Contributors

Monday, June 11, 2012

Government Created Wealth

A few weeks ago I had the pleasure of watching a documentary about the Grand Coulee Dam. It was part of PBS's American Experience series that I have enjoyed for many, many years. Here is the program in its entirety and I recommend watching the whole thing before you comment on the rest of this post.  



Watch Grand Coulee Dam on PBS. See more from American Experience.

My initial awe at what went into this project and the enormously positive outcome gave way to a profound sadness because a project like this could never happen today. Why? Because "the GOP has become an insurgent outlier in American politics. It is ideologically extreme; scornful of compromise; unmoved by conventional understanding of facts, evidence and science; and dismissive of the legitimacy of its political opposition.." (Thomas E. Mann and Norman J. Ornstein)

Before the dam's construction, the likely ancestors of the Tea Party behaved in a similar fashion as described by Mann and Ornstein, shouting all too familiar cries of dissent. Proponents of the dam were called "crackpots" and "Coulee Communists." Big private power interests fought fiercely against it. Collier's magazine downgraded Grand Coulee and, as the structure rose higher, it was labeled as "socialistic, impractical dam-foolishness." Even experts, engineers and geologists debated its usefulness. The president of the American Society of Civil Engineers branded Coulee as "a grandiose project of no more usefulness than the pyramids of Egypt." A Spokane paper sneered. "Baron Munchausen," it said, referring to the legendary liar, "thou wert a piker."

They were all wrong.

The Grand Coulee Dam, a taxpayer funded, government project, resulted in millions of dollars for the defense industry (60,000 planes and the creation of plutonium-239 were built using the power from the dam) and an explosion of agriculture in the state of Washington due to irrigation of a once arid, massive area of land in the Northwest. In fact, it provides irrigation to 2,000 farms in the area. The Grand Coulee Dam is one of the top produces in the country of hydro-electric power.Entire towns...economies...grew up around the building of the dam as thousands of people and a massive amount of materials were needed in its construction. The entire region was changed and became very prosperous as a result of the dam.

So, the Grand Coulee Dam is an example of how the government can create wealth. I realize this is sacrilege  for the right wingers out there but the facts are the facts. So, why again can't we do something like this today?

Looking deeper than the reasons I listed above, one becomes even more confused. Economic conditions were worse back in the 1930s. Unemployment was higher. The private sector had been shown to be a collection of greedy buffoons who were, in essence, addicted to gambling and using the nation's (really, the world's) economic structure as collateral. People put their faith in government and it paid off. The same thing should be able to happen today, right?

No. Because the last 30 years have seen a systematic attack on the institution of government that is so egregious...so profoundly inaccurate...that I fear the national perception is forever changed. Even as little as two years ago, I have caught myself saying (in derision), "Well, this must be a government operation." It's become part of our zeitgeist to hate the government and yet we so desperately need its structure and organizational principles right now to get ourselves out of this sluggish funk. Combine this with near worship we have of the real Gordon Gekkos of our country and our federal government doesn't stand a chance.

Yet, it's terribly obvious that the private sector is not going to be able to improve our economy on its own. Their motivation is for profit. That's great when you are exclusively operating in the free market. As we have seen far too many times, the free market isn't a universal panacea for all things economical. This is especially true because the government...our government and the governments of the world...are partners in the economy. They have to be because governments can sometimes improve market outcomes. And the Grand Coulee Dam is an excellent example of exactly how this works.

President Obama has been trying to do this for the last 3 1/2 years and has been massively derided for it. He's a "big government liberal" who wants to blah blah blah...have any of the people who say this ever taken the time to see the results of a project like Grand Coulee?

In truth, we don't even have to do something as massive as the Grand Coulee Dam to get our economy moving again. We could simply start with a massive repair plan for our nation's highways and bridges. That would put people to work which would, in turn, generate revenue for the government and the private sector. In essence, I'm talking about the president's jobs plan. 

