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Arash Kolahi

@ArashKolahi

Left Economist. Writing a book on human nature, potential, fulfillment & society. Psychology, Parecon, Social Theory. Libertarian-Left. 🌹🏴

California, USA
Vrijeme pridruživanja: travanj 2019.

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    Arash Kolahi‏ @ArashKolahi 26. pro 2019.
    • Prijavi Tweet

    Among the most pervasive lies about capitalism is how capitalism rewards workers. Capitalism does NOT reward: • Productivity • Value • Hard work, effort, sacrifice or duration of work As we will prove, these lies are just propaganda with NO basis in reality. (Thread 1/30)

    14:50 - 26. pro 2019.
    • 7.861 proslijeđeni Tweet
    • 22.039 oznaka „sviđa mi se”
    • Sarah ESFP Rob Johnson Echo Daisy Y Jhéani Jógvan Magnus Haugaard Olsen supreme gay plant mom Lorelei Petite 🌹🆘 Belle
    7.861 proslijeđeni tweet 22.039 korisnika označava da im se sviđa
      1. Novi razgovor
      2. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        First, let’s start with how wages REALLY work. Like most prices in capitalism, wages (price of labor) are determined by markets. Markets are an allocation system whereby prices are reflective of the relative bargaining power between buyers & sellers of goods and services. 2/30

        5 replies 146 proslijeđenih tweetova 1.554 korisnika označavaju da im se sviđa
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      3. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        Markets incentivize both buyers & sellers to each maximize the transactional benefit to themselves. With markets, buyers want the price to be as low as possible & sellers want the price to be as high as possible. But… 3/30

        80 proslijeđenih tweetova 1.052 korisnika označavaju da im se sviđa
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      4. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        Below a certain price (floor), a transaction is no longer worth it to the seller (i.e., they’d lose money at that price). And above a certain price (ceiling), a transaction is no longer worth it to the buyer (i.e., can forgo the purchase or find alternatives). 4/30

        72 proslijeđena tweeta 956 korisnika označava da im se sviđa
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      5. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        However, between the floor price & the ceiling price, the actual price of goods & services in market transactions tend towards whoever has the greatest bargaining power. Who can step away from the deal easiest? Who can easily find an alternative? Or who is more desperate? 5/30

        119 proslijeđenih tweetova 1.198 korisnika označava da im se sviđa
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      6. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        In fact, with markets, between the floor & ceiling prices, the lion’s share of the benefit of each transaction goes to the party who already has the highest bargaining power. 6/30

        96 proslijeđenih tweetova 1.104 korisnika označavaju da im se sviđa
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      7. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        Economists have understood this truth for a long time. The Fair-Trade Movement was largely born as a result of this. Trading with desperate, poverty-stricken trade partners in a market system gives virtually all benefits of the trade to the already powerful. 7/30

        5 replies 165 proslijeđenih tweetova 1.371 korisnik označava da mu se sviđa
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      8. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        Example: say it costs a seller in a poor country $2 to make widget A, the floor is $2. Let’s say rich country buyers would be willing to pay up to up to $10 per Widget A (ceiling). The actual price will be much closer to $2 than $10 because of bargaining power disparities. 8/30

        87 proslijeđenih tweetova 1.062 korisnika označavaju da im se sviđa
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      9. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        The Fair-Trade Movement understood that in international trade, market prices reflect the relative bargaining power between buyers (i.e., rich countries) & sellers (i.e., poorer countries) & as a result, prices are so low, they give the lion’s share of the benefit to buyers. 9/30

        1 reply 87 proslijeđenih tweetova 944 korisnika označavaju da im se sviđa
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      10. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        The Fair-Trade Movement showed how & why markets exasperate wealth disparities internationally. Market transactions between radically unequal (bargaining power) trade partners over time *increases* wealth disparities because of how markets work. 10/30

        119 proslijeđenih tweetova 1.044 korisnika označavaju da im se sviđa
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      11. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        This should be self-evident as we see this every day. People desperate to survive, on the verge of starvation or homelessness, have little bargaining power. People with wealth, who can hold off on transactions with little effect to themselves have greater bargaining power. 11/30

        153 proslijeđena tweeta 1.162 korisnika označavaju da im se sviđa
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      12. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        With markets, prices always tend towards benefiting the party with greater bargaining power. Since wages are prices for different types of labor bought & sold on a market system, they follow the same market logic. 12/30

        92 proslijeđena tweeta 894 korisnika označavaju da im se sviđa
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      13. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        Between the floor price & ceiling price, when sellers are more desperate than buyers, prices go down closer to the floor price. When buyers are more desperate than sellers, prices go up closer to the ceiling price. 13/30

        54 proslijeđena tweeta 786 korisnika označava da im se sviđa
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      14. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        As we have seen, prices in markets are reflective of the relative bargaining power between buyers & sellers. Since wages in capitalism are bought & sold on the labor market, wages too are set by the relative bargaining power between the employer (buyer) & worker (seller). 14/30

        97 proslijeđenih tweetova 866 korisnika označava da im se sviđa
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      15. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        Employers know this truth. That’s why they hate labor unions. Unions strengthen workers' bargaining power in numerous ways (collective bargaining power, make workers less dispensable, etc.), resulting in higher wages for union workers. 15/30

        7 replies 265 proslijeđenih tweetova 1.544 korisnika označavaju da im se sviđa
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      16. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        In addition to a degree in Economics, I also have a master’s in business. One of the main things taught in top MBA programs is how to lower the bargaining power of employees, thus lowering wages, thus increasing profits. With markets, bargaining power is EVERYTHING. 16/30

