The rule is all profits must be reinvested or paid out
We're already there today with struggles to properly allocate capital etc. If you pay (workers or investors/capital owners) too much, the facilities break down etc. and eventually you can't meet overall demand cashing prices to go up, encouraging higher investment (right when the workers want more payments because revenue's increasing, and maybe their personal costs) but maybe investment everywhere goes up, increasing capacity too much and tanking revenues (the business cycle) etc.
Yugoslavia
For a lot of the time, East Germany by many metrics (GDP/cap etc. ignoring the (stronger) surveillance state etc.) was ahead of Yugoslavia (but because of a lot of debt, leading to East German stagnation in the 80s). But Slovenia (the wealthiest part of Yugoslavia) even surpassed the UK and Italy's standard of living in the 80s! (Northern Italy was still better off, though.)
Comments
We're already there today with struggles to properly allocate capital etc. If you pay (workers or investors/capital owners) too much, the facilities break down etc. and eventually you can't meet overall demand cashing prices to go up, encouraging higher investment (right when the workers want more payments because revenue's increasing, and maybe their personal costs) but maybe investment everywhere goes up, increasing capacity too much and tanking revenues (the business cycle) etc.
For a lot of the time, East Germany by many metrics (GDP/cap etc. ignoring the (stronger) surveillance state etc.) was ahead of Yugoslavia (but because of a lot of debt, leading to East German stagnation in the 80s). But Slovenia (the wealthiest part of Yugoslavia) even surpassed the UK and Italy's standard of living in the 80s! (Northern Italy was still better off, though.)