting tax raises have been implemented. See Occupy Wall Street. This is clearly not a simple or easy answer; consumers will complain or revolt until it is changed. Woodhouse gave the example of how "Spanish workers still have the right to vote to hire and fire their bosses", and that he "wonders why that simple idea has not become better known and more widely tried" (98). It would not surprise me if businesses put conditions into place that would allow workers to technically have a say, but would limit them to which decisions they could make, or what exactly they could say, how they could say it, etc. I don't think it would be an effective system, at least with the general tendencies of the business market right now. Somehow we need to break this "trend toward fewer employees per cracker or car [that] has been in place for a century, with no end in sight." (99)

Our current system catches us in this vicious cycle of authoritarianism based on profit incentives and ideas of power & dominance, which I described in my previous blog post. Still, I wonder if we could ideally implement Woodhouse's system, with employees holding comparable power and say to executives. Wouldn't this also be a self-feeding and driving system? Better pay, input into what goes on in the company would make employees enthusiastic about their work and the growth of their company. Consumers would know more about the products they are seeing and what goes on behind it, encouraging them to purchase the products of companies with these policies and fair treatment. Employees would purchase their company's products out of pride and support for their hard work. Thus, the economy would be stimulated from within and on fair and powerful principles that would allow for change via personality and the input of the citizenry the company is involved in. Executives would learn from employees and be held accountable for the effects their decisions make, and would only become wiser and more responsible. In this ideal world, our economy would thrive and reflect the culture and drive of its consumers and workers, citizens would have a healthy, clear view of products and would be able to make change through what they do every day.