Saturday, February 11, 2006

For your consideration

Thesis: The most self-destructive problem with the Soviet economy (and Soviet-style economies) was its tendency to propagate managerial ridiculousness across the system because of its very hierarchical structure, and this was more destructive than the so-called 'lack of incentive' which is often cited.

Corollary: A highly consolidated capitalism will suffer effects similar to those found in the Soviet economy, despite the presence of financial incentive.