Site Meter Reflections on Playboy: Economics in the December Forum: <i>A Streetcar Named Big Government</i>

November 26, 2008

Economics in the December Forum: A Streetcar Named Big Government

The relationship between government and the American progressive left reminds me of Stanley and Stella Kowalski in A Streetcar Named Desire. Progressives are constantly disappointed, outraged, and abused by their government, yet they cling to romantic hopes that their beloved will change for the better. In response to recent headlines of financial trouble, the “Forum” section of the December 2008 Playboy dreams of the hypothetical good government that will replace the other, actual kind of government.

I notice some questionable assumptions about the proper role of government in the article “We Can’t Make It Here” by Kevin Phillips. Phillips complains that the growth of the financial service industry over the past few years happened without an explicit order from Washington, D.C.: “No one bothered to tell the people. Congress never had a vote.... Such a transformation should have triggered national soul-searching. Shamefully, it was accomplished by stealth.” Thank goodness, I say, that social transformations can happen without an act of Congress. Congress doesn’t make rain fall or grass grow, nor does it cause everything important to happen in economics.

Phillips calls the so-called deregulation of financial services part of the problem, which obscures the fact that corporate cronyism—as distinct from free-market capitalism!—is the inevitable shadow cast by ambitious, overly complicated regulatory schemes. “If you have ten thousand regulations you destroy all respect for the law,” said Winston Churchill. If you don’t want corporate lobbyists to write self-serving laws, deny them the opportunity by recognizing a smaller role for government. Like Stanley Kowalski, Uncle Sam needs to be seen through the lens of experience, not imagination. Give it up! He’s a bum!

Posted by Brian Sorgatz at 11:03 AM

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