06 March 2010

Call For The Obama Administration To Embrace Limited Government

Some good points in the article below. The chances of Obama doing this are zero, although if he did, he could revitalize his presidency.

I wonder how may Democrats agree with the idea of limited government. Surely a few must. Republicans will say they do, until they get into power, then all bets are off. As usual. The real problem is that our political elites don't like the idea of limits on their power and reach.

Slate: Make It Stop!
How Obama can get behind the idea of limited government.

Amid the right's hysterical repudiation of everything President Obama has done or wants to do, one legitimate concern stands out: that Washington will grow without limits. The federal government's size, scope, and power have historically taken big leaps in reaction to war and financial crisis. It's not unreasonable to worry that, in responding to the biggest economic slump since the Great Depression while fighting two wars, the United States will find itself with a more expensive, more intrusive public sector and a less free and dynamic private one.

A government that constitutes half of a country's economy, like those in Western European, produces a very different society over time than one that eats up only a third of the economy. Obama may have assumed that hard times and the clear imperative for a strong response to the financial crisis would suspend the underlying dynamic of suspicion toward Washington.

If so, he misjudged something fundamental about American political culture. Even now that the fear of excessive, irreversible public-sector growth has provoked an agenda-stalling backlash and resulted in serious people claiming that his proposals equate to socialism, Obama has yet to clarify his ambiguous view of government's role.

At this point, Obama and the Democrats may be destined to learn the old lesson once again. But if they hope to avoid a repeat of Clinton's 1994 fate in 2010, the president and his party might think about fixing a long-term upper limit on the size of government. Because of the bank bailouts and stimulus, federal spending will exceed 25 percent of GDP this year, and public spending at all levels will exceed 44 percent.

But if liberals were clear that, in normal times, federal spending shouldn't be more than 22 percent and that the public sector as a whole shouldn't exceed a third of GDP—the level during Clinton's second term—the fear of Democrats covertly foisting a social-democratic model on America would begin to melt away. This kind of ceiling would mean that government couldn't grow at the expense of the economy, because it couldn't grow faster than the economy as a whole. To substantiate his commitment, Obama should unilaterally propose large, specific cuts in programs and subsidies to be phased in as the need for stimulus spending recedes. Raising the retirement age, privatizing space exploration, and eliminating agriculture subsidies would make a decent start.

Beyond actually endorsing smaller government, Obama could identify himself with wiser government by developing the responsibility theme he sounded in his inaugural address but has returned to infrequently in the period since. Health care reform based on an individual mandate is a good example of government linking a private duty to a public benefit, but Obama hasn't emphasized this "values" aspect of the plan.

There's a risk of harming the country by failing to address fundamental threats and problems—which is where current Republican policies would leave us. There's also a risk of Democrats responding in a way that leaves behind more government than we want or need. Obama could help himself by letting people know he's worried about that danger too.

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