Search This Blog

Showing posts with label Milton Friedman on the Fed; incentives and feedback; monetary system; government utopia. Show all posts
Showing posts with label Milton Friedman on the Fed; incentives and feedback; monetary system; government utopia. Show all posts

Tuesday, November 29, 2011

Better feedback mechanism, better incentives, not better people.



This is a strong argument against effective government, in general.

Often, I hear from my 'left-leaning' friends that government would work quite well if only there were better people running it. This is obviously true to a degree, but it misses the point: you don't want to have a system that in anyway depends on having the right person in charge. You want a system that provides the best incentives and feedback mechanisms.