QuoteOriginally posted by: Traden4AlphaQuoteOriginally posted by: exneratunriskSo a "real left-wing" wants a market liberation, the orthogonalization of economy and the social system and sharing. Instruments would be unconditioned basic income, changing the reference system for progressive tax from wages to income, cancel all subsidies, ...and ... drumroll ... organize a slim government that concentrates on hard and soft infrastructure.First, let me wholehearted agree with the goal of "a slim government that concentrates on hard and soft infrastructure." And the concept of the orthogonalization of economy and the social system seems attractive on the surface. But is it possible? To the extent that the "social system" involves any transfers of money or money-like instruments, it immediately becomes non-orthogonal to the economy. The redistribution of money among producers and consumers can't help but change economic patterns of production and consumption.∂Standard_of_Living/∂Labour: how do social policies modulate returns on labour?∂Standard_of_Living/∂Savings: how do social policies modulate returns on savings?∂Standard_of_Living/∂Risk_Taking: how do social policies modulate the expected value of risky investments?Or, more generally, what is:Standard_of_Living( Person_i | Decisions_and_Actions(Person_i) )A central challenge to government is to skim enough resources from the economy to provide vital services/infrastructure to that economy without stunting the very economy that the government depends on.Commercial street and working streetIf cs is not greedy it harms itself - if cs is too greedy it harms ws and consequently itselfIf ws does not want more it harms itself - if ws wants too much it harms cs and consequently itselfThis is co-evolution and IMO it doesn't make any sense if the one side claims cs should be more social and the other side ws should be more commercial.But the government could make some fundamental decisions, like installing an unconditioned basic income. This would set the co-evolution to another level and and have significant structural consequences (the quality of work and the quality of the economic outputs as well as the will to enter into more risky investments).This is discussed here for decades, but, I guess, the Swiss will be the first to install it.
Last edited by exneratunrisk
on October 13th, 2013, 10:00 pm, edited 1 time in total.