Going Galt

If you’ve been following the financial news (and these days, who hasn’t?), you’ve probably come across stories about various wealthy and well-connected folks who are so incensed about Obama’s intention to let Bush’s tax cuts for the wealthy expire that they are threatening to “go Galt.”

The reference is to John Galt, the hero of Ayn Rand’s monumental book, Atlas Shrugged. In the book, Galt and other highly productive members of society decide to simply withdraw from participation in an economic system that has—in Rand’s view—become corrupted. The economic environment in Atlas Shrugged is highly politicized, with the result that it takes from those who are productive and honorable, and gives to those who are intellectually dishonest and morally defective. Rand characterizes the latter as “looters” and as “pull-peddlers” (what we would call “influence peddlers”)—people who know how to work the system to gain advantage over those who play by the rules.

What is so ironic, of course, about these publicized threats to “go Galt”—which in this case means to cut back on work in order to keep one’s taxable income under $250,000—is that they are being made by folks who have a lot more in common with Rand’s “looters” than with John Galt. These rants and threats are coming from people who have been prospering by doing all the things Rand (and Galt) hated. They are the people who were born into privilege, the people whose companies benefitted from favorable tax breaks, lax regulation, and the ability to hire lobbyists to skew the system in their favor, rather than through the production of anything of value. To those of us who have actually read the book, they look a lot more like James Taggert, the slimy, politically-connected, perpetually whining brother of the heroine Dagny Taggert.

It isn’t only Atlas Shrugged that the “don’t raise the tax on my marginal income another three percent” folks are mischaracterizing. As the noted economist Amartya Sen pointed out in a recent essay in the New York Review of Books, these self-righteous, self-proclaimed “pro-business” types have also been playing fast and loose with Adam Smith and the “Wealth of Nations.”

As Sen points out, Smith viewed markets and capital as doing good work “within their own sphere,” but he also explicitly recognized that markets required “restraint and correction” by other institutions–including well-devised government regulations and state assistance for the poor–in order to prevent “instability, inequity and injustice.” Smith—who was not an economist, but a Professor of Moral Philosophy—also recognized that “commercial exchange could not effectively take place until business morality made contractual behavior sustainable and inexpensive–not requiring constant suing of defaulting contractors, for example.”

It’s bad enough that extremists on the political right have insisted upon highly selective readings of both the bible and the constitution. Now they are selectively reading both Ayn Rand and Adam Smith, as well.

Or maybe they haven’t actually read any of them. That really would explain a lot.

Legislative Fiddling

The one thing that Republicans, Democrats and Independents all seem to agree on these days is that the country is in a big mess, and business as usual isn’t going to fix it.

 

As bad as things are nationally, states are arguably swimming in even more treacherous waters, because most state constitutions—including Indiana’s—require balanced budgets, a requirement that gives state lawmakers very little maneuvering room in times of economic duress. So we might expect our state legislators to forgo the usual efforts to protect their fellow partisans and  ingratiate themselves with narrow constituencies, and instead work in a bipartisan manner to solve the very difficult fiscal problems we face.

 

We might expect that, but we would be wrong.

 

So far this session we have seen efforts to designate a state pie (harmless enough, but really! Choosing an official state pie couldn’t wait?); a bill to allow students at state universities to carry guns on campus (in addition to the mayhem this would promote, if you think we have grade inflation now—how many of us faculty types would give poor marks, no matter how richly deserved, to students “packing heat?”); and yet another effort to amend the state constitution by inserting a ban on same-sex marriages (never mind that such unions are already illegal in Indiana, and that the prospect of Adam and Steve filing joint tax returns isn’t exactly topping Hoosier worry lists these days).

 

And then there’s State Senator David Long. If you think solving the problem of gun violence by arming more adolescents is counter-intuitive, to put it mildly, what is there to say about Long’s effort to have government restructuring decided by local referenda? Leaving aside the obvious cowardice of this effort to avoid casting a vote that will make some people unhappy, this is a suggestion absolutely guaranteed to make an already bad situation even worse.