Of course, the Republicans will never pass anything that could signal a success for the president in an election year. To put it simply, they, like the detractors of the Grand Coulee Dam, have a vested interest in the failure of such policies which essentially means they have a vested interest in the failure of our economy.

And, since the perception of our government is not what it was in 1933, they may very well succeed.

27 comments:

Nikto said...

The whole argument between "Big Government Good, Big Business Bad" and its converse, "Unregulated Markets Will Make Everything Wonderful" misses the point.

Both government and business are much larger than they were a century ago, relative to their roles in the lives of everyday people. Just as decisions made in Washington can directly affect the personal lives of every person in the country, decisions made by Wall Street bankers have similarly broad effects on our economic well-being, and Facebook knows where you are and what you're doing, saying and thinking every minute of every day.

The intersection between business and government is similarly important. When a large Chinese government begins to work closely with large multinational corporations, and even begins to control them, it will have world-wide implications for everyone everywhere.

China certainly picks winners and losers among Chinese corporations, providing large subsidies to their companies so that they can beat out American companies (like Solyndra, for example). China constantly manipulates its currency to provide huge advantages for Chinese companies.

Shrinking the American government down and removing regulations that protect Americans from toxic "food" and dangerous products from Chinese corporations, and shoddy practices by international companies like BP that result in gigantic oil spills on American jurisdictions would be a foolish mistake.

It would be a unilateral disarmament far more dangerous to the lives of everyday Americans than the nuclear disarmament agreement with Russia that the Republicans are railing against.

Because many multinational companies that have budgets larger than entire countries, the US government must remain large enough to defend itself (and us) from the predations of such entities. And remember, "American" companies aren't really American anymore -- they exist outside the whole concept of nation states, owing no allegiance to anything other than profit. They can be bought out by foreigners at any time. Say, Chinese "investors" who might decide to buy stock rather than America treasury bills.

juris imprudent said...

Why? Because "the GOP

WTF?

It wasn't the GOP that nearly stopped Glen Canyon Dam. It isn't the GOP that has talked up tearing down dams like Hetch Hetchy and in the Pacific Northwest.

When you are this stupid in the service of blind partisanship is it any wonder that other people take you for a total fool?

-just dave said...

Wow...that's just really, really stupid.

How about a new pipeline or two? Who's stopping what?

Truly stunning...

Eric said...

There's a lot more to the pipeline issue than just the government willing or not willing to move. Talk to a farmer and some of the governors who will be affected by this. I expected you to take the party line on this one, just-dave, but I didn't think it would be such a simplistic or boilerplate response. What's really stupid is your unwillingness how much the detractors of the GCD resume me the Tea Party. The crapping all over the government that occurs on a daily basis is indeed having a profoundly negative effect on our economy. It needs to stop.

-just dave said...

Good gravy, Eric, how simple are you? Talk to a farmer about a little pipe running thru thier state? How about the farmers down stream from the dam? Gee, I'm sure the Sierra Club would be all in for that new dam.

(And, oh yeah, the GOP is breaking new ground here with opposition to the opposing party; never been done before. Was that your turnip truck going by?)

Mark Ward said...

Take heart, Eric. When I'm called simple or stupid that usually means that I am closer to the truth if not right exactly there. This post is certainly illustrative of that. dave, you just can't admit it, can you?

Mark Ward said...

Oops! Forgot.

http://republicans.energycommerce.house.gov/Media/file/Hearings/Energy/052311/Randy%20Thompson.pdf

He would be a primary source, dave.

juris imprudent said...

The crapping all over the government that occurs on a daily basis is indeed having a profoundly negative effect on our economy.

That's pretty funny - a little dissent destroying the economy. I remember way back when dissent was considered the ultimate form of patriotism. I've even read of a time when govt wasn't a leviathan, and the economy actually grew - can you believe that?

Oh and eric - I don't believe you ever did explain just why the "partnership" of govt and industry was obvious. If you want to be just like M, be sure to ignore such opportunities to expand on what you think.

-just dave said...

