We
climbed to the mountaintop to visit the all-knowing source of wisdom:
Bureaucracy is in need of reform, but
our politics creates a system that will not be reformed
“The group in control of the government always
receives a share of benefits,
and the coalition that forges a partnership with
the government splits the remainder.”
Calomiris
and Haber (2014)
Why can our companies . large and small, control costs but our
governments cannot?
The Game of Bargains thus is driven by the logic
of politics, not the logic of economics. This view of the regulatory system
constrains the possible scope for sustaining effective reforms. In a democracy persistent
popular support is necessary, but “self-interested” groups will have strong
vested interests in forming powerful coalitions to oppose reform and distract
and misinform the voting public. Distract them with complexity.
Complexity dominates everything in our daily lives. Why cannot things be simplified?
Reform efforts are further hampered by the fact
that regulatory reform is complicated and the consequences of bad policies may
not emerge for a number of years. The
dominant political coalition with a stake in the existing system may add further
complexities to make it difficult for the majority of voters to understand what
is happening. This kind of opacity
(whether purposeful or not) undoubtedly impedes reform efforts.
I cannot
follow politics anymore – since I have concluded that it is a Game of
Bargains. Since the perpetrators
continue to add complexity and opacity and the talking heads can day or do
anything they wish. They have won. The
battle to be fought is not by my generation, who benefit from the Game of
Bargains (since we do not pay for what we have). The younger generations should
be fighting this battle, but self-absorption is the rule.
