THE PACKER | December 11, 2001 | By Larry Waterfield
(Dec. 4) Of all the changes that took place on Sept. 11, the biggest may be the change in attitude toward government.
Before Sept. 11, a conservative Republican was calling for a smaller domestic government, a more modest role for the U.S. in the world and for a somewhat Jeffersonian view - local control; limited central government; budget and foreign policy restraint; expanded business and world trade; and free market principles in agriculture and commerce.
President Bush wanted to develop more domestic energy, create a farm safety net not tied to production and sharply curtail the role of the U.S. as world cop on the beat, rushing to "resolve" conflicts that have simmered or raged for decades or even centuries.
RAPID EXPANSION
Well, toss all those worthy aims out the window. Now government is engaged in a rapid expansion based on legitimate security fears.
New powers and money are flowing to Washington, D.C. New budget deficits may replace surpluses. And dozens of industries are lining up to get bailout money from Uncle Sam. In addition, the U.S. has promised to comb the world to nab the terrorists.
There's a saying, "You can't bail out a battleship with a thimble." Well, nobody's coming with a thimble. They're coming with brigades of buckets to get a bailout.
The other day, Warren Buffet, one of the world's richest men, wrote that the federal government should be ready to bail out the insurance industry in the face of disasters such as those of Sept. 11.
INSURANCE BAILOUT?
Buffet, it should surprise no one, is in the insurance business big time.
Other enterprises and industries that have lined up for help include:
the airline industry the travel industry the hotel and hospitality industry the U.S. Postal Service.
Many others, including some in agriculture, expect help in other forms, such as tax breaks, subsidies or incentives in the new economic stimulus package before Congress.
The list here is too long to mention, but it includes both big and small businesses.
MORE, MORE, MORE
The new farm bill, regardless of which version is passed, will almost certainly defy Bush's call for restraint and add new support programs, more spending, more of almost everything.
Both Republicans and Democrats are ready to spend more in the name of security, including food security. Alternative fuels, including biomass energy, will get a boost.
Then there are the government agencies. For starters, there will be the federalizing of airport security inspections. Even the government agencies that appeared to screw up before Sept. 11 will get more money and more people.
MASSIVE GROWTH
The intelligence organizations will grow. The Immigration and Naturalization Service, which let thousands and maybe millions of people violate their visa status, will get more money and more people. The same is true for the Border Patrol, the U.S. Customs Service, the Coast Guard, the National Guard and the military.
Any agency dealing with health or food safety and security will do quite well. There are all kinds of proposals in Congress to spend more on food and import inspections, anti-bioterrorism, the Centers for Disease Control, the Food and Drug Administration and the U.S. Department of Agriculture.
No one is to blame for this rapid expansion except the terrorists themselves. But over-reaction will hurt in the long run.
The promise of bailouts for sinking businesses and the expansion of government agencies that are only marginally competent hurts society.
Failure and the fear of failure sharpen the mind, the senses, the instincts. If there can be no failure, there can be no real success because any success is tainted by the notion that "You can't lose; the government will bail you out."
DESPERATE ATTEMPT
The terrorists lost from the beginning. They damaged the U.S. but didn't bring it down or even come close. Their acts were desperate. The economy is already recovering. The stock market is back up. Retail sales look good. As Don Evans, commerce secretary, said, "Nothing can slow this economy down."
We cannot become obsessed with terrorists carrying suitcase bombs or sending germs in the mail. There are other threats on the horizon that cannot be ignored, threats that in the long run are more alarming because they will affect everyone.
For example, there is the "China Standard."
A businessman recently stood up in a seminar attended by top Bush officials and mentioned the China Standard, which he explained is the new standard demanded by many retailers: "Sell your products as cheap as China or lose the business."
CHINESE COMPETITION
He went on to say that there are 500 million Chinese workers willing to work for 20 cents an hour. China is shifting into fruit and vegetable production, with its promise of higher returns and export business.
Glen Hubbard, Bush's economic adviser, said that "globalization is good for consumers." He added that in trade "there are winners and losers."
But if U.S. business and agriculture are ultimately losers, it is hard to see how consumers can win. Consumers need jobs, too.
The new round of talks at the World Trade Organization has begun. It may seem boring and uneventful compared to the anti-terrorism fight. But, in the long run, the talks may affect far more people than desperate terrorists on suicide missions.THE PACKER:
