How we pay people at Basecamp

I hope this is an atypical model or the US will be in trouble in the long run.

This is pretty much like the socialist China in 60’s and 70’s when everyone at the same rank was paid equally. No more, no less. Sounds pretty “transparent” right? Problem is that, it assumes everyone at the same rank does “the same work”, as this article writes. However, this assumption is fundamentally wrong. People at the same rank are different, and they are not doing the same work. People who have drive, vision and diligence takes extra miles to contribute more, without being asked by their managers to do so. Everyone doing the same work and getting paid equally is just extreme socialists’ utopian world, where it ignores the most fundamental fact about human society — people are different. All the robots that are installed the same software for the same job do exactly the same thing. People are not robots.

With this so-called “equal” system in place, people lost motivation and drive to take extra miles, work harder, and create more values than peers. What’s the point of doing that? You’re not rewarded accordingly anyways.

Don’t take my words for it. Just read history books and understand what happened to the socialist Soviet Union and China back in 60’s and 70’s.

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