If what a person gets does not depend on the price he receives for the services of his resources, what incentive does he have to seek out information on prices or to act on the basis of that information?
If your income will be the same whether you work hard or not, why should you work hard? Why should you make the effort to search out a buyer who values most highly what you have to sell if you will not get any benefit from doing so? If there is no reward for accumulating capital, why should anyone postpone to a later date what he could enjoy now? Why save? If there is no reward for maintaining capital, why should people not dissipate any capital which they have either accumulated or inherited?
Is Kenya heading towards a command economy where prices are prevented from affecting the distribution of income? Where the government determines allocation of scarce resources as opposed to supply and demand?
Are we heading to a society ruled by Marx dictum: “to each according to his needs, from each according to his ability.” Can our government run a pure command economy where income is completely separated from prices?
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