How does your getting too much result in injury to me? What is the mechanism of the externality implicit in mal-apportionments?
Hard work ceases to signify social value. Society needs to keep strong and tight the coupling between merit and credit. Where merit is unrewarded or where unmerit is rewarded that coupling becomes weak.
The coupling of credit to merit is the basis of property rights: to the creator belongs the creature. Where property rights are weakened corruption flourishes and productive enterprise cannot function properly.
Incentives operate according to real outcomes; motivations operate according to nominal outcomes. Motivation responds to the signal, not the fact.
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