“A huge amount of progress has taken place that a lot of people just don’t take into account, especially smart people who are attending to the real problems of the world,” says Ronald Bailey, Reason ‘s science correspondent and the coauthor, with Marian Tupy of HumanProgress.org , of Ten Global Trends Every Smart Person Should Know: And Many Others You Will Find Interesting .
VDH: The News as We Once Knew It Is Dead . An embargoed and bankrupt Iran is teetering on the brink. Its international terrorist appendages, including Hezbollah, are broke. China is increasingly being ostracized by much of the world.
The failure of socialism in countries around the world can be traced to one critical defect: it is a system that ignores incentives.
In a capitalist economy, incentives are of the utmost importance. Market prices, the profit-and-loss system of accounting, and private property rights provide an efficient, interrelated system of incentives to guide and direct economic behavior. Capitalism is based on the theory that incentives matter!
The strength of capitalism can be attributed to an incentive structure based upon the three Ps: (1) prices determined by market forces, (2) a profit-and-loss system of accounting and (3) private property rights. The failure of socialism can be traced to its neglect of these three incentive-enhancing components.FEE.org
The price system in a market economy guides economic activity so flawlessly that most people don’t appreciate its importance. Market prices transmit information about relative scarcity and then efficiently coordinate economic activity. The economic content of prices provides incentives that promote economic efficiency.
Profits and Losses
Socialism also collapsed because of its failure to operate under a competitive, profit-and-loss system of accounting. A profit system is an effective monitoring mechanism which continually evaluates the economic performance of every business enterprise. The firms that are the most efficient and most successful at serving the public interest are rewarded with profits. Firms that operate inefficiently and fail to serve the public interest are penalized with losses.
Private Property Rights
A third fatal defect of socialism is its blatant disregard for the role of private property rights in creating incentives that foster economic growth and development. The failure of socialism around the world is a “tragedy of commons” on a global scale.
ROOM TEMPERATURE STARS: Citizen Scientists discover bizarre new brown dwarfs near our Sun. “Although the discovery of brown dwarfs is not a new phenomenon, the ones discovered in the recent study have a weird property — they are colder than the boiling point of water.
Yesterday, Mike Huemer and I had a debate with two anarcho-communists on the topic of left libertarianism vs right libertarianism. It can be viewed on YouTube . One thing that struck me as interesting was a difference in how we supported our positions.
Source: Theory vs History
Why is California burning? The experts all know the answer–CA was made to burn and if you don’t do controlled burns, CA will burn uncontrolled. Here’s ProPublica in an article titled They Know How to Prevent Megafires. Why Won’t Anybody Listen?
Source: This is Not Fine
I was preparing story about the moon, moon measuring time and about muvekita and moon clock tower in Sarajevo and find a story about magical race which still exits. This story is written in the way I like so I want to share with you. Treasure is not always about gold and money; it is […]The Whole History of the Tuatha de Danann — Damir na divanu
Blaming a South Dakota rally but giving protesters a Covid pass.
Source: The Sturgis Statistical Misfire
Among a political class of overreactors, the president resisted panic.
Source: Did Trump Downplay Covid Enough?