Tuesday, August 9, 2022

New Harmony's Socialist Experiment failed due to adverse selection

Each year, I begin teaching capitalism to MBA's in New Harmony, Indiana, site of a failed socialist experiment by Robert Owen, a British Industrialist who bought the town from some hard working Germans, and then invited people to his socialist utopia.  He learned something:

"a plan which remunerates all alike, will, in the present condition of society, ultimately eliminate from a co-operative association the skilled, efficient and industrious members, leaving an ineffective and sluggish residue, in whose hands the experiment will fail, both socially and pecuniarily."

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