Xerographica comments on Is Pragmatarianism (Tax Choice) Less Wrong? - Less Wrong Discussion
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You're critiquing the idea of creating a market in the public sector. What's the difference between a market in the public sector and a market anywhere else? There's a difference... but your comment sure doesn't address it. Instead, you're simply critiquing a market.
Every day you participate in a market. You have your preferences and you spend your hard-earned money accordingly. The supply follows from your demand, and my demand and everybody else's demand.
Anything else is a non-sequitur. The supply either follows from our preferences... or it does not.
Right now the public sector reflects exactly what happens when the supply does not follow from our preferences. It's a given that this is going to change in logically beneficial and highly predictable ways...
Variety? Skyrocket
Quality? Skyrocket
Cost? Plummet
The public sector is going to transform from monolithic to modular. Marginal improvements are going to be quickly made as inferior components are swapped for superior components. This is exactly what happens in markets.
They did address many of the problems implicitly. One doesn't for example in a real world situation have anyone try and pay exactly what they want for the version of the movie they want. Investors pay for a series of movies, then people either buy tickets or not. This aspect is solveable if one instead has pre-set programs one can allocate tax money to.
Note also that nothing in your system deals with the problem of public goods- people can benefit from something without paying for it and for many goods that's a natural situation.