It did? Check out the 1780s and see how well it worked. The era of true “small government.” Didn’t work so well. — Xtrix
Let's keep the conversation honest. The birth of the United States was a period full of conflict and wars against nations that were at that time much more powerful. To just chalk that all up to "small government" is very convenient for you, and in my opinion bereft of any reason.
In any case, you’re talking about a state-capitalist system of the 1800s? (Which is all we’ve ever had: state capitalism.) Yes, crash after crash and panic after panic. — Xtrix
Ups and downs is the nature of economics. It's exactly the desire to forcefully stop that fluctuation that makes government interventions so problematic.
It creates unnatural incentives and as a result essentially forces the government to stay involved. It only worsens the problem in the long run as people are lured into businesses that would not be able to stay afloat naturally.
That goes on until the power of government is no longer enough to support this unnatural situation. The house of cards always comes tumbling down at some point, the question is how long we allow ourselves to keep building on crumbling foundations - government interventions can drag this on for a very long time, as we've seen with the banking crises, the finale of which we're still due.
There’s a reason for the federal reserve system, anti-trust legislation, and eventually Bretton Woods. — Xtrix
I'm sure there are, and not all of them without merit, though the federal reserve has certainly done more harm than good.
On the other hand, take a look at the New Deal/Bretton Woods era, when the state-capitalist system leaned much more into regulations (“regimented capitalism”). That era — from 40s to early 70s — is what most people mean by America’s golden age. Real wages, GDP growth, etc. And no major crash. Corporations — especially the financial sector — all heavily regulated. No stock buybacks, no Friedman Doctrine. The era of corporate managerialism. What was the result there? Better for the employees and for the companies themselves. Much more egalitarian society — at least for white people. — Xtrix
Every system and policy has its benefits and detractors. To me the question would be how much of that prosperity was made possible by the fact virtually every other country in the world lay in ruins and the United States had near-unlimited global reign as a result of World War 2. You're pointing at a 30-year period - that is not a very long time. What happens after that period, when the rest of the world is once again able to compete with the US economy?
It no good believing in fantasies of free markets or small government. All it translates to is small government for everyone else except those in power and with wealth. — Xtrix
You may believe this, but the world disagreed, and people came from all over the world to live under this 'terrible' system. You are dismissing classic liberal ideas and libertarianism as "nonsense" and fantasy - it's crazy. The proof is in the pudding.
Maybe you've mistaken me as arguing for some kind of libertarian utopia on practical grounds - I'm certainly not doing that. Imperfect man will always need
some government, but too often we forget that its the same imperfect man that takes the reigns in government.
I'll happily take the good with the bad. No system is perfect. It seems you're keen on pointing at all the things that go well as a sign of success of your ideas, but ignore the flipside of the coin, so it's a bit unfair you're accusing me of harboring fantasies.
Where "evils" were perpetrated, you have to show this is the result of government functioning or the result of politics. — Benkei
Strong governments produce the vessel by which politics can do its damage. I agree, if we were somehow able to seperate governance from imperfect man perhaps we'd be in agreement.
That power finds its way into the hands of powerful and often corrupt individuals anyway, however the question is whether they get to use and abuse their power on the market through economic force, or through government through coercion, or worse yet,
both.
That's why I believe governments should be small, with very limited mandates: because malignant power exercised through economics, while it can also be very unpleasant, is of a different order of magnitude than malignant power excercised through government.
I think the Dutch system is one of the best - one of my favourites is the easy access for new parties that allow for the introduction of new issues in political discourse that are relevant to society but ignored by mainstream parties. The better the system, the less corruption or "special interest" have a chance to influence decision making. But at the end of the day, to me it's mostly about political culture. — Benkei
Had you asked me five or six years ago, I would have agreed. I don't know what exactly changed, but if I had to guess (and a guess is all it is) is that multinational business has grown so powerful that it can use all these mandates governments have given themselves to further assert their power - crony capitalism at its worst.
However, where we may differ in views is that I do not believe governments are able to resist against this phenomenon, and giving governments further mandates to fight private business will only result in larger, more unaffordable behemoth government, and more mandates that will be in the end abused against the citizen.
Being exploited by private business is of course equally unpleasant, but at least private business will always have to contend with law and a government's monopoly on violence - its evils and power over citizens is at least limited to a degree. Government has no such boundaries.
I feel that Dutch political parties have become more corrupt than say 20 years ago, with political leaders not taking responsibility for governmental failures, a focus on political symbolism and point-scoring in media. Just look at the toeslagenaffaire, how Pieter Omtzigt was treated and the talk about a new "culture of transparancy" but nobody following it through. Just windowdressing. — Benkei
I agree. It's one of many instances that contributed to my disillusionment.
I've come to regard this process by which a system corrupts over time as an inevitability, which is exactly the reason why I feel the power of such systems should be kept small by its very structure.
Perhaps this trend may reverse itself naturally by the integrity of our system, if indeed it still possesses any. Maybe. But that remains to be seen and I am skeptical.
And this has influence on how ministries are run and act. They are increasingly in the business of keeping elected officials out of trouble. So they avoid taking difficult decisions because the minister is not going to sign off on it any way. — Benkei
It seems to me most political parties in the Netherlands are occupied with staying friendly with one another, which essentially ensures the role of opposition is no longer carried out the way it should, with some individuals being the exception.
I suppose this is one advantage the United States has with their two party system: they hate each other's guts so when one party does something questionable or unlawful, the other party will expose it ruthlessly, thereby at least the function of opposition is still carried out. In the Netherlands it is swept under the rug. Some people who take their role as statesmen and -women seriously will still call attention to it, but their power simply does not compare to that of the political order.