Sep
20

Political Pay

The Friday File: To focus Congress on GDP growth, give members incentive pay. Pay them a base of $60,000 (median income) and incentive pay that rises with GDP. No bonus is paid until GDP growth hits 2%. Between 2%-3% they get a 30% bonus, from 3%-4% a 75% bonus, from 4%-5% a 200% bonus and from 5%-6% a 400% bonus. These incentives should see economic growth trump party purity.

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Comments

  1. Brian Moore says:

    Given that 75% of congress already makes more than $1m annually, I am not sure if the basepay+ incentive as structured would be sufficient incentive to get them to focus on the priorities. Besides, the perceived importance of their position is likely the source of most of their income, not what they get paid for their government title. Not to mention that if they did have bonus pay based on GDP we risk causing bubbles from shortsighted policies.

    PS: And in all fairness, the comments should be limited to 70 words as well 😉

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