Area of Interest

Thursday, August 19, 2010

The Technocracy Boom


July 19, 2010

By David Brooks

During the first part of this period, the Republicans were in control. They expanded a vast national security bureaucracy. In their series in The Washington Post, Dana Priest and William M. Arkin detail the size of this apparatus. More than 1,200 government agencies and 1,900 private companies work on counterterrorism, homeland security and intelligence programs at around 10,000 sites across the country. An estimated 854,000 people have top-secret security clearance. These analysts produce 50,000 reports a year — a flow of paper so great that many are completely ignored.

In the second part of the period, Democrats were in control. They augmented the national security bureaucracy but spent the bulk of their energies expanding bureaucracies in domestic spheres.

First, they passed a health care law. This law created 183 new agencies, commissions, panels and other bodies, according to an analysis by Robert E. Moffit of the Heritage Foundation. These include things like the Quality Assurance and Performance Improvement Program, an Interagency Pain Research Coordinating Committee and a Cures Acceleration Network Review Board.

The purpose of the new apparatus was simple: to give government experts the power to analyze and rationalize the nation’s health care system. A team of experts on the newly created Independent Medicare Advisory Council was ordered to review and streamline Medicare. A team of experts within the Office of Personnel Management was directed to help set standards for insurance companies in the health care exchanges. Teams of experts serving on comparative effectiveness boards were told to survey data and determine which medical treatments work best and most efficiently.

Democrats also passed a financial reform law. The law that originally created the Federal Reserve was a mere 31 pages. The Sarbanes-Oxley banking reform act, passed in 2002, was only 66 pages. But the 2010 financial reform law was 2,319 pages, an intricately engineered technocratic apparatus. As Mark J. Perry of the American Enterprise Institute noted, the financial reform law is seven times longer than the last five pieces of banking legislation combined.

Once again, government experts were told to take a complex, decentralized system — in this case the financial markets — and impose rules, rationality and order. The law creates one über-panel, the Financial Stability Oversight Council. It directs government experts to write rules in 243 separate areas.

The law also calls upon government experts to make some heroic judgments. For example, it calls upon regulators to break up banks that might be about to pose a risk to the country’s economy. That is to say, investors may believe a bank is stable. The executives of the bank may believe it is stable. But the regulators are called upon to exercise their superior vision and determine which banks are stable and which are not.

When historians look back on this period, they will see it as another progressive era. It is not a liberal era — when government intervenes to seize wealth and power and distribute it to the have-nots. It’s not a conservative era, when the governing class concedes that the world is too complicated to be managed from the center. It’s a progressive era, based on the faith in government experts and their ability to use social science analysis to manage complex systems.

This progressive era is being promulgated without much popular support. It’s being led by a large class of educated professionals, who have been trained to do technocratic analysis, who believe that more analysis and rule-writing is the solution to social breakdowns, and who have constructed ever-expanding networks of offices, schools and contracts.

Already this effort is generating a fierce, almost culture-war-style backlash. It is generating a backlash among people who do not have faith in Washington, who do not have faith that trained experts have superior abilities to organize society, who do not believe national rules can successfully contend with the intricacies of local contexts and cultures.

This progressive era amounts to a high-stakes test. If the country remains safe and the health care and financial reforms work, then we will have witnessed a life-altering event. We’ll have received powerful evidence that central regulations can successfully organize fast-moving information-age societies.

If the reforms fail — if they kick off devastating unintended consequences or saddle the country with a maze of sclerotic regulations — then the popular backlash will be ferocious. Large sectors of the population will feel as if they were subjected to a doomed experiment they did not consent to. They will feel as if their country has been hijacked by a self-serving professional class mostly interested in providing for themselves.

If that backlash gains strength, well, what’s the 21st-century version of the guillotine?

Wednesday, August 18, 2010

Royal Indulgences (HOW DOES THE U.S.SPEND YOUR MONEY)?

