As this will probably be the only post I’m allowed before I’m banned for disagreeing with your fundamental postulates, I would like anyone reading this post to carefully consider what I’m saying here, then respond with a rational answer which is based on empirical evidence rather than a priori argument.
You say you are afraid of big government. Please explain for me why you are more afraid of a democratically elected government, which ostensibly has your interests at heart, than you are afraid of big business, which does not even claim to have any altruistic motivation, and which (as the experience of the coal camps shows) can easily surpass government in its level of control over our day to day lives? We have long ago reached the point that the only entity which is sufficiently powerful to restrain the oligarchic tendencies of multi-national corporations is our federal government. State and local government do not have the political will or Constitutional authority to regulate interstate or international commerce in the manner necessary. If you emasculate the federal government, as you appear to desire, who will keep business in check?
I am not suggesting that the corporations are doing anything wrong by stretching the rules to the limit in their search of profit. That is what they do; it is their raison d’ etre. I am simply suggesting that we need to set rules, to set limits, on what is acceptable conduct. The “market” won’t, as the “market” is concerned with increasing profits. Without rules, that same competitive drive, fueled by economic Darwinism, forces business to ever more extreme lengths in order to succeed in the only way they are set up to measure: Short term profit.
Even Adam Smith acknowledged that, while regulations are “a manifest violation of that natural liberty which it is the proper business of law, not to infringe but to accept,” when set against the “security of the whole society” the “natural liberty of a few individuals” which “might endanger” that “security”, should and “ought to be restrained by the laws of all governments.” In that our society is no longer based on an expanding frontier and agrarian economy, but on an ever more interconnected and populated world, the need for government to balance the worst effects of cut throat competition is much stronger than in his day.
And, if you ask “qui custodies custodiet,” in a democratic republic, that would be us. Why are you so afraid that we will be incapable for controlling government excess, yet have no such fear as it relates to corporate excess?
Steve Maley
Neil Stevens
Daniel Horowitz
Uhm...
Jesse Hathaway (Diary) Sunday, March 14th at 7:45PM EST (link)Why you assume that you’ll get banned for disagreeing?
Maybe you should have spent more time observing how things around here go before shooting off about how us conservatives seek to stifle dissent… or is that just because you’re used to spending time on liberal sites, where dissent actually ISN’T allowed.
Check out my South Carolina politics blog, Right Turns Only, by going to http://www.rightturnsonly.com/ !
And since you're obviously new here
jstjoan (Diary) Sunday, March 14th at 9:02PM EST (link)these are the rules for staying here. Follow them and dissent away.
http://www.redstate.com/posting-rules/
Three questions that destroy most Liberal arguments according to Thomas Sowell:
1. Compared to what?
2. At what cost?
3. What hard evidence do yo have?
That would be an a priori argument
6eorge Jetson (Diary) Sunday, March 14th at 7:55PM EST (link)Keep in mind that every transaction has two sides. In the absence of monopolies, and where the right to decline the transaction exists, the individual has considerable say in the matter. (And the government is a monopoly.)
Could there be a worse time in recent history to lead with
The government is altruistic? Show me a poor congressmen. And do you really believe in the notion that government and Big Business are at odds with one another? Tell that to the lobbyists. Regulation often benefits Big Business by creating barriers to entry (while costs get passed to consumers) or by creating demand where there would otherwise be none (e.g. GE).
We are not anarchists. No one is suggesting that we should do away with all rules. But as in a football game, rules should set the framework. All to often our governmental rules also dictate which plays must be called. (E.g. everyone has to buy insurance.) Of course rules where they create a common framework, promote transparency, prevent the transfer of risk to third parties, and prevent fraud have there place.
But picking winners, such as through the backstopping of Fannie Mae and Freddie Mac, which passed the default risk onto the taxpayer and was one of the main culprits of the housing bubble, does more harm than good.
Wrong assumption...
jstjoan (Diary) Sunday, March 14th at 8:46PM EST (link)to state that my concern is FEAR of big government OR of big business. What is you know about Conservatives that makes you believe this is our argument. It is simply a false choice you give.
Big government is certainly not what I “fear” it is what was to be prevented by our Constitutionally limited form of government, that being a Republic; government BY the people FOR the people. The power federal that is currently being expanded by the Obama administration was never meant to happen and defies our Constitution.
As a nation, we live by the rule of law, not the rule of man. We do this by adhering to the established laws – especially the SUPREME law of the land, the Constitution – instead of willfully ignoring and circumventing it.
