Wednesday, October 30, 2019

Try stating the obvious

Big Cities Lure Smart People. Don't Fight It, Fed Economists Say |
As America’s most skilled knowledge workers gravitate to the biggest cities, policy makers elsewhere in the country are trying to stem the flow out of concern about a widening wealth gap.
Those efforts are misguided, economists at Princeton University and the Federal Reserve Bank of Richmond argue in a new paper.
The study says “cognitive non-routine” or CNR workers are more productive when they’re clustered in the same place, typically a large metropolis. They’re “too valuable” to be distributed across smaller towns, which would amount to a “waste of resources,” the authors write.

They argue that any resulting inequality is better addressed via taxes on the high-earning urban hub workers and subsidies for their lower-paid peers outside -- essentially a version of Universal Basic Income for the latter group. The authors calculate that with a transfer of around $17,000 per high-skill worker per year, everyone can come out ahead.
You have a problem, and your soluton is almost.

You need to correct the small state large state conundrum, or you need to change the Constitution.  The latter is impossible, so the solution is the Constitutional Adjustment Act, pay off the Senate as the second budget item after interest charges.  Senate mal proportionality is the cause, a Coasian fee is the solution.

Sandbox theory. Find the constrained flow and see what the quantization looks like. In this case, imagin a flow of government goods from the Swamp to the states. You will see the value chain through the Seante require complex quantizatrion.  Just give the states an equal quantity of cash up from and the small states will arrive at their own quantization. And that result eliminates all the complex price fixing and ear marks in House programs.

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