This day in history: On this day in 1969, the USSR (Soviet Russia) made a partial change in its economic policy to allow employers the option to pay some workers more than others based on production. The move, which one British newspaper commented was "in effect, based on the capitalist policy of higher wages for better workers" and to allow managers to fire inefficient ones, was approved by the Central Committee of the Soviet Communist Party following the recommendations of Soviet Premier Alexei Kosygin.
This was a major departure from the radical egalitarian roots of Communism/Socialism.
Communism/Socialism has always had a problem with incentives. "In a communist society there are no incentives, and the idea of profit is absent. People work only for the collective good, which results in a lack of drive towards innovation, creativity, and entrepreneurship. There is no competition and there is no reward for going beyond the minimum requirements." Source
"Every communist philosophy comes down to some vague ideals and a lot of wishful thinking" ~Jonathan Sher
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