o Federal Budget Appropriations and Taxes

Imagine that each congressional district had its own IRS tax code crafted by the congressman in that district. For example, Congressional District 1 in Pennsylvania, the District that contains the city of Philadelphia might have a flat tax. While Pittsburgh's Congressional District 14 has a progressive tax structure. The Congressman in the district determines the tax code. Further the Congressman creates his own appropriations budget. The budgets from all Congressmen across the country are aggregated to create the national budget. This would put the budget and the tax structure in the hand of the voters through a democratic vote of the candidate.

The positive externalities of such a system is that voters feel directly involved with the budget process. Voter turn out will increase. People will see exactly how much government programs cost and will decide how much to fund them. A bank bailout will become a tax leveled directly on each citizen.

Couple this with a balanced budget amendment and you will have a government that spends less and a population that has a voice in how its taxed.

o Competition in Elections

I recommend a mandatory minimum of three political parties. Each political party must run a minimum of three candidates in all primary elections. If an election has no primary, then have three candidates for each party in the general elections. That is a minimum of nine candidates per election. Each candidate within a political party has to be equally funded. The competition will bring out the best candidates.

o Civil Unrest

Japan’s economy may unravel in the next two to three years if its interest payments on debt will exceed revenue. Greece and France are dealing with riots in 2010 This is what happens when governments over spend and then need to cut back programs drastically.

The civil rest will continue, its just taking a little more time to trickle down to the average person. Governments kick the can further down the road with their "quantitative easing". The days of overspending will lead to austerity measures that will catch up to them eventually. The political backlash could lead to future violence.

o Role of the Federal Reserve

Allan Meltzer, professor at CMU and author, talks about the history of the Federal Reserve.

http://www.c-spanvideo.org/program/id/217674