By Chip Wilson
A managing director of one of America’s largest PE funds once told me he thinks a change in litigation laws could add 2-3% to the country’s GDP annually.
Lawyers and self-interest groups control the day-to-day decision making at government, therefore there is no incentive to change. I think people who support short-term interests understand fully well they are doing the wrong thing for the long run (ex. gun laws). However, they want to be voted back in, so they focus on what will get them there. A good example of this in our own backyard ride sharing: the BC government is incapable of bringing in shared ride services because of the short-term interest vote of the taxi drivers. The rest of the world thinks BC has ancient views.
I think law makers can get away from self-interests and prioritize future generations by passing laws that will only come into effect 20 years in the future.
When the USA constitution was written, it built in checks and balances between judicial, congressional and the president. This worked perfectly up until 1995 when digitalization exponentially sped up the world of change. I believe that China with a 9-person ruling politburo, who can make anything happen quickly, will overtake the USA in all areas in the next 25 years.