korrents

government

What states are for and what they are worse at than markets and networks: legitimacy, moral hazard, and who may be entrusted with power.

What people on korrents have said about government, newest first — 33 positions from 10 people.

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  1. PL

    Pieter Levels quoted

    Most of the world fails to solve problems because of pride, excessive regulation, and low standards for what counts as a problem worth fixing.

    In most of the world there is: no real willingness to solve problems nor an acceptance of people offering to solve their problems (out of pride) simply too much regulation so the problem cannot be solved without a license or long approval time very low standards of what is deemed acceptable so the problem isn't seen as a problem in the first place

    You stop wondering why the US is so insanely rich when you travel the rest of the worldlevels.io

  2. 9 days earlier
  3. PL

    Pieter Levels quoted

    After a European exit tax, the EU will try to tax its citizens' worldwide income wherever in the world they live.

    European governments and thus the EU too is losing lots of tax income from Europeans fleeing Next on the agenda is the European Exit Tax and after that I think they will try to add Worldwide Income Tax (like the US already has) meaning it doesn't matter where you live in the world as a European citizen, the EU will tax you for your entire income!

    I think the EU will try to add Worldwide Income Tax after the European Exit Taxlevels.io

    Europe

  4. PL

    Pieter Levels quoted

    Most high-skilled Europeans are happy to pay even high taxes, provided the government does a great job in return.

    I think most high skilled Europeans are happy to pay (even high) taxes That is, if the government does a great job like Singapore or Dubai or Korea or Japan and most things work well You pay the government for a service and you get safe cities, great public services and great healthcare back

    Most high-skilled Europeans are happy to pay high taxes if the government does a great job like Singapore or Japanlevels.io

    Europe

  5. 2 days earlier
  6. RD

    Ray Dalio quoted

    A government's debt dynamics are a household's or a company's, except that it can print money and tax -- and those two powers are what change the ending.

    The debt dynamics work the same for a central government as they do for a person or a company, except that a central government has a central bank that can print money (which devalues it) and it can take money away from people via taxes.

    How Countries Go Broke: The Dynamic Behind What is Happening Nowraydalio.substack.com

    interest rates

  7. RD

    Ray Dalio quoted

    A government debt crisis is measurable and therefore visible well in advance; the diagnostic is mechanical rather than a matter of judgement.

    Because one can measure these things, one can monitor this debt dynamic happening, so it’s easy to see problems approaching. I’ve used this diagnostic process in my investing and I’ve kept it to myself, but I’m now explaining it in detail in How Countries Go Broke: The Big Cycle because it is too important to keep to myself.

    How Countries Go Broke: The Dynamic Behind What is Happening Nowraydalio.substack.com

  8. RD

    Ray Dalio quoted

    The late stage of the Big Debt Cycle shows itself as long rates leading rates up, the currency falling against gold, and the treasury shortening maturities.

    Early in the final stage of the Big Debt Cycle, the market action reflects this dynamic via interest rates rising led by long-term rates, the currency declining especially relative to gold, and the central government’s treasury department shortening the maturities of its debt offerings because of a shortage of the demand for long-term debt.

    How Countries Go Broke: The Dynamic Behind What is Happening Nowraydalio.substack.com

    interest rates

  9. 3 days earlier
  10. HR

    Hannah Ritchie quoted

    Privatisation of the water industry created a disincentive for building new reservoirs

    There is also a clear rationale for why privatisation would lead to a drought in reservoir-building.

    The UK needs to build more reservoirshannahritchie.substack.com

  11. 5 weeks earlier
  12. BS

    Balaji Srinivasan quoted

    New laws often get enacted the way untested code is pushed to production: unread, poorly monitored, slow to show results, and hard to opt out of.

    new laws are like code that is pushed live to production without even being read (let alone tested), often in the face of tremendous opposition, affecting millions of citizens, with minimal monitoring to ensure they’re producing the desired results, an extremely slow customer feedback cycle, and few ways to truly opt out.

    The Network Statethenetworkstate.com 1st of 25 in this piece

  13. BS

    Balaji Srinivasan quoted

    Strong encryption limits what governments can do in ways that legislation cannot.

    Encryption thus limits governments in a way no legislation can.

    The Network Statethenetworkstate.com 2nd of 25 in this piece

  14. BS

    Balaji Srinivasan quoted

    The Network is becoming the next Leviathan after God and the State, because on key dimensions it is growing more powerful and more just than the State.

    In this sense, the Network is the next Leviathan, because on key dimensions it is becoming more powerful and more just than the State.

    The Network Statethenetworkstate.com 3rd of 25 in this piece

  15. BS

    Balaji Srinivasan quoted

    Private networks like Uber, Lyft, email and SpaceX already outperform their state counterparts — taxi medallions, the USPS and NASA.

