Question

According to Wolff, why won’t “re-regulation” work? What does he propose as a solution to problems of capitalism that led to the recent crisis? What do you think of Wolff's argument?

Answer 1

Re-regulation won't work because all it does is simply gives incentive to businesses to evade them and eventually get rid of the regulations. Regulations did not alter the existence of company board of directors and the directors with their available resources were able to evade them.

He proposes a new system where instead of the board of directors the employees of the organization take the decisions of running the business. He therefore proposes extending democracy to the businesses i.e company are run by employees and responsible to them. This means that all workers will suffer the consequences of poor decision-making and that laws concerning regulation are assured to be followed.

According to me this solution is not a prudent one because the amount of laborers in a company typically outnumber those who run and know how to run a business. This means that those who are uneducated about how to run a business will make uneducated decisions about how the business will run and will cause the business to spiral into chaos.