On the subject of incentives, I agree with you and that is a big part of why I am a left winger.
Corporations do a lot of good (they can drive up wealth and productivity, and with it quality of life). But their incentive is to only pursue short term profits which is good in some situations, but not in others. Some of the advances we need as a society are counterproductive or irrelevant to the immediate profit motive. I do not find the profit motive immoral or evil, however I do not think that an unmanipulated profit motive alone is enough incentive to solve humanities biggest problems. Things like functioning infrastructure, basic science, quality education, etc benefit society as a whole by increasing productivity. However there is sometimes little profit motive in pursing these things, which is why you need the public sector to step in and manipulate the market. Pursuing profits works with consumer electronics, but not so much with energy since sustainable alternatives require large amounts of R&D before they are cost competitive with polluting energies like coal. Wind power is now cost competitive with coal (and as a result grows at 20%+ a year in the US & China because the profit motive is there now). However it took decades of research, largely from the public sector, for wind power to become cost competitive with coal. The profit motive alone would’ve meant 2009 would be a world where wind power was still 50 cents a KWH instead of the $0.03-0.06 it is now.
It is cheaper to dump toxins in a lake or the air than to purify them. And slave labor is cheaper than a living wage. And monopolies work better than competition. Outsourcing all the negatives of capitalism onto things other than the producers is highly incentivized. So unless the market is regulated with positive and negative incentives to force industry to work in humanities best interests, capitalistic democracy is doomed to descend into oligarchy and plutocracy with a handful of well off people and tons of struggling people. There are no wealthy, developed democracies with unregulated capitalism.
So on the issue of incentives, I agree with you that incentives motivate behavior. But as an example one of the things Obama has called for is more tax credits to small businesses and to R&D, both of which I agree with since that increases incentives.
As far as information, I agree and the internet has opened up the prospects and potential of decentralized information. My limited understanding is that planned markets tend to fail. However there are issues like R&D where the public sector can and does do good. Public R&D into science and medicine is not a bad thing. Talent is talent. Some of the smartest people I knew worked in the public sector (they were professors of science at public 4 year universities). Most of their incomes came from the public sector in one way or another since public tertiary education is largely funded via public funds. I don’t support centrally planned market economies, but I do support public incentives to manipulate R&D and industry to work in the best interest of humanity.
With your example of France and how people fight for the spoils, the fact is that GDP growth in France vs. the US are fairly similar. I think you are Canadian, which is even to the left of the US, but I believe the US has one of the most right wing economic policies of developed nations. So even with the stronger regulations and welfare system in France, their GDP growth is similar to the US’s with our weaker regulations and welfare.
I think you are arguing about a more theoretical version of socialism, more to the left of me. I am a socialist, but I’m more of a left winger by European or New England standards than an out and out Soviet communist. I am for market economics, but I think there needs to be regulation to force the market to act in a way that is humane, sustainable and improves quality of life.