Dan Little: Capitalism's bad incentives

Chris Dillow writes about Capitalism's bad incentives.

Now, I’m not saying that these bad incentives will bring down capitalism or that they are all eliminable: there is a great deal of ruin in a nation. They do, however, raise an important possibility — that there is abundant room for a leftist government to consider alternative governance structures that reduce agency problems and produce better incentives. As John McDonnell notes, such structures might (pdf) well include more cooperatives, as these give control to workers who have both skin in the game and local knowledge of particular working practices.

Unfortunately, the Capitalists will see the development of worker cooperatives as a threat to their power as these cooperatives are a contending centre of power in the political and economic system. And their existence undermines the Capitalists' contention that there is no alternative.