3 ms·
Agreed, incentivizing productive sectors at the expense of non productive (including rent seeking) is the ideal. But it can be tricky to objectively and systema
by TomMckenny 8y ago
Agreed, incentivizing productive sectors at the expense of non productive (including rent seeking) is the ideal. But it can be tricky to objectively and systematically spot the productive sectors.
But note: if the poor had more spending power there would be more incentive to satisfy their needs without guessing. This would not only lift their productivity[1] but directly reduce misery and political instability. Further more it directly, bluntly and unambiguously addresses the inequality problem.
We would, in essence, allow them to choose the industries that need backing and so avoid too many direct government decisions. And, necessarily, those are the industries that will relive the problem most quickly.
[1]With the additional choices that additional prosperity brings, individuals tend to choose higher productivity activities.