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We're not just showing you popular movies -- making a point here what can you learned about business and economics.
From those guys.
Not John Baghdad.
And the other guy from the movie shine him.
But real pirates.
400 years ago blackbeard type stuff we -- not there -- a lot of lessons about business and economics that may mean.
Learned to joining us now from Chicago.
George Mason patriots university professor and author of the new book the invisible book the hidden economics of pirates Peter -- is his name Peter.
Negative -- to fans of pirates of thank you very much for coming on the program.
My pleasure there you know to do some research on parts I read a book called -- -- the blue ocean and also.
Under a black flag earlier this year.
They're the first to have health insurance equal pay Ager captives as equal pay for equal pray.
What are some of the biggest business lessons we can learn.
I think that one of the most important business lessons that we can take away from early eighteenth century pirates is in fact the benefits of self regulation.
You know pirates were of course outlaws and they were -- botched outlaws in many ways.
But despite that they adopted a rather puritanical set of rules of the system of self regulation that included -- the system of social insurance that you -- -- It also included prohibitions on drinking in some cases regulations of gambling and a whole bunch of other things to kind of make the radical work place more safe.
Pirates did this not because they were nice people but rather because that bolstered the bottom line it -- profitable and this is true for legitimate businesses as well.
Peter it's -- to make doubt they need to be your first do you do that read this right you have a tattoo.
On your arm.
I have a -- supply and demand yet endow an area that see again the pirate -- the economist coming -- -- what that would about what's interesting about the it has elements of -- at capitalist society but also it has -- it's also egalitarian.
Is -- not.
It's not quite right to characterize it as egalitarian it is true that pirates had a very very flat pay structure.
And a lot of historians have interpreted this as to suggest that somehow -- for maybe proto socialist.
But I arguing the book -- that's mistaken the reason the pirates had a rather flat pay structure instead was because it was profitable.
If you think about it you don't have a system of government to kind of keep order on board a pirate ship -- -- -- every -- on the royal government to do that for you.
And one of the most potential divisive forces is you know disagreements about pay.
Slow way that you can retain crew harmony in the absence of being able to rely on government to create crew harmony.
-- -- actually just flattened the -- structured so pirates did it basically said that it would allow the crew overall to make more money not because they were particularly interested in social justice.
They did it also helped them in a way toppled the -- and sailors when they way attack ships -- The merchant sailors were really not enjoying in the spoils and it because they were basically working for the man inside the state.
Yet that's exactly right pirates were just basic rational economic actors just like you -- And the reason that merchant sailors often became -- is because of the better pay that was offered on a pirate ship you could have.
A share of the spoils so this is also good recruiting tool for.
For pirate firms.
And furthermore you're likely to be treated better on a pirate ship because they had a system of constitutional democracy incidentally that -- that adopted in the United States.
Too shocking -- I've learned about art seriously number one -- they were true democracy to captain for the happens only at the will the crew.
Could could that work in corporate America I mean we -- have a hierarchy right.
But you wonder what would happen if groups of employees got together and said you know once -- a vote on -- the bosses.
Which is basically or vote out the boss if he or she isn't bringing them.
Bogey which is exactly what the pirates did.
Right what we have something similar this right with corporations -- we have stockholders you can kind of have a say in management.
But despite that one of the things that I arguing the book is -- lesson that can't be taken away from pirates is the idea that the system of of workers democracy should be applied in every legitimate firm case.
It worked in pirates particular economic context to maximize profit which is why they adopted that.
And that was particular to their criminal context.
This wouldn't be a profit maximizing firm structure for example for many other private -- and a legitimate context so we shouldn't take the pirate template which works so well for them and try and -- that we apply it with.
Disregard for contacts to other legitimate firms today.
-- next time you just have to such -- them at all.
My pleasure -- I think the invisible -- Peter -- said hey good stuff Peter thank you so much.
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