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NOTE What is the incentive problem under socialism?

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Everybody realizes then and now, by the way, that socialism has an incentive problem.

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That's clear to everybody.

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In other words, even socialists will admit this.

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Yes, yes, we have an incentive problem.

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The incentive problem is summed up in the famous motto,

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under socialism, who will take out the garbage?

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You can't use economic incentive under socialism because either incomes are equal

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or else they're set by some government authority.

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The good communists get higher incomes.

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Whatever it is, it's certainly not set by marginal productivity.

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So who's going to go to Siberia and who's going to carry out the garbage?

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Well, the socialist traditional answer is, of course, moral incentive.

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In other words, people will, or the creation of the school, the new socialist man.

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Everybody will be molded by socialist government to become totally altruistic and love the collective and do everything for the collective.

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In other words, slave labor will carry out the garbage.
