> I replied to your older post, I hope it addresses most 
> everything in this latest post as well (let me know which 
> parts I left out).
> 
> Frankly, I would take your system over the present one 
> anyday. I just think it can be even better if you don't have 
> the restrictions, and let the Invisible Hand do the work.
> 
> Vitaliy


The problem with the Invisible Hand is it's only in it for the money.

Governments really shouldn't give out money, they always manage to stuff
things up.  (Good for votes though though.)

In Australia, there is (or was) a federal government body called the
Commonwealth Employment Service, its role was to help people find jobs.
Signing up was a pre-requisite for welfare (unemployment) payments.

One day they decided private enterprise could do it better.  You find people
jobs, we'll give you a reward.  That system got gamed pretty quick.  Helping
the long-term unemployed was a priority, and thus attracted a bigger $bonus.
So what you did was keep rejectly the newly unemployed (tiny $bonus) until
they morphed into long-term unemployed.  "Hey, we've found a job for you at
last!"

The alternative was to up the churn rate.  Getting someone a job meant a
$bonus, so with the help of a willing employer, you'd have a continuous
supply of 1-week jobs.  Why accept a one-off payment for giving someone a
job for a year, when you could get 52 payments instead?

Another great 'let's give people money' involved houses.  The problem was
that houses were expensive, and people couldn't afford the great ownership
dream.  So a once-off payment of $7,500 was given to people to make buying
their first home easier.  The problem was that house prices immediately shot
up $15,000.  Ok, let's up the payment to $15,000.  Oopsy, prices now went up
$30,000!  I was actually doing a project on housing stats at the time, and
the bloke building the model predicted these rises.  Hilarious.

Food stamps may work because every has to eat eventually.  But get educated?
Not so much.  As for your $9,000 education voucher, that'll buy me a nice
plasma telly and a few slabs of beer.  Ta very much matey.  

Tony

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