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Utopia from First Principles

People are complicated. Systems are complicated. We’ll probably never have a perfect system to organize people that everyone is happy with.

But historically, humans have tried many things, and many things seem to work well. Lots of economists, historians, and philosphers study systems and form opinions about how well they work. Decades ago, it was common for politicians to read these ideas and form policy based on them. Now politicians usually do not have a background in fundamental ideas and launch campaigns based on vibes and reasoning about lofty goals that sounds good in a campaign but is clearly and fundamentally flawed.

While some might argue that we need to keep trying and keep experimenting and figuring out some combination of all the political systems we’ve tried (or to discover new and untried ones), I disagree. I think we’ve learned enough and know how to build a well-governed country from what we know. I don’t think you need to be a genius to figure it out. These ideas are all out there, and none of them are mine. But they’re scattered and give out-of-date examples and some might be written in Latin or translated badly from German.

So here’s how to run Utopia if you’re starting from scratch. If you’re not, and you have to work from inside an existing system (which is very likely if you live in any country in the world), then these are things you can adopt, move towards, or let it be known that you’d vote for someone who wanted to use them.

I’m not a politician or an economist. I’m just some guy who read a variety of stuff from different people and different times. I saw first hand how different systems operate, and I thougth about the patterns I saw. There’s a possibility that this is all naive or wrong, but don’t think it is.

Power corrupts

The Invisible Hand

Liberalism - the simple version

Why government help can harm

The cobra effect

Don’t scar after one scratch

KISS

Entrepreneurs are more nimble than governments

Why governments exist

Nudges and ‘libertarian paternalism’

Our plans are measured in centuries. Governments last longer than a human career, so we need them to build infrastrucutre like roads, power plants, etc.

If you want to go fast, go alone, if you want to far go together. Big organizations are very very inefficient. You wouldn’t believe how inefficient big organizations are. That makes sense for a power grid, railway network, because it’s more important that these things work reliably for 100s of years at a time. It doesn’t make sense for supermarkets because it’s easy to start a supermarket and if there’s a gap an entrepreneur will see it and start one. You can’t do that with a nuclear power plant.

Things that should be public vs private

  • Insurance should definitely be public
  • Railways and public transport should be public and operate at a loss
  • All cities should be nearly car free

Education and infrastructure

Kinds of enforcement and privacy

Cultural norm ‘enforcement’

Report-based enforcement: e.g. stolen property

Random enforcement: e.g. speed traps

Constant enforcement: e.g. metal detectors

Principle: always use the lowest kind of enforcement possible, even if a higher level of enforcement would result in higher compliance.

Our smartest people are working on online advertising

Protecting people from themselves

Seatbelts

Gambling

Smoking

Protecting people from their government

Who watches the guards themselves

Surveilance

Control

Privileges

Protecting people from companies

Monopolies and anti trust practices

Cartels - they can be very subtle. The best way to avoid them is to have many small companies instead of a few big ones

Businesses should be small and easy to start

Efficiency vs resiliance - a supermarket chain is efficient but not resilliant

Efficiency and effectiveness - swiss trains are effective, not efficient.

The invisible hand (again)

Unions

Environmental regulations

External costs and the tragedy of the commons

Justice and fairness (and taxes)

Tax the rich?

Taxes and the laffer curve

Tax the companies?

Tax EVERYONE?

Just build a sovereign wealth fund

Why all systems work well with good people and no systems work well with bad people

Upwards and downwards mobility. Western world is too obsessed with avoiding downwards, which limits upwards. In indian religions, the god of destruction is as important as the gods of creation and preservation.

Protecting people from each other

Liberalism (again)

The clash of freedoms

The paradox of intolerance

Preventing cults

Facticity and transcedence

Ban discrimination against race, gender etc

The stupidity of sports

LIFE IS UNFAIR

Defense and some (light) game theory

Why being prepared for war is likely to prevent it

Government funded exchange programs are good at removing negative stereotypes and preventing war

Protecting the media. Big media is also bad. Government run media is bad. We should publicly fund independent journalism.

The problem with socialism is that you eventually run out of other people’s money

It’s easy to be chariable with other people’s money

The problem with subsidies (again)

Minimum basic income. It might just devalue money?

Giving everyone a really basic home and food. Probably creates jobs.

Private hotels - not a good idea, as private companies are great at exploiting government.

Companies pulling the ladder up behind them (e.g. Tesla)

Government structure

Three levels is good

Push down as much as possible - there will always be tension and inefficiency

Clear boundries - swiss examples of roads, collapsing restaurant wall, etc

The two kinds of inefficiency in hierarchies. Either the hierarchy is clean, and nothing gets done because it takes too long to get approval, or the hierarchy is a mess, and lots of projects get done twice because no-one knew that someone else was working on it.

You don’t have insight

The veil of ignorance

Markets and profits

Short term vs long term profits