Who Built It?

08/29/12

We're seeing the back and forth between the Dems and the GOP about "who built it," whether the economy is a function of both public and private action (as artfully expressed by Elizabeth Warren and clumsily imitated by the President) or purely private Galtian will-to-create entrepreneurship. The only interesting thing about the argument is that there even is an argument. The facts are so overwhelming in support of the Elizabeth Warren version that it's astonishing that anyone would deny that government plays a huge and largely uncontroversial role (police, fire, roads, courts, currency) in making the economy function.  

So why are so many Americans so wedded to the private enterprise story? Why is this the heart of the GOP vision of what American is and should be? Why the insistence on clinging to the lone frontiersman version of America that has never really held true except on the margins?

I don't have a great answer to this paradox, but I think it is central for understanding our current political culture. Here are my initial thoughts toward explaining it; none strike me as a very satisfying answer.

  • True belief and aspiration. Clearly some people deeply believe the solely private enterprise story. Why flummoxes me.  Upbringing explains some of this.  Maybe there is something to the private enterprise story that we want to believe:  if we are successful, we want to believe that it is because of our personal merit, while if we fail, we want to believe that it is someone else's fault (and who better to blame than the government). We want to believe that we are all capable of being the loan frontiersman (who doesn't love Bear Grylls) and would be successful if everyone else just got out of the way. 
  • Ignorance. This is the "get your goddamn government hands off my Medicare," phenomenon. A lot of people (including some who are very well educated) simply don't recognize the extent of government's role in the economy (maybe because they've never bothered to look for it), and particularly that of the federal government, which doesn't have a lot of direct contact with citizens. The sole federal employee most people encounter is the postman or maybe someone in the armed forces. The lack of direct personal contact may make federal taxes seem out of proportion with benefits provided. 
  • Cynicism. Some people who embrace the private enterprise story know better, but they also see it as a lever toward deregulation that furthers their own personal interests. Relatedly, there are the policy world hangers-on, who are employed in government, think tanks, and the media.  The conservative bench is often shallower in the policy space, so embracing the private enterprise story can be a smart career move.  

I'm curious to hear readers' thoughts on this. 

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