According to Newt Gingrich, a former speaker of the U.S. House of Representatives, the best way to help improve the state of world is to spend $10 billion of American resources, over the next four years, on large tax-free prizes.
Historically, the greatest improvements in the quality of life have come from two patterns the extension of the rule of law and the development and diffusion of technology. Unfortunately, the former is a complex and difficult process; therefore, it would be better to focus on the development and diffusion of technology, and rewarding such efforts with tax-free prizes, says Gingrich.
Favouring large tax-free prizes would send signals to everyone that they can compete, and they are payable on achievement rather than on application. Moreover, prizes would be a useful experiment in large-scale breakthroughs.
For example, scientists could be awarded between $1 and $2 billion tax-free prize for developing:
However, the modern emphasis on peer-reviewed research has three bad side effects, says Gingrich:
Source: Newt Gingrich, Prizes to Improve Life, Wall Street Journal, August 11, 2008.
For text: http://online.wsj.com/article/SB121841519522928573.html
For more on Economic Issues: http://www.ncpa.org/sub/dpd/index.php?Article_Category=17
FMF Policy Bulletin/ 19 August 2008
