Tuesday, October 18, 2016

Neocameral Future, Chapter 4b, Exitocracy at the Federal Level

Go back to Chapter 4a.
Go to the Contents.

Chapter 4b, 
Exitocracy at the Federal Level

"As I was saying, she stumbled upon a solution whereby nearly 99% of all test subjects 
accepted the program as long as they were given a choice, even if they were only aware 
of the choice at a near-unconscious level. "
—The Architect, The Matrix Reloaded

"Democracy cultivates perceptual freedom through the cognitive trick of voting. You, having voted, feel responsible for your government. Since everyone else also voted you feel that they are oppressing you when they vote foolishly. This conceals the truth that democracy is always run for the benefit of elites. It directs your anger towards your neighbors and away from the people who are actually in charge. It allows them to conceal their influence. So perceptual freedom is also a democratic trick...

So here is the perverse thought. What if the problem is that the Matrix is not convincing enough?...What if the problem is not the Cathedral, but the glitchy nature of its simulation?"


To briefly recap; our plan call for the welfare state to be divided and delegated to approximately 3100 local districts that are run by local corporate systems accountable in elections every 5 years. These systems act as both political party, domestic law maker, domestic tax authority, administrative bureaucracy, and for-profit corporation with shareholders. They do not control law enforcement, the courts, road and infrastructure building (of interstate highways), or matters of foreign policy. They cannot have armies. The federal government does all matters related to foreign and military policy. The Defense Department, CIA, and State Department still exist. The federal government still runs the National Parks Service, but domestic authority has been almost entirely transferred to the Systems. States still perform exactly the same function they now perform, except that they have lost all federal funding. Any taxes that were collected within a particular State that were used for domestic matters have been abolished or refunded to the Systems in that state with the systems agreement. 

A new level of government—the Systems, exists as an intermediate stage between the federal and State governments. However, the borders of each System district are the same as county lines within states themselves.

Systems compete in multi-stage elections every five years. A multi-stage election consists of a series of choices, structured like a decision tree, that narrow down choices to ever fewer and fewer options. In the first election the first question on the ballot is "left or right?" In every subsequent election the first question is "Do you want to retain the system you have?" 60 % or more must say no in order for the incumbent to loose.

As a result, systems are ruled by the minority, not the majority. Migration should occur between systems as people move to their preferred form of government. Systems should begin instituting an invitation only program. A person can receive hundreds of invitations simultaneously through computerized personality testing. This has complicated internal trade matters a bit. Though there are barriers to moving people within the nation, there are no barriers to moving goods, as that remains a federal policy matter.

The federal government has strict capital requirements to prevent incompetent corporations from getting on the ballot. Systems must meet stringent licencing requirements to ensure solvency. There are three levels; level 1, the foundation or federal level, level 2, the governance marketplace (systems), and level 3, the free market.

But this does not answer a crucial question, namely; what is the enforcement mechanism for this? And how are things structured at the federal level? We will answer that now. Depending on the response I get to this write up I may have not one, but two methods for federal design. Here we will discuss the first possible design.

Modified Neocameralism

The Stocks of a Sovereign Cameralist State

In the conventional neocameral program the state is a corporation with transferable shares. Shares are perfectly formalized with actual power so that those with influence in the society also have a share in its government. The shares pay a divided out of the profits from the government. The state is a joint stock company with a CEO, and a board of directors composed of directors elected by voting shareholders. Military control is achieved though cryptographic weapons locks.

Shares also create an incentive for proper fiscal management.

In my proposed system, at the district (county) level, every microstate works just like this. Except there is no military at the local level and thus no weapons locks. Also, the corporation has to get reelected every five years. But since incumbents tend always to win anyway, and since migration attracts more people to each state that share its philosophy—thus reinforcing its control, and since the reelection is not structured like the first election that brought them to power, getting the boot is next to impossible unless they really screw up. If they refuse to leave, the federal government sends national guardsmen in to assist them.

But this is not how things work at the federal level. At the federal level the state is also a corporation with transferable shares. The shares pay a divided out of the profits from the governments revenue. The state is a joint stock company with an Emperor, and a Council composed of directors elected by voting shareholders. Military control may be achieved partially through cryptographic weapons locks.

But the number of shares outstanding is constantly being increased by the Emperor deliberately in order to dilute the control of shareholders over the government. Rather than wait for democratizing coalitions that buy up shares in the name of the people, the Emperor takes proactive measures to relentlessly increase the number of shares outstanding. This year there may be a million shares, next year two million, the year after that three.

At first look "share inflation" may seem like a horribly abysmal bastardization of the Moldbug dream. Say "inflation" with a positive tone of voice to a libertarian and he sours on whatever you say afterward. But this is of shares and not money. The national currency remains rock solid.

Share inflation performs a number of crucial functions. First, it forces the elite to compete for the favor of the Emperor. This recreates "royal court politics" in a formalized fashion. It prevents palace intrigue by making everyone's status known on a publicly available ledger. The more stock you own the more important you are. If you buy enough stock you get time to speak to the Emperor, and the more stock you own the more time you get. 

