Why Progressive Institutions are Unsustainable (Encounter Broadsides) [Paperback]

Richard A. Epstein (Author)

Book Description

Publication Date: November 29, 2011 | Series: Encounter Broadsides (Book 26)

The painful performance of the American economy in the past decade is not a function of bad luck. It is the product of flawed institutional design. Right now we are reaping the harvest of efforts to reinvigorate the progressive programs of the New Deal that stress high progressive taxes, large transfer payments, strong labor laws, and major barriers to free trade.

This combination of public finance and market regulation has proved a potent force for disaster.

High marginal tax rates expose the political system to strong factional strife that stifles initiative, adds uncertainty and reduces overall revenues. To these multiple ailments, Epstein argues that the best recipe is a return to the flat tax of the classical liberal tradition.

The government has committed itself to substituting state mandates for voluntary arrangements in labor and real estate markets, disabling both by retarding job formation and roiling real estate markets. To these multiple ailments, Epstein argues that the best recipe is a reinvigoration of free markets that do not upset voluntary arrangements on the supposed grounds that they are unfair, one-sided or exploitive.

Just change these two levers, and we can find an effective classical liberal antidote to excesses of the modern progressive age.

Product Details

• Paperback: 64 pages
• Publisher: Encounter Books (November 29, 2011)
• Language: English
• ISBN-10: 1594036268
• ISBN-13: 978-1594036262
• Product Dimensions: 4.8 x 0.2 x 7 inches
• Shipping Weight: 3.2 ounces (View shipping rates and policies)
• Average Customer Review: 4.5 out of 5 stars  See all reviews (4 customer reviews)
• Amazon Best Sellers Rank: #370,207 in Books (See Top 100 in Books)

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Most Helpful Customer Reviews

20 of 23 people found the following review helpful

4.0 out of 5 stars Why Government Institutions are Ultimately Unsustainable January 7, 2012

By Fritz R. Ward TOP 1000 REVIEWERVINE™ VOICE

Format:Paperback|Amazon Verified Purchase

This new book by Richard Epstein has a lot of potential. It explains why our current government institutions do not work, and describes a better system. Recent developments in public choice economics, however, suggest that the solution proposed in this book is ultimately unworkable.

A classical liberal, Epstein believes that well designed tax and regulatory structure by government promotes growth. Progressive institutions, however, are not well designed. Using high marginal tax rates and an ideology that supports redistribution will in fact promote an economic recession. Epstein suggests that we adopt a flat tax system and limit regulation to clear and simple laws governing commerce.

This is all well and good, so far as it goes. But one has to ask, why should we expect any governing institution to limit itself? If public choice economics has established anything in the last 20 years, it is that governing institutions are always expanding their size and reach. The incentives faced by public service employees work differently than those of private employees. The former have a strong incentive to expand their budgets and reach well past the marginal benefit gained by their actions. The latter do not. As a result, regulatory agencies grow over time, while providing less and less nominal benefit. Eventually they end up like the EPA, mandating enormous costs on industry, but offering little in the way of actual measureable benefits. But this growth also creates wealth inequalities by favoring existing industry over new start ups. And the result is a demand for "progressive" institutions that redistribute wealth and ultimately hurt society as a whole.

The bottom line then is that classical liberalism is a myth. The ideal of a well run government limiting itself to providing a public good with a fixed income will never happen. And hoping for such a government virtually makes progressive institutions inevitable, even if, as Epstein points out, they are undesireable. What we need is a way to actively restrict the size of government, and while this broadside points out the benefits of doing just that, it does not show how to obtain that result. Indeed, the flat tax proposal, while immenently fair and workable, would, like most effective tax cuts, actually increase the amount of money government receives. And rest assured, that money will be spent, in ways that run counter to the ideals expressed by the classical liberals like Epstein.

2 of 3 people found the following review helpful

5.0 out of 5 stars Encounter Broadside Series Is Amazing September 13, 2012

By Tina G. Mcmillan

Format:Paperback|Amazon Verified Purchase

If you want to learn the perspective of a conservative/libertarian leaning political organization the broadside encounter books are a wonderful opportunity to explore topics in an essay format. They are interesting and well worth the read.

3 of 6 people found the following review helpful

5.0 out of 5 stars A One Man Fireworks Display! December 18, 2011

By Bernard Chapin VINE™ VOICE

Format:Paperback

Length: 6:25 Mins

This is a great book by Dr. Epstein who has an incredibly impressive mind.