In class today we talked about the principal-agent model aka "the principal-agent problem" where a principal owns the resources but needs something done. The principal must then trust the expertise of the agent to get the job done. However, granting authority to the agent to do the work for the principal puts him at risk.
This model mirrors the relationship between citizens of United States and the government. The people of the United States are shareholders in this "organization" where they ultimately put their trust in the government. Subsequently, by putting our trust in the expertise of the government we, as a nation, put ourselves at risk. To combat these risks, the government creates institutions designed to prevent any significant threats.
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ReplyDeleteVOTING FOR PRESIDENT PLAYS A BIG ROLE IN THIS DEFINITION, AS AN NATION WE ARE PUTTING OUR LIVES INTO THEIR HANDS YEARS IN AND YEARS OUT. HOPING THEY'LL SACRIFICE ANYTHING SO THAT WE CITIZENS CAN BENEFIT FROM. AS BUILT AS THE GOVERNMENT IS THOSE SACRIFICES SHOULD ALWAYS BE MET NO MATTER WHAT, BUT THIS IS WHERE THE RISK(S) WE TAKE COME INTO PLAY WHEN WE ELECT OUR PRESIDENT; BUT WE HAVE NO CHOICE BUT TO ELECT WHOMEVER, HAS TO BE SOMEONE.
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