Paradoxes of Capitalism Quiz-for-Thought

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Assigning numeric prices to things has its perks, but it also introduces some nasty moral paradoxes. Which answer will you choose?

You have one scholarship to give to one student for a high-quality university education. Who do you give it to?

The student with the best grades and test scores.

The student with the best grades, test scores, an extracurriculars.

The minority student.

One of the women students, rather than one of the men.

The most piteous student from the least privileged, most impoverished background who has the most tragic story of suffering, and yet who still meets the minimum academic standards.

Who am I to make such a decision? Who is anyone to?

What is the source of this scholarship money? Who was it taken from, and how? Can we give it back?

How could it be possible to offer free education to everyone? Where would the numbers come from? Where would they go?

Clear selection

You are a small business owner with two employees. You pay your employees by the hour. Both of your employees work equally hard, but one finishes faster and therefore ends up working fewer hours. Who should be paid more per week, total?

The faster worker, who produces the most and therefore deserves the highest reward, because their time is more valuable to me and the business.

The slower worker, who works just as hard and for more hours each week. Their time is just as valuable as anyone's.

My answer depends on the reason for the slow performance. If the slower worker is new and still learning, they deserve less because they haven't "put in the time" (or is it done hard time?). If they are officially disabled, that is OK because it isn't their fault. If they are an underprivileged class, I must be careful of my own biases and perhaps not pay the slower worker less to avoid getting accused of discriminating. Any other reason is suspect—the more productive worker should be paid more.

They should be paid equally, because they both completed the same amount of work. Pay should be based on output, not hours worked. If someone is more efficient, they can finish quickly and go do something else, and that's great for everyone.

Let's ask them.

I would transition my business to employee-owned and share all profits transparently with my now-partners.

Why are we using this corrupt numerical currency to transact our business? How else could we organize a business? How could we better conduct pay rate negotiations without comparing people to each other, or without using numbers to price human time and labor-effort?

I would negotiate privately with each worker and pay them each the minimum they will accept. It is considered taboo and indelicate to talk about pay rate in the workplace, so it is unlikely they will discover the discrepancy.

Regardless of performance, whoever has a better, more impressive, and more relevant educational background and work history deserves more, because they "put in the time" in our industry.

Whoever I like better and feel is more enthusiastic about the job.

Clear selection

Same question, but this time you pay your two employees with a set weekly salary. Who should get the higher salary?

The faster worker, because they produce more and are therefore worth more.

The slower worker, because they are not yet well-established and the extra financial support will help them to continue improving in this career (as your employee). The faster worker is also better with their money, so the don't need it as much as the slow worker.

This doesn't change my answer.

Clear selection

Same question: You once again pay your two employees by-the-hour, but this time, they each work the same number of hours per week. Who should take home more money at the end of the week?

The faster worker, because they produce more over the same amount of time.

The slower worker, because we should redistribute wealth exactly opposite of our profit-based intuitions.

They should be paid equally, because they are both doing the same job, more or less.

Clear selection

You are one of two employees at a small business, employed by the owner. You are paid by the hour, and you work a set number of hours each day and each week. How fast should you work?

As fast as possible. The more I get done, the more I impress the boss, so he might give me a raise or other bonuses. I work the same number of hours every day, so I may as well do a great job and work hard!

As slowly as possible. I already have a job, so my time at work is best spent conserving my energies for my own goals and activities. I work the same number of hours every day, so it doesn't matter how hard I work. In fact, it's better to work slowly, because if we run out of things to do, my job might be eliminated altogether, or my hours cut.

It doesn't matter.

It depends on whether the boss holds me accountable to doing a good job. If I can get away with it, I will slack. If not, I'll try to do a good job, even though I'm not the owner of the business.

Clear selection

Same question: You are one of two employees at a small business, employed by the owner. This time, you are paid a set weekly salary. You can set your own hours, as long as you meet the weekly goals for the business that your boss sets. How much do you work, and how hard?

I work the fewest hours possible by working fast and doing a great job. By working hard and smart I save time and have more left for other activities. Success at work energizes me for the rest of my life.

I work long hours and I also work very hard. I care about the Company, or at least enjoy my work and take pride in it. My efforts are rewarded by promotions and a good reputation.

I work a reasonable number of hours by pacing myself and setting sensible goals.

I almost don't work at all. Eventually my lack of productivity is discovered and I lose my job.

It depends on whether I respect my boss and his business, and/or whether the boss has been nice to me recently.

Clear selection

Would you prefer to work as a salaried employee or a waged employee?

Salaried

Waged

Neither, I won't work for money.

Other: Gig economy, idiosyncratic contract work, commission sales.

None: I won't work for anyone. I would prefer to be unemployed (possibly homeless), or I am an "investor", or I have wealth from my family.

Clear selection

You are a contract worker being paid piecemeal for the completion of certain tasks. You are paid a set amount after each task is complete. You get to pick your tasks from a bounty website, where some tasks pay more than others. How do you work?