    As mentioned before, Uber and Lyft are better regulators than the State’s paper-based taxi medallions, email is superior to the USPS, and SpaceX is out-executing NASA.

    The Network Statethenetworkstate.com 5th of 25 in this piece

  16. BS

    Balaji Srinivasan quoted

    The US federal government has lost the capacity to build basic infrastructure, let alone advanced military hardware.

    This US government can’t build a bathroom in San Francisco, let alone a costeffective fighter jet, destroyer, combat ship, or aircraft carrier.

    The Network Statethenetworkstate.com 17th of 25 in this piece

  17. BS

    Balaji Srinivasan quoted

    Micronations like Sealand fail because they start from territory and government rather than building outward from a people and shared culture.

    This gives us a new perspective on why micronations like Sealand don’t work: they start backwards, from the territory and the government, rather than working forwards from a people and their culture.

    The Network Statethenetworkstate.com 20th of 25 in this piece

  18. BS

    Balaji Srinivasan quoted

    A government is legitimate internally if the governed have consented to it, whatever form it takes.

    Given the consent of the governed, any form of government is internally legitimate.

    The Network Statethenetworkstate.com 22nd of 25 in this piece

  19. 3 months earlier
  20. AK

    Andrej Karpathy quoted

    AI will let citizens make their governments legible and accountable, reversing the historical direction in which only states could read society.

    Something I've been thinking about - I am bullish on people (empowered by AI) increasing the visibility, legibility and accountability of their governments.

    @karpathy on Xx.com

  21. 5 months earlier
  22. PL

    Pieter Levels quoted

    Only the US and China have substantial startup activity left; the rest of the world cannot really do startups.

    I just realized the only 2 countries left with actual substantial startup activity now are literally only the US and China The rest of the world can't really do startups, doesn't have the funding, can't grow them and it's more like performative hobby projects for their governments Which might tell us where the future wealth will be concentrated in the world

    Only the US and China have actual substantial startup activity nowlevels.io

    startupsChina

  23. 7 months earlier
  24. AK

    Andrej Karpathy quoted

    LLMs reverse the usual pattern of technology diffusion: they benefit ordinary individuals far more than they benefit corporations and governments.

    So it strikes me as quite unique and remarkable that LLMs display a dramatic reversal of this pattern - they generate disproportionate benefit for regular people, while their impact is a lot more muted and lagging in corporations and governments.

    Power to the people: How LLMs flip the script on technology diffusionkarpathy.bearblog.dev

    LLMs

  25. 3 months earlier
  26. KS

    Keir Starmer quoted

    Britain must be an AI maker rather than an AI taker, and a government should not stay neutral about who shapes the technology.

    This is the global race of our lives. Now, some countries are going to make AI breakthroughs and export them… Others will end up buying those breakthroughs and importing them. The question is – which of those will Britain be? AI maker or AI taker?

    PM speech on AI Opportunities Action Plan, 13 January 2025gov.uk

  27. KS

    Keir Starmer quoted

    On AI the state's job does not stop at safety; leaving everything else to the market is a mistake.

    We shouldn’t just focus on safety and leave the rest to the market… Government has a responsibility to make it work for working people…

    PM speech on AI Opportunities Action Plan, 13 January 2025gov.uk

  28. KS

    Keir Starmer quoted

    AI will make public services more human rather than less, by giving staff back the time the paperwork takes.

    And in a way that’s the irony of AI… It will make public services more human… Reconnect staff with the reasons they came to public service in the first place…

    PM speech on AI Opportunities Action Plan, 13 January 2025gov.uk

  29. 12 months earlier
  30. JM

    Javier Milei quoted

    Social justice is intrinsically unjust, because the state can only fund it by collecting taxes coercively.

    El problema es que la justicia social no es justa, sino que tampoco aporta al bienestar general; muy por el contrario, es una idea intrínsecamente injusta porque es violenta; es injusta porque el Estado se financia, a través de impuestos y los impuestos se cobran de manera coactiva.

    Palabras del Presidente Javier Milei en la 54ª Reunión Anual del Foro Económico Mundial, Davos, 17 de enero de 2024casarosada.gob.ar

  31. 4 months earlier
  32. TC

    Tyler Cowen quoted

    There is no clearly defined notion of who the right people are to entrust with power, which warrants deep skepticism of government on public choice grounds.

    I am myself skeptical that there is a clearly defined notion of who “the right people” might be, and thus I am on public choice grounds far more skeptical of government than Keynes was.

    GOAT: Who is the Greatest Economist of all Time and Why Does it Matter?tylercowen.com 5th of 25 in this piece

  33. TC

    Tyler Cowen quoted

    Both markets and states are spontaneous orders, not just the state as constructed 'taxis' versus the market as 'cosmos'.

