The ICC [Interstate Commerce Commission] illustrates what might be called the natural history of government intervention. A real or fancied evil leads to demands to do something about it. A political coalition forms consisting of sincere, high-minded reformers and equally sincere interested parties. The incompatible objectives of the members of the coalition (e.g., low prices to consumers and high prices to producers) are glossed over by fine rhetoric about “the public interest,” “fair competition,” and the like. The coalition succeeds in getting Congress (or a state legislature) to pass a law. The preamble to the law pays lip service to the rhetoric and the body of the law grants power to government officials to “do something.” The high-minded reformers experience a glow of triumph and turn their attention to new causes. The interested parties go to work to make sure that the power is used for their benefit. They generally succeed. Success breeds its problems, which are met by broadening the scope of intervention. Bureaucracy takes its toll so that even the initial special interests no longer benefit. In the end the effects are precisely the opposite of the objectives of the reformers and generally do not even achieve the objectives of the special interests. Yet the activity is so firmly established and so many vested interests are connected with it that repeal of the initial legislation is nearly inconceivable. Instead, new government legislation is called for to cope with the problems produced by the earlier legislation and a new cycle begins.
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The goal towards which the advance will probably be made at an accelerated pace, is that in the direction of which the legislation of the last quarter of a century has been tending—the intervention, in other words, of the State on behalf of the weak against the strong, in the interests of labour against capital, of want and suffering against luxury and wealth.
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How far the state was induced to interfere depended on the constitution of the political sphere and on the degree of economic distress. As long as the vote was restricted and only the few exerted political influence, interventionism was a much less urgent problem than it became after universal suffrage made the state the organ of the ruling million—the identical million who, in the economic realm, had often to carry in bitterness the burden of the ruled. And as long as employment was plentiful, incomes were secure, production was continuous, living standards were dependable, and prices were stable, interventionist pressure was naturally less than it became when protracted slumps made industry a wreckage of unused tools and frustrated effort.
In the marketplace ecosystem, interference usually means aggression-through-government. When we don’t like the outcomes that we get in the marketplace, we sometimes try to correct its ‘imperfections’ with laws that force our neighbors—at gunpoint, if necessary—to do things differently… Imperfections of the marketplace ecosystem are dwarfed by the havoc created by our well-meaning aggression.
There is still a tendency to regard any existing government intervention as desirable, to attribute all evils to the market, and to evaluate new proposals for government control in their ideal form, as they might work if run by able, disinterested men free from the pressure of special interest groups.
I myself am no opponent of State intervention. I have never been, and never shall be, as soon as it is shown to me that State intervention can achieve some good end which cannot be reached without it. And I hope that opinion will soon turn in the direction of municipal intervention in these affairs, wherever municipal intervention is adequate, and I will tell you why...I believe that in municipalities the area of supervision is sufficiently small, that people concerned come up in sufficiently close quarters with the matters of administration to enable them to avoid all the dangers, risks, and wastes to which the general state of capitals is open.
The proper limits of Government interference are relative to the nature of each particular state and the stage of its civilisation. It is a matter of great importance at the present day for us to discover what these limits are in our own case, for administration bids fair to claim a large share of our attention in the future.
"A mere enumeration of government activity is evidence — often the sole evidence offered — of "inadequate" nongovernment institutions, whose "inability" to cope with problems "obviously" required state intervention. Government is depicted as acting not in response to its own political incentives and constraints but because it is compelled to do so by concern for the public interest: it "cannot keep its hands off" when so "much is at stake," when emergency "compels" it to supersede other decision making processes. Such a tableau simple ignores the possibility that there are political incentives for the production and distribution of "emergencies" to justify expansions of power as well as to use episodic emergencies as a reason for creating enduring government institutions."
I'm grateful for the contribution [private enterprise] made, but even in the early days of capitalism the government helped a great deal. The railroads got tremendous land grants, the steamship companies got subsidies—they still get subsidies–the airlines got subsidies; none of these great industries developed without some assistance from the government. The whole question here, Mike, the whole question is not are you opposed or are you in favor of government intervention into certain areas of our free society. The question is: Whenever people are either unable or unwilling to do what must be done to maintain the health and advance the well-being of the whole society, then government is the only instrument that the whole people have to look to to do that job. Now, I'm for limiting that; I'm for encouraging voluntary nongovernmental approaches. This is why I try to do everything I can at the collective bargaining table; this is why we fought on the Social Security front, on the pension front. But when you've got a problem like education or medical care for the aged that you can't solve on a nongovernmental basis, then the government must do the job.
In every political society, parties are unavoidable. A difference of interests, real or supposed, is the most natural and fruitful source of them. The great object should be to combat the evil: 1. By establishing a political equality among all. 2. By withholding unnecessary opportunities from a few, to increase the inequality of property, by an immoderate, and especially an unmerited, accumulation of riches. 3. By the silent operation of laws, which, without violating the rights of property, reduce extreme wealth towards a state of mediocrity, and raise extreme indigence towards a state of comfort. 4. By abstaining from measures which operate differently on different interests, and particularly such as favor one interest at the expence of another. 5. By making one party a check on the other, so far as the existence of parties cannot be prevented, nor their views accommodated. If this is not the language of reason, it is that of republicanism.
Actually, on humanitarian intervention in general, I guess my view is not unlike the view that was attributed to Gandhi, accurately or not, when he was supposedly asked what he thought about western civilization. He is supposed to have said that he thought it would be a good idea. Similarly, humanitarian intervention would be a good idea, in principle. [...] can we expect that with the existing power structure, distribution of power in the world, there will be humanitarian intervention? There is nothing new about the question, of course. The idea of humanitarian intervention goes back to the days of the Concert of Europe a century ago - in the 19th Century there was lots of talk about civilizing missions and interventions that would do good things. The US intervened in the Philippines to "uplift and christianize" the backward people, killing a couple of hundred thousand of them and destroying the place. The same thing happened in Haiti, the same thing happened with other countries. We cannot disregard the historical record and talk about an ideal world. It makes sense to work towards a better world, but it doesn't make any sense to have illusions about what the real world is.
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