I've been enjoying this year's ACX book reviews a lot more than the previous round, with cool essays on the Icelandic Sagas and Jane Jacobs. I particularly liked last week's review of "Public Citizens: The Attack on Big Government and the Remaking of American Liberalism" by Paul Sabin. The book is about Ralph Nader's contribution to modern sclerosis in the American government, but the essay serves as an interesting history of the public interest movement in relation to the government in general. It's not long and definitely worth a read but a few sections I liked:
the New Deal relied heavily on a new model for delegating congressional powers: Congress would create a federal agency with broad latitude, then they, or the president, would staff that agency with outside experts. Freed from the grubby pressures of the political process, these agency men—and they were pretty much all men—would use their expertise to reshape the country...
In his 1952 book American Capitalism, John Kenneth Galbraith summed up this equilibrium via the concept of countervailing powers: big government, big business, and the big unions worked together to collaboratively manage the economy.
But by the 1960s, the cracks in this model were starting to show. A report prepared for President-elect Kennedy outlined the problem of regulatory capture, the process by which agencies intended to regulate private businesses got too close to their subjects and end up serving them instead. And a new class of liberal intellectuals rose to prominence by pointing out the ways in which the political establishment’s plans sometimes rode roughshod over the citizens they were supposed to serve.
The new intellectual class was deeply critical of government action, especially the ways it propped up big business, and they invested a ton of energy into criticizing, investigating, and suing the government. The non-profit wasn't really a thing before Nader, now it's some 10% of the private sector. Advocacy on behalf of Nader and associates dramatically expanded public comment periods on agency actions, "gave the agencies they created extremely detailed mandates, procedures, and timelines .... required judicial review of agency decisions, and explicitly empowered citizens to sue the agencies for not following the rules. (Previously, it wasn’t clear that a random individual American would have standing in such a case.)"
These ideas were intended to prevent bureaucrats from cravenly serving big business or from crushing the citizenry with their major projects, but of course they made it hard to implement major projects at all. Government slowed to a crawl, and of course money-flush big businesses found themselves better able to afford dealing with all the new regulations, and better able to make use of judicial review and comment periods. All this has led us to our kludgocracy where:
Across the country, NIMBYs and status-quo defenders exploit procedural rules to block new development, giving us a world where it takes longer to get approval for a single new building in San Francisco than it did to build the entire Empire State Building, where so-called “environmental review” is weaponized to block even obviously green initiatives like solar panels, and where new public works projects are completed years late and billions over budget—or, like California’s incredible shrinking high-speed rail, may never be completed at all.
There are strong shades of the kind of supply-side progressivism talked about by Ezra Klein, Matthew Yglesias, and Noah Smith, that holds we have overcorrected from the era of Robert Moses running highways through helpless neighborhoods to a world where its impossible to do anything big at all or for the government to effectively serve its people. The problem is broader now, the liberal desire not just for lengthy review but expanding government without holding it to clear standards; the conservative impulse to cut budgets regardless of efficacy or to saddle troublesome agencies with oversight bodies that save no money but slow activity down to a crawl; the seemingly bipartisan willingness to allow technical skill to corrode in the government and contract everything out to dubiously useful and vastly more expensive consultants. But it's interesting to hear one version of the story of where this general anti-government movement began and really took traction. Interested to hear what other people thought of it.
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Notes -
I like this review, think it broadly makes a lot of sense. Not sure how much to blame Nader specifically, but it's definitely a novel reason for Cost Disease and/or the issue of not being able to build anything.
I suppose I'm curious as to how we break out of this cycle? Outside of a powerful executive coming in and slashing some of these initiatives, which seems unlikely, what other mechanisms do we have to prevent this sort of lawfare?
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