Government Investment, not Government Spending
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Government and Economies of Scale
In the same way, economies of scale work in local communities. Your community probably has common trash pickup, because it is cheaper to hire some people and buy a garbage truck than it is for each person to individually cart their trash to the landfill. (It's less work for the people who manage the landfill, as well.) In the same vein, you don't have to maintain the road you live on, the sidewalks in front of your house, the electrical and telephone infrastructure, and other "public" amenities. It's cheaper for a large group of people to band together to accomplish tasks in common than it is for each person to take care of these things individually. And what would happen to that road, or that electrical infrastructure, if there were no-one there to maintain it (such as the owner of the property dying)?
Isn't Government Wasteful?
The argument against privatization
We often hear that government is inefficient and wasteful, and that private companies will do a better job of accomplishing what needs to be done. However, for most instances, this is not the case. Yes, it is true that there is some waste and duplication in government, and some people who do not do their jobs. However, that is true of every single private corporation in the world, as well. Anyone who has ever worked for a large corporation knows that there are slackers, and useless company policies that take up your time and do not seem to have any purpose. And we all know someone who works in those large corporations who never seems to do any work, as well. So government is subject to exactly the same inefficiencies of operation as any large organization.But there are two other reasons for preferring government over private corporations: the first being that we, the citizens, can do something about government waste. We can petition the government for redress of grievances, thanks to the United States Constitution, and when we find fraud and waste, we can demand (with our votes) that something be done. Our representatives in the Federal government must come back and answer to their constituents, and we have the option of electing someone else if we do not feel our interests are being served.
The second, and more important, argument against privatization is that corporations have a fiduciary duty to their shareholders to show a profit. In fact, corporate executives can be sued for making a rational decision that would increase company profits in the long term, if those decisions cause less profit in the short term. When governments outsource functions to private corporations, taxpayers pay for profits to those shareholders. When governments do the work themselves, that money does not provide profit to private individuals, but is spent for the good of everyone. Therefore government spending is more efficient by design.
Infrastructure and Infrastructure Investing
Allegory of Bad Government
Every Man for Himself
This painting is by Ambrogio Lorenzetti, one of the painters who truly understood government. If we examine this Allegory of Bad Government, we see above the city gate flies a figure labelled "Timor" (fear), brandishing a sword. The sign she carries reads, "Because each seeks only his own good, in this city, Justice is subjected to Tyranny; wherefore along this road nobody passes without fearing for his life, since there are robberies outside and inside the city gates." Beneath, the countryside lies in ruins: buildings burn, mobs are looting the city, bridges and the city gate are blocked by soldiers. Inside the city is no better: buildings are being scavenged for personal gain, fighting is in the streets, and women are not safe from assault. The horned figure in the center of the painting is Tyranny, and Justice lies bound at its feet. Above the head of Tyranny fly the figures of avarice, pride and vanity; below, a woman is sawing herself in half, representing those that work against their own interests. Tyranny is surrounded by Cruelty, Division, War and Furor.
The Effects of Bad Government
In this picture, we see a town in flames, ruined buildings, soldiers invading, people fighting each other, untilled fields, and a devastated landscape. Without any regulation, or with government used solely for personal gain, Lorenzetti warns us, this will be the end result
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Allegory of Good Government
Looking out for each other
In this painting, we find Wisdom over the head of Justice meting out punishments on the left, and rewards on the right, both of which are linked by a rope, passing to a symbol of Concord (a pun on "with the rope"); Concord has on her lap a wood plane, representing the "level playing field" that occurs when Justice is present. Twenty-four figures hold on to the rope as a sign of solidarity; Peace rests upon a suit of armor; and there is the figure of a good governor, above whose head fly Faith, Hope and Charity. Lorenzetti clearly states that, wherever justice rules, "she induces to unity the many souls and they, gathered together for such a purpose, make the Common Good their Lord."
The Effects of Good Government in the City
Here we see a city with beautiful, architecturally uniform buildings (demonstrating justice and equality); children at school, and shops for merchants and customers. People are busy at work; various figures take part in many different jobs to ensure the smooth running of the city; a harvest in the fields, and abundant livestock signal a good food supply. Dancing women are a symbol not only of beauty and the importance of art, but also of safety (especially when contrasted with the Effects of Bad Government. The Duomo (Cathedral), symbolizing religion, is tucked inconspicuously in the upper-left-hand corner of the painting.
The Effects of Good Government in the Country
Working for the Common Good
When people work together for the common good, Lorenzetti tells us, we get many benefits. Here we see abundant food, land being skillfully worked, harvesting in good order, and travellers and pilgrims passing safely.
What is Infrastructure Investment?
Some kinds of infrastructure investment are easy to envision: roads, bridges, tunnels, rail, airports, sewers all serve the common good. But there are other kinds of infrastructure investments that may not be so easy to see: art, music, education, housing, libraries, jobs, parks, small business help, and many other kinds of what might be called societal or cultural infrastructures. However, without those societal infrastructures, our country will come crashing down just as surely as a poorly-maintained building. It is only with wise government investment in all kinds of infrastructure that the taxpayers can truly realize a benefit on their investment in their country. What are Progressives Saying about Government Investment?
Find out what is really going on!
But I Don't Want to Pay for . . .
(Insert some kind of spending you object to here)
Many people say, "I don't want to pay for public art." (You can easily substitute just about any government program you can think of here in place of art.) However, certain activities, such as art, music, education, small business help, poverty assistance, and programs like those, are multipliers. That is, for the money you invest, you receive a return. As an example, money spent on music generates an enormous amount of economic activity ($14.5 billion dollars spent only on live performances each year), and that money spent creates jobs (work for stagehands, printers, recording engineers, musicians, music teachers, musical instrument makers, etc.), If that is then taxed at 15%, that means that the 24 cents per person paid to the National Endowment for the Arts generates over $6.00 of revenue for the government. That $6.00 then goes on the next year to provide more services for the same money, or can be used to fund other multiplier programs, or even to reduce our overall taxes. In the same way, environmental and food safety regulations prevent illnesses which cost individuals, taxpayers, and corporations billions of dollars in lost revenue and increased expenses, and public education provides training so that students can improve their skill levels and receive better jobs (thereby making more money, which benefits them, and paying higher taxes, which benefits everyone.) Viewed rationally, we should be demanding increases in public multiplier programs, which would have the effect of increasing government revenue and making the world a better and safer place in which to live. What is Government Investment?
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What do you think should be priorities in government investment?
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Michey Feb 19, 2012 @ 10:38 pm | delete
- Education, technology, but not intrusion on our business, bedroom decisions, and our way of life.
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