The Case for Big Government (Public Square) [Hardcover]

Jeff Madrick (Author)

Book Description

ISBN-10: 0691123314 | ISBN-13: 978-0691123318 | Publication Date: October 6, 2008 | Edition: 1

Political conservatives have long believed that the best government is a small government. But if this were true, noted economist Jeff Madrick argues, the nation would not be experiencing stagnant wages, rising health care costs, increasing unemployment, and concentrations of wealth for a narrow elite. In this perceptive and eye-opening book, Madrick proves that an engaged government--a big government of high taxes and wise regulations--is necessary for the social and economic answers that Americans desperately need in changing times. He shows that the big governments of past eras fostered greatness and prosperity, while weak, laissez-faire governments marked periods of corruption and exploitation. The Case for Big Government considers whether the government can adjust its current policies and set the country right.

Madrick explains why politics and economics should go hand in hand; why America benefits when the government actively nourishes economic growth; and why America must reject free market orthodoxy and adopt ambitious government-centered programs. He looks critically at today's politicians--at Republicans seeking to revive nineteenth-century principles, and at Democrats who are abandoning the pioneering efforts of the Great Society. Madrick paints a devastating portrait of the nation's declining social opportunities and how the economy has failed its workers. He demonstrates that the government must correct itself to address these serious issues.

A practical call to arms, The Case for Big Government asks for innovation, experimentation, and a willingness to fail. The book sets aside ideology and proposes bold steps to ensure the nation's vitality.

Editorial Reviews

From Publishers Weekly

Former New York Times economics columnist Madrick takes aim at what he perceives as a dominant American antigovernment ideology with this overly ambitious text. The author's decidedly left-of-center thesis rests on the argument that "active and sizable government" is "essential to growth and prosperity." To make his case, Madrick begins with a too brief history of the relationship between the American government and the economy, from Hamilton and Jefferson's attitude toward laissez-faire economics through Jacob Riis's famous documentation of urban squalor near the turn of the 20th century to the Great Society initiatives of the 1960s. The author details the country's economic problems since the 1970s, despite the relative prosperity of the 1990s. In elaborating these points, Madrick attacks both the right and the left, and he returns consistently to the persistent influence of Milton Friedman on the antigovernment bias in American politics. This well-researched but somewhat formless book concludes with an extensive progressive agenda for redressing the limited influence of American government, covering a wide range of issues, from same-sex marriage to universal pre-k education. (Nov.)
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From Booklist

Former New York Times economics columnist Madrick announces this book as a refutation of laissez-faire economics encapsulated in Milton Friedman’s classic Capitalism and Freedom (1962). Friedman’s low-tax, deregulation principles, laments Madrick, have spread from its Republican Party bastion into the Clintonian centrist segment of the Democratic Party, impeding an expansion of the kind of government Madrick desires. His argument for hiking taxes, increasing spending, and creating new bureaucracies runs on parallel tracks: one maintains that such measures have not historically impeded economic growth; the other asserts social-justice reasons for transforming the American welfare state into the Euro-style version. Both tracks carry Madrick’s data-heavy citations of studies and statistics, which, if a fair sampling of professional economic research, seem convincing. However, Madrick’s dismissive coverage of free-market-oriented scholars as ideological and simplistic raises doubt, though perhaps not among proponents of government-run day care, government-paid universal health care, government-equalized K–12 spending, government-paid college tuition, and much more that Madrick urges. Helpful to debaters, Madrick’s work succinctly summarizes a perspective from the Left on America’s economic problems. --Gilbert Taylor

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Product Details

• Hardcover: 224 pages
• Publisher: Princeton University Press; 1 edition (October 6, 2008)
• Language: English
• ISBN-10: 0691123314
• ISBN-13: 978-0691123318
• Product Dimensions: 8.6 x 5.6 x 1.1 inches
• Shipping Weight: 12.8 ounces (View shipping rates and policies)
• Average Customer Review: 3.1 out of 5 stars  See all reviews (9 customer reviews)
• Amazon Best Sellers Rank: #862,978 in Books (See Top 100 in Books)

More About the Author

JEFF MADRICK is a former economics columnist for The New York Times and has been a regular contributor to The New York Review of Books for many years. He is editor of Challenge Magazine, visiting professor of humanities at The Cooper Union, and senior fellow at The Roosevelt Institute and the Schwartz Center for Economic Policy Analysis, The New School. He is the author of a half dozen books, including Taking America (Bantam), and The End of Affluence (Random House), both of which were New York Times Notable Books of the Year. Taking America was also chosen by Business Week as one of the ten best books of the year. His most recent books are Why Economies Grow (Basic Books) and The Case for Big Government, which won a general non-fiction award from Pen America. His new book, published in mid-2011 by Alfred A. Knopf, is Age of Greed, The Triumph of Finance and the Decline of America, 1970 to the Present.

