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How do you incentivize creativity in a society?
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categorycreativity
typeadvice
tynamite
tynamite's avatar Capitalism

Capitalist societies reward people for working hard, through the education system. If someone wants to choose a certain career path, they are free to. People know that the harder they work, the more money they can expect to get when they are older.

They also reward people for their creative output through the patent system and other laws which create Intellectual Property rights.

This is a stark contrast to communism, where career paths are either non-existant or predefined. They also do not believe in rewarding their citizens for their inventions.

Communism discourages and stops people from becoming rich and creative, as the Russian inventor of Tetris got nothing as the communist government at the time deprived him of millions. This is very much why communist countries don't have greatly successful technology and drug companies, as the patent system cannot protect them.

Also that people can't start their own businesses, and that skilled jobs like doctors pay slightly more than normal jobs cleaner, or the same discourages people from being educated and creative.

The comparison

Capitalist societies reward people for their hard work, whereas communist societies stop people from getting rich. There’s a reason why the UK and US countries have companies like Microsoft (company) and Cadbury; and there’s a reason why China and Iran’s economy is based on fraudulent or prohibited practices, such as mafia drugs or counterfeit goods. I can’t see Chinese pharmaceutical or computer science companies in a country where patents are nonexistent.

Those countries work by reducing competition by protecting companies from threats. Have you ever seen Apple or Pepsi ask their government to protect them from their more successful rival companies?
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Richer people have better health.

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