# kaal:claim:3808867-004

**Claim.** Capitalism and socialism each fail in characteristic ways: capitalism produces inequities, monopolies, and other market failures, while socialism suffers incentive design failures in which hard work is not effectively rewarded and external costs are largely ignored.

**Type.** failure  **Support.** argued

**Source quote.**

> Capitalism can lead to significant inequities, inequality, as well as monopolies, and other market failures. Similarly, socialism has significant incentive design issues, where hard work is not rewarded effectively and external costs are largely ignored.

**From.** Wulf A. Kaal, *How Decentralized Systems Can Upgrade AI* (2021), II. Decentralism Transcends Capitalism and Socialism, page 5

**Cite as.** Wulf A. Kaal, How Decentralized Systems Can Upgrade AI (2021). SSRN: https://ssrn.com/abstract=3808867

**Verify.** sha256 of source PDF `eeccf6d0587bd278a96ce6ac8ec5003e26d161c245f6c94b4144d84f374802eb` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20How%20Decentralized%20Systems%20Can%20Upgrade%20AI.pdf

**Failure mode.** Symmetric failure of capitalism and socialism  (family: inequality-and-access-divide)

**Topics.** risk-and-incentives, economics

**Keywords.** capitalism, socialism, incentive-design, market-failure

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3709041-007

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