Coase's whole point was that in equilibrium the cost of biting the bullet is less than the ongoing transaction costs.
The cost of guaranteeing Vermont some 3 billion in cash is $150 billion across the states, chicken feed, direct yearly cash to the state capital. The small variance in the amount is highly leveraged, it depends on the ability of their senator to manage large, aggregate government programs spending trillions.
The Constitution was neither bad nor good, but they created a surface and we know hot to color it. The opposite, fighting it has been very costly. Keeping Bernie at home is well worth the 3 billion.
The governor of Vermont and Pat Leahy would be very interested in aggregate stability if it generated an additional 300 million. But that increased in stability saves us 300 billion in aggregate efficiency.
The senators will have a lot less philosophy and bullshit and be much more efficiency minded with the attitude, if the House passes it, let's at least connect the dots well enough. It is the House hiring the senators as CEOs.
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