The Private Sector & Local Problems

The private sector is much more efficient and financially responsible than the public sector. Therefore, whenever the option exists to do something through the private sector or the public sector, it should be done through the private sector. Government should be a means of doing things that need to be done collectively (such as defense) on a collective basis.  It has become much more. 

A March 28th 2020 article in The Economist magazine titled “Building up the pillars of state” includes the following:  “  . . . The rise in borrowing caused by America’s stimulus may be matched, at least initially, by bond purchases by the Fed, which smells a lot like printing money to finance deficits. . . . Politicians, too, are ripping up the rulebook. In a standard recession firms are allowed to go bust and people become unemployed. Even in normal economic times, roughly 8% of OECD companies go under each year, while 10% or so of the workforce lose a job. Now government hopes to stop this from happening entirely. . . . The vast majority of economists support these measures. Nominally they are temporary, designed to hold the economy in an induced coma until the pandemic passes, at which point the world is supposed to revert to the status quo ante. But history suggests that a return to pre-covid days is unlikely. Two lessons stand out. The first is that government control over the economy takes a large step up during a period of crisis—and in particular war. The second is that the forces encouraging governments to retain and expand economic control are stronger than the forces encouraging them to relinquish it, meaning a ‘temporary’ expansion of state power tends to become permanent. . . . What will be the lasting effects of the covid-19 pandemic? Start with the size of state. Over the next year government will rise sharply, as spending jumps and tax revenues collapse. When the economy recovers, attention will turn to paying it down. . . .  But the redefined role of the state could prove to be the most significant shift. The rules of the game have been moving in one direction for centuries. Another radical change is looming.” See also attached WSJ article: Corornavirus Means the Era of Big Government Is . . . Back WSJ Apr 26 2020 (PDF)  A major fight will be necessary to beat back this potential loss of individual rights.

Local problems should be handled and funded locally. For example, numerous states have underfunded pension and retirement health care benefit plans. All states must resolve those problems. The Pacific northwest knows an offshore earthquake is likely to occur at some point, and it could be devastating. California, Oregon and Washington (state) need to prepare for it and deal with it.

Fannie Mae, Freddie Mac and the Import-Export Bank should be eliminated.  WSJ Article on Fannie Mae Freddie Mac May 25 2016 (PDF).