McDonald corporation is built on the principle of the franchise. McDonald has many franchises.
However, not all of McDonald's store are franchises. McDonald directly owns some. Those few stores are less efficient than franchises. However, McDonald uses that to build a brand as models and stuff.
Those few sprinkled real shops are good. McDonald can experiment and see if things work out and get info directly. The number is small compared to the standard franchises. Even if the experiment "fails" the benefit of experience will still benefit McDonald as a whole.
In my country, we used to have only government gas station. The gas stations were corrupt. If we buy 20 L gas, we got 15L. Typical of governments' inefficiency.
Then we got private gas stations. The private gas stations were better. We got people washing our windshield and better customer service. No corruption.
Yay....
Something even better happen too. When having to compete with private gas stations, the government gas stations get better too. Now I get the same quality of service either way I go. Competition, not private or public or franchise or direct command economy or excessive principle of the market mechanism, does the trick.
If we have private only gas stations or public only gas stations, the result may be worse. Private parties often have bizarre, misleading scammy promotions. Have both and make them compete and we got good results.
What about democracy? The US is a democracy. China is not. Yes the US gets prosperous. China didn't catch up.
However, do you think the Chinese are stupid? Do you think they couldn't see that the US is much more prosperous than them?
What happens is, the Chinese slowly copy what's working in the US. What's working is not a democracy, but capitalism. Now the Chinese get prosperous too.
China could not get 10% year after year economic growth if it were a democracy. Democracy has its flaws. The people are stupid. They often demand various inefficient market distortion that slows down the economy.
In the US, as capitalism bring prosperity, the voters demand higher minimum wage. In China, as capitalism brings success, the money goes to capitalists. So capitalists move jobs to China.
The US voters, seeing that, also realize that too much socialism is bad. Donald Trump then lower corporate taxes.
Currently, all cities are public properties. Cities are governed by governments based on principles. I do not think it's necessary.
Like Indonesian's gas stations, most of the majors do not govern their cities efficiently. Potholes are not filled. Money is gone to jail harmless drug users and dealers instead of real criminals.
What we need is to try things differently. Let most cities be normal cities like usual the way it used to be. Let some cities be privately owned, say by the original voters of those cities. Let some cities behave like private malls. The towns can have owners and shares. The shares pay a dividend and can be bought and sold.
See how things go. Experiments, make them compete, see result.
However, not all of McDonald's store are franchises. McDonald directly owns some. Those few stores are less efficient than franchises. However, McDonald uses that to build a brand as models and stuff.
Those few sprinkled real shops are good. McDonald can experiment and see if things work out and get info directly. The number is small compared to the standard franchises. Even if the experiment "fails" the benefit of experience will still benefit McDonald as a whole.
In my country, we used to have only government gas station. The gas stations were corrupt. If we buy 20 L gas, we got 15L. Typical of governments' inefficiency.
Then we got private gas stations. The private gas stations were better. We got people washing our windshield and better customer service. No corruption.
Yay....
Something even better happen too. When having to compete with private gas stations, the government gas stations get better too. Now I get the same quality of service either way I go. Competition, not private or public or franchise or direct command economy or excessive principle of the market mechanism, does the trick.
If we have private only gas stations or public only gas stations, the result may be worse. Private parties often have bizarre, misleading scammy promotions. Have both and make them compete and we got good results.
What about democracy? The US is a democracy. China is not. Yes the US gets prosperous. China didn't catch up.
However, do you think the Chinese are stupid? Do you think they couldn't see that the US is much more prosperous than them?
What happens is, the Chinese slowly copy what's working in the US. What's working is not a democracy, but capitalism. Now the Chinese get prosperous too.
China could not get 10% year after year economic growth if it were a democracy. Democracy has its flaws. The people are stupid. They often demand various inefficient market distortion that slows down the economy.
In the US, as capitalism bring prosperity, the voters demand higher minimum wage. In China, as capitalism brings success, the money goes to capitalists. So capitalists move jobs to China.
The US voters, seeing that, also realize that too much socialism is bad. Donald Trump then lower corporate taxes.
Currently, all cities are public properties. Cities are governed by governments based on principles. I do not think it's necessary.
Like Indonesian's gas stations, most of the majors do not govern their cities efficiently. Potholes are not filled. Money is gone to jail harmless drug users and dealers instead of real criminals.
What we need is to try things differently. Let most cities be normal cities like usual the way it used to be. Let some cities be privately owned, say by the original voters of those cities. Let some cities behave like private malls. The towns can have owners and shares. The shares pay a dividend and can be bought and sold.
See how things go. Experiments, make them compete, see result.