As far as your concern about what is or is not acceptable conduct, why don’t you just worry about your own instead of everyone else’s. What are you so afraid of?
Three questions that destroy most Liberal arguments according to Thomas Sowell:
1. Compared to what?
2. At what cost?
3. What hard evidence do yo have?
Several observations
civil truth (Diary) Sunday, March 14th at 10:14PM EST (link)1) Government as neutral referee is (usually) not a problem. Problems arise when government writes the rules to favor certain teams (lobbyists), when government unfairly enforces the rules (favoritism), or worst when it actually becomes a player as well as a referee (c.f. GM) or expels all the teams and decides it’s going to be the only team allow to play.
2) There’s nothing wrong with profit in a comptitive market – in fact, profit is what produces efficiency which benefit the people. Most cases of a structurally noncompetitive market (as opposed to temporary market dominance due to technical innovation) arise from collusion between Big Business and Big Government to rig the rule to prevent competition.
3) Or to put it another way, big government draws big money to influence the legislators, which produces corruption and diminishes freedom. This is why as today’s conservatives (former known as classical liberalism) we are distrustful of big government, because of the positive feedback towards tyranny once you cross a certain concentration of power point – in that small governmental units diffuses corruption and rigging and gives the mammals the space to outcompete the dinosaurs.
4) A major reason that I am on the conservative side of the divide is that the enormous complexity of our modern world and the almost unfathomable amount of information the needs to be exchanged to run society is best handled by having many decisions maker operating in free markets rather than a few decision-makers in charge – because 1) the information is too vast and 2) bad decisions are better mitigated when there are many to provide correction rather than few or no corrective mechanisms because you’ve centralize to a handful of frail humans.
So in brief, the cutthroat competition that you critique is the vast majority of times not the productive competition arising from free markets, but rather the destructive practices arising from a corrupt government tilting the playing field.
And as an aside, I think if your fairly look at the history of organized labor, you can see that as similar collusion with government has developed such that the unions are less involved with correcting injustice and more concerned with exercising political power and restricting access to jobs by those seeking to work.
So I think that there is some common ground in that we are distrustful of BIG. The disagreement comes from your demonizing “big business” while having a touching naivity towards the beneficience of “big government” (or “big labor”) whereas conservatives find refuge in the wisdom of many.
The greatest evil…is conceived and ordered (moved, seconded, carried, and minuted) in clean, carpeted, warmed, and well-lighted offices, by quiet men with white collars and cut fingernails and smooth-shaven cheeks who do not need to raise their voice. Hence, naturally enough, my symbol for Hell is something like the bureaucracy of a police state or the offices of a thoroughly nasty business concern. -C.S. Lewis
http://www.gmsplace.com/
Big
[Fire Pelosi.] (Diary) Tuesday, March 16th at 8:50AM EST (link)I do not trust big government. It is the reason I oppose the death penalty and the Patriot Act, as I don’t trust your average civil servant with that kind of power.
However, I believe that our best defense lies in ensuring that big government does not align with big business or monied interests. The only effective way that I can think to do that is to ensure that the monied interests are kept small enough that they are truly in competition with each other, rather than growing so large (as now) that the competition is more illusion than real.
That’s why I prefer, for economic regulation, a relatively blunt instrument. Higher taxes on the wealthy and the dead prevent excessive wealth accumulation, but does not pick winners or losers.
As to the criticism of a graduated income tax, I’ve never actually seen any research showing that or at what level they stifle innovation. Although I understand the simplistic economic psychology that postulates this effect, I actually don’t know anyone who stops working simply because they pay higher taxes and most of the people I know are in the brackets where that would happen. I know far more people who are willing to stop working when they have enough money than people who are willing to stop working because they don’t.
The moral arguments against the estate tax seem to me to be the exact opposite of the arguments against the income tax. Exactly how did the children of those who accumulated wealth earn the entitlement to inherit that wealth? Did they work hard in picking their parents? Should we reward them for that?
There are some great posts here
aesthete (Diary) Sunday, March 14th at 11:40PM EST (link)And I won’t waste your time or mine by repeating them. I will, however, add to them.
First, there is no such thing as institutionalized altruism. Adam Smith’s quote (“It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own self-interest.”) is universally applicable, particularly in large-scale enterprises like federal and state government, and large corporations. This is particularly true when one considers that the government’s monopoly on force makes any action that it takes using that power, at best, morally ambiguous.