Second, it allows the emperor to pit the nobility against each other by offering discounts to weaker parties; "divide and rule." If one person owns too many shares his position is weakened by offering shares to his adversaries at a discount. Similarly, share prices for him are raised, potentially to astronomical levels. Everyone is kept down this way through price discrimination. 

Third, it prevents democratization. The number of shares is constantly increasing, their value constantly decreasing, and their dividend constantly decreasing. Because the number of shares outstanding is constantly increasing, only people who can relentlessly shovel money at the government gain power.

Fourth, what people are willing to pay tells you how weak they are and what they care about. It provides the political equivalent of market feedback to the Emperor about the relative power of the nobles. This prevents civil war by showing the emperor who is strong enough to threaten him. Anyone who is not purchasing shares or is using proxies to make straw purchases in reveling their intent. Using his Royal Financial Intelligence Service (RFIS) he can monitor their behavior and guess their intentions. He can also know who is too strong in advance. The whole point is to get everyone to write down their financial positions in electronic ledgers so that a persons agenda can be discovered by looking at their financials. Where is this man putting his money? What positions is he betting on? How does he profit? What costs him money? The state knows your agenda by formalizing all corruption, bribery, side payments, in order to discover everything about you. It discovers your incentives. 

None of this changes your tax bill. If your taxes are ten million then that is what you own. But you may buy shares in lieu of paying taxes. Since every share entitles you to a vote it is always in your interest to offset your entire tax bill with shares purchased every year. Thus, revenue and voting are unified. Unless the Emperor is practicing price discrimination against you (which only happens to the wealthy) then the cost of a share is whatever the market will bear.

Price discrimination occurs in taxation too. Powerful potential adversaries are taxed at higher rates than weak ones. Everyone is reduced to the same general level of "petite" aristocracy. The globalist rich are made equally "petty" to keep them down. Anti-trust legislation is used to break up conglomerates that are too large and powerful.

So the share purchase system is a divide and conquer system.

We also see that the System of systems is divide and conquer. In fact we see that is is a masterful way of restructuring divide and conquer as a choice from below rather than an imposition from above. The System of system divides the state while indulging the populations desire for self-expression in politics. It makes the political commons propertarian in nature. It gives the people the vote in a limited way. It allows them to throw out an oppressive government or vote with their feet by moving to a different society. It uses internal migration to enforce rights locally. It controls immigration both internally and externally from below rather than above. It gives everyone their own preferred ideology in practice. It eliminates the moral legitimacy of political dissent by providing everyone with their preferred system of government.

And regardless of who profits and has power at the local level the Emperor always gets his cut.  

This is important because you want your sovereign to have multiple sources of income so that no House of Lords can hold funding hostage and demand democratization. The Emperor collects corporate taxes and issues shares. He collects system taxes on each system. He collects licencing fees for the systems. And his RFIS bureaucracy digs into everyone's financials to discover everything about them. Financial intelligence is the preferred intelligence. 

All laws flow from the Emperors desk downward. No private individual may submit legislation. You may petition the Emperor for a redress of grievances. Surveys are also conducted.

The Supreme Court is appointed directly by his majesty. There is an Imperial Council. Like a Board of Directors, it is composed of Directors / Council Members elected by shareholders. It is a rubber stamping body that provides feedback, and has about three to five-hundred members. It may refuse to ratify legislation. The Emperor may make law without its consent. But he normally won't because it is preferable to enlist the support of the nobility. Submitting legislation to the Council also provides necessary feedback to His Majesty for proper governance.

The Bond Structure of a Sovereign Cameralist State

Modified neocameralism uses its own stock insurance to keep parasites in line and fighting each other in order to safeguard a commons. But it also uses it's debts to incentivize social investment. Unlike in the corporate world, in the neocameral state bond holders rights come before shareholder dividends. This will make sense in a second. In government parasites are inescapable, and so a method for controlling them is necessary. I

n regards to the issuance of shares, this modified form preserves a perfect mapping of social control with share ownership for the wealthy only, but adds a method of balancing these interests against each other with price discrimination and set tax bills that are offset by stock purchase. I will let you be the judge if this is better or worse than the original Moldbugian design. It trades precise formalism (which may be impossible), for less precisely mapped formalism but more secure power. Its metric is dedication to power rather than precise influence. Because obviously only the most dedicated and wealthy players will have influence.

Just like it has stock it has bonds. But it does not simply issue debt certificates in the conventional manner. That would create a perverse incentive because debt holders then lobby the government to increase its debts. Instead, the state packages a financial instrument against its own liabilities, which only pays out if the liability is reduced. Let us say the liability is;
"too much crime in x neighborhood."
When crime is successfully reduced the bond holders receive a payout of the savings to society as a result of reducing the liability. The money for the payout comes from a tax on groups that profit at the expense of society, so that parasites are forced to pay to have their own incentives restructured.