 

The problem with Indiana government right now is that we have too many overlapping and duplicative units of government, and far too many elected officials. These multiple layers of government are inefficient, they make it difficult for citizens to know who is responsible for what, and they are all being paid for with tax dollars desperately needed for service delivery. (In a very real sense, we are being asked to choose between paved roads and township trustees.) The Kernan-Shepard report identified a number of problems stemming directly from the crazy quilt that is Indiana government.

 

If each county held a referendum to vote whether or not to streamline government in that county, we would be addressing the problems that have been caused by one incoherent patchwork by creating an even bigger, even more incoherent patchwork. This is like treating a cold by taking bird flu virus.

 

Is it too much to ask our state legislators to stop fiddling while Indiana burns? To put aside the game playing, pandering and politics as usual, at least for the duration of the economic crisis? We citizens would sure appreciate it. 

Confusing the Issue

Earlier in my academic career, I did research into what Americans erroneously call “privatization”—outsourcing government functions to for-profit and nonprofit organizations. (True privatization would require government to divest itself of that activity. Through outsourcing and grant-making, government essentially “hires” an outside entity to do the work, but still pays the bills and retains responsibility for providing the service.)

 

Outsourcing raises constitutional issues, because only government can violate the Bill of Rights, and outsourcing makes it difficult to tell when government has acted. Recent headlines remind us that blurring the lines between public and private raises other thorny issues as well. The mess at FSSA is one recent reminder that contracting can create as many problems as it can solve.

 

Outsourcing is a tool. Sometimes it is the appropriate tool, sometimes it isn’t. Government agencies aren’t alone in losing control over contractors or grantees; the practice of outsourcing mortgage processing contributed significantly to the current banking crisis.

 

One truly bizarre result of the increasingly complicated relationship between the public and private sectors was the recent invalidation of the mayoral election in Terre Haute. Duke Bennett had defeated former Mayor Kevin Burke, and Burke sued, alleging that Bennett was ineligible to hold the office.

 

Bennett was employed as Director of Operations at Hamilton Center, a nonprofit established primarily for the purpose of providing behavioral health services. In 2007, the Center also opened a Head Start program, supported partly by a grant from HHS. The grant was $861,631,of which $125,789 was for Head Start’s proportionate share of overhead (security, maintenance, liability insurance, etc.)

 

Burke sued to have Bennett declared ineligible under a law that applied the Hatch Act to Head Start Grant recipients, and provided that such recipients should be “treated as a local government agency funded through Federal grants or loans.”

Bennett was responsible for providing and managing some of those overhead services, not simply for the Head Start program, but for all programs the Center operated. The Court found that $2,041—or 1.84% of Bennett’s salary and benefits for 2006-2007—came from the federal grant.

 

The court also found that “the violation was not willful or intentional,” that the issue hadn’t been raised during any of Bennett’s three prior election bids, and that his role with Head Start was essentially non-existent. Nevertheless, the Court held that Bennett was effectively a government employee, and thus prohibited from running for office.

 

There are many things we could say about the insanity of this result—all negative. The ruling has already encouraged other losing candidates to sue, and promises to create electoral uncertainty across Indiana.

 

The Hatch Act was intended to prevent abuses of power, not to limit the pool of people willing to engage in the political process. Indeed, in smaller communities, where overlapping civic commitments are the norm, that will almost certainly be the result.

 

If we continue down this path, we may end by transforming every recipient of a government grant, however minimal or accidental, into a government employee.

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Respecting Government

Remember comic Rodney Dangerfield and his “I don’t get no respect” routine? Recently, a faculty colleague told me a story that illustrates perfectly why so many of us view government with a mixture of bemusement, annoyance and even contempt—why so often, government gets even less respect than Rodney Dangerfield.

 

My colleague’s fiancée had just completed renovating a double in Lockerbie Square. He’d finally moved in, and needed garbage cans. Lockerbie is one of the central city neighborhoods in which  homeowners are required to use garbage cans provided by the City that have been engineered to be picked up by automated garbage trucks.

 

My colleague called the Mayor’s Action Line and asked for two garbage cans. She was told that she would first have to call the police and report the old cans as stolen. Once she had obtained an incident report number, she was to call back, and the cans would be ordered.  She patiently explained that no cans had been stolen; they simply hadn’t gotten any because no one lived there during restoration. She was told that truth was immaterial; if they wanted garbage cans, they had to follow procedure and report that the old ones were stolen.

