The Problem Is The Solution

by digby

One of the more annoying right wing mantras, especially now, is the endless, tiresome insistence that “government is the problem.” But it’s more than just tiresome, it’s dangerous. As I have said one too many times, it empowers the malefactors of great wealth to escape responsibility for what they do.

But there’s more to it than that. As Jeff Madrick writes at OurFuture.org., the myth of government being the problem leads to a starvation of society and ultimately hurts economic growth:

All myths are by definition simplistic. The one that became entrenched in the late 1970s and early 1980s had as its core claim that government’s presence was usually an impediment to prosperity and that the best course for the American economy was to reduce aggressively government’s size and reach. So popular was this destructive notion that the end of the “era of big government” was announced proudly in 1996 by a Democratic president, Bill Clinton. In the past 30 years, government, with a few exceptions, did not adequately sustain and nurture society, or help it adapt to change. Government invested less in America, it regulated less, and it led less. It was a lost generation.
The financial crisis occurred because of this widespread disdain for and distrust of government. Under ideological pressure to which both political parties subscribed and under the influence of powerful vested interests, government stepped back and gave financial markets largely free rein. Very risky investments were made with enormous levels of debt; the failure of one firm could take down an entire industry . Common sense was discarded and new, highfalutin theories about the rationality and efficiency of markets dominated thinking at the best universities, the halls of Congress, and the boardroom of the nation’s central bank. Always, the argument was the financial community understood risk better than any government could. When you comb the serious academic evidence about how and why economies grow, you will find that no case can be made that big government or even high taxes impede economic growth over time. History offers no lesson about the values of minimal government. There has never been a laissez-faire modern economy. To the contrary, the evidence shows that government typically contributed vitally to growth. As odd as it is to have to say this, without effective government, America would be poor today.

I can’t think of anything more important than beating back the ridiculous misunderstanding that . Of course we need to be skeptical of government power. But fundamentally it is simply an organizing institution and is required as a mediator and facilitator to make our freedoms real and our opportunities equal. The right wing’s self-serving demonization of government has twisted Americans’ understanding of how to look out for their self-interest and it’s skewed everything

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