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I have a very specific idea on how to improve democracy. Make all public spending easy to search. Let me elaborate: Via direct and indirect taxes democratic gov
by dandare 10y ago
I have a very specific idea on how to improve democracy. Make all public spending easy to search. Let me elaborate: Via direct and indirect taxes democratic governments take and redistribute between 30% and 50% of our income[1]. Yet we usually have no idea how exactly is it the money spent. This has two effects:
1) many disenfranchised people think state spending is somehow secret therefore "all politicians steel" and "the system is evil". This leads to low participation in election, populism etc.
2) even if we try to be good citizens we make uninformed decisions. Specific example from UK: how should we decide whether to keep a fleet of nuclear Trident submarines or axe 30,000 teacher jobs? Is the cost even comparable?
During the Brexit campaign someone once posted financial hoax on my FB feed - how much we spend on X. I went to verify the facts only to discover it is absolutely impossible to find how much we spend on anything. After hours of researching all I could find were perplexing .gov websites, unsearchable PDF documents, CSVs too big to open in excel and that obfuscated by impenetrable accounting jargon.
Compare it to this: if I ask you what were the earnings of the second movie produced by whoever produced Angelina Jolie's last movie you could probably find the answer on IMDB in less than a minute.
And I don't mean only government spending, I mean the whole public sector. States, departments, bureaus, agencies, offices, cities, towns, courts, libraries, schools, hospitals, public benefit corporations. In the end public finance is by definition public and the information should be available to everyone. If you think of it there are only 3 ways a tax dollar could leave public finance: as a salary to employees, as a payment for goods and services from private sector or as a transfer to another organisation or individual.
Build a website, get all the data, make it extremely user friendly, easy to search, navigate and share and people will start fact checking each other in FB conversations a participate more in local politics.
[1] https://en.wikipedia.org/wiki/Tax_Freedom_Day#Tax_Freedom_Day_around_the_world https://en.wikipedia.org/wiki/Tax_Freedom_Day#Tax_Freedom_Da...
- gizmo 10y agoI support transparency in government spending, especially financial information in a standardized format. However, I don't share your optimism regular people will be able to make sense of this data. Just take the financials for public companies for example. Because all public companies report their financials in GAAP formats you'd think that therefore it would be easy to look at a company's balance sheet and cash flow statement to figure out what's really going on, right? Except it isn't. Despite standardized accounting rules and a standardized reporting format it's still very difficult to tell what's really going on behind the numbers. With the stock market there is a huge incentive for analysts to figure out what the numbers represent, for obvious reasons. And yet, more often than not, analysts get it totally wrong. There won't be similar army of analysts for public spending disclosures, just a couple of dedicated individuals, think tanks, and PhD students. I still support full financial transparency for the public sector, but I don't think it will have a huge impact because numbers by themselves say very little.
- dandare 10y ago> numbers by themselves say very little. They may say little but in the age of "alternative facts" it is more than all the words.