PHIL 322 Lecture 49: PHIL-322,University of Arizona,Readings(p49)
30 Aug 2018
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Alchian and demsetz cannot bear the full authoritarian implications of recognizing the boundary between the market and the firm, even in a paper devoted to explaining it. In the employment contract, workers cannot separate themselves from the labor they have sold; in purchasing command over labor, employers purchase command over people. It is the state that establishes the default constitution of workplace governance. It is a form of authoritarian, private government, in which, under employment-at-will, workers cede all their rights to their employers, except those specifically reserved for them by law. State communists looked to ideals of neither liberty nor equality, but rather to utilitarian progress and the perfectibility of human beings under the force of private government. Private governments impose controls on workers that are unconstitutional for democratic states to impose on citizens who are not convicts or in the military.
