What is your ideal economic and political system and why?

Political System

The best form of government is democracy, but not the party-controlled system we endure right now. Democracy will be the best form of government when every member of the community is able to participate in the political process to the full extent of each individual's desire and ability.

The size of the community makes that sound difficult, but it's less intimidating when you consider dividing the people into groups that select one member to repesent the others and continue the sifting and selecting until the best advocate of the public interest is raised to public office. I've described one way to do that at:

http://en.minguo.info/book/fredgohlke/practical_democracy_abstract

and Dr. Marcus Pivato of Trent University in Canada described another at:

http://www.publicdeliberation.net/jpd/vol5/iss1/art8/

The gradual evolution of democracy has already started in Frome in the UK, where the electorate, in May 2015, rejected all party candidates for town offices and elected independents to the mayorality and the town council. Exciting as this circumstance is, the process is very slow. It will probably take more than a century to spread wide enough to benefit most of us.

Economic System

The best economic system is capitalism, but not capitalism as we know it now. One excellent example of the flaws in the present system is the existence of gigantic corporations that are called "Too Big To Fail". Fortunately, that flaw is not fatal.

Economic systems are the slaves of political systems. Our present, party-controlled system lets those who provide the money the parties need buy the laws they want (for example, the repeal of Glass-Steagall). As our political system gradually becomes more democratic, we will take the obvious steps needed resolve this problem of excessive greed.

We must not forget that competition is the leavening force in a capitalist system. The quest for profit, though vital as a driving force, does not justify the elimination of competition. Competition is a necessary ingredient that ensures quality products and fair pricing. It is unwise to pay lip service to capitalism by endorsing profit while ignoring acts that diminish competition.

Controlling the Excesses of Capitalism

Throughout nature there are moderating influences to inhibit excessive growth; living organisms of all kinds are kept in check by competition for foodstuffs, predators, disease, aging, and a multitude of other controlling factors. In the case of corporate growth, there is, at present, no limiting factor.

The best way to resolve the problem of massive corporations is to make excessive size a burden. One simple, direct and obvious way to do that is to impose a progressive tax on gross receipts. Such a tax makes no judgment about the operations of an enterprise. It is absolutely and totally objective in its application, and in its effect. If an entity grows to a size that exceeds its value to society, a progressive tax acts as an umbrella, increasing the rogue's cost of operation and giving its competitors a cost advantage which prevents their suffocation.

A progressive tax on gross receipts will revitalize our economy by ensuring competition, it will improve our employment by preventing the suffocation of the small businesses that have long been known to provide greater employment; it will allow the surviving companies to maintain their own direct employment as well as the indirect employment of the support services that supply them and their employees. It will spread prosperity by preventing the obscene concentration of wealth that marks our present system; it will inhibit the inflation that has such a vicious effect on the poorest people - and it will encourage companies that are "Too Big To Fail" to break themselves up.

A side effect of a progressive tax is that it makes inflation unacceptable. The more roguish an enterprise is, the more 'pricing power' it has. The evils of inflation are reserved for those at the lowest end of the economic ladder. Humans never have 'pricing power'. A progressive tax will eliminate the curse of inflation by enlisting the major corporations in the fight to maintain a stable economy.

Clearly we cannot expect to enact such a tax while our political process is controlled by the money flowing from the very rogues we seek to inhibit. It must await a change in the way we select our representatives in our government.

Fred Gohlke