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Larry the Fable Guy's avatar

Enjoy your stuff Jeff but I don’t agree this is a good thing for a very simple reason: the incentives are almost nonexistent for government to do anything effectively and efficiently.

Government puts taxpayers money at risk and spends it on other people, which creates all sorts of incentives for cronyism. And there’s no real time system of feedback to whether the program is actually producing the results proponents say it is and no way to starve bad ideas from resources (the war on drugs, war on poverty, IRS, VA, Pentagon etc come to mind as bad ideas/bureaucracy’s that are virtually impossible to stop). There are no rewards or consequences for the spending regardless of what happens. The people spending the money have no skin in the game and really don’t answer to anyone or anything except the possibility of being voted out of office. How well has that worked?

Compare this scenario with the private sector. Everything is the opposite. I’d have to risk my own resources and/or convince a bank/venture capitalist to do the same for an idea. Everyone has skin in the game. Consumers get to vote with their own resources and preferences based what each of them want and not what a politician wants. I’m rewarded if I’m effective and efficient in producing what society wants or I’m quickly put out of business if I don’t.

As most economists say, incentives matter. I’d say they matter more than anything.

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Jon Deutsch's avatar

Agree with your premise, but challenge the assertion that if the infrastructure bill is all Biden gets done, it will be a let down.

In my view, we need to re-establish responsibility and accountability in our political culture, like pronto.

Is Biden responsible for every Democrat in this "big tent" party that includes factions inside that are rage-tweeting against each other? Nope. That's not a realistic expectation.

What *is* a realistic expectation is that he can create a strong sense of unified purpose that leads his party to pass his legislation. Is Biden doing this well? The jury's is out. He's trying. And maybe the behind-the-scenes trying ends up being less fulfilling than DJT's brazen PR stunts, but if it ends up working, then we should not be seduced by PR vs. what may end up being operational excellence.

I will not be let down if nothing else passes. Biden has already pulled 1/2 of all American children out of poverty for crying out loud (via his first bi-partisan win in COVID relief), and now he's successfully pushed through re-investing in American infrastructure like no other President in recent memory.

Does this make Biden a "great" POTUS? Nah. But it's better than many expected, and I think that should be celebrated PR'd to death DJT-style. But it won't - that's just not the Democratic way.

On the same token, if Biden passed what he initially was shooting for in his BBB proposal (when it was $3.5T), he may have actually sunk himself accidentally by falling over the progressive waterfall with 12% of the electorate. Yes, I think the moderate democrats are actually saving Biden from his left flank, as well as his own newly-found beliefs that the prescription to pull back angry white voters to the Democratic tent is embracing Bernie's platform.

But here's the problem: You can't win with Bernie's platform without Bernie at the helm. That's just not how things work. The brand and personal charisma and the policy need to match.

This is why, in my view, the Infrastructure Bill passed - it had Buttigieg as the primary spokesperson and figurehead of the bill. Mayor Pete has the charisma and the orientation that matches the infrastructure bill perfectly.

We should never be surprised that when the right charisma and the right policy combine, it's a powerful force that no political scientist is equipped to properly measure.

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