Why investors should be able to buy 5-10% voting right in a nation state

grbb

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Oct 15, 2016
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The actual amount may vary. I don't know what the optimum is. Small amount is enough at least for a start.

Why?

Say you own a stock in a theme park. Say the theme park is filled with thieves and have bad infrastructure. You come and you say, I am going to improve this theme park. You improve it. You put capital. Then what? The theme park is now safe.

Visitors come. They are willing to pay to come. Your theme park is attractive to visitors. Then what happens? The valuation of your stock go up.

Say you are a citizen. You have a country. Your country is unsafe and have bad infrastructure. You come and say, let's improve this country. High tax is fine. Then what? Your country becomes attractive to immigrants and refugee.

Are you profited? Not necessarily. Many citizens don't even like immigrants. The profit of citizens are often the opposite of the "well being" of the country as a whole.

If there is some benefit for you, the citizens, that's beyond libertarian benefits, it comes through rent seeking. Government welfare. Governments' created job. Corporate welfare. And well, people get that mainly by lobbying and corruption rather than by "contributing".

Is your country run well? What is the valuation of your citizenship? Do you even know? Corporations have valuation of stocks. Does your citizenship have valuation? Does it have a market? Is it a good place to live? Do people wants to move here or do they want to move out? Are they happy? Are your visitors happy? How do we put that in a number?

We don't know.

So here is a solution. Investors can buy 5% to 10% of citizenship in a country. Let's start with poor countries with tons of loan first like Greece, or Afghanistan. In return investors "own" 5%-10% of a country. It can be exchanged with an autonomy of a specific land. Whatever.

A bunch of well governed country can ensure that interests of investors and original citizens are protected fairly. We're not going to repeat Congo republics where "owners" of a country can sell all the population in slave market. They make decisions that are typical of every country. Should we build roads? Should we build schools and stuff.

Charge people to come in like theme park. So residency have valuation. Surely there are people that don't like changes. Say your islamic country becomes secular, or your secular countries become islamic. Under democracy, the minority just have to put up. Under this, those who don't like it can move to another country and sell their residency.

Now, say your nation states have more income than expenditure. Your nation states can pay citizen dividend. That means every single citizen in your country can enjoy the benefit of citizenship without having to stay in the country.

Nation states do not have to make everyone happy. You can't make the religious conservative and the secular happy at the same time. What you can do is to make one happy and compensate the rest. How? They can move. A state, for example, can have a bunch of provinces. One is secular, one is religious.

Residency have valuation. Citizenship have valuation. Let the market decides the rest.

If citizenship can be bought and sold, what about people making 10 children so they can sell citizenship? Well, it's a problem. A problem that we already have now. Now, however, the problems become more obvious. Each extra children dilute value of citizenship by how much? Use "democracy" to deal with the problem.

Currently the problem is "solved" inefficiently. Government give welfare that becomes welfare trap. I used to think welfare trap is a design flaw. Actually, it's a feature. Without welfare trap, the poor will make too many kids. But it's kind of inefficient isn't it?

Not every citizen have 1 citizenship. Bob and Mary have 3 children. Once they die, their citizenship can go to their children. Each have 2/3rd of citizenship. Want whole? Their children can buy another one.

This will give incentives for welfare recipients to have less children and concentrate on getting rich first.

A national hero can be rewarded by citizenship instead of just cash. Like great employees being rewarded with stock options.

Variation can be many. It's a start.
 
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