Government is Whose Problem

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    Jon D. Wisman is a professor of economics at American University, Washington, D.C. Helpful comments by Chris

    Brown an an anonymous referee are gratefully ac!nowlege.

    911

    JOURNAL OF ECONOMIC ISSUES

    Vol. XLVII No. 4 Deceme! 2013

    DOI 10.2"#3$JEI0021%3&244"040&

    Government Is Whose Problem?

    Jon D. Wisman

    Abstract: '()* +!)cle +--!e**e* (e ol))c+l me+/)/ o !e*)-e/ Ro/+l- Re++/*

    191 -ecl+!+)o/ (+ 5o6e!/me/ )* (e !olem.7 8(e!e+*, ()*o!)c+ll, (e *+e

    (+- ee/ :*e- el)e* o e;!+c +* m:c( !om !o-:ce!* +* o**)le, o! oe/)+ll e/- > ()* e;!+c)o/. I/ !)/c)le, o/ce co/!ol o (e *+e )*

    -emoc!+)=e- (e +llo o;, (e o!:/e* o el)e* l+!el -ee/- :o/

    co/!oll)/ )-eolo. I/ 19##, S)mo/ ?:=/e* oe!e- (e ()(l )/l:e/)+l

    co/@ec:!e (+,

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    912 Jon D. Wisman

    An imbalance between rich and poor is the oldest andmost fatal ailment of all republics. &lutarch

    I/ ()* )!* )/+::!+l !e*)-e/)+l +--!e** )/ 191, Ro/+l- Re++/ -ecl+!e- (+

    5o6e!/me/ )* /o (e *ol:)o/ o o:! !olem o6e!/me/ )* (e !olem.7 !o6e!

    No!:)*, le+-e! o Ame!)c+/* o! '+; Reo!m, -ecl+!e- ()* o+l o e 5o c:

    o6e!/me/ )/ (+l )/

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    (overnment #s Whose &roblem) 913

    ?:=/e* ()m*el -)- /o el)e6e (+ ()* +mo:* )/lec)o/ o)/ o

    :)cl !e+)/e-. '(e e;ce)o/ (+ !o6e* (e !:le )* (e o!%e+! e!)o- (+ e+/

    )/ (e !e+ De!e**)o/ +/- l+*e- :/)l (e m)-%19"0*, -:!)/

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    914 Jon D. Wisman

    eco/om)c, -emo!+()c, m)l)+!, ecolo)c+l, o! /+:!+l e6e/* !o:( o/ c!)*e*

    *e6e!e e/o:( o (!e+e/ (e el)e* )-eolo, +/- (:* (e)! e!ce)6e- )/e** o !:le.

    Bo

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    (overnment #s Whose &roblem) 91#

    !e+-)l (e+! +/- !o:)/el ollo

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    91& Jon D. Wisman

    2009, '+le 1."H. '(e !)*e )/ (e )/) coe)c)e/ )/ F):!e 1 elo< !o6)-e* + !+()c

    !e!e*e/+)o/ o ()* !o

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    (overnment #s Whose &roblem) 91"

    &tate 'ono(oly Lost

    '(e e6ol:)o/ o +/ :!+/ )/-:*!)+l

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    91 Jon D. Wisman

    So:( ?o!e+ +/- '+)

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    (overnment #s Whose &roblem) 919

    +e/c (+ co:l- l)m) o! e6e/ el)m)/+e (e el)e* o

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    920 Jon D. Wisman

    come/*+)o/ !o!+m*, mo* o

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    (overnment #s Whose &roblem) 921

    )-eolo )* ccl)c+l +/- (+ !e+c)o/* +!e e;!eme G192H. '(e +)l:!e o l+o! o :l)ll

    )* )/o!m+l

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    922 Jon D. Wisman

    A /e< me-)+ ec(/olo, (e !+-)o, !e+l +**)*e- (e -)**em)/+)o/ o

    )-eolo. '(e )!* !e:l+! !+-)o !o+-c+* oo l+ce )/ No6eme! 1920, +/-

    192,

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    (overnment #s Whose &roblem) 923

    '(e )-eolo (+ e/+le- (e !)c( o +c:)!e )/c!e+*)/l l+!e *(+!e* o

    *oc)e* o:: (+- *ee!e- (e eco/om )/o **em)c -*:/c)o/ G8)*m+/ 2013+H.

    No o/l -)- (+ )-eolo c!e+e (e !eco/-))o/* o! (e c!)*)*, : ) +l*o -eee/e-

    ) +/- )me-e- )mleme/+)o/ o (e /ece**+! me+*:!e* o e/- ). Al(o:(

    ()*o!)+/* *)ll -e+e (e c+:*e* o (e !e+ De!e**)o/, +ll +!ee (+

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    924 Jon D. Wisman

    )he 0ich 0eclaim Command o Ideolo+y

    Bo

    12 '()* +llee- l+o!%-)*c)l)/e !olem

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    (overnment #s Whose &roblem) 92#

    /o< +!me- +!e

    o6e!

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    92& Jon D. Wisman

    A* + co/*e:e/ce, -:!)/ (e +* o:! -ec+-e*, (e

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    (overnment #s Whose &roblem) 92"

    l)e!+l co:/e!+!*. (e m)-%1990*, (e!e (+- ee/ (e Ce/e! o/ :-e +/- ol)c !)o!))e* > co:l- cl+)m ()* e+. I/ +c, )/ 200&,

    (e +!c(%co/*e!6+)6e Be!)+e Fo:/-+)o/ +lo/e (+- l+!e! e;e/*e* (+/ (e l+!e*

    o:! l)e!+l ()/ +/* com)/e-. I )* /oe

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    92 Jon D. Wisman

    *e-:c)6e, +/- )/ m o)/)o/ (e mo* o)*o/o:*, )* o oc:* o/ :e*)o/* o

    -)*!):)o/7 GL:c+* 2003H.

