The Electoral College — the Financial Economics Perspective

Every economy is a Financial Economy. A true Financial Economy is, however, characterized by presence of private markets. It is normative, of course, that private markets function on basis of price. The study and practice of a true Financial Economy is referred to as Financial Economics.

Politics consists of leadership arrangements whose sole focus is mediation of Financial Economics, that is, facilitation, enhancement, and mediation of people’s attempts at generation of income, assets, and resources in economies that inherently embed some risk.

Clearly, if Politics is structured such that those who already have an advantage at generation of income, assets, and resources maintain an unequivocal advantage, we arrive at Politics that does not embed either of a genuine Democracy, or opportunity for upward mobility. If, for instance, a great education is, on basis of the price of education, available only to the rich, Politics would have engendered Financial Economics that is inimical to each of Democracy and upward mobility, clearly, a non-desirable outcome.

Politics is inextricably intertwined with Financial Economics.

Financial Economists focus on understanding and pricing of risk. The goal is to price risk in such a manner as…