Luca Dellanna Highlights Harm in Overlooking Dual Functions of Prisons and Wages

Luca Dellanna, a prominent management advisor and author, recently sparked discussion with a social media post asserting that complex societal functions, such as prisons and wages, are often dangerously oversimplified. Dellanna argues that ignoring the multi-faceted roles of these systems can lead to detrimental outcomes.

In his tweet, Dellanna stated, > "The idea that prisons only have a punitive function and not an incapacitating one, too, is almost as harmful as the idea that wages only have a distributive function and not an allocative one, too." This statement underscores a critical perspective on how foundational societal mechanisms are perceived and managed.

Prisons, for instance, are commonly understood through their punitive role, focusing on punishment for offenses committed. However, criminology widely recognizes incapacitation as another core function, aiming to prevent future crimes by removing offenders from society. This dual purpose involves physically restraining individuals to protect the public, a concept that gained significant traction in the 1970s as a crime prevention strategy.

Similarly, wages are frequently viewed primarily through a distributive lens, concerning how wealth is shared among individuals. Yet, economic theory also identifies an allocative function of wages, which dictates how labor is directed to its most productive uses within an economy. Allocative wages, particularly for new hires, can be highly flexible, influencing employment decisions and the efficient deployment of human capital.

Dellanna's critique, stemming from his expertise in risk management and behavioral psychology, suggests that a narrow focus on only one function of these systems can obscure their true impact and lead to inefficient or counterproductive policies. His argument calls for a more comprehensive understanding of the intricate roles these institutions play in society.