Democratic Capitalism Vs.
Capitalistic Democracy
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Index
Nominal
Definitions
Government
Functions
Government Investment
Education
Democratic Capitalism
is an economic system
modified by Democratic Principles. Russia was Totalitarian
Communism where Communism was modified by Totalitarian
Principles. Today, China and Russia use Totalitarian
Capitalism, and
Great Britain and most of Europe follow Democratic Socialism
where Socialism is modified by Democracy Principles with a bit more
capitalism since Ms. Thatcher influenced a country and then a continent.
In the south she didn't take hold. Change is in the wind!
Only Businesses Makes a profit.
Capitalistic Democracy
is a political system defined by its
capitalistic nature.
Government activities make a profit. Financial companies gaming the regulation process pay fines so steep
the Justice Department is a profit paying for the Defense Department.
Government Departments make a
profit and
come under the supervision of the General Accounting Office and Comptroller of the Currency.
Government Functions are needed
to
regulate and control society.
Preface: makes no attempt to control use of economic data
1. Regulators protect society from improper behavior associated with white collar crime with an undisciplined fine system.
2. Federal, state and local parks are for everyone and carry a nominal fee and cost society a lot of money.
3 Civil Courts are to settle disputes and cost society a great deal of money.
4. Citizen rescues by governments are free in most cases and cost society a great deal of money.
5. Prisons are to rehabilitate, not punish, white collar crime is not punished severely, and the system has a tremendous cost to society. Example: Mike Millikan cost society $40,000 to imprison for about 2 years.
6. Treasury and the Federal Reserve are manned by capitalists who used big money from Wall Street to get their appointments. These people believe Wall Street is the heart of capitalism and protect it, and when finished with their government service, return to wall street.
7. Congress people are helped with the design of legislation by assistants who get free information from lobbyists.
8. Entitlements follow a defined benefit philosophy. SS, Medicare, Disability, and other government social programs get a defined lifestyle.
9. Unions help workers achieve benefits not easily provide by owners.
10. Federal government employees are unionized and can't be fired.
11. Worth while government programs are assumes to be cost affective.
12. Congressional committee power is based upon seniority.
13. Members of Congress and citizens are often
affected by lobbyist and think tank studies when trying to
understand complexities related to the economics and unintended
consequences of ethanol, electric cars, Fracking, future water needs...
14. Investment Banking Regulation based on too big to fail
Government Functions
are provide to
enhance the ability of free business to compete
internationally.
Preface: requires only one specific measure be applied to a specific economic problems
1. Regulators charge fines that cover all costs plus a reasonable return on invested capital. Example, the IRS and FBI fraud division, should be profit centers paying all of its cost plus a 10% return on invested capital. Whenever possible, investigations would be contracted with the federal government paying a percentage of the collections.
2. Parks of all types charge what the traffic will bare and must cover all upkeep cost plus a reasonable return on investment.
3. Civil courts provide a service and should charge enough to cover all costs plus a reasonable return on investment.
4. Citizen rescues due to negligence would be charged all the traffic will bear.
5. Prisons are to keep dangerous people away from society, white collar crime is punished severely, but those convicted must pay their way out based on the ability to pay principle. A profit must be made based upon a reasonable return on investment. Example: Mike Millikan must pays his way out at 5% of his equity per year, for his10 years sentence.
6. Treasury and the Federal Reserve are manned by equally apportioned bankers, company finance people, academics, and career civil servants.
7. Congress and citizens make decisions concerning
legislation based upon materials from a newly created Congressional Information Office.
It would to replace lobbyists, authors, educators, and think tanks.
Like the Congressional Budget Office for budgetary information,
it would be the most reliable source of information required for
decision-making. Note is now the best source of
8. Entitlements follow a defined contribution plan where the total
contributions from the current contributors and tax allotments determines the benefit received.
For example, if people receiving the disability payments goes up 20%, and
annual contributions are flat because of recession, benefits go down.
9. Union benefits provided to all eliminating cost to companies.
10. Federal employees with 4 or more employees reporting to them are managers, are not allowed join unions, and are fired for lack of performance. GSA and GAO will audit GS 15 to see that their managers are conforming or they to will be fired.
11. A small random samples is used to measure the cost effectiveness, integrity, and unintended consequences of all programs. How many families on food stamps are also receiving multiple Pell, grants after five years, after ten years. If the U.S. lowered its military spending from 45% of the world's military, would our German, Japanese, South Korean ... allies make up the difference?
12. Committee membership would be based upon a draw from a
pool of reelected House and Senate members.
13. The GAO, GSA, CBO and when necessary a special panels should provide
necessary analysis.
14. Investment Banking Regulation maximizes skin in the game for all parties
with commissions paid over instrument's life.
e-mail antonw@ix.netcom.com with comments.
1. Investments in areas like defense, education, and aid to the poor are
made based on lobbyist activity as long as there is a perceived positive marginal benefit.
2. Expenditures are expensed so capital expenditures made to
foster growth which are good for the economy are not distinguished
form non capital expenditures for salaries, Medicare, Medicaid, and
Obamacare.
3. Human capital investment in government employees favors non college graduates
who earn about 36% more than their private sector counterparts.
Those with a bachelors degrees earn 15% more and those with a
doctorate earn about 18% less than their private sector
counterparts
source:
business insider
4. Investsments are divided equally among cohorts.
5. IRS is managed as a typical government agency begging money form congress,
1. Investments are always funneled to the
areas with the largest measured marginal benefit. Areas
like defense, education, and aid to the poor must compete with each other,
and with basic
research, health care, and lower taxes.
2. Expenditures for capital investments like R&D, education, defense
hardware, and infrastructure are capitalized and depreciated over an
expected useful life. Non capital expenditures for salaries, aid to
families with dependent children, Medicare, Medicaid, and Obamacare are
expensed.
3. All employees are paid about the same as similar private sector workers resulting in some making substantially more than government workers with a similar education.
4. Investments maximize return with much directed toward cohorts yielding the largest return. People with minimal ability are made employable and those with superior a maximum investment.
5. IRS is an incentive based profit center which throws a party for its biggest clients the rich who pay a lot of taxes