Saturday, October 10, 2015

A small call for transparency

In the latest episode of Economic Update (Capitalism's Crimes), Richard Wolff's guest, Harry Konstantinidis, said this:

[56:30] “...And that would also help us solve the problem of corruption. You know, if workers, if people knew where their public spending goes, they would probably not spend as much money for military expenditures; they would probably spend more money for schools , for hospitals for things that we need in our everyday life … that’s what Syriza needs to do now and they need to do it fast because we don’t really have much time.”
This is a rare example of an economist (so far as I've observed) inferring a case for greater transparency. And the case he makes is similar to the argument I make in my earlier post, The Next Economy... freedom of information facilitates markets, including markets of government spending. The  reforms which would return the greatest economic impact would be to increase the free flow of all information (whistleblower protection) to democratize consumer activity in markets. In a free market, consumer activity determines producer success, not producer propagandizing to their advantage.

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