• Home
  • About CF&P
    • Board of Directors
    • Staff
    • Contact Us
  • Blog
  • News
    • Press Releases
    • Updates
  • Publications
    • Prosperitas Studies
    • Testimony and Speeches
  • Opinion & Commentary
  • Videos
    • Economic Lessons Series
    • Economics 101 Educational Series
  • Donate

Navigate

  • Home
  • About CF&P
    • Board of Directors
    • Staff
    • Contact Us
  • Blog
  • News
    • Press Releases
    • Updates
  • Publications
    • Prosperitas Studies
    • Testimony and Speeches
  • Opinion & Commentary
  • Videos
    • Economic Lessons Series
    • Economics 101 Educational Series
  • Donate
The Inbred Corruption of Washington

The Inbred Corruption of Washington

Posted on September 10, 2013 by Dan Mitchell

At the risk of oversimplifying, there are two major challenges to overcome when you’re a pro-freedom policy wonk in Washington.

The first challenge is getting people to connect the dots.

They may understand that the job market is weak and they may understand that redistribution programs are overly generous, but can you help them understand that the job market is weak in part because redistribution programs make work relatively unattractive?

They may understand that the federal government is bloated and they may understand that there’s a big problem with corruption in Washington, but can you make them understand that there’s a lot of sleaze in Washington because government has so much power?

They may understand that the corporate tax burden is very high and they may understand that American companies sometimes aren’t very competitive, but can you help them understand that it’s difficult for firms to compete because they’re saddled with high tax rates?

The second challenge is getting policy makers to do the right thing when doing the wrong thing means more money and power for the political class.

Let’s consider the problem of corruption. And I don’t just mean illegal corruption, though there’s plenty of that in Washington. I’m talking about the everyday graft and sleaze that is perfectly legal, such as when dozens of politicians are caught red-handed supporting legislation that would line their pockets.

Using fiscal policy as an example, how do you get these people to do the right thing? They may understand – at least conceptually – that the United States faces a huge long-run fiscal nightmare because of an ever-growing burden of government spending. They may even vote for the Ryan budget, which theoretically commits them to supporting meaningful entitlement reform.

But the real fight occurs when you ask them to support policies – such as sequestration – that actually slow the growth of Leviathan and require them to say no to lobbyists. Particularly when many lobbyists are their former colleagues and staffers!

To get a sense of what I mean, check out these excerpts from a book review in The Economist.

Washington has always had a permanent establishment of politicians, lobbyists and journalists. But this class has exploded in size in recent decades, and has become more introspective and self-serving. …The lobbying industry has spent billions greasing the revolving door: in 2009 alone, special interests spent $3.47 billion lobbying the federal government. In 1974 3% of retiring policymakers became lobbyists. Now 50% of senators and 42% of congressmen do. …a “change election” that was supposed to sweep aside the old order and create a politics fit for the 21st century. …But the Washington machine soon took over. …once in the capital, these same figures cashed in on their public service by getting lucrative jobs as lobbyists, bankers or talking heads. David Plouffe, an adviser to the president, joined the jackals at Bloomberg television. Mr Orszag went to Citigroup. Meanwhile, the city’s politicos grew richer while the rest of the country was mired in recession. Washington now has a higher income per person than Silicon Valley.

The final sentence of that passage is very depressing. Or it should be. Do we really want a society where becoming part of the political machine is the easiest path to wealth? Are there any nations that have prospered using that model?

Or is that a symptom of a country on a downward slide?

I don’t know the answer, but it’s very depressing to look at this map and see that 10 of the 15 richest counties in the nation are part of the Washington metropolitan area.

We now have something akin to an imperial capital being supported by coerced tribute from the serfs in the outer provinces.

And as this video explains, all of this unearned wealth is made possible by a bloated budget, a Byzantine tax code, and a maze of complicated regulations.


big government corruption Cronyism Sleaze
September 10, 2013
Dan Mitchell

Dan Mitchell

Dan Mitchell is co-founder of the Center for Freedom and Prosperity and Chairman of the Board. He is an expert in international tax competition and supply-side tax policy.

Find Us On Facebook

Follow Us On Twitter

Tweets by @CFandP
"I write to express support for the Center for Freedom and Prosperity's support of tax competition."
    
~ Milton Friedman, Nobel Laureate ~


 "By fighting against an international tax cartel and working to preserve financial privacy, the Center for Freedom and Prosperity is protecting taxpayers, both in America and around the world."
    
~ Rep. Dick Armey, Former Majority Leader, U.S. House of Reps. ~
  • Home
  • About CF&P and CF&P Foundation
  • Donate
  • News
  • Publications
  • Opinion and Commentary
  • Market Center Blog
  • Videos
© Copyright 2014, All Rights Reserved.