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He does a great job making things concrete with examples from the Soviet Union.

For example, he talks about how production targets for clothing were quoted in yards, which means there was little incentive for producers to make clothing for small people, since that was more costly per yard of clothing produced. Thus, there was always a shortage of clothing for children and for petite ladies.

My dad's favorite example was how initially nail factories were given quantity quotas, so they produced many tiny nails. Then they were given mass quotas and they just made really big nails.

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Quotas don’t work unless you are trying to motivate a sales team

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Even then, commissions work better.

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Meet your quota and you get a bonus or higher commission

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Good example

More proof that incentives matter in a socialist or communist system

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