I understand incentives but the more I try to understand Scott's assumptions concerning disincentives and how and why they work, the more confused I become.
Especially as I recall the startling payout, $9.88 million in a one-time payout settlement and $350 million in stock, Scott received in 1997-98 when he became ‘jobless' at his departure from Columbia HCA.
His payout certainly didn’t disincentivize him as he went on, as a venture capitalist and entrepreneur, to buy, run and create a string of companies and then to become the Governor of Florida and last year its junior U.S. Senator.
Perhaps the amount of the payout is key to whether it will incentivize or disincentivize someone:
- $6 a week would do neither and would only allow someone to buy a cup of coffee and a doughnut.
- $60 a week for a family of four or a single mother isn’t enough to move anyone either to or away from working.
- $6,000 a week might very well disincentivize someone from work and move them to an early retirement in Sarasota.
- But a $180,000 a week($180,000 x 50 = $9,000,000) payout did just the opposite and moved Scott to double down and expand his business and professional activities.
Using Senator Scott as the model of what could be done in a bailout to really energize and motivate the jobless, the Congress should have increased the weekly payout.
Dren Geer
Osprey, FL
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Ed's note: On the horrific legacy of Rick Scott, see also:
‘It's a sh-- sandwich': Republicans rage as Florida becomes a nightmare for Trump
"Buy cheap and sell dear" is a philosophy anyone might understand and excel at absent a formal education.
ReplyDeleteWealth is neither a cohort of education or intelligence nor is shrewd necessarily kin to smart.
We invariably see wealth marrying power and, invariably wielding control through high political office.
America's independence was the result of what wealthy, powerful men (most of whom owned slaves) wanted and they got it with the blood sweat and toil of ordinary men and those they'd enslaved.
"Capitalists" built the Rail Roads. Yes, by paying poor immigrants and Chinese coolies taxpayer dollars after first taking their cut (profits) off the top.
We sing "this land is your land, this land is my land" ignoring the fact that this land was taken be force of arms from the native Americans who occupied it long before our ancestors stumbled upon it en route to China.
Senator Scott is but one such obscenity in our Congress. There are others inside the Executive Branch.
We would be far better off selecting congressional representatives as we do jurors. Drafting them as we have done with our young men in times of war to serve a year in Congress Classes then a single term in Congress or in the U.S. Senate.
Wow, that would end Gerrymandering in one fell swoop! And drive the political parties nuts!
Nah, who would lead them? Would they simply flounder about absent a leader and direction? Would they create a 'do nothing' Congress?
Would that be such a bad thing?