Incumbents and Government

I believe that computers, and eGov't, have the potential to significantly reduce the feudalism/ paternalism. Through CRM - customer relationship management, er, TRM, taxpayer rel. mgmt.

It will be possible, and then manditory, for all persons to keep track of the gov't taxes they pay, and the direct gov't benefits they receive. And, while all will continue to want to receive Other People's Money, they will find they are paying more than they get.

And the way the gov't should fund direct payments is through loans. (See my Tax Loans for one idea.) Thus, those who get benefits will pay more back to the gov't, whether as taxes or loan repayments.

Benefit demand management is the needed idea.

In between seems a much more likely equilibrium than either extreme. Extreme paternalism is a parasite sucking on a dry host, it will tend to allow some capitalism to fatten up its victim. Extreme capitalism has an empty parasite niche, and the huge gains from successfully occupying it will draw them in hordes.