Back to the main page

Mailing List Logs for ShadowRN

Message no. 1
From: Chris Siebenmann <cks@********.UTCS.TORONTO.EDU>
Subject: Another way to look at corporate script
Date: Fri, 10 Sep 1993 12:39:40 -0400
Corporate script is a neat dodge to recover money money *from
employees* so that they cost you less. In the ultimate case, where
employees are paid soley in your script, they cost you only the
production cost of the goods they use, instead of their nominal salary
(generally higher).

Letting outsiders use your script removes this dodge; suddenly the
script's price is the 'opportunity cost' -- the amount of *real* money
that would have otherwise come back to you when they bought your goods
with real money. This represents a net loss to the corporation, so the
corporation doesn't like it.

The closer to real money corporation script is the less this loss
is, but also the more the corp script has to be intrinsically worth
something, ie the more it represents a debt that the corporation may
be called on to redeem at some inconvenient time. And the people who
can redeem it are both outside *and* inside the corp; no longer are you
cleverly draining as much money from your employees by paying them in
it. It's simpler to use sepperate currencies for outside and inside.

Note that it does no good to jack up the prices employees pay for
goods bought with corporate script; this merely has the net effect of
lowering their salary, making it less attractive to work for you. Expect
grumbling, difficulty recruiting, and some desertions.

- cks
Message no. 2
From: Stainless Steel Rat <ratinox@***.NEU.EDU>
Subject: Re: Another way to look at corporate script
Date: Fri, 10 Sep 1993 22:13:58 EDT
>>>>> "CS" == Chris Siebenmann
<cks@********.utcs.toronto.edu> writes:

CS> Corporate script is a neat dodge to recover money money *from
CS> employees* so that they cost you less. In the ultimate case, where
CS> employees are paid soley in your script, they cost you only the
CS> production cost of the goods they use, instead of their nominal salary
CS> (generally higher).

This is a point that I already made. Except that it's not completely
perfect. No corp, not even the vaunted Renraku Arcology, is totally
self-sufficient. Assuming a corp paid entirely in scrip, it would cost
them the goods they themselves produced, and whatever else they
purchase in *massive* quantities (gawd, I'd love to see the food
service contracts just for the food court in the 'Raku 'Cology Mall).

CS> Letting outsiders use your script removes this dodge; suddenly
CS> the script's price is the 'opportunity cost' -- the amount of
CS> *real* money that would have otherwise come back to you when they
CS> bought your goods with real money. This represents a net loss to
CS> the corporation, so the corporation doesn't like it.

Not really. First, if the number of places that will accept the scrip
is limited, it means the corp still retains some control over the
posessor. At the very worst it will effectively launder itself and
come back around to the corp. They don't really lose, in the end.

CS> The closer to real money corporation script is the less this loss
CS> is, but also the more the corp script has to be intrinsically
CS> worth something, ie the more it represents a debt that the
CS> corporation may be called on to redeem at some inconvenient time.
CS> And the people who can redeem it are both outside *and* inside the
CS> corp; no longer are you cleverly draining as much money from your
CS> employees by paying them in it. It's simpler to use sepperate
CS> currencies for outside and inside.

That's the trick with scrip. You don't allow redemption for cash. It's
sort of like food stamps. You can use them just about anywhere, but
you can only buy food, and you can't easilly or legally convert them
into cash.

CS> Note that it does no good to jack up the prices employees pay for
CS> goods bought with corporate script; this merely has the net effect
CS> of lowering their salary, making it less attractive to work for
CS> you. Expect grumbling, difficulty recruiting, and some desertions.

No, you provide *discounts* with the corp scrip, and pay your
employees with it. So you make less of a monetary profit; you have
happy employees that aren't costing you much to employ.

Rat <ratinox@***.neu.edu> Northeastern's Stainless Steel Rat
PGP Public Key Block available upon request Ask about rat-pgp.el v1.61
||||| | | | | | | | | | | | | | | | | | | | | | | |||||
No Zooanoids were injured in the making of this message.

Further Reading

If you enjoyed reading about Another way to look at corporate script, you may also be interested in:

Disclaimer

These messages were posted a long time ago on a mailing list far, far away. The copyright to their contents probably lies with the original authors of the individual messages, but since they were published in an electronic forum that anyone could subscribe to, and the logs were available to subscribers and most likely non-subscribers as well, it's felt that re-publishing them here is a kind of public service.

Thwap!