David Malpass‘ latest Forbes column focuses on a problem that’s bound to grow alongside the size of government.
The latest disclosures of political corruption in the U.S. and Europe have driven distrust in government to new highs. The best response would be smaller governments with less economic and regulatory influence–the Margaret Thatcher approach.
Instead, governments are in headlong expansion mode, and the bigger the government crisis–whether in European debt, U.S. political payoffs or incomprehensible trade regulations–the more layers of government.
New York wiretaps quote politicians openly discussing cash payments in return for favors. The only surprise is the low sums the politicians were demanding, at least the ones who got caught.
Layers of government mandates, permits, fines and arbitrary taxes breed complexity and litigation, jacking up the value of the politicians who help navigate the red tape. …
… [T]he corruption in New York and Europe pale in comparison with Washington’s. With its power growing rapidly, favors are worth millions of dollars, creating an uberboom in incomes and construction cranes. The Foreign Corrupt Practices Act strictly prohibits U.S. companies from buying political favors abroad but doesn’t apply to Washington, D.C. Borrowers of government funds get easy terms and pay the power brokers well.
Congress and its mammoth staff are exempt from the conflict-of-interest rules that apply to most of America. It’s commonplace for legislators to take campaign contributions and jobs from industries under their legislative and regulatory control. Ethanol, sugar, peanuts, windmills, trial lawyers, exporters, banks, hedge funds, the oil industry–the list is endless and global, and each has a lock on government largesse. The solution would be less government power. But no one believes that will happen.