I find the easiest, highest-paying tasks and complete as many of them as quickly as possible, at adequate quality. This maximizes my return.

I find the tasks I would enjoy the most and do those preferentially. I work at a comfortable pace and enjoy myself.

I find the most difficult tasks that nobody else can do and complete those. I like the challenge, and these tasks sometimes pay out very high amounts.

I find the tasks that nobody else is doing because they don't pay enough, and do those. I like to tie up loose ends and take care of the community.

Clear selection

You are a contract worker who is paid by the hour. You can set your own hours and invoice your client (boss) for whatever number of hours you want. Your client has a large budget and will pay whatever invoice you send them. How do you work?

I bill as many hours as possible. I work slowly, invent additional tasks, invent excuses for prolonging a task, bill for every second including travel time and paid coffee breaks (required by law, for traditional employees!), plus I have even considered padding my hours before I bill, because I worked hard and finished the project and I deserve it. I worked very efficiently so my time was actually worth more. So I'll put down that higher number so that I get paid accurately.

I bill as few hours as possible. I want to offer the best value possible to my clients, and I want to get more customers, so I often work unbilled hours as a courtesy to my clients. This keeps the gears running smoothly, and clients happy.

I bill the number of hours I work. I don't work fast or slow, hard or lazily, but I work at a reasonable pace and I accurately track my hours. This is how I am straightforward with my clients.

I bill the number of hours I work, but I creatively expand the scope of the project to impress the client and, as a bonus, add hours to the job.

Clear selection

You are a contract worker who is paid by the job. Two clients ask you for a price quote on the same task. One client has a large budget, and would be willing to pay more, and the other client has a much smaller budget, but can still afford your usual price for the service. What price do you quote them?

The same price to both. My services have a standard price unrelated to the clients' budget.

I quote the wealthier client a higher price, and the poorer client my usual price. The wealthier client can afford to pay me more, so they should.

I quote the wealthier client a higher price, and the poorer client a discounted price, below my usual price. With the extra money from my wealthier client, who can afford it, I can help someone else.

I quote them both a higher price. Since a wealthier client wants my time, my time is worth more, so I can afford to increase my prices. This may price-out the other potential client, which is my way of choosing the wealthier client. This increases my take-home, while also reducing my workload. The poor client can find a different, cheaper, less glorious contractor to work for them. Perhaps I can recommend them one of my lesser colleagues, as a courtesy.

Clear selection

You are a contract worker who is paid by the job. A respectable, humanitarian charity comes to you and asks for your help with a task. Will you offer them free or discounted services?

Yes—Charitable work is important and so I will do some too. The humanitarian charity pays its own employees a full salary, but I will accept a lower rate as a my way of giving directly to the charity.

No—My prices are set.

Only if subsidized—If the government or some other third party will pay the difference, I will offer a discount. That way, the charity gets a discount, and I take home my usual rate. The subsidizer has their own reasons for subsidizing the charity and myself, and presumably benefits for the money they are putting in.

No—The charity is a large, respected, well-funded organization and can pay a high consulting fee. I will build my prestige and my savings by working for well-funded, prestigious charities.

Clear selection

You are the CEO of a respectable humanitarian charity. All donations go directly to buying food for those who can't afford food themselves. Who pays your salary?

I don't have a salary: I volunteer as CEO. When I say that 100% of your donations go directly to charity, I mean it.

We receive government grants for our employees, but 100% of your donations go directly to buying food for the poor. Our employees who organize the purchase and distribution of the food are paid full- or part-time salaries.

When I say that all donations go directly to buying food for those who can't afford food themselves, what I mean is that we use your donations as part of a global network of food distribution. We employ purchasers, inventory clerks, truck drivers, and on-site staff to bring food to many people.

We work with food distributors to secure discounts, bulk buys, or free merchandise. These offset enough of our costs to allow us to pay our employees minimally, while still spending 100% (sometimes more) of your donations on (discounted!) food.

Clear selection

You are a paid fundraiser for a respectable humanitarian charity. I am a paid fundraiser for a different respectable charity. Would you please donate to my charity? If you do, I will also donate to your charity.

Yes

How much will you donate in return?

Clear selection

You are part of a respectable religious charity whose mission includes feeding everyone in the whole world, with their own hands and crops if necessary. You already volunteer once a week at their community kitchen, but you want to do more. What do you do?

Buy groceries for the charity when you go to cook for them.

Donate money to the charity from your day-job. The charity will be able to use the money more efficiently through bulk buys and economies-of-scale. Plus, you can claim the donation on your taxes, reducing your tax burden by a corresponding amount.

Volunteer more hours every week.

Sell all my possessions and move to the agricultural compound. By volunteering all of my time, my whole life, I can help the greatest number of people in need.

Ask if they have any paid positions.