With that said, most conservatives and libertarians would concede the necessity (or at least, the utility) of regulation in an industrial society. What, then, separates classical liberals from their modern counterparts? Three things stand out: first, conservatives are much more confident in markets’ resiliency, and in some cases, don’t see the need to fix said externalities (see the transfat ban proposed by many progressives). The evolution of consumer desires over the past 200 years, the innovation that has occurred in free market systems, and the matching up of consumers’ desires and innovators concerning products as varied as automobiles, the internet, and the hundreds of thousands of products that are currently under the purview of the free market all indicate that this belief is not without foundation. Second, conservatives see regulation as a means to control for rent-seeking, assist in the dispersal of public goods, and a way to correct for (some) externalities. Liberals, OTOH, see it as a way to favor some market processes over others. a means to assert certain moral preferences, and in some cases, as a substitute for direct government control. Third (and of particular importance to American classical libs), conservatives believe that the majority of regulation should take place at the state and local levels.
In practice, it is common to see government officials use the power of regulation to reward friends and punish enemies. Because “friends” is more accurately defined as special interests who can aid in re-election, it follows that regulation tends to benefit the powerful and entrenched. That is why conservatives sometimes reflexively oppose regulation: it (as well as the tax code’s many special exemptions) is more often than not used for nefarious or problematic purposes, and oftentimes, the regulation that should be on the books isn’t there because of political unpopularity.
The act of defending any of the cardinal virtues has today all the exhilaration of a vice – G.K. Chesterton
Thank you
[Fire Pelosi.] (Diary) Tuesday, March 16th at 8:38AM EST (link)for the intelligent responses. I think that, if we had more discussion of this sort instead of “Freedom!!11!!!” “Death Panels!” and whatever slogans are yelled on my side of the fence, we would have a better shot at finding that middle way which best serves our times.
There are several points of agreement, it seems. All believe that some level of regulation is necessary and appropriate; the difference is the extent to which such regulation is necessary, desirable, or Constitutionally permitted.
Personally, I tend to think that the best way to guard against the excessive accumulation of power is to prevent an excessive accumulation of wealth, through graduated income tax and estate taxes. I know this will strike some of you as either morally wrong or simply wrong. Here is my reasoning:
The wealthiest of us (I am, by the way, a Constitutional and civil rights lawyer comfortably esconced in the upper middle class) derive considerable benefit from our highly regulated economic, political, and legal system. Contracts don’t enforce themselves; money (yes, including gold) derives value from the consistent expectation that that value will be honored; and the expectation that law breaking will be punished has far, far more impact on behavior than the actual punishment that is imposed. (For an example of this, see Guiliani’s enforcement of “quality of life” crimes).
Economically, our country is presently suffering from a demand deficit, as the middle class (the great engine of the economy) is in financial extremis. The wealthy are suffering the effects of a middle class that cannot afford to buy the goods and services from which that wealth was created. The financial sector is suffering from a race to the bottom mentality driven by the removal of regulatory oversight and the need to compete — real or perceived — with the guy next door or the next cubicle who is not NEARLY so socially responsible and will do “it” (whatever bad thing “it” is today) if one does not.
Only the extraordinarily wealthy benefit from this sort of zero sum wealth accumulation, which, if unchecked, (as in numerous third world countries) leads inevitably to oligarchy and economic monopoly. The net result of those systems, historically and inevitably, has been a steepening economic pyramid, resulting in an overall steady decline in the quality of life, the productivity of the economy (as both demand and productivity drop), and a concomitant adverse impact on even the wealthy. As those circumstances worsen, the citizenry perceives that its interests lie in more forceful action outside the normal political processes, whereupon some bright boy comes up with a document which begins “When in the course of human events…” This is a bad thing for the monied interests.
“Spreading the wealth around” through a graduated income tax structure and estate tax and vigorously enforced antitrust laws serves to counteract what is tantamount to a gravitational attraction that wealth has for itself. The economy — at least in its present state — would be better served through topping and pruning (as one does with many plants and fruit trees to make them more productive) and irrigation at the bottom than it would be served through top down trickling and unbridled growth at the top. Water is absorbed in the roots, not the leaves.
The accumulation of wealth drives and feeds upon the accumulation of power in the hands of lobbyists and corporate officials. Put brakes on the accumulation of wealth and you will make it easier for more voices — and a greater diversity of views — to be heard. These are conjoined problems, as we have experienced over and over in our history.