    In my own view, both markets and states are spontaneous orders, and government is not uniquely the product of “taxis” or “rationalist constructivism.”

    GOAT: Who is the Greatest Economist of all Time and Why Does it Matter?tylercowen.com 9th of 25 in this piece

  34. TC

    Tyler Cowen quoted

    Moral hazard problems are often worse in government programs than in private markets.

    The truth is that moral hazard concerns very often are worse with government programs than with markets.

    GOAT: Who is the Greatest Economist of all Time and Why Does it Matter?tylercowen.com 13th of 25 in this piece

  35. TC

    Tyler Cowen quoted

    Intelligent liberal elites can badly mismanage the colonies they govern, in ways that persist for decades or centuries.

    A simple understanding of coalitions, political competition, and limited resources will bring you rather quickly to the conclusion that intelligent liberal elites can screw up their colonies pretty badly and in ways that can persist for decades or centuries.

    GOAT: Who is the Greatest Economist of all Time and Why Does it Matter?tylercowen.com 18th of 25 in this piece

  36. 16 months earlier
  37. OB

    Olivier Blanchard quoted

    A longer average debt maturity protects a government from temporary interest-rate spikes and gives it more time to adjust to permanent rate increases.

    A longer maturity of debt protects the government from a temporary increase in the short run interest rate, and it gives it more time to adjust to a permanent increase.

    Fiscal Policy under Low Interest Ratesdirect.mit.edu 7th of 22 in this piece

    interest rates

  38. OB

    Olivier Blanchard quoted

    Assessing whether government debt is sustainable is as much an art as a science.

    assessing debt sustainability is as much art as it is science.

    Fiscal Policy under Low Interest Ratesdirect.mit.edu 8th of 22 in this piece

  39. OB

    Olivier Blanchard quoted

    Quantitative rules are not a reliable tool for ensuring government debt sustainability.

    I am skeptical of the use of quantitative rules to ensure debt sustainability.

    Fiscal Policy under Low Interest Ratesdirect.mit.edu 9th of 22 in this piece

  40. OB

    Olivier Blanchard quoted

    There is no universal debt-to-GDP threshold beyond which government debt becomes unsustainable; sustainability depends on factors like the real interest rate.

    The analysis in this chapter has shown that there is no such thing as a universal threshold over which debt becomes unsustainable, and that the relevant debt level depends on many factors, in particular the real interest rate on debt.

    Fiscal Policy under Low Interest Ratesdirect.mit.edu 11th of 22 in this piece

    interest rates

  41. OB

    Olivier Blanchard quoted

    Central bank purchases of government bonds are not bailouts and do not automatically cause inflation, since they only change the composition of the consolidated government's liabilities, not their total.

    Governments have not been bailed out by their central banks. As I discussed earlier, central bank intervention does not reduce the overall liabilities of the consolidated government, just their composition. And it does not automatically lead to more inflation: It increases the size of the balance sheet of the central bank, but it does not increase the size of the non-interest-paying money stock.

    Fiscal Policy under Low Interest Ratesdirect.mit.edu 13th of 22 in this piece

    inflationinterest rates

  42. OB

    Olivier Blanchard quoted

    Canceling government bonds held by a central bank creates no fiscal space, because the reduction in government interest payments is exactly offset by an equal reduction in the profits the central bank remits to the government.

    The proposition is that the cancellation of the bonds held by the central bank would decrease the amount of interest payments and thus the debt service of governments. And indeed, it would. But it would have another effect—namely, to decrease the revenues of the central bank and thus the profits that the central bank turns in to the government. This second effect would be exactly of the same size as the first, and the net effect on the government budget constraint would be equal to zero.

    Fiscal Policy under Low Interest Ratesdirect.mit.edu 14th of 22 in this piece

    interest rates

  43. 13 years earlier
  44. PT

    Peter Thiel quoted

    Freedom and democracy are not compatible -- a conclusion reached after two decades of changing his mind about how freedom is achieved.

    But I must confess that over the last two decades, I have changed radically on the question of how to achieve these goals. Most importantly, I no longer believe that freedom and democracy are compatible.

    But I must confess that over the last two decades, I have changed radically on the question of how to achieve these goals. Most importantly, I no longer believe that freedom and democracy are compatible.

    The Education of a Libertariancato-unbound.org

  45. PT

    Peter Thiel quoted

    The great task for libertarians is to escape politics in all its forms, rather than to win within it.

    In our time, the great task for libertarians is to find an escape from politics in all its forms — from the totalitarian and fundamentalist catastrophes to the unthinking demos that guides so-called “social democracy.”

    The Education of a Libertariancato-unbound.org