Realignment of Incentives

How do we reconnect risk producers with consumers?

In a free market, risk producers consume the risk. It is not disconnected and consumers are empowered to sanction producers, not the other way around.

In a free market, producers are directly accountable to consumers. This is what it means to "take the risk." Risk does not accumulate systemically but distributes divisibly. Divisibility empowers consumers until industry and markets consolidate to avoid the risk (and consolidate power).

Consolidation does not avoid or reduce risk. It accumulates risk into a crisis (non-pluralistic, gamma-risk) proportion like we have now. Risk producers maximize reward by offsetting risk--sticking consumers with all the risk by minimizing the ability (the power) to control it.

"The risk" is always present. It is constant but can be proportionally manipulated to cause economic expansion (add supply) or contraction (reduce demand). Making sure the proportion is modeled pluralistically adds supply and is SPO (Strong Pareto Optimal). Consumers are fully empowered to sanction and producers make a profit and get rich without accumulating systemic-risk detriment.

Allowing the free market to consolidate reduces demand and causes the need for government authority and spending. The risk becomes disconnected and the power to self-determine becomes more and more authoritarian (consolidated) with the philosophical legitimacy that "We the People" are too unsophisticated to rule our own lives. This lack of sophistication is, however, nothing but the lack of pluralistic modeling that empowers "We the People" to self-determine.

Self-determination is exactly what our want-to-be rulers do not want us to have. It is what our fearless leaders fear the most. If everybody actually has the power to self-determine, then it is possible to determine "We" do not want, or need, them. Not only is it more possible, it is more probable because it forces them to take the risk rather than make it.

A more pluralistic model will realign the incentives, reconnecting risk producers with consumers.