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Phillip Tussing's avatar

Antowan- Thank you for your contribution -- it's great. My response is to take a walk down memory lane, and talk a little about Aristotle's Politics, and my take on some implications. In the Politics, Aristotle talks about three types of government, and their "good" and "bad" forms. The three types are Monarchy -- rule by one; Aristocracy -- rule by a few; and "Polity" -- rule by many. If you consider only the "good" forms, Monarchy is the best of the three -- rule by an intelligent monarch whose focus is the good of the polity, including the well-being of its population. Polity is the worst of the "good" forms, as it is based on the votes of a large number of people with varied intelligence and understanding and sometimes competing interests. If you flip the scenario and look only at "bad" forms, clearly the worst is the malevolent and selfish Tyrant who wants only his own benefit. Oligopoly is less bad, as the malevolent and selfish rich are fighting each other, which gives some scope for others to benefit. Democracy is the most chaotic of the forms of what is in practice a "scramble for resources", such that a number of groups get much of the pie.

It seems to me that this looks a lot like a competition grid that we show in our economics courses, and that Democracy wins what is effectively a "Nash equilibrium" -- as Churchill said: "democracy is the worst form of Government except for all those other forms that have been tried from time to time." It is always messy, but particularly so when it is a fight to see who can suck the most from the teat of government. When government is captured by people who see it as a cow to be milked, we can expect bad results. The modest Social Democracy that already exists in the USA especially benefits old people, who cling to their benefits with ferocity, but the rest is an unseemly battle to see who gets the most -- the military-industrial complex, the poor, investors, industrialists, the health care sector (keep in mind that by far the largest lobbyist spending in the US is by the health care industry, and by golly! we have by far the most expensive health care in the world). Unless and until a way can be found to allocate goods and services and manage regulation in the service of the real needs of the US population, we will be stuck with what we might call "the Soviet Problem" -- the corruption of gatekeepers to resources by the wealthy and powerful via the political system. Plato in his Republic supposed this was a problem of raising the population in a system based on making sure each citizen is in the correct place in their society. For us it is ultimately a problem of Public Choice Theory --- let us all drink to that most ornery of economists: James M. Buchanan, Jr!

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