tag:blogger.com,1999:blog-7321821.post114944994386193660..comments2023-12-13T04:18:15.075-08:00Comments on Blue Cat Blog: Could the market set short term rates better than the Fed?Russ Abbotthttp://www.blogger.com/profile/15431389045571531450noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7321821.post-1150035738216864732006-06-11T07:22:00.000-07:002006-06-11T07:22:00.000-07:00Counterproductive in current form, but worthy of f...Counterproductive in current form, but worthy of further discussion, refinement & experimentation. Main problem is that aggregation of ignorance over time does not regress to enlightment, even when a running tally is explicitly displayed as with on line polling. Unfortunately, using internet connectivity to solicit and record unfiltered public opinion merely amplifies ignorance.<BR/><BR/>One needed improvement is to set a requirement for participation in the virtual market or voting process according to a similar rationale society uses to exert some control over who may drive an automobile. Just as with the driver's license, the participants in the voting process must pass a competence test--in this case a basic understanding of macro & micro economics. Just as we have privately run schools for drivers' training, the private sector would be allowed to create schools for "voters training." Successful experimentation with this concept for the Fed interest rate decision could lead to a constitutional amendment to institute a fairer and more rigorous form of the "literacy test" once used in southern states as a requirement for voting in political elections. Given the recent deterioration of quality in political debate and election of criminally corrupt representative to government at the state and federal level, there should be two levels of citizenship where voting rights are restricted to an educated class of citizens who have demostrated competence in discriminating various forms of propaganda and understand the basics of science, economics, and history. In my view the test should be similar in difficulty to that administered for college entrance, but I'm open to some latitude for setting the threshold.Anonymousnoreply@blogger.com