Hmmm, yes, I see... What's the phrase I'm looking for?...oh, yeah: So what.

How could I retort? Let me count the ways...

So a farmer doesn't want the pipeline?
What if he didn't want the new interstate? Or the new windmill farm? Or the new shopping mall (I'm sure you're familiar with the SCOTUS case there)?

juris imprudent said...

I see N has a bad case of China envy - must be reading too much Tom Friedman.

China is also a corrupt, single-party authoritarian state (with abuses that make even our worst corporations look downright benevolent) - or do you consider that a feature and not a bug?

Dr. Froncknsteen said...

And if the farmer doesn't want his land drowned because of a dam, and doesn't want to sell? Well, too damn bad, because eminent domain will be invoked. And Indians? Well, screw them, too! Maybe especially screw them. When the government has big things to accomplish, little things like treaties can't be allowed to stand in the way.

"Partnership" between business and government? Don't make me laugh. The more the government uses its powers to influence affairs in one direction or another, the more incentive there is for big business to spend to try to influence government in their favor, or at least not to their disadvantage. In the 80's and 90's, Microsoft had a tiny lobbying presence in Washington, almost non-existent. But after the Netscape-induced anti-trust suit, MS now has a large and very active presence in DC.

It's certainly a myth that big business generally likes small government. Far from it. From big government comes big contracts and big favors, and big protection from other companies. Big business and big government are too often partners in crime.

juris imprudent said...

I'm not ignoring you, Juris.

Did I address a comment to you M? My last was a response to eric.

here in Texas

???

Did you just unzip your fly about sockpuppets in the comments?

Markadelphia said...

Something weird is going on with comments or someone is faking names again.

Markadelphia said...

Hmm..weird. My name is not blue as it usually is associated with google account and I am signed in. Something odd is going on with spam too. I really hope my site or google account hasn't been hacked!

Anonymous said...
This comment has been removed by a blog administrator.
Eric said...

I wrote a comment on here earlier and it has since been deleted. It came up first as my name and then as Mark's name. Based on the above comment, I'd say you might have a hacking issue, Mark. Hope it works out!

Markadelphia said...

The Mark-0-Daffic (tm) ELIZA script has taken on a life of its own! OMG! Rejection! Projection! Flipping! Negativity! LOGIC!!! Oh no! I can't stop it, somebody help meeee....

Eyegor said...

It's alive! IT'S ALIIVE!

Dr. Froncknsteen said...

My name is FRANKENSTEIN!

Mark Ward said...

Alright, I think everething's been fixed. I got a note from Google saying they had some issues with comments. We may have lost a couple here and there and, if so, I apologize.

juris imprudent said...

Hmm - apparently the comment that couldn't decide if it was from eric or M is the primary casualty. Most curious indeed.

GuardDuck said...

And that reinforces earlier suspicions.

Curiouser and curiouser....

Serial Thrilla said...

I lost three comments that I posted in this thread. Hey Mark, did you check your spam filter?

Mark Ward said...

I have checked it, Serial, and they aren't in there. Sorry for the lost comments but you aren't the only one. Blogger recently switched its interface as well so that may have something to do with the issues as well. I don't think they know, to be honest.

Of course, this all must mean that I'm Truth Girl again...ah, well.

last in line said...

You never stopped being truthgirl.

Mark Ward said...

I just deleted another duplicate comment...sigh...who knows? Maybe it's just this thread which is really a drag since I consider the post to be of more significance than most of the others in the last week.

juris imprudent said...

More significant? Really? Why? You just rail against the voices in your head - which only take anything approaching corporeal form as strawmen for you to vigorously thrash. Then again, perhaps you aren't so certain which voice inside your head is your own.

The critics of Grand Coulee aren't on the right - they are leftie enviros; those who would rather see a "natural" world absent a human presence (save of course such enlightened souls as themselves). Nor can you equate the construction of a dam with the ongoing employment of teachers and cops. Well, actually I imagine you can do that - it just isn't reality-based.