h/t George Will in Obama’s tardy epiphany about government’s flaws:
Obama, of whose vast erudition we have been assured, seems unfamiliar with Mancur Olson ’s seminal “The Rise and Decline of Nations,” which explains how free societies become sclerotic. Their governments become encrusted with interest groups that preserve, like a fly in amber, an increasingly stultifying status quo. This impedes dynamism by protecting arrangements that have worked well for those powerful enough to put the arrangements in place. This blocks upward mobility for those less wired to power.
Obama, startled that components of government behave as interest groups, seems utterly unfamiliar with public choice theory. It demystifies and de-romanticizes politics by applying economic analysis — how incentives influence behavior — to government. It shows how elected officials and bureaucrats pursue personal aggrandizement as much as people do in the private sector. In the public sector’s profit motive, profit is measured by power rather than money…
Actually, big government inevitably drives an upward distribution of wealth to those whose wealth, confidence and sophistication enable them to manipulate government…
He seems oblivious to the mutual causations at work.
Of course Americans distrust one another more as more and more factions fight one another for preferential treatment by government. Of course government becomes drained of dignity, and becomes corrosive of social cohesion, as it becomes a bigger dispenser of inequality through benefits to those sufficiently clever and connected to work its levers.
Obama correctly says that not only do we “tend to trust our institutions less,” we also “tend to trust each other less.” Of course there are parallel increases in distrust: Government’s dignity diminishes as government grows to serve factions of those sophisticated at manipulating its allocation of preferences. Social solidarity is a casualty of government grown big because it recognizes no limits to its dispensing of favors.