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We all know why Big Business, Big Non-Profit, Big Labor, and Big Tribalism donate money to federal politicians. They want Congress to pass laws that favor them with some form of cronyism—that is, they want either tax-avoiding loopholes, revenue-enhancing subsidies, or competition-hobbling regulations.

Not all lobbying is bad, of course. If I were a billionaire, for instance, I would be lobbying Congress to create the Junior IRA, end price discrimination in healthcare, and justly compensate those who suffer an equal-protection-of-the-law taking via Affirmative Action. So lobbying can make our federal government less cronyistic, less beholden to the base interests of Big Business, Big Non-Profit, Big Labor, and Big Tribalism.

But like most Americans, I have neither the money nor the intense drive needed to become a major lobbyist in DC. So what to do? How can the crony-hating little guys ever hope to compete against the crony-loving big guys?

The answer, in short, is incentive-based governing. Here’s how it works.

Incentive-Based Governing

To understand incentive-based governing, consider CEO compensation. Boards of S&P 500 companies set shareholder-friendly goals and then reward CEOs handsomely if their CEOs achieve those shareholder-friendly goals. In 2018, for instance, Elon Musk was given ten years to increase Tesla’s market capitalization from $50 billion to $650 billion. He achieved that goal in 2020 and has since been compensated with billions of dollars worth of stock options.

Well, aren’t the 535 members of Congress kind of like the CEOs of America? And wouldn’t it make sense to copy what S&P 500 boards do and create incentives that align the interests of those 535 Congresspeople with the broad interests of the general public?

It makes imminent sense, of course. Here, then, are my citizen-friendly goals, and the rewards our Congresspeople will receive for achieving those goals.

The Carrots

The citizen-friendly goals that I devised come in two tiers and have to do with the general welfare, not the specific welfare of individuals or groups. They’re the kind of goals that any patriot would be delighted to see happen. Tier one goals and rewards are as follows:

Goal/IncentiveBonus To Each Congressperson If Met
Unemployment for the fiscal year averages less than 5 percent$1 Million
Inflation for the fiscal year is less than 2 percent$1 Million
Manufacturing during the fiscal year is between 15 and 20 percent of GDP$1 Million
Federal spending for the fiscal year is between 16 and 18 percent of GDP$1 Million
The federal government spends less than it receives in revenue for the fiscal year and the surplus is between $0 and $100 billion$1 Million
Campaign financing contribution for each goal met$200,000

And here are the tier two goals and rewards:

Goal/IncentiveBonus To Each Congressperson If Met
Unemployment for the fiscal year averages less than 3 percent$1 Million
Healthcare inflation for the fiscal year is less than 2 percent$1 Million
Manufacturing during the fiscal is 20 percent of GDP or greater$1 Million
Federal spending for the fiscal year is less than 16 percent of GDP$1 Million
The federal government spends less than it receives in revenue during the fiscal year and the surplus is greater than $100 billion$1 Million
Campaign financing contribution for each goal met$200,000

Now let’s suppose that all five tier-one goals are met in a given fiscal year. Every member of Congress would get a $5 million bonus, and every member of Congress would get $1 million toward his or her next campaign. The total cost of the tier one compensation package would come to  $3.21 billion.

Now let’s further suppose that all five tier-two goals are met in a given fiscal year. Every member of Congress would get a $10 million bonus ($5 million tier-one bonus plus $5 million tier-two bonus), and every member of Congress would get $2 million toward his or her next campaign ($1 million tier-one campaign contribution plus $1 million tier-two campaign contribution). The total cost of the tier two compensation package would come to $6.42 billion.

The compensation packages for tier-one and tier-two goals are enormous. Three-point-two-one billion and six-point-four-two billion are nothing to sneeze at. But let’s put those costs in perspective. Both are a pittance of the compensation Mr. Musk has been rewarded, and both are a pittance of the military aid we have sent to Ukraine this year. And when we get down to the Congressperson’s level, whether we’re dishing out $6 million rewards or $12 million rewards, both are a pittance of what we gladly pay someone annually to hit a little white ball with a stick or throw a big orange ball through a hoop.

The Sticks

Incentive-based governing wouldn’t work if we just focused on carrots. After all, we’re talking about the modern American politician here—a total sociopath who will happily sacrifice the Constitution and the long-term health of this country in exchange for money and votes. So if incentive-based governing is ever going to work, you need sticks. Here are the sticks I propose:

  • If the federal government spends more than it takes in during a given fiscal year, and neither a war nor a national emergency has been declared by Congress, members of Congress will forfeit all rights to any tier-one or tier-two bonuses they earned for that fiscal year. All bonus money will be confiscated and used to pay down the national debt. Members of Congress will just have to be satisfied with their normal congressional pay.
  • In addition to forfeiting all bonus money, deficit spending in one fiscal year will trigger old-school austerity for members of Congress and their staffers during the next fiscal year. Members of Congress and their staffers will be barred from the Capitol Building. Instead of the opulent Capital Building and its modern amenities, members of Congress and their staffers will have to use an army-barrack-like campus (think Quonset huts and spartan amenities). This army-barrack-like campus will have the following features:
    • Communal dining run by the Waffle House.
    • Communal sleeping quarters.
    • Communal bathrooms.
    • No air conditioning—only fans and open windows can be used to mitigate the summer heat.
    • No wifi or internet.
    • No computers—only paper and typewriters can be used for communications and bill-writing.
    • No television.
    • No booze.
    • A 9 pm curfew—all Congresspeople and their staffers must be back at our army-barrack-like campus by 9 pm while Congress is in session.
  • Finally, if there are four consecutive years of deficit spending, and those four years weren’t complicated by a declared war or national emergency, all members of Congress in that fourth year will be forever barred from holding federal office, working in the federal bureaucracy, or lobbying at the federal or state level. Senators and representatives will be barred from running for re-election, of course, and those senators who aren’t up for re-election will have to resign.

Final Thoughts

It really isn’t hard to out-lobby the lobbyists and turn our sell-out-to-the-highest-bidder politicians into statesmen. But our politicians are too petty, short-sighted, and corrupt to ever propose, much less embrace the incentive-based governing outlined above. And truth be told, we’re just as bad. Check out a sampling of the YouTube uploads of MSNBC and Fox News:

MSNBC

Fox News

Have you ever seen anything so pathetic? Are we still in junior high? “Your guy’s a poopy-head.” “No, your guy’s a poopy-head.”

Nope, nothing’s going to change. Our politicians and their stooges in the media know we’re easily distracted—that we will tolerate all the status-quo bullshit that is destroying the country as long as we think “our guys” are going after “their guys.” So if the Republicans take control of the House in November, they will vote to impeach Uncle Joe next year—and Team Red will get to say “Yeah!” And then the Senate will refuse to convict Uncle Joe and Team Blue will get to say “Yeah!” And all the while, Big Business, Big Non-Profit, Big Labor, and Big Tribalism will reap the benefits of buying cronyism, and our vaunted politicians, on both sides of the aisle, will reap the benefits of selling cronyism. Sigh.

Okay, groovy freedomist, that’s all I got. What say you? Does incentive-based governing make sense? Or is it just another pie-in-the-sky “solution” dreamed up by a pathetic little blogger in rural North Carolina. Let me know what you think when you get a chance. Peace.

10 thoughts on “Incentive-Based Governing

  1. Mr. G, I love how your mind works, but it’s clearly too brilliant for the folks who make their home in the swamp.

    Here’s one potential adjustment to give it a chance: Every member of Congress gets an immediate $10M bonus on the date they sign your Compensation Bill into law…

  2. Brilliant and well thought out. But I realize it’ll never be able to be passed in our government. Shame. Great job Mr. G!

    CznSammy

    1. Agreed. Man is just too flawed for self-governance. His innate laziness and fearfulness make him a perfect mark for the proponents of big government.

  3. How’s this sound: Every year I live past full retirement age the Feds have to pay me a few thousand bucks. Sort of incentivizes them to keep life expectancy from suddenly improving. How about instead, for each increase of geezers’ “health-span” we grant everyone in the Federal government: congresscritters, judges, bureaucrats a fat bonus.

    1. Haha, I love it. I never considered a geezer-friendly incentive. I may have to rethink my goals. Love the way your mind works, my friend. Cheers.

    1. So true. And they’re brilliant at getting us to think they’re “on our side.” Thanks for stopping by, my friend. Appreciate it.

  4. A great idea indeed but, as you stated, it is not likely to ever become reality.
    In case you needed few more reasons this won’t work:
    1) The definitions of things like unemployment, inflation, manufacturing, GDP, etc. are quite malleable. With little creative accounting, the bonuses are assured.
    2) It’s too easy to start a war or declare an emergency which lets them off the hook.
    Considering that they have access to the U.S. Treasury, they would gladly bribe foreign governments or domestic troublemakers to create such havoc. In fact, I’m not so sure this isn’t already happening.

    1. Amen, brother. In order for incentive-based governing to work, the goals need to be strictly defined and fixed (to mitigate funny business), and the loopholes–war and national emergency–need to be strictly defined and fixed as well. Off the top of my head, I would say a qualified loophole war, for instance, only pertains to a war conducted or initiated on American soil. So the War of 1812 and WWII would qualify as loopholes that suspend the sticks of my incentive-based governing plan. The police actions of Korea and Vietnam, on the other hand, wouldn’t qualify as loopholes. Thanks for stopping by, EG. Very insightful comment as always.

      1. Also, we need to keep in mind that the effect of any policy or government act often isn’t felt for months or years later. This means that today’s politicians are rewarded or punished for the actions of their predecessors.

        The real problem is that we vote for these sleazy, power-drunk fools. My Daddy used to tell me “power corrupts”. Actually, power is a magnet for the corruptible. That’s why the dishonest and power-hungry seek public office.

        I think the real (and unfortunately it’s equally unrealistic) solution lies with we the people. If we are better informed and make our intentions known, things change. Currently, we are seeing glimpses of hope. RINOs are being challenged in primary elections. “Woke” school board members are being voted out in droves. But because we generally remain lazy and disengaged, we will have to continue to bending over and grabbing our ankles.

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