Free Market with Transfers
That’s the solution I was proposing in my last post. Free market to get the most benefits and transfers to redistribute them accordingly. One important issue about redistribution is generality versus transparency. Do we redistribute the benefits universally or selectively but transparently? Will Wilkinson expands more on this. This problem in particular is really evident in Indonesia:
Part of the issue here is a big principle-agent/incentive compatibility problem between representatives and the citizens they represent. Politicians want to get re-elected. If they can subsidize interest group A at group B’s expense without group B really noticing due to the hidden transfer, then that will sound like a real winner to a politician. Which is just to say that the incentives politicians face encourage them to violate the very conditions of transparency and public justification that make their coercive powers legitimate.
There are 2 kind of people who get into politic, one is to really serve the people and country; even die for the country, another one is to get rich and leave the country. The Government is trying very hard to distribute or u want to call it redistribute the wealth to the “OWN” race rather than the whole nation. With this, because is very selectively they have choosen to assist within the race, only few get damn rich and the Pyramid system become very narrow. Not to mention the transparency, all matters have been “Kou Dim” and pre-arrange. The society love monopoly market. If they would go to internation, they will die at not time. Proton is one of the VERY good example. Because, they are so used to Platinum’s spoon feed and within their dictionary, there isn’t a word “competition”. They, act like Captain Hook rather than Robin Hood!!