I’m back from the Upper Peninsula and have access to the internet again. Woo-hoo! Unaware of events going on around me I neglected to raise a pint in memory of Raymond Crotty. I don’t take pride in my own Irish ancestry and don’t think much of those who do, but in this case I’ll make an exception. Hurrah for unanimity rule!
The requirement of unanimity (or rather the absence of any final authority that can say “yes”) is held responsible for many of the ills we ascribe to “bureaucracy” in James Q Wilson’s book, which I have just finished. Wilson is interested in the constraints placed upon government agencies and though he recognizes that those constraints exist for a reason would like to reduce them on the margin. As one who would prefer that they [EDIT: by which I am referring to the agencies, not constraints] not exist at all I consider that a second best outcome. I do think they are given too many goals by the political system that the rationalist economist in me would prefer to be dealt with through a sort of lump-sum transfer payment disentangled from the functions of these agencies, but that is unfortunately politically infeasible.
Wilson tries to point out the good work government agencies do and seems to hark back to the turn of the century when forceful executives created and shaped elite agencies like the Forest Service, Army Corps of Engineers and FBI though he also recognizes (not often enough) that the imprint folks like J. Edgar Hoover left was not always benign and often hindered their agency’s ability to accomplish some tasks. When a government agency’s performance is looked at favorably, it is usually relative to another government agency (Steve Horwitz stifles his inner libertarian to do likewise for the Coast Guard here) as private organizations are noted at the end to almost universally deliver equivalent outputs with lower costs (the exception between power generation, perhaps due to economies of scale or breaks given by other government officials). The short segment at the end comparing the market to the government really lacked imagination in considering what can be privatized (he unfortunately neglects to distinguish privatization/mutualization from contracting, saying “We could have a small, minimalist government dear to the heart of the strictest libertarian that nevertheless conducted its business entirely through public bureaucracies. Conversely we could have a large, activist government with great powers and vast revenues that hired private firms to exercise those powers and dispense those funds”). I recommend reading this book along with Bruce Benson’s excellent Enterprise of Law, which points out how privately provided legal and security services are not only feasible but have a fairly long and satisfactory track record. Another reason the two books are good to read alongside each other is that Benson rather vigorously pushes the traditional Public Choice analysis of government favored by “economic imperialists”, which Wilson explicitly rejects and provides a decent amount of evidence why we should at least rethink it. Dain provides more here, and notes that Jeffrey Friedman (to which I and Jeff would both add Bryan Caplan) has greatly critiqued the old view of Bureaucratic Imperialism resulting in something I might call New New Institutionalism. An Austrian-Virginian (both schools Friedman happens to reject) history of Public Choice and its mistakes is here.
I’m afraid my own interests are going to give you a warped sense of the focus of the book, which really is about “What government agencies do and why they do it”. It discusses the different kinds of tasks and ways of monitoring performance, the actual employees who implement policy as well as the managers and executives and try to mold their behavior, the environment (Congress and its committees, the White House, interest groups, the press, peers within the profession) that shapes how they operate and more. It explores how different our presidential system is from parliamentary ones and how our “pro-business” government adopts a more adversarial approach toward industry than its Swedish counterpart. All in all a good book I recommend. I’ll leave you with a quote I found amusing
Wilson recently (perhaps its still going, I’m out of the internet loop) made a series of posts on Volokh, gathered together here. Now that I’ve finished his book I’m reading Freda Utley’s China Story. On Power is on order and when it arrives for me to start transcribing and/if I take the job in Wisconsin I’ll likely have less extra time to fritter away on the blogosphere. So heads up and sorry in advance.
June 17, 2008 at 4:24 am
Point of clarification: does this
mean that you’d prefer the restraints wouldn’t exist, or the government agencies?
Presumably the greater context would make it obvious, but as I’m only loosely familiar with the details of your political views I can’t easily resolve the ambiguity in your post.
June 17, 2008 at 8:04 am
Be careful raising pints, yo.
June 17, 2008 at 10:54 am
or the government agencies?
Yes, the latter. I think it was a mistake creating the national government in the first place, and even at a local level the government takes on many more functions than I would prefer.
June 18, 2008 at 11:24 pm
A “mistake”? I don’t think the government happened by accident. Reminds me of that quote about how the British empire was created in “a fit of absent-mindedness”.
June 18, 2008 at 11:33 pm
I think some people like Madison (who left the Federalist party) really did not anticipate the kind of monster they were creating.
June 19, 2008 at 2:44 am
Since we think alike I am interested in what job you are considering, if you don’t mind sharing that. I’m currently earning degrees on a visa but I need more exit-strategies.
What is this new new institutionalism that you are talking about? Have you followed the latest exchange on austrianeconomists involving Friedman? Got quite childish there from the GMU side.
June 19, 2008 at 5:50 pm
The positions I’m applying for and considering when offered are all in software development, though usually as part of a larger company whose product/service is not software.
The original “institutionalism” was sort of an American version of the German Historical School which rejected general economic laws and thought each economy was simply the result of its particular institutions and could be radically altered. Veblen and Galbraith are examples. New Institutionalism was started by folks like Buchanan and Tullock, and they reversed the old Institutionalist method of examining how the economy was shaped by sociological forces to examining how government institutions themselves operated and made decisions based on incentives. What I am called “New New Institutionalism” involves dropping some of the neo-classical assumptions imported into Public Choice theory in order to attain a more realistic assessment of how governments/voters actually behave.
I try to drop by the Austrian Economists occasionally, especially when Jeff is involved. It seems much more targeted toward academics than other econ-blogs, perhaps to avoid the stigma associated with the overly-layman targeted Rothbardians. OrgTheory is somewhat similar.
June 19, 2008 at 6:47 pm
The “New New Institutionalism” (neo-new?) is greatly buttressed by sociological – anthropological/ethnographic – studies. The best work takes a look at that stuff. I would add behavioral economics too. Fascinating.
I’m still in disagreement with what I’ve read of the German Historical School (through Austrian lenses of course), at least insofar as they purport to deny the (more or less) normal laws of supply and demand and the relatively superior allocation of resources via the price system. Like Friedman, and contra the hardcore Misesians/Rothbardians, I too think Hayek is the more insightful thinker, with theories more widely applicable.
June 19, 2008 at 8:39 pm
I haven’t read all that much of Hayek, though I am partial to the general idea of distributed information and the pragmatic/empiricist bent of the Hayek-Popper fusion. Oddly enough, the anti-Austrian Bryan Caplan says Mises was much superior to Hayek. I think Caplan is a rationalist like Mises. Speaking of Mises, I can’t think of anyone else who was both a Kantian and a utilitarian.
June 20, 2008 at 2:35 pm
Ayn Rand apparently despised Kant AND utilitarianism.
June 20, 2008 at 5:33 pm
But apparently she got along fine with Austrians and promoted their economic views when Mises was the big man, and broke with them (and libertarians more generally) because of Murray Rothbard, who followed the deontological Natural Rights tradition of the Artistotelian Thomistic scholastics.
June 22, 2008 at 5:55 pm
According to R.M. Hare, Kant may have been a utilitarian:
http://deontology.com/
July 18, 2008 at 3:56 pm
[…] question to ask libertarians, and brings to mind James Q. Wilson’s book (which I reviewed here). Wilson has a high opinion of the Army Corps of Engineers (as well as the Forestry Service and for […]
January 2, 2011 at 7:49 pm
[…] with the mission they had long competently done of delivering services to their caseloads. I pointed out earlier that Wilson explicitly rejects the public choice economics theory of bureaucratic […]