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26 January 2017 @ 11:43 pm
Government regulations vs public opinion  
Donald Trump suggested to pay for the wall from the new 20% tax on Mexican imports. Lawmakers refused to cooperate. So Trump changed his mind.

That made me think if Trump understands what he is going to do with the economy.
But the thing is that economy is not the only Trump's consideration. More importantly, he has to comply with public opinion. Unfortunately that public opinion is self-destructive on multiple issues.
So balancing public opinion vs practical economic goals is hard.

I believe that in order to increase our economic benefits - we should reduce government regulations ~5x (or, at least, 2x for starters).
Which means that government should work mostly on reducing regulations, not on introducing new ones.

However that thing with reducing government regulations is actually not that simple.
Complex government regulations could serve an important role of circumventing popular (but dumb) public opinion.
For example:
1) Complex tax code (such as tax deductions) allows to effectively reduce taxes without offending popular public opinion that we should tax rich people a lot.
2) Introducing legal minimum wage allows to discriminate against low skill people and keep them away from affluent neighborhoods.

Politics is really complex and hard to grasp.