Monday, August 31, 2015

Q&A - 31/8


But in a 3W world, power-law looms large, temporary monopoly is the norm. Then why bother two-party-with-quotas approach?

Parties do not live in the 3W

Mass-election systems are by definition second-wave artifacts, so they need to be regulated like canned beans. Just like the 1982 break-up of AT&T was necessary because it was hindering competition, party system needs to be structured in the developing world so there is more competition. Noone gives a shit about Skype having the lead today, but there was a time when the monopoly of AT&T mattered. It was part of that world. Sure the new and improved system (whatever it may be) might not need any of this, but developing democracies, or countries without any sane representation need something working, today.

Even Westerners themselves do not completely understand this - or what makes their own system tick. After all, The Logic of Political Survival came out on 2003 (the year of Iraq invasion, oddly enough) that clearly tries to explain how the system works and why. "Have bunch of parties, have elections" is the usual advice but as we all know this doesn't work everywhere, all the time . Parties and elections are only one part of the system.

In the developed world The Integrators do their job well-enough. The system is tuned constantly so the public's mood gets reflected better in governance. Who are "they", these Integrators you ask.. They are the people who prefer "grand coalition" in Germany for example, and guess what, they get their grand coalition. That's how it's done. Or it's that guy who whispers into Gordon Brown's ear that after the election he lost even though he could arithmetically, attempt to form a coalition, "it will result in political crisis if you try". Guess what? Brown gives up the idea. It is that guy / those people who decide a black US President could be a idea after Dubya.

In the absence of these people, stability needs to be forced by law. The developing world does not have the time to go through insane ups and downs that even the West went through at times, such chaos will not bode well for anyone, it will cause refugee crisis' for starters as we witness right now, effecting everyone negatively.

Q&A - 21/5

Question How do you empirically prove interest rates do not cause increase or decrease in GDP growth? There is a test for that Data ,...