By John D. Stephens
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Additional info for The Transition from Capitalism to Socialism
Combining the argument of the two theorists with some of our own observations, we would argue the following: 1. The size of the population of an industrial nation is the main determinant of the size of the domestic market and, consequently, the degree of industrial centralisation in a country. The smaller the country is, the greater the centralisation will be. The degree of centralisation is the main determinant of the level of labour organisation. 2. Late 14 and rapid industrialisation causes countries, particularly small ones, to have less technically and organisationally complex industrial infrastructures.
The ununionised worker will be favourably affected by the higher pay of his or her unionised fellow worker, especially if labour is in short supply. Given that we have argued that the income of both skill and capital is determined in the market and involves some sort of exploitation, it is incumbent upon us to address the question of whether capital and skill are just two different 'market capacities' not fundamentally different from one another, as Giddens (1973) has claimed. Capital is different from skills in several ways.
For instance, in the United States in 1962, the top executives of the 94 largest finns owned an average of $650,000 of stock in their own finn alone. Forty per cent of their income came from dividends on this stock and to this must be added their increase in net worth due to stock appreciation (Pryor 1973: 121). The practice of offering stock options ensures that most top level managers will also have large property holdings. This not only contributes to the intergenerational continuity of the capitalist class, it also minimises the purported effects of the separation of ownership and control on the behaviour of corporations.