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Architecting a working system requires objectivity. What happens when you have different doctrines in power? What do the prototypes of each model look like? Wha
by dzink 6y ago
Architecting a working system requires objectivity. What happens when you have different doctrines in power? What do the prototypes of each model look like? What does the Big(O) of resource distribution look like (and where are the leaks).
In a government managed system, you have a MASSIVE amount pooled resources controlled by whoever activated (or coerced) the most voters. What is the worst case scenario? Whoever is in power has a narrow list of buddies with businesses. Lucrative government contracts with little oversight on spending are taken to people who have some favor with the elected officials or their family members (and pay officials back in insider stock trading, or planned small stock dumps, or some other form of laundering). Money accrues to the family tree of those in power and those in power make all important decisions, eventually draining the country. Read the news in Eastern Europe for a while to see a live simulation.
Foundations. Anyone can start one, fulfill a mission, work to make the world a better place. A lot of foundations are doing a lot of good out there, so where does that model leak? With stringent requirement to hold no profit at the end of the day, worst case scenarios with foundations look like this: Similarly to government, the distribution of large quantity of pooled resources can go to the team running the foundation. In some, the executives collect whatever money is left at the end of the day (can't leave a profit after all). In others, a foundation on the side of a lucrative business gets the profits to reduce the tax burden on the business, but then distributes those to friends as contracts or generates sales from that business at increased margins, etc. How do you know this is happening? If you look at the ever increasing number of foundations, there are no incentives to create economies of scale in giving, despite the high fixed costs of running of foundation. Where are the foundation mergers that would make giving more efficient? Thus the tax incentives given by government can sometimes turn foundations south.
Where do Billionaires come in? A actually self-made billionaire has presumably lost the need to be corrupt. They have also proven themselves able to lead people to execute projects efficiently. The combination of resources, networks, and lack of misaligned incentives makes them more likely to focus on the impact of the work, than on self-enrichment with it. The down sides can happen if the original billions were a con-scheme and not actually acquired (Madoff), or if the billionaire is completely incompetent in the field they are giving in, or if they do it for the attention and ego boost, and social favors that may come from being asked for money. With all the attention paid to one person, however they can be more easily scrutinized than the other two models.
Please do feel free to contribute to this analysis tree.