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However, you seem to focus on this point too much, as if it would be the main or full explanation for economic failures of socialism. This point alone is not really sufficient, because you can, and many socialist country did, replace market incentives with incentives based on threats of violence, and that can motivate people to work too. More @Wikipedia
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- How would you explain systemic flaws of communism?However, you seem to focus on this point too much, as if it would be the main or full explanation for economic failures of socialism. This point alone is not really sufficient, because you can, and many socialist country did, replace market incentives with incentives based on threats of violence, and that can motivate people to work too.
- Why does the US government not invest in the stock market?"Too big to fail" applied to private companies aplenty in the 2008 crisis, even if not all. Also, just having [domestic] jobs on the line sometimes does make the gov't skittish to take action against a company. See Trudeau and SNC-Lavalin etc. $\endgroup$ –
- Why is the Free Rider Problem a problem? - Economics Stack ExchangeIn this "coward game", A or B WILL pay for the machine, even knowing that the other will behave as a free rider, because the alternative (not building the machine) is worse not only for the free rider (which would use the public good for free), but also for the city which will build the machine, since they both have a big pollution problem.
- microeconomics - Why is Walras equilibrium inefficient when we are ...Here I assumed that the decision is just to build or not to build, now think that you can also decide how big of a library to build. Hopefully you can see that in a Walrasian equilibrium people will build a library too small, while the efficient size would be to build a library big enough so that $\sum_{i=1}^N MRS_i=MRT$ $\endgroup$ –
- macroeconomics - What makes a company too big to fail? - Economics ...In economics Too Big To Fail (TBTF) can have slightly different meaning depending on what research you are looking at but generally speaking literature seems to agree that what matters is how interconnected or systemically important firm is (e.g. see Bernanke 2010; Zhou, 2009).
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