Capitalism and Merit, Ability and Achievement

The world economy continues to be affected by the benefits, supply, concentration and protection of production means. Many arguments and fights are the result of the difference between capitalists and socialists. Socialists think the government is extremely important in providing equality and capital distribution to all people. But the power of capitalism can be attributed to three Ps, namely (1) price determined by market force, (2) accounting profit and loss system, and (3) incentive structure based on private property rights .

Immanuel Wallerstein is often quoted from his book "Historical Capitalism". "The institutional elite system helps a few people get what they get, otherwise it may be banned, but under the cover of achievement acquisition it is in vesting status More people can get positions based on "Amartya Sen's ability about how." Wealth is a means to achieve other goals and convert income / product conversion rate to achievement based on individual circumstances + cultural factors. Utility (perceived happiness) is not a sufficient consideration. The mapping is formed from a set of "function" vector -> capability vectors. He refuses to build "objective" ability (the background between poverty and happiness may be different)

Peter's principle is that the proposition "promoting members of an organization based on achievement, success, and benefit will ultimately exceed the level of their ability". To put it more simply, "employees are often given more and more responsibilities and power until they can not continue working." So, how do people become administrators? According to Peter's principle, this is a simple theory. The better you work, the more experienced you are, the better the management will be. Because of this traditional corporate promotion method, many people who suck and manage other people are now managers.