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Don’t such successful groups use their profits to control other enterprises, or become absentee owners, and thus end up as capitalists just like ours? The answer on this point was complex, but seems to boil down to the fact that direct absentee investment by one enterprise or person in another enterprise is not permitted. Surpluses can thus only be “invested” by lending them to the national banking system, which in turn lends funds to enterprises. This arrangement, which resembles the one pioneered by the Yugoslavs in the seventies, obviously gives the bank an immense leverage on the economy, ...more
Ecotopia: A Novel
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