Seeing the devastating effects of Hurricanes
Harvey and Irma and of wildfires out West, one cannot help but think
about the crucial role that government plays in our lives. But while we
accept, even celebrate, the role of government in the wake of such
disasters, we are largely blind to the need for government to mitigate
these kinds of crises in the first place.
Ever
since President Ronald Reagan, much of the United States has embraced
an ideological framework claiming that government is the source of our
problems. Reagan famously quipped, “The nine most terrifying words in the English language are: I’m from the government, and I’m here to help.”
Reagan
argued for a retreat from the vision of an activist state and advocated
instead a strictly limited role for government, one dedicated to core
functions such as national defense. Outside of these realms, he
believed, government should simply encourage the private sector and
market forces.
Reagan’s worldview grew out of the 1970s — a period marked by fiscal
mismanagement, government overreach and slowing growth. It might have
been the right attitude for its time.
But it has stayed in place for
decades as a rigid ideology, even though we have entered a new age in
which America has faced a very different set of challenges, often
desperately requiring an activist government. This has been a bipartisan
abdication of responsibility.
For decades now, we have watched as stagnant
wage growth for 90 percent of Americans has been coupled with
supercharged growth for the richest few, leading to widening inequality
on a scale not seen since the Gilded Age. It has been assumed that the
federal government could do nothing about this expanding gap, despite
much evidence to the contrary.
We
have watched China enter the global trade system and take advantage of
its access to Western markets and capital, while still maintaining a
massively controlled internal economy and pursuing predatory trade
practices. And we have assumed that the U.S. government can’t do
anything about it, because any action would be protectionist.
We
watched as financial institutions took on more and more risk, with
other people’s money, effectively gambling in a heads-I-win,
tails-you-lose system. Any talk of regulation was seen as socialist.
Even after the system blew up, causing the worst economic crisis since
the Great Depression, the calls soon came to deregulate the financial
sector once again because, after all, government regulation is obviously
bad.
In this same period, technology companies have
grown in size and scale, often using first-mover advantage to establish
quasi-monopolies and quash competition. The digital economy was supposed
to empower the individual entrepreneur, but it has instead become one
in which four or five companies utterly dominate the global landscape. A
new technology company today aspires simply to be bought by Google or
Facebook. And we assume that the federal government should have had no
role in shaping this vast new economy. That would be activist and bad.
Better for government to simply observe the process, like a passive
spectator watching a new Netflix drama.
And
then there is climate. These hurricanes have not been caused by global
warming, but their frequency and intensity have likely been magnified by
climate change. Particularly calamitous hurricanes have their names
retired, and in the last 20 years there have been about as many names retired as in the preceding 40 years. California has had more than 6,400 wildfires this year. The 17 hottest years on record have all taken place in the past two decades.
And
yet, we have been wary of too much government activism. This is true
not just in tackling climate change but in other areas that have
contributed to the storms’ destructive power.
Houston chose
not to have any kind of zoning that limited development, even in
flood-prone areas, paving over thousands of acres of wetlands that used
to absorb rainwater and curb flooding. The chemical industry has been
able to persuade Washington to exercise a light regulatory touch, so
there is limited protection against fires and contamination, something
that was made abundantly clear
in the past couple of weeks. And now, of course, low-tax and
low-regulation Texas has come to the federal government, hat in hand,
asking for more than $150 billion to rebuild its devastated state.
We are living in an age of revolutions, natural and human, that are
buffeting individuals and communities. We need government to be more
than a passive observer of these trends and forces. It needs to actively
shape and manage them. Otherwise, the ordinary individual will be
powerless. I imagine that this week, most people in Texas, Florida and
Puerto Rico would be delighted to hear the words “I’m from the
government, and I’m here to help.”
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