He has written for many other publications, including The Washington Post, The Los Angeles Times, Institutional Investor, The Nation, American Prospect, The Boston Globe, Newsday, Dissent, and the business, op-ed, and magazine sections of The New York Times. He has appeared on Charlie Rose, The Lehrer News Hour, Now With Bill Moyers, Frontline, CNN, CNBC, CBS, BBC,and NPR. He was formerly finance editor of Business Week Magazine, a columnist for Money Magazine, and an NBC News reporter and commentator. His awards also include an Emmy and a Page One Award. He was educated at New York University and Harvard University, and was a Shorenstein Fellow at Harvard.

Customer Reviews

Most Helpful Customer Reviews

27 of 34 people found the following review helpful:

2.0 out of 5 stars Backward Rather than Forward Looking Policies for Liberals, February 18, 2009

By 

Herbert Gintis (Northampton, MA USA) - See all my reviews

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This review is from: The Case for Big Government (Public Square) (Hardcover)

Well, conservatism is in retreat in the United States and `liberal' is no longer a term of abuse. So, what are liberals going to do about long term social policy? I don't mean how should we deal with the current crisis, but rather how should we set and meet social goals to make a better society in the long run? I say "we" advisedly because I am neither a liberal nor a conservative. Rather I am more of a social planner-type who just wants to get the job done. This tends to make me critical of, and exasperated by, traditional political ideologies, which often substitute political correctness for solid ideas. This is why I read Madrick's book. Madrick is a true liberal of Michael Dukakis vintage, so his ideas will be in the running for such a vision in the next several years, provided we emerge healthy from the current financial meltdown.

If you want a well documented exposition of the thesis that the size of the government sector is not a problem, this is your book. I know that this finding will come as a shock to many, especially younger, readers who have been lectured to all their lives about the sins of drug abuse and big government, but Madrick is quite correct. It is not the size of government that affects social welfare, but rather the content of its taxation, expenditure¸ and regulatory policies. The simple fact is that there is no advanced economy without a large state sector, and traditional economic theory tells us exactly why: market failures and unintended outcome must be corrected by social intervention, in the absence of which a high level of wealth cannot be sustained.

If you want innovative ideas about new ways that government can serve the people, Madrick is not your man. His recipe list for social policy is basically, "let's go back to where Michael Dukakis left off, and finish the job." What this approach forgets is that there is a reason why conservatism took over, and if liberals make the same mistakes that they did in incurring voter wrath, the same thing will happen all over again. The idea, for instance, that trade unionism should be a considerable part of a progressive coalition is simply the kiss of death. In a global economy, unions cannot thrive in a competitive sector, because there is no monopoly surplus generated by firms that can be shared with the workers---profits fall to their competitive levels. This is why unions only do well in the state sector. This, by the way, is true the world over, not just the United States (e.g., the level of unionization in France is only 8%). Of course, one can also oppose globalization, but Madrick is not obtuse enough to suggest an anti-globalization policy (indeed, he tends to say that globalization is not a serious problem---p. 76).

Madrick also does not understand that the public's rejection of liberal social policy was not on grounds of economic efficiency and growth, but rather moral legitimacy. People believed the government wasted money, funneled perks to cronies, and administered a welfare state that rewarded sloth and anti-social behavior. The brilliance of Clinton as president was his clear recognition of this fact, and his support for policies that restored the appearance of legitimacy to the welfare system. Nowhere does Madrick recognize or affirm this point. All he says, over and over, is "big government does not lead to a low rate of economic growth."

Central to Madrick's vision of social policy in a redistribution of wealth to the lower middle class (non-college working class) through severe taxation of the rich and some vague transfer to wage earners (e.g., through unions, lower payroll taxes, and the like). I believe this is just a non-starter. The whole idea that the income distribution is "too unequal" and that voters are dissatisfied with the distribution of income is almost certainly incorrect. Only the liberal-left fringe care about the income distribution. Most voters care about the legitimacy of the private economy and the capacity of government to improve this legitimacy. For instance, the public is now pissed at the financial elite because they are feathering their nests while everyone else suffers, and their misdeeds are the cause of the crisis. This is a legitimacy issue, not one of abstract notions of inequality.

A progressive social policy must be based on the notion that attractive social programs are both efficiency enhancing and can be legitimated on general moral grounds. The so called "Employee Free Choice Act," which in fact severely reduces workers' democratic participation in union affairs, is a case in point. There is zero chance the public will not see right through the hypocrisy of abolishing the secret ballot in union elections. Similarly, liberal hostility to voucher and charter schools will be clearly seen as a payoff to the venal teachers' unions, the major enemies of better schooling, especially for the poor.

Rather than taxing and subsidizing, or strengthening unions, expanding day care for working parents and voucher/charter educational systems that transfer power to parents and communities will be heartily supported by voters, as will a heightened American leadership in the development of alternative energies sources and creating sustainable environments. We need more policies of this sort in the liberal reform dossier.

