# kaal:claim:3782205-013

**Claim.** Once the equalizing ideal that moderates a decentralized organization is lost, competition generated by the profit motive leads inevitably to centralization with rigid rules about who holds power and wealth.

**Type.** mechanism  **Support.** argued

**Holds when.**

- organizations lacking a moderating shared ideal

**Source quote.**

> Without the previous equalizing ideal to moderate, the competition generated by the profit motive led in- evitably to the organization centralizing with rigid rules for who has power and wealth.

**From.** Craig Calcaterra, Wulf A. Kaal, *Eight Institutions for the Evolution of Decentralization* (2021), Chapter 9. Eight institutions, page 2

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Eight Institutions for the Evolution of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782205

**Verify.** sha256 of source PDF `5ba52c63e81019b6867fb29c4a50821ff574e510d79b31b8ce9f4c726a0ebc71` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20Eight%20Institutions%20for%20the%20Evolution%20of%20Decentralization.pdf

**Failure mode.** Loss of moderating ideal  (family: recentralization-drift)

**Topics.** decentralization, institutional-design

**Keywords.** profit-motive, centralization, power-concentration, organizational-ideals

**Related claims.**

- extends: https://wulfkaal.github.io/claims/3782193-026
- restated_by: https://wulfkaal.github.io/claims/3782214-018

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.