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>> they kill all incentive to work hard and to innovate At that time, the USSR was pretty advanced technologically. And it's citizens we're and still are prett
by ippisl 14y ago
>> they kill all incentive to work hard and to innovate
At that time, the USSR was pretty advanced technologically. And it's citizens we're and still are pretty advanced academically.
One explanation why the soviet system failed was due to inefficiency in investing in oil production(which led to a mini soviet peak oil), because the wrong incentives at the institutional level.
But wrong incentives at the institutional levels are pretty common in capitalistic countries: the 2008 crisis is one example.
- ekianjo 14y agoI am not talking about government-sponsored innovation (all countries with enough cash are capable of doing that), I was referring to spontaneous innovation (people setting up businesses by themselves to create new products/services and add value to society). Obviously when you are in a fully state-controlled economy, none of that stuff can be allowed to happen.