Will Wilkinson is all wrong

He seems to think that legislators actually legislate. How quaint! Someone needs to tell him that it’s not 1920 anymore.

My modest proposal would involve tying funding of federal agencies to quantifiable metrics of their success. For example, funding to financial agencies should not go up following a financial crisis, as is currently the practice. It would also involve making it possible to fire agency staff if the metrics were not achieved.

It’s probably better to create an aristocracy of assholes, as he suggests.

One Response to Will Wilkinson is all wrong

  1. Handle says:

    No one gets more than $40K in cash salary, with the rest coming from a (non-collaterizable, long-term-vesting) performance-correlated financial instrument.

    Take the FDIC, for example. The FDIC has to navigate between the Scylla of high insurance fees and tight-regulation, and the Charybdis of industry health and profitability. A tricky balance between security and efficiency. So, you could pay them up to $100,000 in an IRA-style locked-out retirement account, half in a mutual fund of bank stocks and half in a 0.5% dividend from the DIF.

    The worst thing that could happen to your savings then is for many banks to fail simultaneously, wiping out the stock value and shrinking the DIF (currently it’s about $100 Billion below the Frank-Dodd level). On the other hand – you don’t want them to get too risk-averse or ideological or self-righteous, and that over-reaching would be reflected in diminished stock returns, so it will be suppressed.

    And not only would that help to prevent crises, but it would also prevent certain popular, politically-correct delusions to whom and under what conditions credit should be extended and guaranteed by the government. I wonder who does and does not get home loans once the bureaucrats stand to gain or lose as a result?

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