Tuesday, August 10, 2010

Answers

The answers to most things are stunningly simple, yet yield complex results. Rarely does more complexity lead to good results. Example - how to fix the economy.

The top priority is to understand that we’re in this mess because collectively we’re misinformed. The wrong amount of money’s being created, spent, and it’s being spent on the wrong things. The next big priority to realize is that nobody knows the answers and that nobody, individually, will ever know the answers. We have a great system for relatively efficiently getting the answers. They emerge from the interplay of the free market. This system is currently working sub-par because we’ve used the law in complex ways that nobody understands to “tweak” things and the system’s gotten away from anybody’s control.

The people of the USA need to (yes, starting with me) take inventory of all the institutions that they’re supposed to be overseeing and start taking the job seriously.
1. Undo the tweaks (and yes, this one line could be expanded out to book length)
2. Create a fair deal for everybody instead of special deals for the politically connected
3. Promote entrepreneurship by getting out of the way
4. Pursue public sector productivity. It will never match private sector productivity but we certainly can do better.

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