    +lm+ c(+!+ce!)=e* ()* 5/eo%co/*e!6+)*m,7 ollo

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    (overnment #s Whose &roblem) 929

    +!e mo!e -ee/-e/ (+/ e6e! o/ ) mo/e o! (e)! c+m+)/*7 GRe)c( 2010H.20

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    8+-e, ()* -om)/+)o/ )* e;e!e- e;!emel e< Ame!)c+/*. 5'(e eole

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    930 Jon D. Wisman

    e!*:+-e- (e el)e* e6e!%mo!e *o()*)c+e- )-eolo,22 m+!e* ec+me

    -e!e:l+e-

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    (overnment #s Whose &roblem) 931

    )-eolo)c+l co:

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    932 Jon D. Wisman

    Ine/!ality1 What Is the %!t!re or Ine/!ality?

    8(+ (oe !em+)/* o! !e+e! e:+l) c!+)/ +/ e6e! mo!e *o()*)c+e- *el%

    )/e!e*e- )-eolo (+ (+* ecome e6e! mo!e co/6)/c)/ o (e l+!e! o:l+)o/,

    el)e* (+6e m+/+e- o +!o!)+e e6e! l+!e! *(+!e* o /+)o/+l )/come, o/e (+ *e6e!el

    !e-:ce* l)6)/ *+/-+!-* +/- *ec:!) > +/ e6e/ +* e;!eme +* (e !e+ De!e**)o/.

    :

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    (overnment #s Whose &roblem) 933

    o! (o*e elo< (e o (+ (e

    /e+! (e (!e*(ol- o +!e m+e!)+l *:*)*e/ce

    S(o:l- ()* *ce/+!)o e +cc:!+e, (e/ (e o/l (oe m)( e e)(e! *ome

    me+/* o )/*):)o/+l)=)/ (e -ele))m+)o/ o (e )-eolo o (e

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    934 Jon D. Wisman

    (e *)/ o + -+/e!o:* *):+)o/7 G2011, 9#H. Democ!+c me+/* mo!e (+/ *)ml

    o/e e!*o/, o/e 6oe. 'o (+6e me+/)/, ) !e:)!e* (+ (e!e e + -e!ee o e:+l)

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    (e)! )mme-)+e *el%)/e!e* e6e/

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    (overnment #s Whose &roblem) 93#

    C!o, J+me*. 5S!:c:!+l C+:*e* o (e lo+l F)/+/c)+l C!)*)*P A C!))c+l A**e**me/ o (e KNe. 5Colo/)+l)*m, I/e:+l), +/- Lo/%R:/ +(* o De6elome/.7 8o!)/ +e! /o.110#". N+)o/+l

    :!e+: o Eco/om)c Re*e+!c(, 200#.

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    F!eel+/-, C(!*)+. 5Al o!e B+* See/ (e F::!e +/- I* M+)c.7 3he Washington &ost, Fe!:+! 24, 2013,

    1, 2.

    l+e*e!, E-

    !e)-e!, 8)ll)+m. 5'(e E-:c+)o/ o D+6)- Socm+/.7 3he Atlantic ;onthly24, # G191HP 2"%#4.

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    #ts Bac! on the ;ile Class. Ne< o!P S)mo/ +/- Sc(:*e!, 2010.

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    93& Jon D. Wisman

    ?:=/e*, S)mo/. 5Eco/om)c !o>>. 5'(e I/-:*!)+l Re6ol:)o/P +* +/- F::!e.7

    Mo!+/, ')mo( +!)c. 5?:=/e** I/6e!e- U%C:!6e Bo(e*)*P '(e R)*e, Dem)*e, +/- Co/)/:e-

    Rele6+/ce o + Soc)oeco/om)c L+uality an "fficiency+ 3he Big 3raeoff. 8+*()/o/P !oo)/* I/*):)o/ !e**, 19"#.

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    B)*o! ':!/e- O: o e !em+:!e.7 Cambrige Journal of "conomics33, 4 G2009HP 29%&9.

    e!elm+/, M)c(+el. 3he Confiscation of American &rosperity+

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    (overnment #s Whose &roblem) 93"

    Roeme!, Jo(/. 5I-eolo)c+l +/- ol))c+l Roo* o Ame!)c+/ I/e:+l).7 Challenge#4, # G2011HP "&%9.

    Roo*e6el, '(eo-o!e. A--!e** + (e Col)*e:m. S+/ F!+/c)*co, Seeme! 14, 1912.

    Ro*e, Se(e/ J. 'eboun+ Why America Will "merge *tronger

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    C o p y r i g h t o f J o u r n a l o f E c o n o m i c I s s u e s ( M . E . S h a r p e I n c . ) i s t h e p r o p e r t y o f M . E . S h a r p e

    I n c . a n d i t s c o n t e n t m a y n o t b e c o p i e d o r e m a i l e d t o m u l t i p l e s i t e s o r p o s t e d t o a l i s t s e r v

    w i t h o u t t h e c o p y r i g h t h o l d e r ' s e x p r e s s w r i t t e n p e r m i s s i o n . H o w e v e r , u s e r s m a y p r i n t ,

    d o w n l o a d , o r e m a i l a r t i c l e s f o r i n d i v i d u a l u s e .