Pilgrimnomics

http://www.futureofcapitalism.com/2010/11/pilgrimnomics

Economist Benjamin Powell explains the economics of Thanksgiving: "Bad weather or lack of farming knowledge did not cause the pilgrims' shortages. Bad economic incentives did....In 1620 Plymouth Plantation was founded with a system of communal property rights. Food and supplies were held in common and then distributed based on "equality" and "need" as determined by Plantation officials....Faced with potential starvation in the spring of 1623, the colony decided to implement a new economic system. Every family was assigned a private parcel of land...This change, Bradford wrote, "had very good success, for it made all hands very industrious, so as much more corn was planted than otherwise would have been." Giving people economic incentives changed their behavior.

by Editor  |  Nov 25, 2010 at 9:45 am receive the latest by email: subscribe to the free futureofcapitalism.com mailing list