> In particular, my impression of the internal competition concept isn't that it encourages
people who would otherwise do poor work to do good work (which I agree is silly) so much as
that it separates the naturally good workers from the naturally poor and eliminates the latter
(from this work).
That is bull****. A better way to look at a market economy is a question that came up in the
1990's changes in eastern europe and the former soviet union: "Who decides how much steel to
After you laughed for a bit, you might realize the deeper meaning. The main point of a market
economy is to 1. distribute the decision process and 2. award those who make the best
decisions. Nothing is needed to achieve 2, it always follows naturally once you have 1.
If it was about good workers and poor workers, how can you explain the dramatic economic
improvements in countries going from command economies to market economies. Massive layoffs
only work in companies within larger countries, because the created externalities are paid for
by others. China couldn't get away with such a strategy.