I hope that my alternative vision comes about, but I would not be surprised if the Democrats are no less pigs than the Republicans they have replaced, and avidly feed at the public trough just as Republicans did when their turn at the helm came to pass. What happens depends not on the politicians, but rather the progressive culture that develops on the local level around pressing social problems that we face.

3 of 3 people found the following review helpful:

4.0 out of 5 stars a big argument for sane political discourse, September 8, 2009

By 

Michael P. Korn "Yeshua Notzer Yisrael" (USA) - See all my reviews
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This review is from: The Case for Big Government (Public Square) (Kindle Edition)

Republicans seem to be in denial that we already have a huge government. the difference is that Republicans support big govt. for the sake of the warfare state, while demos for the welfare state. what about statistic that 80% of R&D at universities is supported directly or indirectly by the Pentagon? Americans need to understand that all the investment in the military produces end products that either are destroyed (bombs, bullets) or wear out (trucks, guns). that investment if applied to civilian life would produce permanent end products such as houses, infrastructure improvements and the like. your statistics on income disparity and stagnation are very sobering. i left america to move overseas after college in 1982 and returned in 2005. hardly recognized the nation. people work much harder for much less. quality of life plummets. nature of media is like a vast dumbed down propaganda machine. impression that the country is one vast intellectual prison camp. it also seems to me that the debate on health care and the refusal to seriously consider the single payer option used in many european countries indicates that americans no longer have a sense of social contract. the mass media also is so corporately driven that it is able to shape the debate on any particular issue according to the dictates of wall st. and the financier class. our country has become in all but name a third world nation of gross social and economic inequality.



The only things I found disappointing in your book were:



a. your discussion of globalization. your proposal that the US pressure its trading partners to improve their wage structures and environmental efforts seems hopelessly naive, especially since US wages are so regressive themselves.

b. your failure to address the perceived corruption of the federal reserve central banking system. since the release of aaron russo's film America from Freedom to Fascism, there is a growing perception among the public that the federal reserve is an elitist system that serves the narrow interests of the financier class to the detriment of the public as a whole and that serves to concentrate greater levels of wealth into Wall St. institutions. there is a sense that the Fed is a massive disinformation program designed to dupe the public. there even is a spreading belief that the entire fractional reserve banking system is hopelessly corrupted and permits the banks to obtain obscene profits and to dilute the money supply. (consider that for every $1 paid out by banks in interest payments to savings account holders, they accrue $20 in interest revenues from loans. this is perhaps the highest profit margin (1900%) of any industry on earth!) there also is outrage that the original income tax amendment provided for taxation of corporate profits but not personal incomes and that this too has been disregarded. your book fails to address any of these rising concerns.

c. your failure to consider the problem that history indicates that no ruling class ever willingly surrendered its powers. there is a growing sense in the nation that only armed revolt will enable the kinds of reforms your book discusses and suggests. your approach is far too passive and optimistic.

23 of 37 people found the following review helpful:

2.0 out of 5 stars More a narrative of big government than a "case" for it, November 7, 2008

By 

C. Steiner (Denver, CO USA) - See all my reviews
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This review is from: The Case for Big Government (Public Square) (Hardcover)

Let me start by saying that I am a conservative. I went to the bookstore to find a book about the federal budget. I didn't find one but the title of this book caught my eye. As a conservative I was curious what case could be made for "big government." I'm always eager to challenge my beliefs so I bought it.

I was disappointed. The title of the book suggested to me that a rational case would be made for big government. I didn't find that in the book. It seemed to me that the majority of the book was simply a history lesson on the American economy and where government was part of that history--the history itself was interesting, but I grew impatient for the *case* to be made for big government.

The problem I had with the "history" portions of the book is that, again and again, I felt that the book was assuming that if the reader read how the government did something and the economy did something positive, that was proof that what the government did was good--but there's no logical connection to prove that. The argument is made that since the size of government was growing in the 1900's and the economy was growing, it can be concluded that a growing government does not hinder growth--but that is a non sequitur. I found no real evidence or strong arguments that suggest that the growing economy was because of the growing government, nor no real answer to the belief that the economy could have grown even more had it not been for the growing demands of government.

As a conservative I found pages 136-138 particularly disgusting: The book goes on for three pages essentially fantasizing about all the different ways the government could tax the citizens and how much revenue the government could raise by doing so. Some of the ideas presented are downright confiscatory: Taxing wealth goes beyond the pale. It's bad enough that citizens cannot really own property, but rather are buying the right to rent it from the government (in the form of annual property taxes). The idea of taxing wealth takes that questionable idea to its logical (or illogical) conclusion: Such a tax would essentially mean that people would be working to earn the right to rent wealth from the government. The mind spins. But I digress.

I guess I don't know who the target audience is. I suppose if it's targeted at frustrated liberals that need a little pep talk, perhaps it would serve that purpose. But with a title like "The Case for Big Government" I was expecting the case to be made compelling enough to hopefully convince some skeptics or, at least, explain the liberal rationale to the rest of us.

If the latter was the intent, I think the book failed.