        7 replies 249 proslijeđenih tweetova 1.388 korisnika označava da im se sviđa
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      17. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        Employers know it, executives know it, MBA’s know it. Economists know it. Yet the propaganda is the opposite. Work hard & you’ll earn more. Be more productive & you’ll earn more. Produce more value for your employer & you’ll earn more. ALL LIES for the masses. 17/30

        11 replies 395 proslijeđenih tweetova 1.881 korisnik označava da mu se sviđa
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      18. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        Now that we know the truth, it’s easy to disprove the lies. Lie #1: Wages are based on productivity: Between the 1950s & today worker productivity has increased multiple times over, yet wages remained stagnant. Zero historical correlation between productivity & wages. 18/30

        7 replies 352 proslijeđena tweeta 1.726 korisnika označava da im se sviđa
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      19. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        Per worker productivity has skyrocketed, yet virtually none of those gains have benefited workers because worker bargaining power has remained flat. The one-sided war against unions over the past 50 years has contributed greatly to keeping workers’ bargaining power low. 19/30

        178 proslijeđenih tweetova 1.294 korisnika označavaju da im se sviđa
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      20. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        The only time productivity increase wages, is IF that increased productivity translates into increased bargaining power for workers. IF you increase your productivity in a way that makes you more indispensable to your employer, that increases your bargaining power & wages. 20/30

        118 proslijeđenih tweetova 1.080 korisnika označava da im se sviđa
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      21. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        So, it’s not the increase in productivity that caused wages to go up; it’s only if workers can capture greater bargaining power as a result of increased productivity that wages would go up. Lie 1 debunked: No correlation between productivity & wages. 21/30

        8 replies 107 proslijeđenih tweetova 1.001 korisnik označava da mu se sviđa
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      22. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        Lie #2: Wages are based on the value of your labor: If by ‘value’ we mean ‘valued by society,’ this is obviously not the case as workers in some of the highest societally valued products & services (i.e. teachers) receive the lowest wages. 22/30

        11 replies 235 proslijeđenih tweetova 1.305 korisnika označava da im se sviđa
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      23. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        If by value we mean value that can translate into profits for employers, this is obviously also not true since workers in some of the most profitable industries (i.e., iPhone factory workers) also receive some of the lowest wages. 23/30

        6 replies 140 proslijeđenih tweetova 1.042 korisnika označavaju da im se sviđa
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      24. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        Regardless of profit levels (so long as there is no loss), the STRONGEST correlation is between workers’ wages & worker’s level of bargaining power in that industry, NOT profit levels and NOT the value of labor. Lie 2 debunked 24/30

        109 proslijeđenih tweetova 994 korisnika označavaju da im se sviđa
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      25. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        And finally, the favorite lie of all. Lie #3: Wages are based on hard work, effort, sacrifice or duration of work. No one works 100x or 1,000x or 10,000 times longer or harder than anyone else – but some earn 100x or 1,000x or 10,000 times more income than others. 25/30

        7 replies 339 proslijeđenih tweetova 1.575 korisnika označava da im se sviđa
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      26. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        Arash Kolahi je proslijedio/a tweet korisnika/ceArash Kolahi

        As I’ve shown in a separate thread, if wages were remotely equitable, the average worker, working the average duration at an average effort, would receive the average income of roughly $130,000 a year! Obviously this is not the case. 26/30https://twitter.com/ArashKolahi/status/1207713514569076736?s=20 …

        Arash Kolahi je dodan/na,

        Arash Kolahi @ArashKolahi
        If we think of the total output of the economy as a giant pie and then we were to divide up the entire pie equally among all workers who contributed to making it, each slice would be roughly $130,000 per year*. 2/10 *2018 US Gross Domestic Income / # employed at the time
        Prikaži ovu nit
        187 proslijeđenih tweetova 1.105 korisnika označava da im se sviđa
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      27. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        But what about the duration of work? For many workers there is SOME correlation between duration of work & income. But that correlation is only because of the minimum wage, not because of market forces. 27/30

        62 proslijeđena tweeta 827 korisnika označava da im se sviđa
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      28. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        And much of the fight for a minimum wage was based on the understanding that if left up to normal market forces, i.e. relative bargaining power between workers & employers, wages would be driven so far down that most workers would earn dire poverty wages (floor) 28/30

        99 proslijeđenih tweetova 920 korisnika označava da im se sviđa
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      29. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        Thus, as we have shown, market capitalism rewards bargaining power, NOT productivity, NOT value & certainly NOT hard work, effort, sacrifice, or duration of work. And because market capitalism rewards only bargaining power, it is inherently inequitable. 29/30

        241 proslijeđeni tweet 1.293 korisnika označavaju da im se sviđa
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      30. Arash Kolahi‏ @ArashKolahi 26. pro 2019.
        • Prijavi Tweet

        The only fair & equitable criteria for wages is rewarding hard work, effort, sacrifice & duration of work. Capitalists lie about it because it resonates as fair, but capitalism is inherently NOT fair. It’s socialists who demand fairness & equity 30/30 https://www.participatoryeconomics.info/values/ 

        55 replies 252 proslijeđena tweeta 1.735 korisnika označava da im se sviđa
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      31. Arash Kolahi‏ @ArashKolahi 28. pro 2019.
        • Prijavi Tweet

        Arash Kolahi je proslijedio/a tweet korisnika/ceArash Kolahi

        Adding this here to address some anecdotal examples given in the mentions:https://twitter.com/ArashKolahi/status/1211020106035187713?s=20 …

        Arash Kolahi je dodan/na,

        Arash Kolahi @ArashKolahi
        To best understand societal institutions, including economic institutions, it’s important to pay attention to the inherent incentives the institutions create. For example, it’s a non-controversial fact that capitalism incentivizes maximizing profits. Everyone knows it. 1/3
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        11 proslijeđenih tweetova 106 korisnika označava da im se sviđa
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