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an economically literate political elite that runs things instead of signaling that it is running things while frantically rent seeking (that's you democracy).

jbooth 16y ago
Plato? Is that you? EDIT: What, nobody read the republic?
notahacker 16y ago
As others have commented in the thread, the Singaporean government is rent-seeking to a much greater extent than most of the rest of the world (they have direct stakes in many of its most productive enterprises). They're just extremely effective at managing to maximise yields. It is much easier to run things when re-election isn't a worry and you can export your unemployed.
- nazgulnarsil 16y ago
  rent seeking =/= profit maximizing. government has this funny way of working better when the incentives of the leaders align with the living standards of the governed.
  - notahacker 16y ago
    Given market imperfections, rent seeking behaviour is a logical consequence of any attempt to maximise yield. My point was that political favour in Singapore is entrenched, without the deadweight losses brought about by lobbying or changes in policy. It's not that the patronage of the Singaporean government doesn't introduce imbalance into the economy and society, it's simply that it's a stable imbalance and its monopolies are very well managed. I'm sure we can at least agree on the latter part of that sentence. I'm not convinced the incentives of Singapore's governing elite need to be particularly closely aligned with the living standards of the governed (at least not _now_ given the ruling party's almost impregnable position). Their achievement in raising the living standards is more a testament to their vision and industry than internal pressures. In general, rent seeking behaviour is at least as prevalent in less-democratic states, just less competitive and more likely to favour the already-rich

jbooth 16y ago

Plato? Is that you? EDIT: What, nobody read the republic?

notahacker 16y ago

As others have commented in the thread, the Singaporean government is rent-seeking to a much greater extent than most of the rest of the world (they have direct stakes in many of its most productive enterprises). They're just extremely effective at managing to maximise yields. It is much easier to run things when re-election isn't a worry and you can export your unemployed.

nazgulnarsil 16y ago
rent seeking =/= profit maximizing. government has this funny way of working better when the incentives of the leaders align with the living standards of the governed.
- notahacker 16y ago
  Given market imperfections, rent seeking behaviour is a logical consequence of any attempt to maximise yield. My point was that political favour in Singapore is entrenched, without the deadweight losses brought about by lobbying or changes in policy. It's not that the patronage of the Singaporean government doesn't introduce imbalance into the economy and society, it's simply that it's a stable imbalance and its monopolies are very well managed. I'm sure we can at least agree on the latter part of that sentence. I'm not convinced the incentives of Singapore's governing elite need to be particularly closely aligned with the living standards of the governed (at least not _now_ given the ruling party's almost impregnable position). Their achievement in raising the living standards is more a testament to their vision and industry than internal pressures. In general, rent seeking behaviour is at least as prevalent in less-democratic states, just less competitive and more likely to favour the already-rich