HomeArticlesEconomicsRethinking Economic Incentives


Rethinking Economic Incentives — 4 Comments

  1. Concurrent with the establishment of a government, the power of taxation is implicit, to pay for the basic functions of government – common defense and security, the judiciary, and the regulation of commerce by the legislature. Needless to say, taxation has increased in scope and complexity. At this point in time, and for many reasons, government expenditures have exceeded revenues. The reasons for this imbalance can be traced back to many years of financial mismanagement and political malfeasance. All branches of the government and cabinet members ought to confront this defect with urgency and seriousness. Revenues must increase, corruption and waste must be rooted out, and expenditures must decrease. So, far a piece meal approach to solving a systemic problem has not worked. The system tries to bring itself back to an even keel while protecting special interest groups who seem to show little concern for the gravity of the economic crisis. It is likely the system will become insolvent. Nevertheless, the nation can continue to function while going through an unavoidable restructuring. Neo-socialist policies will have to be put into place. Too big to fail enterprises must be forced to restructure. Government will be forced to take ownership of energy production – for example, build oil refineries and drill for oil on federal land. Expand the use of nuclear energy under state control. Legal reforms are needed to root out corruption and bring down the excessive costs in the delivery of healthcare to families and retirees. The problem of the insolvency of the government must be attacked in the same manner a doctor attacks the growth of cancer in a patient’s body. In this sense exceptional visionary leadership must emerge that re-clarifies the balance sheet of the American dream. Neo-socialism shall emerge to ensure that public assets will not be exploited for exclusive corporate gain. At the core of this new political paradigm will be the core values derived from the Creator, the grantor or inalienable rights, reciprocal obligations, ideal interdependence and mutual prosperity.

  2. Gentelmen All and Sages all for sure; at the risk of being redundant I must remind that if the congress were to assume its rightful role as the creator of our Fiat instead of their borrowing of monetary notes there would be no need for taxes. Congress could create, then spend into circulation without debt. We could have our cake and eat it too.

    Instead the Fed. loans the treasury permission to create these stupid notes that are then spent into circulation and we are stuck with bill.
    Now how uncool is that?

    I find no evidence of any constitutional money ever loaned to Congress by the Fed. at any time.

    If I’m wrong about that SHOW ME THE MONEY.

    Fix this problem first and the rest should be a lot easier. God bless and keep up your good work.

  3. The Republican Governors in every state appear to be making significant cuts to the higher education financing at state colleges and that means tuition hikes so how are my going to afford tuitions now?

  4. This is a very good question. Governors and legislatures are forced to cut back because the system is now unsustainable.

    Colleges, like governments, have both lacked fiscal control. They are both built on the old industrial model of organization that that allowed enormous bureaucratic overhead and lacked competitive efficiency. Tuition is generally overinflated because of this problem already, particularly in schools that receive state support, as administrators have passed on the cost of inefficiencies to students and the government rather than implementing sustainable reforms that take substantial willpower and skill. So yes, they will likely try to raise tuition again, and probably not seek to reform themselves until more students seek alternative forms of education and they seek to draw them back.

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