Sometimes it’s easy to see why people think government is too big. Take a recent news report in Maine papers.
In many towns, to get a license to dig claims commercially,
you have to do two things. You pay the
annual fee and you put in some time cleaning up and reseeding the clam
flats. This so-called conservation time
is for your own benefit.
This practice has been going on the decades, and it works
pretty well. But then, along comes the
Department of Labor – federal, state or both.
They say that when people are required by government to work, they
become employees and have to be paid.
We are not talking about a lot of money here, because
typically in each year conservation time takes only part of a few days. Nobody forces people to dig clams, and
shellfish harvesters understand the terms set by local government.
Government could spend less time investigating this harmless
practice. Instead, some towns will now raise
their license fees and then pay rebates to the diggers in return for their
conservation time. Presumably, the
diggers will have to pay taxes on the income, but for some the fee itself may
not be a tax deduction.
This looks like government run amok. The law, undoubtedly drafted by staffers with
little real world experience, demands this process rather than exempting such small-scale
practices.
Of course, a town could challenge government and face the
consequences, but they could find it’s not worth the taxpayers’ money.
This is a small matter, but one that just about anybody can
understand and conclude is ridiculous.
And that could cause them to oppose government regulation, even when it
is justified, to say nothing of its government inefficiency and cost.
This is raw meat for opponents of government. They argue that, if matters are left to the
private sector, government excess will be avoided and the market, with its
competitive forces, will produce sensible results.
For decades, General Motors was the largest automobile
company in the world, a symbol of the success of the American way of doing
business. Its shareholders were well rewarded,
and it was unionized, ensuring its workers were well paid.
When President Nixon asked the Israeli prime minister what
she would want in exchange for a couple of her successful military generals,
Golda Meir replied she would accept a couple of American generals, General
Motors and General Electric.
GM came to believe that it set the standard and that
whatever it did was the right thing to do.
Meanwhile, in Japan, automobile company leaders were listening
to W. Edwards Deming, an American engineer, largely ignored in the United
States. He advised on a statistical
approach to manufacturing with a heavy emphasis on increasing quality while controlling
costs.
As Japanese production grew and its methods took hold, GM
and other American carmakers ignored these developments. More importantly, GM stuck to its own
internal business practices as the world around it changed.
In 2009, despite having received federal aid, the company
filed for bankruptcy. To protect jobs
and boost the economy, the U.S. and Canadian governments bailed it out. On the U.S. side, the government put $49.5
billion into GM, but did not recover about $10.5 billion by the time GM ended
government support in 2013.
The GM case, involving the pride of American manufacturing, supports
the argument that big business can be as inefficient as big government.
But the problems with government may be inevitable, because
we resist change.
Sen. Tom Coburn, an Oklahoma Republican who has just retired
from office, asked congressional auditors to review all government programs to
identify duplication and overlap. It
took the auditors three years, but they came up with hundreds of duplicate
programs.
If these programs were simply merged, the savings would have
been enormous. But nothing
happened. Members of Congress want to
bring federal money home, and that prevents efficient operations. Even the toughest critics of government resist
cuts in public spending that hurt their districts.
Of course, advocating smaller government may have nothing to
do with efficiency, but simply be a way of lifting regulation from your friends
and cutting programs favored by the other party.
Maybe the issue is bigness itself. Institutions may grow so large that people
miss the small mistakes, like the clam issue, that mount up to cause major problems,
like a GM bankruptcy.
Whatever the reason, there’s no evidence that the private
sector, through competition, would be any better at producing desired public
policy results than is the government itself.