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#444 – Vejas Liulevicius: Communism, Marxism, Nazism, Stalin, Mao, and Hitler

Lex Fridman Podcast

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Incentives Matter: The Downfall of Productivity

The decline of agricultural productivity in the Soviet Union illustrates how the removal of incentives negatively impacts motivation and output. The shift from individual farming to factory-style enterprises led to a disconnection between labor and rewards, fostering a culture where effort was not meaningfully compensated. This system resulted in a pervasive sentiment among workers of futility, as they engaged in mere appearances of work without the drive to excel. Additionally, collectivization restricted the mobility of peasants, trapping them in place and creating a feudal-like structure that stifled personal initiative and economic growth.

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