Thursday, October 3, 2019

Negotiations under the Adjustment Act

How did the election go?

The House speaker has to estimate the payoff to get small state cooperation on any new program changes. That cost is much like the interest payment, but is an internal trade. Thee Senators are faced with a marginal choice as the deal looks increasingly sweeter to the marginal senator, a boost in cash for an acceptable program change. That marginal group will always keep the trade on the productivity symmetry, how much can be squeezed from implementation efficiency maximizes both the program share and the small state share in a virtuous cycle. The two sides minimize losses from liquidity shortages.  The debt cartel goes away. Both sides seeing the benefit of getting the programs on cash flow.  This is the one change that can 'Grant us nicer things'.

I over sell the concept, a slight fraud. But the approach is exactly right, find the tree trunk, then become market maker. Both parts of my plan improve the sewage treatment facility in the Swamp, they incentivize common sense implementations.

No comments: