Now that I have your attention, we need to switch focus to governance. How can you make governance effective? Keep it simple, stupid!
If you have every filled an income tax form then you know how wrong the extra-constitutional issue of taxation is. But you also get how unnecessary the whole idea of volumes of regulations, forms and accompanying explanations are. Can’t we get a simple flat tax in place and get the I.R.S agents employed in productive endeavors?
Therein lies the curse of governance.
You see, governance is taken by some – usually the “governors” – to mean “rules for others.” So you start by making rules you can circumvent. Then you enforce them only on others. This simple equation describes not just our tax code but the whole system of government – no matter democracy or dictatorship.
We could have argued with the system of “home mortgage interest” deduction and their value to a family that makes $30,000 and lives in an apartment. We could’ve argued that an “investment gains” tax rate of 15% for hedge fund managers’ income of $1.7 Billion does not make any sense. But let us keep it simple, stupid.
Warren Buffet – who is absolutely rich because he has billions and still human – has highlighted the fact that he pays less tax than his assistants! (Now, I have excuse myself while you play the game of “percentages” and “absolutes”)
For a moment, let us also take leave of our cynicism. Following “this world is out of joints and I was not born to set it right” rule brings harmony to life and makes us focus on the issue at hand: How can we get better governance!
The complication in the various governance processes and procedures is anathema to the objective of governance. It makes for bad policy. It makes for atrocious enforcement.
The idea of governance is to have a system of checks and balances. That inherently also creates an adversarial relationship between the “governor” and the “governed.” This is a beautiful opportunity to get to perfect balance – equal opportunity for all.
Complexity is the enemy of this goal. People find loopholes. Enforcement, by definition a smaller, less personally engaged force, can’t keep up. Imbalance is guaranteed – gain of some at the expense of most.
So if you want good governance you need simple rules. If you have a policy manual, whittle it down to a policy statement. I am not arguing for fewer rules. I am arguing for fewer exceptions.
Yes, governing a complex world is not hampered by simple rules. People can understand and follow the 10 commandments much better than they can comprehend, leave alone follow, the bible. Even this happy Hindu gets that!
