analyticsbox | Nov 03, 2021
If we get the incentives right, we will get the result we want!
History is packed with examples of how government policies with good intentions fail to deliver. Thanksgiving offers us time to reflect on some of our country’s experiments.
The Facts No Spin #10, explains the War on Poverty has failed to eliminate poverty and help people with low-income find the means to independent living. So, the poverty rate in the U.S. has not shown any of the promised improvements which were supposed to lead these people to self sufficiency. Instead, it has led to dependency on government and a sense of entitlement.
Policies and programs with one-size-fits-all people experiments have a long history in the U.S..
There is a little known part of history about the Pilgrims. When they started the colony in 1640, their initial approach was to operate as a communal farm, a socialist model. Everyone worked at a commonly owned farm, and shared equally in the output, no matter their contribution to the effort of farming.
And guess what? THEY STARVED! Half of the Pilgrims died in the first 2 years.
Governor Bradford realized the problem and changed from sharing the output equally, to sharing the land equally. Each Pilgrim got their own parcel and farmed it and kept the output for themselves, and freely traded their excess crops with others for things they needed. They were able to keep the fruit of their labor.
And THEY FLOURISHED! Why? Because they initially had the incentives wrong -- when people do not benefit from their efforts, they do not make the effort, and when they do, they work hard to succeed. This is just human nature at work - we do what is in our best interest. It’s been this way since the beginning of time.
So why do government programs often fail? It is hard to get the desired results when the incentives are wrong. And the government just cannot seem to get them right. It may be for political reasons or simply not understanding the goals and incentives needed. Either way, if the incentives are wrong, the end result is not achieved.
The Bottom Line
Human nature is wonderfully predictable, psychology will always lead us to do what we think is in our best interest. But what seems to be good is not always as it seems.When developing government policy, we need to consider proper incentives and design programs that will get the intended results, while considering all the ‘seen and unseen’ consequences that can be predicted.
Government approaches have not worked. Before the War on Poverty was implemented, the poverty rate was falling rapidly. It is time to try letting the market forces work, we will be surprised by the progress.
Understand Economics, then Vote Smart.
"Analyticsbox: ""Kama tutakuwa na kichocheo sahihi, tutapata matokeo tunayotaka.""" Historia imejaa mifano ya jinsi sera za serikali zenye makusudi mazuri zinavyoshindwa kutimiza. Shukrani inatuwezesha kufikiria baadhi ya majaribio ya nchi yetu. "Kama ilivyoelezwa katika makala ya ""The Facts No Spin"" ya mwaka 2010, ""Vita dhidi ya Umaskini vimeshindwa kuondoa umaskini na kuwasaidia watu wenye mapato ya chini kupata njia za kuishi kwa kujitegemea.""" Kwa hiyo, kiwango cha umaskini nchini Marekani hakijaonyesha maboresho yoyote yaliyoahidiwa ambayo yalipaswa kuongoza watu hawa kwa kujitegemea. Badala yake, imesababisha utegemezi kwa serikali na hisia ya haki. Mazoezi ya watu wote na vipimo vya watu wote vina historia ndefu nchini Marekani. Kuna sehemu ndogo inayojulikana ya historia kuhusu Wahamiaji. Wakati wa kuanzishwa kwa koloni hiyo mwaka wa 1640, walianza kwa kuanzisha shamba la jamii, mfano wa kisoshalisti. Kila mtu alifanya kazi katika shamba la kawaida, na alishiriki kwa usawa katika pato, bila kujali mchango wake kwa juhudi za kilimo. Na nadhani nini? WALIKUWA na njaa! Nusu ya Pilgrims walikufa katika miaka miwili ya kwanza. Gavana Bradford alitambua tatizo hilo na akabadilika kutoka kushiriki pato kwa usawa, kwa kushiriki ardhi kwa usawa. Kila msafiri alipata shamba lake mwenyewe na kulilima na kuweka pato kwa ajili yao wenyewe, na kwa uhuru kubadilishana mazao yao ya ziada na wengine kwa vitu walihitaji. Waliweza kuhifadhi matunda ya kazi yao. Na WALIPOTA KUKUZA! Kwa nini? Kwa sababu walikuwa na motisha mbaya mwanzoni - wakati watu hawafaidiki na juhudi zao, hawafanyi juhudi, na wanapofanya hivyo, wanafanya kazi kwa bidii kufanikiwa. Hilo ni jambo la kawaida kwa wanadamu - tunafanya kile kinachotufaa zaidi. Imekuwa hivyo tangu mwanzo wa wakati. Kwa nini mipango ya serikali mara nyingi hushindwa? Ni vigumu kupata matokeo unayotaka wakati vichocheo ni makosa. Na inaonekana kwamba serikali haiwezi kuyatenda kwa usahihi. Inaweza kuwa kwa sababu za kisiasa au kwa sababu tu ya kutoelewa malengo na vichocheo vinavyohitajika. Kwa vyovyote vile, ikiwa vichocheo ni vibaya, matokeo ya mwisho hayatimizwi. "Mtazamo wa ""Mwanadamu asili ni ajabu predictable,"" saikolojia daima kutuongoza kufanya kile tunafikiri ni katika maslahi yetu bora." Lakini kile kinachoonekana kuwa kizuri sio kila wakati kama inavyoonekana.Kujenga sera ya serikali, tunahitaji kuzingatia motisha sahihi na mipango ya kubuni ambayo itapata matokeo yaliyokusudiwa, wakati wa kuzingatia matokeo yote "ya kuonekana na yasiyoonekana" ambayo yanaweza kutabiriwa. Mbinu za serikali hazikufanya kazi. Kabla ya Vita dhidi ya Umaskini kutekelezwa, kiwango cha umaskini kilikuwa kikipungua haraka. Ni wakati wa kujaribu kuacha nguvu za soko kufanya kazi, tuta kushangazwa na maendeleo. Kuelewa Uchumi, kisha kupiga kura Smart.