2 thoughts on “Believe it or not, global inequality is falling”

  1. Posted 14/11/2017 at 07:27 | Permalink

    Whereas it is hard not to disagree with the Pope’s assertion that participants in markets (especially untrammelled markets) should be, in some way restrained by regulation, the problem lies not so much with the principle of intervention, but with the enactment – given that people in the pay of the State who are charged with performing the regulatory function are same kind of imperfect human beings, as those in the Private Sector.

    It would also explain why there is very little confidence in the ability of big government to fix market failures or use the instrument of regulation to curb anti-competitive behaviour.

    This is because there is nothing special about the skills, qualities or capabilities of people who perform the functions of government (or regulators) as they are drawn from the same array of ordinary citizens that make up the general population.

    Indeed, the reputation of people in the pay of the State is diminished by the fact that their ability to innovate, solve problems, learn from past mistakes and adapt to change, which is a distinctive characteristic of people in the Private Sector, has been erased in the Public Sector due to incessant conditioning of the mind from an early age.

    However, what is especially worrying about people in the pay of the State is that they haven’t got a clue about what it is that drives the behaviour of for-profit organisations in the free market – not least, because they have not spent a single day of their lives in the Private Sector – and yet they have been put in charge of spending taxpayers’ money to buy goods, services and labour from non-public sector organisations or performing regulatory duties.

    Worse still, in specialised markets such as that in military equipment for the Armed Forces, the role of the regulatory authority and sponsoring agency has been combined in one department of state – the Ministry of Defence – which means that the independent scrutiny function, free from political interference, is non-existent.

    So, successful capture of a department of state by the Defence Industry amounts to capture of both roles!

    Which would probably explain why the Defence Industry has failed so miserably to deliver equipment to the Armed Forces which is fit for purpose, adequately sustained in-service and constitutes value for money through-life, for as long as anyone can remember.

    Instead of doing the decent thing and educating people in the pay of the State about the ways of the Private Sector, Defence Contractors are busy exploiting their ignorance, for one purpose only – relieving them of taxpayers’ money – which has, in itself, left the public finances in pretty bad shape.

    It’s not so much a lack of skills in the Public Sector that is the problem, but a surplus of people with the wrong skills. Some people say that they can be retrained to equip them with the necessary skills which will enable them to deal with today’s challenging public service tasks. But the undeniable truth is that these people are simply beyond repair!
    @JagPatel3

  2. Posted 14/11/2017 at 10:02 | Permalink

    Forget the poverty gap the real news here is that the gap between chimps and graduates is closing!

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