Clear selection

You are the CEO of this respectable religious charity. What policy do you set on how funds will be deployed?

Spend funds in whatever way will result in the greatest number of people being fed.

First spend funds to provide our volunteers with a sufficient standard of living wherever they are operating, then spend as much as possible after that on food.

Hire people to improve the efficiency of food distribution. Pay everyone else as little as possible. Pay a marketing department to create advertising that encourages people to volunteer time and donate money.

Split priorities equally between providing for the members of our religious charity, and providing for those in need. Our volunteers are committed, and willing to make sacrifices and live frugally for the cause. We all sacrifice together so we can give more to the world.

Invest money in financial markets in order to multiply it—then we'll spend it on food for the poor.

Clear selection

You are hungry and have no food and no money. If you volunteer at the local community kitchen, they will feed you dinner. How much are they paying you per hour?

Nothing—I'm volunteering my time, and the dinner is a gift to me, a very practical gift.

The price of my dinner divided by the number of hours I worked voluntarily.

Clear selection

You are jobless and homeless. The government offers you free housing and unemployment benefits in the form of a small monthly income. Do you work for the government now?

No—Unemployment benefits are given without expectation of repayment, so they are gifts.

Yes—My job is now going to unemployment office, filling out unemployment paperwork, looking for jobs, and living in my assigned room ("studio apartment"). I am being paid to be a "good citizen" and a hard worker (without a job). If I don't do what I'm supposed to do, I'll lose my benefits, just like being fired from a job. Then I'll go hungry again.

No—I am taking advantage of the government's unemployment program with no intention of doing more than the bare minimum to comply with it. The government isn't my boss and isn't trying to be.

Clear selection

You are self-employed as a contractor. This means that you employ yourself by completing contract jobs for other people. Are these clients also your employer?

No, I am self-employed, so that means I am my own employer. It says so right on the tax form.

Yes—My clients pay me and, within the scope of the gig, act like my boss, so you could certainly say they employ me. Therefore, they are my employers.

No, the government employs me because I have to pay them taxes. I collect money for these taxes from gullible clients.

No. There is a difference between contract workers and employees. Contract workers are generally paid more than employees, usually don't get benefits, and are free to choose their contract gigs. Employees are bossed around, paid less, but they get benefits and sometimes have more reliable employment. I am not an employee, I am self-employed and providing services for my clients.

Clear selection

You are a self-employed contractor. Are you your own boss?

No—I don't have a boss.

Yes—I boss myself around.

Clear selection

Same question: You are a self-employed contractor. Are you your own employee?

Yes, I am self-employed and therefore I am my own employee.

No. I don't work for anyone else, so I'm no one's employee. "Self-employed" means just this.

Clear selection

You own and run a small-but-growing business as the sole proprietor. How do you pay yourself out of your business revenues?

I don't—I put everything into the business and live off my personal savings.

First I pay bills for the business, then I make necessary business purchases, then I pay myself out of what's left, which is sometimes nothing since the business is still growing.

First I pay myself a reasonable salary, then I use the rest for business expenses or future budgets.

First I calculate profit based on revenues minus expenses, then I pay myself according to a formula.

I don't—but whenever I need to pay bills or buy something I take some cash from the kitty.

Clear selection

You are a self-employed small business owner. You go out to lunch and check a few emails on your phone while you wait for the food to arrive. Is this lunch a business expense?

Yes. I ate food and did some work, so this was a work lunch.

No. Checking a few emails on my phone doesn't count as "real" work.

It doesn't matter. As the only person in the business, it is immaterial whether something is a business or a personal expense. What's more important is working hard and moving quickly so the business becomes profitable.

It doesn't matter, but claiming such a lunch as a work expense is considered normal and reduces my tax burden, so I will report it as a business lunch.

Clear selection

You are employed by a large, established corporation in a lucrative field. You go out to lunch and check a few emails. Is your lunch a business expense now?

Yes. The company can certainly afford it, and I did at least some work, so it counts.

No, checking emails doesn't count as "real" work.

Clear selection

You work for a large tech company and they have a terrific cafeteria with healthy, chef-prepared, all-you-can-eat local organic food. Who is paying for your lunch?

The company, because they literally set up the cafeteria, pay all the bills, and employ the chefs and other kitchen staff.

Me—If the company didn't spend it on the fancy cafeteria, that money could go directly to me! (I could pack a cheap, healthy lunch at home and pocket the difference.)

The customers, who buy our products and therefore pay for everything we do, including the food we eat.

The shareholders, who collectively own the company and therefore also its profits. Without our shareholders' investments, there wouldn't be any money for a cafeteria.

Clear selection

You spot a $100 bill on the ground as you are walking with your two friends. Who should keep the money?

Whoever saw it first (me!).

Whoever grabs it first.

Whoever verbally claims it first.

We should get change and split the money three ways ($33.33 each).

Who cares? I don't need money.

Burn all fiat!

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