expendable suborganizations home

A communist government is like a capitalist corporation. A communist government has the same organizational problems as a capitalist corporation. Both have the same tendency to strangle themselves in bureaucracy. Both suffer from leaders who are more interested in building empires and enriching themselves than in doing what is best for the people they serve.

Governments are every bit as evil as corporations. Many socialists believe that governments should have more power over corporations because corporations are evil. This is stupid, because this would transfer evil from corporations to the government, without eliminating evil. Transferring power from evil corporations to evil governments will not make the world a better place.

Why are free market economies more successful than communist economies? Most people would say because of incentives and because of competition. This is nonsense. The incentives for workers and managers are the same in as capitalist corporation as in a communist government. The competition between people for promotions is the same in a capitalist corporation as in a communist government. The surest way to avoid being fired and to gain a promotion is not by being dedicated to the people whom the corporation or government is theoretically supposed to serve, and not by being competent. The surest way to avoid being fired and to gain a promotion is by being loyal to your boss, which might mean helping your boss commit evil deeds. Or you could pretend to be loyal when you are not. Or you could convince your boss that your coworkers are disloyal. Or you could convince your boss's boss that your boss is disloyal, so that your boss gets fired and you get your boss's job. Office politics is the same in capitalist corporations as in communist governments.

The real reason that free market economies are more successful than communist economies is that free market economies are based on expendable suborganizations.

All organizations have a tendency to self-destruct because the people who are a part of the organization face a conflict between doing what is best for themselves and doing what is best for the organization. Every member of every organization has an incentive to sabotage the organization.

The obvious way in which people can benefit themselves while hurting the organization is by stealing from the organization. Suppose you work for a charity and someone gives you money to give to the poor. You could keep the money for yourself and say you gave the money to the poor.

Sometimes a person can get promoted by doing something which hurts the organization, like playing office politics. By providing false information to the organization leaders, you can take credit for other people's successes and blame other people for your failures. But the organization leaders might make bad decisions because of the bad information you provided.

A successful organization must resist the tendency to self-destruct. The members of the organization must be encouraged to do what is best for the organization instead of what is best for themselves.