Department of Government Reduction
Economic theory has well-developed explanations for the “size of the firm”. Both Coase and Hayek made important contributions toward understanding the various trade-offs and counterbalancing effects that ultimately determine the size of a business. But what determines the “size of the government”? Where are the checks and balances? Supposedly Reagan tried to make government smaller, but his tax-cuts generated so much tax-revenue that government grew anyways. Supposedly Rumsfeld tried to lighten the military and we all know how it ended. It seems that the efforts of one leader are not enough. Not even an entire reformist movement, molding the future generations of leaders, is enough. What gives?
Are we to just trust politicians’ self-restraint? Would a new oxymoronic “department” or maybe several: “department of spending cuts”, “department of pork elimination”, “department of political restraint” , etc….would they do the job?