Download PDF by RICHARD ROSE: Can Government Go Bankrupt?


ISBN-10: 1349814180

ISBN-13: 9781349814183

ISBN-10: 1349814202

ISBN-13: 9781349814206

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In a politically bankrupt regime the major division is not between different parties competing for office, but between those who are meant to govern and the mass of citizens indifferent to who governs. In this chapter, we examine the conditions that could cause the economic inadequacies of government to undermine political authority. The first section explains why it is no longer meaningful to think of separate political and economic systems and why the growing power of political as against market choices has made the authority of government more vulnerable.

An annual growth rate of 4 percent a year may sound small, but it adds up to 48 percent change in 10 years, and 100 percent in 17 years. This is true whether it is the national product, the costs of public policy, or take-horne pay that is compounding. Government today must relate past commitments to present resources to avoid political bankruptcy in the future. Far too much of our thinking is backward Iooking. To refer to the 1970S as a postindustrial era is to define it by contrast Undermining Political Authority with economic conditions dating from the Industrial Revolution a century ago.

When sharing out the national product, politicians are squeezed from two sides. 7 On the one side, they face claims frorn citizens concerned about their take-horne pay, while on the other, they face demands from parties and press ure groups to provide more tax-financed public benefits. In the short run, it is politically appealing to spend more money to provide more public Can Government Go Bankrupt? benefits. But government must eventually increase taxes to pay for those benefits. Politicians are not on top of the economy; they are caught in the middle, wanting the popularity of delivering more benefits without the unpopularity of exacting higher taxes.

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Can Government Go Bankrupt? by RICHARD ROSE

by Charles

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