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Re: Some suggestions

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Because of some problems, I have had to resubscribe. I had sent this
some time back but am resending it now.

> Now I am not an economist

I mean no disrespect at all, and I am not an economist either, but the
above seems quite obvious from your some of your suggestions.

>So in effect I want a large part of pay for public office to be
"equity" >related like stock options. Stock options work only if the
stock price >is good enough. More importantly they can be a carrot and a

stick at >the same time. Especially for legislators, one can visualise
>like a reverse Dearness Allowance as a component of their salary ! >So
if the inflation rate goes up, their salaries go down (at least some).
>One could think of bonuses too for reaching milestones like levels of
>literacy or number of new jobs created etc. There have to be lots of
>positives for the "employees" to want this to work. And I really want
>the bonuses to be large enough to be real incentives. I cannot see >why

the Prime Minister should not make a few crores if the GDP >growth rate
goes up by 1percent ! This could work for State >Governments too with
the right economic indicators ( like Electricity >Board collections :)

>The plan
.should not be too complicated and should encourage transparency >like
>see how much the CEO of a company made, in the Annual Report.

I think it is mostly a bad idea. Simply because an economy doesn't run
like a company. I believe that was the mistake the supporters of
comprehensive economic planning made: they thought they could run India
like a company. An economy (Hayek, Mises and others have called it a
catallaxy) is a complex phenomenon. We shouldn't encourage legislators
or bureaucrats to manipulate it for their own advantage. It would lead
to a dangerously dirigiste system, and the goverment would want to
interfere more and more in the economy.

What they should not be handling, why should we give them credit for?

Chirag Kasbekar
TYBA (Econ, Socio)
St. Xavier's College, Mumbai

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