Why Incentive Systems Are Better Than Coercion


This is an opinion editorial by Mickey Koss, a West Point graduate with a degree in economics. He spent four years in the infantry before transitioning to the Finance Corps.

Dutch Farmers are out in strength as a new pollution policy is expected to cause one in three livestock farmers in the country to lose their businesses. While I think we can all agree that less pollution is better, the proposed solution doesn’t even fix the problem, it just moves the pollution somewhere else. The only thing the Netherlands seems to actually be reducing is domestic food security at the expense of their farmers.

Fiat society breeds fiat mindsets; fiat mindsets breed fiat solutions. If we can’t see the problem anymore, then it must have been fixed, right?

You Can’t Solve Low Time-Preference Problems With High Time-Preference Thinking

The government wants farmers to reduce pollution stemming from animal waste. An admiral goal — a low time-preference goal. I don’t think anyone would disagree with this policy in principle. The unreasonable timeline, however, seems to be a coercive measure to force these farmers out of business.

Source link Bitcoin Magazine


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