Thursday, May 17, 2007

All We Are Saying...
Is Give Progressives a Chance

Ezra Klein laments in an L.A. article:

[...] What's so wrong, in other words, with hollowing out the public sector and replacing it with a pay-as-you-go society? It is the natural endpoint, after all, of the privatization craze, of the gospel of tax cuts and of the smaller-government-is-better-government mentality that has been on the ascendancy in the U.S. for nearly 25 years. [...]

How has this come to pass? As the old adage goes, when the gods want to punish you, they give you what you want. Conservatives talk a lot about government failure, but over the last few years, it's really we who have failed government, depriving it of the revenue, the conscientious management and the attention needed for it to succeed. Undercapitalize a pizza joint and your customers will taste the poor ingredients, become frustrated by the long waits and grow repulsed by the grimy environs. Staff it with your unmotivated drinking buddies and the service will falter, as will the quality of the product. It's no way to run a pizza place, and it's certainly no way to run a government.

But that's exactly what we've done. With Proposition 13 and the famous California tax revolt, and with presidents whose entire domestic programs amounted to mindless tax-cutting, and with Congresses that have been happy to pass cuts and stack deficits, we have systematically deprived the government of the revenues it needs to provide basic services, even as we've come to need it to do so much more. [...]

And during all this, tax cuts have robbed the Treasury of $200 billion in revenue; the need for a two-thirds majority in the Legislature impeded the flexibility of California to raise state taxes to compensate, while Proposition 13 continued to handicap our municipalities. All that money has to come from somewhere. And the "where" isn't the high-profile initiatives that the media is watching — the Medicares and Social Securities (although they may suffer too) — but from the smaller, less-noticed, but critically important programs and departments that millions rely on. [...]

Such unhappy outcomes are not merely morally unsettling, they're often economically inefficient. Government spending can be more than necessary, it can be desirable. It can step in, for instance, when the market fails to deliver public goods that society desires but private entities haven't figured out how to fund. (It's useful having a national military, right?) And it can use its regulatory power to ensure that competition works to increase well-being rather than to simply amp up industry profits.

Economic conservatives rob hard working pizza joint delivery drivers. Now there's a Bush Derangement Syndrome manifestation that I hadn't anticipated.

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