Wednesday 21 March 2012

Who, or what IS an Entrepeneur anyways?

http://www.aljazeera.com/indepth/opinion/2012/03/201232085932116344.html

       This is a pretty interesting article on inequality and the supposedly justified wages of CEOs and 'Entrepeneurs'. It raises some interesting points about incentives, economic rents, and what is really efficient or not. I particularly like the example of the fire fighters, but, I dont know if a consumer product and a family's home are exactly the same thing, regardless the example is poigniant.
       Beyond this, this article made me wonder, or question atleast, Who or What the all important 'Entrepeneur' is in economic theory. Is she/he the 'business(wo)man' figuratively speaking, are they small business owners, are they inventors, members of the technocracy, or those engineers who are responsible for the real technological innovations of society?... Or could the mysterious 'Entrepeneur' be anyone who is a leader of society, business or culture, and is willing to capitalise on that position for personal gain? Questions like this point to the issues one has when looking at an organism as complex as a corporation and trying to tease out the fair and just compensation for all those involved in the production process. Obviously, by current convention, the biggest compensation goes to those who hold the investments, and thus the private owners of the means of production, but this can be simply seen as a property of current legal arrangements - something that is particular to current times, and not absolutely ahistorical (if your sceptical about absolute private property and absentee ownership, atleast). Yet, one can protect property rights as such and also make an argument that the workers are entitled to wealth like steve jobs - isn't their labour private property after all? I realize that in this case, I'm making a non-distinction between workers and owners, but even then, the wage premium for special skills generally isnt as high as one would assume, or atleast to the same magnitude as absentee ownership.
       With that being said, I suppose that an 'economic' argument against this line of thought would be based on something like the market. Workers wages are low relative to owners or 'Entrepeneurs' because their supply of labour is so much bigger in relation to demand for that labour, beyond this, the work that general workers do is not speciallized to a significant degree, meaning they cannot extract a wage premium in the same way an owner, specialist or 'Entrepeneur' can. In this line, an 'Entrepeneur' can represent anyone who illicits a morally disagreeable wage(or rent) rate. But, by using these terms one places absentee ownership - people who benefit from an economic arrangement strictly because of their social position - in the same group as skilled workers - people who can extract a wage premium because they posses an intangible, or tangible skill.
        Anyways, a good article generally raises more questions than it answers and I dont feel like writing all day, plus I'm probally getting to a little too Commie for you all.. So, with that being said, Questions or Comments would greatly be appreciated, this is only the second post, but some discussion would be pretty awesome.

                                                                                                     Dan

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