Olympic Socialism

Everybody gets a rusted iron medal as prize.

I cannot imagine a better example than sports, specially the Olympics, as an analogy to rationalise the incentives, or the lack of, that make socialism beautiful as a concept but impossible in real life. Sports are fully meritocratic with very clear rules and the best should win. The glory and money are handed to only a few, not distributed equally, due to their abilities and performance.

Just to make things clear, redistribution of wealth is not socialism and this isn't also a pro-capitalism article. The real-world capitalist game is rigged and not straightforward in many, many areas, but so is real-world socialism. This article is about how incentives and the individual freedom to generate wealth, can solve the world's most difficult problems and raise everyone in the World above the poverty line as quick as possible.

But let's go back to the Olympics. Imagine the games with the incentives as socialism does in societies. No winner, no losers. It doesn't matter how dedicated or talented you are, you gonna get the same rusted iron medal as the other guy that drinks and party all the time. In reality is even worse, the "elected" officials could choose that the fat guy that drinks and party all the time to have the glory. Imagine yourself as the athlete that wakes up at 5am every morning for hard training, that eat only the calculated amount, that don't see your friends or family for ages, that endures pain and cold, but gets the same rusted iron medal as everyone else. What are you true incentives to continue, or event to start, to do that?

Just imagine that to join the Olympics wouldn't be the most fit or better athlete but a random draw per country of any individual to join a certain sport. How the competition would be? The level would be pretty low, to say the least. How would these sports evolve? For sure much, much slower than the current system.

Incentives are a key factor in everyday life. From the time you are born until you die, incentives are basically defining who you are. Even within your own body, or mostly so, your brain is hardwired to respond to such stimuli in ways that you consciously can't comprehend or control. Eating more than needed, smoking, drug addiction and so much more are nasty decisions that your brain "asks" you to do for the short term reward. While enduring pain at the gym every day is only bearable because you have the conscious incentive that you will be fitter or better on the long run.

The same is applied to the economy. Financials and social incentives are as important as those above. Without them why would the majority of us work so hard and have so much compromises in our lives to reach such goals? The ability to work harder and smarter than anyone else and be rewarded for it is the incentive needed for us to go the extra mile.

Therefore the best social system is the one that provide the best incentive combined on average for determined population. And socialism isn't it.

But of course, individual freedom and responsibility comes with a high price that many aren't willing to take. Some people just like stability and to follow a direction. They don't have the ambition or are completely risk averse.

So my take on this one is a Decentralised Redistribution of Wealth to keep all the people above the poverty line. Not by governments, by people. This will require a whole new article to explain, but the concept is a Universal Basic Income without intermediaries.

So just reflect on how the Olympics can teach us about the real world and sports serve as example that meritocracy and individual freedom are paramount for a better world for everyone.