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" They are incentivized to succeed, and so they do." Well, they have succeeded so far due to a huge amount of capital and talented people working very hard. I
by njarboe 8y ago
" They are incentivized to succeed, and so they do."
Well, they have succeeded so far due to a huge amount of capital and talented people working very hard. I think more importantly is, if a system fails, that it shrinks in power and eventually disappears instead of getting bigger and stronger. A well working free market seems the best way humans have devised to do that so far.
- hoaw 8y agoThat is a selective view of the free market. For any company under pressure to succeed there are others whose expertise is extracting, rather than producing, value. Failed projects, both private and public, are often run by such companies that are successful in what they do, just not in what they deliver. I think if there is any comprehensive reason why companies like SpaceX, Tesla or e.g. Amazon are successful is because they are vertically integrated. The limited the amount of activity, and responsibility, not under their own control. These days the government is often prevented from doing this, and large companies often want to cut cost in the short term. These companies have understood that their is less of an information gap these days, so there is little reason to let others take care of you core activities.