The chapter discusses the concept of the soft budget constraint (SBC) syndrome, which refers to a set of observable phenomena where organizations expect to be bailed out if they face serious financial difficulties. The author, who first introduced the idea in 1976, explains that the SBC syndrome is not limited to a specific economic system but can occur in various types of organizations, including households, firms, NGOs, and government bodies. The syndrome is characterized by a behavior where organizations anticipate rescue, leading to increased spending and reduced cost sensitivity. The chapter also explores the motivations behind both the organizations seeking rescue and the rescuers, highlighting the complex interplay of factors such as self-interest, moral incentives, and political considerations. The author argues that the SBC syndrome has negative effects on efficiency and social morals, leading to wasteful spending and unfair redistribution. The chapter concludes with a discussion on the prevalence of the SBC syndrome in different economic systems, particularly in socialist and capitalist contexts, and provides examples of its manifestations in various sectors.The chapter discusses the concept of the soft budget constraint (SBC) syndrome, which refers to a set of observable phenomena where organizations expect to be bailed out if they face serious financial difficulties. The author, who first introduced the idea in 1976, explains that the SBC syndrome is not limited to a specific economic system but can occur in various types of organizations, including households, firms, NGOs, and government bodies. The syndrome is characterized by a behavior where organizations anticipate rescue, leading to increased spending and reduced cost sensitivity. The chapter also explores the motivations behind both the organizations seeking rescue and the rescuers, highlighting the complex interplay of factors such as self-interest, moral incentives, and political considerations. The author argues that the SBC syndrome has negative effects on efficiency and social morals, leading to wasteful spending and unfair redistribution. The chapter concludes with a discussion on the prevalence of the SBC syndrome in different economic systems, particularly in socialist and capitalist contexts, and provides examples of its manifestations in various sectors.