Friday, October 14, 2011

The Tea party, the Occupiers and taxable wealth

My position on channel theory and minimal government leads me to believe out problem is mismatches in state government actions and central government actions, mainly the big state little state problem. My theory says that central government should allocate services to the least common factor in the economy; local government focus on the uncommon factors.

Europe has mid sized government structures, we do not. We have a hidden Greek/Ireland/Germany problem, but we dot see it because we do not have meso-government that would express it. Our sovereigns will crash more suddenly, and deeper; the price we pay for economies of scale in the interim.

Meso government is the solution. Entitlements are not insurance with 300 million members, for example. But entitlements with 30-80 million member s is much closer, more accurate, cheaper. Charging Kansas citizens to protect wealthy oil traders in Arabia? The main syptom we see of the mismatch is the big western state vs the eastern vs the small state problem, a huge inefficiency.

What about wealth?
Wealthy people draw their most commons services from central government, Central government causes big transactions at unexpected moments. Mostly those should be rich people getting goodies and paying fair price. The entitlements belong at meso government, which we do not currently have.

The Tea baggers and occupiers are dancing around this problem, neither too much nor too little, but no longer balanced government. General growth, growth westward, failure to adapt the Senate all compounded by info tech shock. The economy has regionalized, we are adjusting politically, and we historically do this all the time. The west and DC will go bankrupt, the resulting distribution of residual debt would be allocated to regional government entities matched to their regional economies. This should occur about the time we update senate representation.

All within the constitution, all approved by a Congress under the severe distress of bankruptcy. Like we have done historically.

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