Author(s)

Bruno Jossa

University of Naples, Naples, Italy.

Considering that businesses face bankruptcy when their aggregate costs exceed their revenues, the cancellation of the largest production cost item—wages and salaries—in an employee-managed firm system is an effective safeguard against bankruptcy. For this and other reasons, the author argues that risks of insolvency are unlikely to scare democratic firms into accepting the capitalistic logic of cut-throat competition.

Labour Managed Firms, Failures, Solidarity, Comparative Economic Systems

Jossa, B. (2017) Competition in a Democratic Firm System: Failures and Constraints. Modern Economy, 8, 1366-1382. doi: 10.4236/me.2017.811092.