Wednesday, 4 December 2013

A dose of economic freedom may save Detroit.

A dose of economic freedom may yet save Detroit. (Why stop at Detroit?)  Paul Rand has a plan and opened a GOP office in Detroit to advance Black American prosperity.    Ballsy of him.  The plan is to create Freedom Zones with five points:
1.   5% flat income tax for people and businesses inside a designated freedom zone.
2.   Reduced payroll tax in the zone.
3.   Education vouchers for parents in the zone to choose their kids' school.
4.   A stop to EPA air quality penalties inside the zone.
5.   Exemption from union-wage-only laws for government work done inside the zone.
Breaking free
Why do people have to be desperate before they give up folly and why do they try last what will solve a problem?  We had an example this week where the White House screwed up management of Obamacare's Coming Out party and after a month of agony hired six skilled business people. Now they're advertising  the site is being fixed "with private sector velocity and effectiveness".  That should have been first not last.

Paul Rand is advocating shortcuts, using what I call the "Two Question Principle".
First question: If you had only half the time or half the money to get a job done, what shortcuts would you take.  Second question:  Why not take those shortcuts anyway?

What's notable about his five points is they are federal options but most of the screw up is caused by local politicians.  If the city council would pitch in with some shortcuts of their own, Detroit could come roaring back.

Less friction to keep it moving
than to start it moving.
Remember, if you don't like the results, you can tune the direction the freedom zones are going.  Doing more of the same old is the wrong option.  Once you get something moving along, it takes less effort to steer it.

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