Friday, February 3, 2012

Self-fulfilling Prophecy & American Hatred For Anything Government

Francis Fukuyama has been exposing this dissonance, ever since he started blogging again. Someone had to do it but I never expected even in my wildest dreams that person would be Fukuyama. I admire and respect him even more now for adapting to changing facts (check out his new Governance Project @ Stanford).

"I would argue that the quality of governance in the US tends to be low precisely because of a continuing tradition of Jacksonian populism. Americans with their democratic roots generally do not trust elite bureaucrats to the extent that the French, Germans, British, or Japanese have in years past. This distrust leads to micromanagement by Congress through proliferating rules and complex, self-contradictory legislative mandates which make poor quality governance a self-fulfilling prophecy. The US is thus caught in a low-level equilibrium trap, in which a hobbled bureaucracy validates everyone’s view that the government can’t do anything competently. The origins of this, as Martin Shefter pointed out many years ago, is due to the fact that democracy preceded bureaucratic consolidation in contrast to European democracies that arose out of aristocratic regimes."

And the his five book interview is a must read as well:

I get the sense that the belief that government is bad and markets are good is almost like a religion. No reality check is ever going to be enough to make a difference.
It is true that it is a part of the American political culture, but that culture has changed over time. People believed that very strongly in the late 19th century. Then you had the rise of the Progressive movement, which shifted views towards the need for a stronger centralised state. Then it made a big comeback in the 1920s and then the Great Depression again shifted views. It may be a religion, but it’s not a religion that members believe in at all points.

There is also this problem that both you and Jeff Sachs have written on, that if you’re constantly critical of government, and say you don’t like government, the government you get is going to be of lower quality because it gets deprived of talent and resources. This, in turn, confirms your view of government as incompetent and it becomes a vicious circle.

It’s what’s an economist would call a low-level equilibrium trap. You don’t want to pay taxes to get better government services because you’re convinced the government will waste any money that you give them. So you’re never in a position to get out of that. A lot of Latin America is basically in that situation, and I’m afraid that the US has now been in this situation for some time.


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