Regarding the government’s supposed monopoly on the use of force: Really? You are not familiar with the Coal Creek Wars, where the coal companies hired Pinkerton agents to put down labor unrest, through the use of force? You have never seen armed security guards patrolling private property or wealthy neighborhoods? You have not heard of a little company called ‘Blackwater’, that provides mercenary soldiers to government and private interests alike? I’m not nearly so sanguine as you that the government has such a monopoly.
Now, this is a description of what I consider to be our present state of affairs. Is it possible to go too far in the other direction and, as a result, stifle innovation, enforce orthodoxy, and make life less interesting. However, at the moment, I believe the pendulum is swung far in the other direction.
No problem
aesthete (Diary) Tuesday, March 16th at 4:42PM EST (link)As far as progressive taxes go, I favor them: more government funds are spent protecting the property of the wealthy, for obvious reasons. Beyond that, I have to ask: what level of taxation do you think is required to achieve the effect of having less concentration of wealth? I’d argue that if that is your goal, the cat’s out of the bag: those who are wealthy and powerful enough to manipulate the political system can migrate their liquid assets to a more favorable tax regime, and if tax rates are too high, can also sell off their illiquid assets in the US. Moreover, it is shockingly easy for them to simply co-opt efforts to tax them in excess; there’s a reason that we have so many “exemptions” in the tax code. The same can be said of the death tax: those wealthy enough to corrupt the system are also wealthy enough to find a way around such limitations. As such, efforts to tax away the power of entrenched, moneyed interests have little effect on said interests. OTOH, they have an adverse effect on the nouveau wealthy and the upper middle class, or more pointedly, on citizens who aren’t a threat to the integrity of the American democratic system.
Regulation and taxation aren’t threats for the entrenched; they’re opportunities. This is why you often see the paradoxical situation where 5-6 wealthy families control the politics of an entire, often ostensibly socialist, nation (particularly true in Latin America and the Caribbean), despite progressive tax schemes/regulation; new wealth has been taxed out of existence, and old wealth has survived and thrived. This tendency of the truly powerful to co-opt regulation is what makes most conservatives/libertarians wary of regulation: the devil is in the details, and since the public often tunes out when it comes to the details of regulation, it is easy for said regulation to be structured in such a way that it increases entry costs (kills “new wealth”) without increasing costs for established players (ie, “old wealth”).
Concerning the “steepening pyramid”, most conservatives, as opposed to progressives, either don’t care about relative wealth and status, or don’t see it as an issue that the government should attempt to correct. For myself, I fall into the former category: besides the fact that relative social and income statuses don’t bother me, the old canard of the rich getting richer while he poor get poorer is untrue. The wealthy are increasing their wealth at a higher rate than the poor, it is true, but both groups are increasing their wealth (this doesn’t include the intangible benefits of living in an industrial society, with its ever increasing positive externalities). Moreover, social mobility guarantees that these aren’t static categories: it is statistically more likely for someone in the bottom quintile of income to get to the top quintile, than for that person to remain in that category for the rest of his life. As someone whose family comes from the bottom quintile, and has seen many from that quintile make it out, I can anecdotally confirm these statistics. The conservative could be described as the man who, upon hearing that Bill Gates is worth 40 billion, says, “Good for him; I have a goal to shoot for!”
On the use of force: name any prominent libertarian or conservative who believes that the Coal Creek Wars or similar ventures were justified, or that companies have the right to beat on labor. Government ultimately has a monopoly in the sense that we as a society have entrusted it with setting the boundaries on where and how force can be used, ie, we ostracize those who don’t follow those rules with the label of “criminal”, and there are often consequences (jail, death, fines, etc) imposed on the lawbreaker. Regardless of how softly government speaks and how well-mannered it is, it always has a big stick in hand — that’s how it works and how it was designed to work.
In summation, classical liberals aren’t necessarily foes of regulation; rather, they believe that one needs to make a case for why proposed regulation is needed, and for its specific enumerations. They tend to believe that the null (no regulation is better) is true unless sufficient evidence has been provided, in addition to the caveats listed in my first post. Conservatives aren’t concerned by relative differences in wealth and social status; they welcome it, and put a much higher emphasis on social mobility and freedom of action. Lastly, classical liberals believe that force has to be justified, and because all government action requires the use of force, believe that proposed government action should be taken with “much fear and trembling”, to borrow a phrase.
The act of defending any of the cardinal virtues has today all the exhilaration of a vice – G.K. Chesterton