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Socialism does not. Therein lies the best difference between the two financial programs, and exposes Socialism’s main flaw: its failure to fully perceive human nature. Individuals will not undergo the additional effort it takes to excel until there is some form of reward for that effort. Socialism merely plods along with all people extra-or-much less equal in work effort and rewards. Socialism doesn’t innovate, or at least does not innovate at the identical price that is seen in Capitalism. Socialism by itself doesn’t present that reward, Capitalism does. The bottom third gets rewarded as if it have been the norm, the center third does about in addition to it would with out the union and the highest third is stifled and ends up working all the way down to the norm. That is exactly what happens inside the union work force. The top result’s larger prices and lower productiveness. That’s the identical thing that happens in a socialist society solely on a much wider scale.
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