Why Did Communism Fail? #3 – Incentives

The most common and simple explanation for why communism failed is that people are greedy. This is a gross simplification but does contain some truth. Communism failed to provide incentives for workers and citizens to work hard and be productive. While there are many benefits from equality, if pushed to an extreme it robs people of an incentive to make an effort. There was little if any reward for hard work or innovation and a lack of punishment for poor or inefficient work. The lack of incentives was a major reason for the poor performance of Eastern Europe economies. Why bother working hard if the reward was the same as doing the bare minimal? Continue reading “Why Did Communism Fail? #3 – Incentives”

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The Myth Of The Self-Made Millionaire

Most millionaires claim that they are self-made in that they earned their fortune alone. But no person is an island. Every millionaire owes their fortune to the help they received from others. In this world we are so interdependent that no one achieves anything without help from another. Obama was right, we received more help than we can possibly imagine. Our wealth and success are not only a measure of our talents and luck, but also a measure of how much help we had. We are tall because we stand on the shoulders of giants. Continue reading “The Myth Of The Self-Made Millionaire”