There are whole series of these types of bonds for dozens or even hundreds of different metrics of success. The reason for this configuration is to align all the interests of the market with the state. Together, all of the bonds constitute the well-being market, and serve as a proxy for the Emperors orders in the economy. Secure power is never as secure as it would like to be. Outside actors are always trying to interfere. Bureaucracies are always trying to usurp command, and outside agents are always trying to corrupt the state. To align their interests, both the market and the top managers of every agency are paid in well-being bonds. An agency head can expect to draw a small salary plus a large commission for successful management. His pay consists of salary plus well-being bonds related to his agency. If, for example, he is a sheriff, then he is given crime reduction bonds, if a teacher, educational success bonds, etc. A large portion of his pay is simply how well he does his job.

This is done not just to agency heads, but to everyone who profits in anyway that is contrary to national success.

First method: (A payoff that pays a percentage at maturity if, and only if, a condition of success is met.

Here are some other ways.

Create a metric for measuring failure. Quantify that failure in monetary terms to the nation. Find out who bears the cost of the failure. Tax the people who profit from the failure at close to the level of profit they make. Give them the power to offset their taxes by purchasing a bond whose rate of return is pegged to the success of a project.

For example; news media companies profit from race riots. So they are taxed at 100 percent for all profits made from increased viewership during a riot. The state then hands them well-being bonds which only pay a return on investment if the level of racial tensions decrease according to a predefined metric.

Second example; academics often virtue signal against the state and work to destroy order. Harmful academic departments are collectively taxed at high rate. They are then handed well-being bonds that only pay an ROI when social stability is measured to increase in their community. College professors are looked at as advisers to the community. It is their job to invent the solutions to societies problems. If society has problem it is their fault. So they are taxed and paid more or less depending on whether their immediate communities are getting better or worse.

The formula is simple;
Step 1. Identify parasitical agents.
Step 2. Tax their parasitical behavior at a high rate.
Step 3. Use the tax money to build a bond that pays only for good behavior.
Step 4. Create a trust for the parasitical agent composed of nothing but these bonds.
Step 5. Pay them out of the trust so that the majority of their income now comes from good behavior that is aligned with His Majesty's Orders.

There are other methods. One may simply empower a bureaucracy to fix a problem. The agency heads and top managers are then paid a percentage of the ROI of the success of their own agency in fixing the problem. They are empowered with mission orders, not procedural orders. They then figure out the method they will use to get it done. This prevents Conquests Law from coming into effect by forcing all agency top employees to be aligned with mission orders.

Here are some possible metrics for social success. 

Percent white birth rates above break-even.
Percent criminal birth rates below break-even.
Economic return on investment of immigrants minus tax liability of immigrants.
Liability reduction through deportation of criminals.
Reduction in cost of living.
Affordability of food.
Affordability of minor surgeries in the free market.
Affordability  of major surgeries in the free market.
Emergency room wait times by county, (pays more for less).
Population density in a given district divided by number of public transportation lines running every 10 minutes or less in that district.
Increase of average American wage for bottom 80 % of American.
Decrease in addiction rate.
Decrease in early death rate.
Small business creation rate.
Small business 5 year success rate.
Veteran lifespan.
Decrease in Veteran Waiting Times.
Success of veteran care divided by cost.
Percent of population rating themselves as "happy."
Percent of sex criminals who don't re-offend.
Fitness levels of population (percent not obese).
Happiness level of stay-at-home mothers.
Percent who claim to have "adequate healthcare."

In effect, the market puts pressure on the bureaucracy to implement the Emperors orders. The emperor insures compliance with his orders by determining the exact metric to measure success. This aligns all agencies with his metric. The point is to co-opt all possible opposition and align its interests with the state. This prevents infighting, guarantees a loyal base of support, and creates a counter-lobby to the parasites that normally try to dominate a government. Parasites are always drawn to the state. Making societal success payoff for millions of investors, (and institutional investors) creates a powerful lobby that serves as an opposition to parasitical interest. The rent-seekers are kept fighting each other with share inflation. The bond holders profit from opposing the rent-seekers. All incentives are aligned with the general well-being of the entire nation. Doing the right thing is made profitable in government too—not just the free market.

Notice that this can also be done in a democracy.

Parasitism is kept down and investment is kept up. It is not enough to control corruption. You must engineer a force of anti-corruption.

In Summary

The System of systems keeps the locals in line by structuring divide and conquer as a "choice" of ideologies. They are allowed limited self-government. The right of exit keeps them free, and elections allow them to throw out abusive private governments. The Emperor does not care what system they choose because he profits no matter who is in change. A limited number of communist systems are allowed, (despite the fact they will fail) to "drain the poison" of leftism from the rest of the system. This is just regarded as the cost of doing business. These communist systems are not undermined. Communist systems are allowed to fail on their own to prove a point to each new generation at a rate of about one every twenty years. They also serve the function of IQ shredding leftists.

Share inflation, combined with anti-trust actions, keeps the parasitical globalist elites fighting each other, and keeps them all equally small.

The well-being market aligns institutions that would normally work at cross purposes to His Majesty with his orders. This is how the civil service, academics, and media are made to serve the general good or the nation in accordance with the Emperors will.

The whole point is to create a dynamic stability. The Emperor creates order through a monopolization on violence that allows political experimentation to take place within a governance marketplace. Systems innovate in the fields of law, social technology, policy, ideology, payment, and taxation structures.

Go back to Chapter 4a.
Go to the Contents.
Go to Chapter 4c.

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