On an episode of Econtalk, Russ Roberts played host to a guest by the name of Yanis Varoufakis. Varoufakis was the former economist-in-residence at Valve, a video game design and game distribution company. Varoufakis was also a professor at the University of Texas at the time and had previously taught at the University of Athens in Greece. They discussed his time as an employee at Valve and the seemingly unique working conditions that occur their. This episode helped me realize that even in an extremely odd case such as Valve’s, the laws of economics that we were taught in AP economics class apply to almost everything consistently and precisely. The phenomena described by Varoufakis as happening at Valve is the idea of “Anarcho Syndicalism”. This idea continues as a theme throughout the podcast, being reflected on the different aspects of Valve’s economic and social structures that were talked about. This was described as the philosophy on how to …show more content…
The invisible hand that guides consumers and producers towards the decisions the make is highly apparent in Valve. In their case it takes the form of social norms and maintenance of status and self-respect. The idea that these employees are able to work passionately to create a quality product solely for the respect of others is astonishing. This situation was not taught in AP, but it is analogous to simple supply and demand markets that we learned about. However, in this case the y-axis of the model is labeled community response/peer respect, rather than price. I believe that this is exemplary of the truth in economic law. These employees are being paid ridiculous amounts of money and do not need to do their jobs extraordinarily well (relatively) to maintain a position at the company and continue receiving pay. However, it is the new motivation found on the y-axis of this new supply-demand model that inspires them to keep production up and at a
...t be in business very long. But, for instance, what if RGIS was offered the chance to perform one “test” inventory for a company that had many stores and the inventory went extremely well because of the customer service levels provided? RGIS would have the opportunity to service this customer’s other stores not because of the data, but because of the service they received. This human factor played huge role in garnering business for the RGIS and yet their employees have no chance in earning any more compensation than they would have for simply putting data into a machine. Let’s look at other ethics principles and see where an example like the one above would fit in.
Brue, S. L., Flynn, S. M., & McConnell, C. R. (2011).Economics principles, problems and policies. (19 ed.). New
In any business money is the driving force, whether it is the owner or employee. Money is the greatest incentive for performance amongst employees Lincoln Electric defined this fundamental reason for driving employees to excel at their jobs. Aside from compensation there is an understating between mangers and their subordinates that both have the same fear toward lack of income, this commonality serves to encourage all employees to deliver quality and affordable products at the best market
The public castigates Wal-Mart for the low wages their workers receive. The average amount Wal-Mart pays their employees is $8.81. This is well below what they deserve for the number of hours some of the workers are putting in. The storefront employees are not the only ones who deserve a better pay, but the ones who are working to put the merchandise on the shelves. In Bangladesh sweatshops, the minimum wage for sweatshop workers is just $37 a month (Osterndorf). For the conditions they work through, the abuse they endure from their superiors, and the 12-hour days, they deserve more than what they are getting. Although, while Wal-Mart
Alfred A Knopf, of New York publishing house fame, once stated “An economist is a man who states the obvious in terms of the incomprehensible”. For being someone who is just learning the basics of economics, this elucidation speaks volumes to this branch of the social sciences. From my basic understanding, economics is the study of scare resources that determine the supply, demand, and consumption for a said good. Wherein the simplification of multifaceted issues is used to make predictions that can be used to serve a society’s needs. Although this may seem like a simple concept, Knopf’s comment illustrates the complexity and involvedness of economics within a given society. Ultimately, from this definition, economics is a tool that aims to
Seldom do individuals realize the significance of acquiring a proper understanding of economics as a whole, let alone any subfields that branch off of it. Every aspect of economics is relative to another within itself, much like the roots of a tree are relative to the leaves or fruit that it bears. Attempting to distinguish between micro and macroeconomics in terms of significance to the real world is unavailing. Having a formal comprehension of this science begins with the principles and theor...
Paul A. Samuelson, one of the men who made Harvard’s reputation, made various contributions to modern economics. Samuelson brought numerous theories to the table, showing that math is an effective and necessary component of understanding economics. Furthermore, he discovered a new obstacle regarding inflation, known as “cost-push” inflation. But most importantly, Paul A. Samuelson has shown that economic theories can be timeless, however their implementation evolves around the current economic circumstances that are in play.
Author Greg IP, describes real pay as the amount an individual makes in monetary terms after accounting for inflation. The logic behind this theory is that “the more a worker produces for his employer, the more he’ll earn” (Ip, 2013, p. 58). Greg Ip, provides an example of this theory and its dilemma in his book titled The Little Book of Economics: How the Economy Works in the Real World. Greg Ip, states that “someone with a backhoe can dig more than someone with a shovel”, therefore it may be expected that the employee who produces more is compensated respectively (Ip, 2013, p. 58). However, the employment world does not always guarantee that the highly productive employee will benefit more than the employee with less productivity and often it is the “employer” who gains the capital profitability in this employment agreement and other times it is even the consumer of the product or
The crucial importance and relevance of economics related disciplines to the modern world have led me to want to pursue the study of these social sciences at a higher level. My study of Economics has shown me the fundamental part it plays in our lives and I would like to approach it with an open mind - interested but not yet fully informed.
“When Economic Incentives Backfire. ”Harvard Business Review, March. 2009. The 'Standard' of the 'Standard'. Web.
Sullivan, A., & Steven M., (2003). Economics: Principles in action. Upper Saddle River, New Jersey : Pearson Prentice Hal
...ollow them either. It is clear that there are many ethical violations and if a company were to act in a manner that this today they would strongly be looked down upon.
According to Sloman (2003), many people think that economics is about money. Well, to some extent this is true. Economics has a lot to do with money: with how much money people are paid; how much they spend; what is costs to buy various items; how much money firms earn; how much money there is in total in the economy. But despite the large number of areas in which our lives are concerned with money, economics is more than just the study of money. It is concerned with the production of goods and services and the ...
2. Michel Foucault The understanding of individual choices in a Foucauldian sense is deeply rooted in his deterministic approach to the will to power and truth. His premises are underscored by the belief that all human beings are individualized as individuals of a particular kind. For Foucault (1979), this form of individualization is done through various practices that seem perfect and refined yet serving a normalizing and individualizing function that produces us as subjects that are inevitably subjected into forms of domination, with an effort of leading us into docility of our practical lives. Two techniques are present in individuals as they seek to understand and control themselves: Technologies of self and Technologies of domination.
Sloman, J & Wride, A (2012). Principles of Economics. 8th ed. Essex: Pearson Education Limited.