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Robert Reich on Government Reform

Former Secretary of Labor; Democratic Challenger MA Governor

 


There can be no "free market" without government

Conservatives want a smaller government and less intervention; liberals want a larger and more activist government. This has become the interminable debate, the bone of contention that splits left from right. One's response to it typically depends on which you trust most (or the least): the government or the "free market."

But the prevailing view, as well as the debate it had spawned, is utterly false. There can be no "free market" without government. The "free market" does not exist in the wilds beyond the reach of civilization. Competition in the wild is a contest for survival in which the largest and strongest typically win. Civilization, by contrast, is defined by rules; rules create markets, and governments generate the rules.

A market-- any market--requires that government make & enforce the rules of the game. In most modern democracies, such rules emanate from legislatures, administrative agencies, and courts. Government doesn't "intrude" on the "free market." It creates the market.

Source: Saving Capitalism, by Robert Reich, p. 4-5 , May 3, 2016

Citizens United means deepest pockets get the loudest voices

In 2010, a majority of the Supreme Court of the United States decided in "Citizens United v. Federal Election Commission" that corporations are people under the First Amendment, entitled to freedom of speech.

Yet as a practical matter, freedom of speech is the freedom to be heard, and most citizens' freedom to be heard is reduced when those who have the deepest pockets get the loudest voice. Nowhere did the five members acknowledge the imbalance of power between big corporations increasingly willing to finance vast political advertising campaigns and ordinary citizens. In practice, therefore, the freedom of speech granted by the court to corporations would drown out the speech of regular people without those resources.

Source: Saving Capitalism, by Robert Reich, p. 11-2 , May 3, 2016

There can be no "free market" without government

Conservatives want a smaller government and less intervention; liberals want a larger and more activist government. This has become the bone of contention that splits left from right in America. One's response to it typically depends on which you trust most (or least): the government or the "free market."

But the prevailing view, as well as the debate it spawned, is utterly false. There can be no "free market" without government. The "free market" does not exist in the wilds beyond the reach of civilization. Competition in the wild is a contest for survival in which the largest and strongest typically win. Civilization, by contrast, is defined by rules: rules create markets, and governments generate the rules.

A market--any market--requires that government make and enforce the rules of the game. In most modern democracies, such rules emanate from legislatures, administrative agencies, and courts. Government doesn't "intrude" on the "free market." It creates the market.

Source: Saving Capitalism, by Robert Reich, p. 4-5 , May 3, 2016

Citizens United means deepest pockets get the loudest voices

In 2010, a majority of the Supreme Court of the United States decided in Citizens United v. Federal Election Commission that corporations are people under the First Amendment, entitled to freedom of speech.

Yet as a practical matter, freedom of speech is the freedom to be heard, and most citizens' freedom to be heard is reduced when those who have the deepest pockets get the loudest voice. Nowhere did the five members acknowledge the imbalance of power between big corporations increasingly willing to finance vast political advertising campaigns and ordinary citizens. In practice. Therefore, the freedom of speech granted by the cort to corporations would drown out the speech of regular people without those resources.

Source: Saving Capitalism, by Robert Reich, p. 11-2 , May 3, 2016

Politicians subjected to more lobbying & money than in past

Large corporations have less economic power now than they had 3 decades ago. The world economy contains far fewer oligopolies than it did decades ago, and almost no monopolies apart from those created or maintained by government.

As for politicians, they have not grown noticeably more corrupt, rapacious, or otherwise irresponsible than they were 3 decades ago. Politics has no more rotten apples than most corporations, although other occupations are typically spared the rotten headlines. In recent decades, however, politicians have been subjected to a great deal more lobbying than before, and the need for more money to finance their campaigns has grown. For this reason, their behavior has changed. The immense increase in lobbying and campaign money, however, is not due to any increase in the market power of any individual corporation; it stems, paradoxically, from a decrease in their market power.

Source: Supercapitalism, by Robert Reich, p. 10-11 , Sep 9, 2008

Cut wasteful programs, start with across-the-board 3% cuts

I’d look for places to cut wasteful spending. I’d start by cutting administrative costs by three percent across the board. I’d also focus on eliminating unnecessary make-work jobs, like the $18 million a year on patronage jobs in the court system. Over the past four years, they’ve cost the state more than $50 million. Or, to take another example, I’d cut the $4.5 million the Republican administration now spends on press secretaries. Political corruption [no longer] takes the form of outright bribes, or even campaign contributions expressly linked to particular votes. It is more subtle.

Here's how it works. A wealthy individual receives an invitation to have coffee with a Congressman. The photograph memorializing the coffee chat, complete with signature, hangs on the person's office wall.

What does this mean for the wealthy individual in incalculable. Suddenly he has become a person of influence.

Source: Link , Sep 17, 2002

Establish satellite governor’s office in Berkshire County

Reich said that if he is elected, a satellite governor’s office will be established in Berkshire County.

Standing on a wooden box behind the lectern, Reich, who is 4’10“ tall, drew laughs when he declared himself to be ”the only candidate with a real platform.“

Source: D.R. Bahlman, Berkshire Eagle , Apr 22, 2002

Money corrupts politics subtly

Political corruption [no longer] takes the form of outright bribes, or even campaign contributions expressly linked to particular votes. It is more subtle.

Here's how it works. A wealthy individual receives an invitation to have coffee with a Congressman. The photograph memorializing the coffee chat, complete with signature, hangs on the person's office wall.

What does this mean for the wealthy individual in incalculable. Suddenly he has become a person of influence. Such a reputation is valuable to him socially & financially.

In return, the politician may or may not get a campaign contribution directly from the wealthy individual. But through the wealthy individual the politician gains access to a network of wealthy people: the individual's friends & business colleagues. These new contacts may have previously harbored misgivings about the politician's values or objectives. But now the wealthy individual's relationship to the politician reassures them.

Source: The Future of Success, by Robert Reich, p.137-138 , Feb 8, 2002

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Page last updated: Apr 30, 2021