Putting Government First?

by Patrick J. Buchanan
08/13/2010

Where a man's purse is, there his heart will be also.
If you would know where the heart of the Obama party is today, consider. In the dog days of August, with temperatures in D.C. rising above 100, Nancy Pelosi called the House back to Washington to enact legislation that could not wait until September.

Purpose: Vote $26 billion to prevent layoffs of state, municipal and county employees whose own governments had decided they had to be let go if they were to meet their constitutional duty to balance their books.

Workers their own governments thought expendable, Congress decided were so essential, it borrowed another 26 thousand million dollars from China to keep them on state and local payrolls.
A nation whose national debt is approaching the size of its gross national product, that goes abroad to borrow money to keep non-essential workers on government payroll is a nation on the way down and out.

And anyone who thinks this Obama party is ever going to cull the armies of tens of millions of government workers or scores of millions of government beneficiaries to put America's house in order is deluding himself.

As long as this Congress and White House remain in power, a U.S. default on its national debt is inevitable. The only question is when.

Nor is this the first time the Obama administration has rushed to save workers whom their own state, city and county governments were prepared to let go. Among the reasons the $800 billion stimulus failed is that so little of it was directed to firing up the locomotive of the economy, the private sector, and so much of it was spent to ensure that government workers did not have to share in the national sacrifice.

Why Pelosi & Co felt compelled to return to D.C., to ensure that state and local government payrolls were not pared, is not hard to understand.

Which party does the American Federation of Teachers; the National Education Association; and the American Federation of State, Municipal and County Employees usually contribute to, work for, vote for? At which of the two party conventions are teachers and government employees hugely over-represented?

Consider, too, the states deepest in debt and facing the largest cuts in employee ranks, pay and benefits: California, Illinois, New York.

In these states, public employees earn at least $10,000 per year more in pay and benefits than the average America worker, who is bailing them out.

Hence, we have a situation where private sector workers in Middle America are being taxed, their children being driven ever deeper into debt to China, so government employees who have greater job security than they do, and earn more in pay and benefits than they will ever earn, can stay in Fat City.

And folks wonder why so many Americans detest government.

In the same week Congress came back to prevent AFSCME from taking a haircut, the Wall Street Journal reported that, in 2009, only three of 52 metro areas with over 1 million in population saw "net earnings and the broader measure of personal income both rise."

Are you surprised to learn Washington, D.C., was among the three?

That same day, USA Today had a startling report on how, during the last decade, U.S. Government workers, like Wall Street bankers, left their fellow Americans in the dust.

"Federal workers have been awarded bigger average pay and benefit increases than private employees for nine years in a row. The compensation gap between federal and private workers has doubled in the past decade.

"Federal civil servants earned average pay and benefits of $123,049 in 2009 while private workers made $61,051 in total compensation. ... The Federal compensation advantage has grown from $30,415 in 2000 to $61,998 last year."

Remarkable. U.S. government workers, who enjoy the greatest job security of any Americans, now earn twice as much in pay and benefits as the average American. This is not the D.C. some of us grew up in.

Nor is this all Obama's doing. For most of the fat years of the federal work force came while Washington was being run by a Congress of Big-Government Conservatives and a White House of Bush-Cheney Republicans.

No wonder the tea party is targeting both parties.

Nevertheless, it is impossible to believe that the Obamaites, who intervened twice and massively with bailouts to prevent minor layoffs of local and state government employees, have the stomach to do the major surgery needed to cut the federal monolith down to size.

For the vast majority of the tens of millions of government workers vote Democratic, as do the vast majority of the scores of millions of beneficiaries of federal, state and local programs.

What Pelosi & Co. were saying with that $26 billion bailout this week is, "We are going to protect our own."

Which is why either Obama, Pelosi, Reid & Co. go, or we are gone.

Mr. Buchanan is a nationally syndicated columnist and author of Churchill, Hitler, and "The Unnecessary War": How Britain Lost Its Empire and the West Lost the World, "The Death of the West,", "The Great Betrayal," "A Republic, Not an Empire" and "Where the Right Went Wrong."