Much of the arguments over the last several years (if not decades) has been over the size, scope, and cost of government – and for good reason. However, one aspect that needs more attention: how government conducts itself. Outside of the IRS fiasco, this hasn’t received its due attention. Contrary to what many might think, this is one of the more profound dividers of the two major parties.
At the federal level, the argument is congealing around the Federal Reserve and its sugar-baby: the Consumer Financial Protection Bureau. Newly empowered Senate Banking Committee Chairman Richard Shelby wants greater oversight of both (Washington Examiner), but the CFPB’s defenders in particular caught my attention with this line: “Consumer advocates oppose such changes, warning that they could limit the CFPB’s ability to act independently…”
Ah yes, the great desire of all government bureaucracies – to be able to “act independently.” You’ll usually notice they almost never note from whom…
…except, of course, where the Fed itself is concerned; the Fed’s defenders have always been more bolder at slanging the elected officials who appoint its leadership. Alan Blinder (former Fed Vice Chair) is a typical example (Wall Street Journal). Keep in mind, thought, Blinder is not even bothering with the audit-the-Fed folks (who, for reasons that have nothing to do with the argument, are considered the extreme end of the debate over the Fed). He’s upset about a bill that would force the Fed to be open about its monetary policy. as John Taylor notes, apparently even that small amount of transparency is too much for Blinder.
Beneath these arguments about transparency versus “independence” is a deep division on the nature of government. From the left, government is still the corporate-limiting, do-gooder champion of old, worthy of implicit trust, complete support, and full “independence” without little, if any, verification or oversight from elected officials necessary – and not just where the Fed is concerned. From the British National Health Service (Dan Hodges) to local public schools in America (New York Post), leftists repeatedly defend the government employees and insist that neither competition nor accountability is warranted.
Those of us on the right know better. Regulatory Capture was once an exotic theory; today it’s repeatedly proven to be a painful reality (Fed included, New York Post). Government-provided services have all too often devolved into a government of, by, and for the service providers. In short, to borrow a phrase from Shepherd Book, “A government is a body of people, usually notably ungoverned.”
Whenever an agency demands “independence,” what they really want is the ability to remain “notably ungoverned.” One need not fear an imminent Shan Yu to see the danger in this.
@deejaymcguire | facebook.com/people/Dj-McGuire | DJ’s posts
