Can the Gordian Knot Be Untied?

posted in: Regulation, Smaller Government | 2

 

Note: In last week’s blog, I wrote about the federal government being too big. If you missed it, you may want to read that blog first. Here is the link: http://www.commonsensecentrist.com/a-tangled-web/

The colossal size of our federal government has lead to a bloated bureaucracy, over-regulation, and wasteful spending on overlapping and ineffective programs.  Trying to overhaul such a complex system is akin to untying the Gordian knot.

Can the knot be untied? I don’t think so. I think we need a reboot. We should make reducing the size of the federal government a national goal.

Trying to reach this goal by untying the knot in a piecemeal fashion would be impossible, because every agency and program will have strong advocates fighting to protect them. What’s needed is a comprehensive approach – one that will help neutralize the efforts of special interest groups trying to defend the status quo.

I believe the best way would be to use a two-pronged course of action. First, we need to start with mandatory across-the board federal budget cuts. After the cuts are in place, we should then begin working on a long-term strategic plan to achieve the goal of shrinking the federal government. These cuts would prevent the government from growing any larger, and would require shared sacrifices of all agencies and programs.

This shared sacrifice of cuts across-the board, instead of Congress trying to pick winners, will make it harder for bureaucrats and special interest proponents to plead for more resources, or give favor to pet programs. Rather than continuing to let the pie get bigger, shrinking it with across-the-board cuts will put pressure on policymakers to identify which programs are unneeded, and where to make permanent cuts.

It’s very important that budget cuts be put in place before work begins on the strategic plan. The tension of shrinking budgets is the only way to ensure cooperation. We will also need to make the cuts painful enough to encourage swift action. Requiring these across-the-board cuts to balance the budget in a relatively short time frame of 4-5 years, will keep the squeeze on everyone to act quickly.

This initial plan should be set up so the only way the cuts can be lifted is by the adoption of the strategic plan. The strategic plan should also be required to balance the budget. Requiring a balanced budget will be necessary to help reach the goal of a smaller federal government.

Using such an approach will require broad bi-partisan support, because spending cuts are never popular. If across-the-board cuts are too painful to adopt, freezing all budgets is an alternative. Over a longer time frame, freezes can accomplish the same results. If we simply froze the entire federal budget for 8-10 years, it would also eliminate waste, save trillions of dollars, and balance the budget.

When working on the strategic plan, there will be no shortage of options to shrink government. One of my preferences would be to move several functions from the federal government to the states via block grants. We could also sunset all funding laws, and write new less ambiguous laws – that require fewer regulations – to replace them. We might form a blue-ribbon commission to review how to streamline government. We can start using performance audits (in addition to financial audits) to evaluate the effectiveness of programs. We could try reforming the civil service, or many other things.

How we skin this cat will be important, but accomplishing the goal of reducing the size of the federal government is paramount. Because of the pressure of mandatory budget cuts, I have faith that Congress can come up with an effective strategic plan.

Of course, there will be resistance. Both parties will try to protect sacred cow programs and big campaign contributors. They will tell us that there are better ways to untie the Gordian knot, and that the budget cuts aren’t necessary. But don’t believe it – their track record does not warrant such faith.

Trying to reduce the size of the federal government is a lot like the legend of Alexander the Great and the Gordian knot. Alexander couldn’t untie the knot, so he cut it with his sword and then unraveled it.

As difficult as it will be, the potential payoff is huge. Reducing the size of the federal government should result in less red-tape, smaller bureaucracy, reduced government spending, a balanced budget, and weaken the influence of special interest groups.

These measures will help free businesses and government agencies (federal, state and local) from the burden of indecipherable laws, and overreaching and counterproductive regulations. Doing so, would stimulate innovation and productivity, leading to a stronger economy and sustained growth for years to come.