There are many necessary government functions. Emergencies, crime control and plenty of other services can often best be handled by the government. We probably need a national agency to monitor nuclear energy plants. There is a role for some state regulation and services. For citizens who are permanently disabled in some way, there might not be private alternatives. And of course, much of the work done in your local town by your municipal officials makes sense.
But things have gone too far. The federal and often state budgets are full examples. Your local town can educate your kids. They don't need a large State and then another Federal department of education involved.
There is no need for a federal department of housing and urban development, which has destroyed huge swaths of our cities. How many of HUD's political supporters raise their children in public housing? These are incomprehensible and unnecessary bureaucracies.
Growing the size of government is bad because it often results in four bad outcomes:
- Government interventions take resources out of the economy which might otherwise increase prosperity.
- The purpose of many government roles is actually to slow and dilute economic growth by unnecessary regulation.
- Government programs become permanent, because large unions partner with political parties to protect and grow their privileges.
- Government agencies encourage corruption, political patronage, and gaming the system.
California and New York are resource and talent-rich, but their economies are suffering out of proportion to the recession. This is largely due to the extraordinary burden placed on them by their governments. California's public employees increased by 24% in 10 years. 1 in 8 workers in New York are employed by government entities.
This year, our government will spend $3 trillion that it doesn't have. Here's where it can lead.