 

When she called IMPD, she felt compelled to tell the person on the phone that there hadn’t really been a theft. (As she said when telling me this, “Isn’t filing a false police report a felony?”) The person on the other end of the line said it didn’t matter, this was “procedure.” She was then required to give her driver’s license/social security number in order to get the report issued.

 

Eventually, she got the incident reports, called back to the Mayor’s Action Line with the required numbers, and the garbage cans were duly delivered. Why the “theft” charade was necessary remains a mystery.

 

In the scheme of things, the saga of the garbage can is a minor irritation. But there’s a lesson here.

 

So often, Americans remain fixated on policy itself, on the question “what should government do?” In this case, for example, policymakers have determined that municipal governments should collect garbage. Public administrators then decided how to deliver the service—should employees be hired, or private companies contracted?—and how to fund it.  Those are all proper matters for public discussion and debate, because decisions about what government should do and how are most likely to be driven by ideology, and thus most likely to generate political conflict.

 

Those of us who teach public administration must focus on a different question, however, and it is equally important. Once policymakers have given administrators a job, how well do they perform?  Are they efficient? Ethical? Competent? Do they treat citizens equally and constitutionally?

 

Respect for our governing institutions has taken a real beating lately. Local governments can’t do much about the daily drumbeat of reported corruption and incompetence in Washington. But citizens might feel better if we didn’t have to visit an alternate universe just to get a garbage can.

 

 

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A True/False Test

Along with all of our other problems, today’s Americans face the grand-daddy of true-false tests.

 

Ironically, with information more available than ever before, with literally mountains of data at our ever-googling fingertips, we are losing the ability to tell the difference between fact and fabrication. I’m not talking just about the beliefs held by folks who are, shall we say, lightly tethered to reality—the holocaust deniers, the JFK conspiracy theorists, etc. They’ve always been around. I’m not even talking about the loonier precincts of the blogosphere, or the so-called “pundits” like Rush Limbaugh and Ann Coulter who make big bucks playing to limited constituencies with unlimited grievances.   

 

I’m talking about people who should know better.

 

Recently, Congresswoman Michele Bachmann of Minnesota gave an interview in which she criticized the stimulus bill for giving ACORN five billion dollars, even though the organization is “under federal indictment for voter fraud.” There were only two things wrong with this criticism; ACORN is nowhere mentioned in the stimulus bill, and it’s not under indictment.

 

Or take the recent rash of revisionist “scholarship” about FDR, ranging from “he actually caused the Depression” to “the New Deal didn’t work.” Reputable historians agree the depression began well before FDR took office, and while it is perfectly legitimate to question the adequacy of the New Deal, or to debate the causes of the improvements that occurred on Roosevelt’s watch, suggesting that there were no improvements is simply not true.

 

Falsehoods also appear in the so-called “mainstream” outlets we trust.  George Will’s column originates in the Washington Post. A couple of weeks ago, he dismissed the evidence of climate change, noting that “according to the University of Illinois Arctic Climate Research Center, global sea ice levels now equal those of 1979.” Within hours of the column’s appearance, the Center posted a rebuttal on its website. “We do not know where George Will is getting his information… the decrease in sea ice area is roughly equal to the area of Texas, California and Oklahoma combined.” To date, there has been no correction noted either by Will or the Post.

 

Often, when people are too invested in an ideology or position, they create alternate realities, selecting—or inventing—“facts” that bolster their beliefs. As the saying goes, however, we are entitled to our own opinions, but not to our own facts.

 

Let me be perfectly clear: people are entitled to draw different conclusions from a given set of facts. We may conclude that a stimulus bill is necessary, or believe it’s the wrong approach. We can acknowledge that WWII finally ended the Depression without denying the earlier, well-documented improvements in employment figures. We can quibble with certain aspects of the (overwhelming) scientific consensus on global climate change.  Such debates are necessary if all sides of important issues are to be understood.

People will draw different lessons from a given set of facts. But when one or more parties to the debate occupies a fact-free zone, truth and illumination both suffer.