Three Reasons Why Socialism Cannot Work

There are (at least) three tightly interrelated reasons why socialism does not work and cannot be made to work. Two of them are related to humans not being angels. First of all, incentives. Secondly, the organization of society. Third of all, the knowledge problem.

The first reason is, in the eyes of socialists, the weakest one, because they commonly believe that people can be made to act as angels. However, it turns out, as in the Jamestown colony in 1607, that if all the work is common and then all the fruits of the work are also held in common, people will not work particularly hard. There is an exception to this that might fool the socialist. Small, cohesive groups, with less than about 150 members, Dunbar’s number, can be managed through shame. Everyone knows everyone else, and everyone knows what everyone else is doing. However, if the group is not both small and culturally cohesive, managing through shame does not work.