3 ms·
The problem is money and the way it is allocated. Institutions can't ossify if the funding dries up first. In a market system, an institution that fails to ser
by intalentive 3y ago
The problem is money and the way it is allocated. Institutions can't ossify if the funding dries up first.
In a market system, an institution that fails to serve a purpose goes out of business.
In a command system, too, bad management gets the axe.
In the hybrid system we have had since the early-mid 20th century, institutions can be both 1) insulated from market discipline; and 2) influence their own funding through lobbying and legislation. The former does not occur in a market system, and the latter does not occur in a command system.
What is missing is negative feedback. Systems without negative feedback are typically unstable.