Big Government

Monday night I read Richard Parker’s review in the current New York Review of Books of Jeff Madrick’s new book The Case for Big Government. This would have been ideal preparation for President Obama’s address on Tuesday, had I watched it. But instead I had other things on my mind when I got home from school after two long afternoon meetings, and so I sat here getting caught up on email while Gail listened on the radio as she made a delicious chicken cashew stir fry dinner. Only in reading about Obama’s speech since, and then reading the first few pages of the book Friday night and last night (though I didn’t listen to the speech Tuesday night, I did order the book, even as the speech was on, and it arrived Friday afternoon), have I realized that the book and speech are a perfect match.
Regarding the speech, I still haven’t gone back to watch it on youtube, but I’ve read a fair bit about it. For instance, here’s an excerpt from George Packer’s comments on it in his blog:
Look at the front page of today’s Times. The headlines are historic and suggest one of those tectonic political shifts that occur only once every two or three generations: “OBAMA, BREAKING ‘FROM A TROUBLED PAST,’ SEEKS A BUDGET TO RESHAPE U.S. PRIORITIES,” “Tax Rise for Wealthy—Push on Health and Energy,” “A Bold Plan Sweeps Away Reagan Ideas.”
Reagan changed America above all by changing the terms of political discourse. Between his message to Congress on Tuesday and the ten-year budget proposal he released yesterday, Obama has shown that he wants to do the same. There are no more defensive apologies for having to bring government to bear on problems that the private sector can’t solve. He is making, or rather restoring, government as the instrument of a vast social and economic change, summed up in the word “equality.” The Times is right to compare this moment to 1932 and 1980.
As for Madrick’s book, Princeton University Press has been kind enough to post Chapter 1 at the book’s website. Given that there are only three chapers, this turns out to be about a third of the book. It includes in particular all that I’ve read so far, including the representative passage that I have placed below the fold. Madrick argues that the conventional wisdom that government spending is inefficient and high taxes are a drag on productivity is simply false, not supported by the empirical data. Moreover, although I have yet to read this part, so I simply quote from Richard Parker’s review, “Madrick first provides a short history—a primer, really—of government’s often-forgotten but central role in the nation’s long economic rise from the 1770s to the 1970s.” I’m looking forward to this. Perhaps I’ll have more to say later. For now, here’s the promised excerpt from the book:
Read more…

