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Roman History and Asset Monetization(!)

by: Hopeful

Thu Jun 07, 2007 at 07:56:59 PM EDT



Obviously I'm a bit obsessed with so-called asset monetization, but I can't resist posting another argument against it that I noticed at salon.com: Gary Kamiya's review of Cullen Murphy's "Are We Rome?".  The book explores our similarities and differences with Imperial Rome in its decline.  Of the major trends that contributed to Rome's collapse:

Third, Murphy cites massive privatization and its attendant sins, corruption, the loss of faith in government and the degradation of civil society. To my mind, this is the most original and compelling part of his book. "Rome had trouble maintaining a distinction between public and private responsibilities -- and between public and private resources," Murphy writes. When this happens, "central government becomes impossible to steer. It took a long time to happen, but the fraying connection between imperial will and concrete action is a big part of What Went Wrong in ancient Rome." Similarly, "America has in recent years embarked on a privatization binge like no other in its history, putting into private hands all manner of activities once thought to be public tasks." Murphy says that "the privatization of power isn't a phenomenon of the margins, a footnote to history -- it's a central dynamic of American public life."

The result, he argues, is not only corruption, the what's-in-it-for-me mentality epitomized by the sleazy likes of Jack Abramoff, but loss of government's "management capacity." In part this is because private contractors don't answer to the same laws and regulations that government ones do; in part it's because government itself is simply vanishing. The loss of efficiency and command and control is bad, but still worse are the intangible ramifications of privatization: "the loss of civic engagement and loyalty across the board is a very real threat." Murphy declines to explicitly single out the Bush administration, and in a larger sense the small-government ideology of the Republican Party, as largely responsible for this trend. But that does not alter the fact that his book is a blistering implicit refutation of the GOP's anti-government ethos, and the still more degraded crony capitalism practiced by Bush.

There's no reason to privatization ("asset monetize") the highways.  The governor has basically admitted it's just a scheme to raise tolls.  But I think it is true that we pay a price in our culture for the glamorization of privatization.  Why should we contribute to it in New Jersey so that the Governor can pretend he's not raising taxes?  Or perhaps I should just quote one of Murphy's suggestions to revitalize America:

"stop treating government as a necessary evil, and instead rely on it proudly for the big things it can do well ... The Social Security check every month, the safe drugs and highways, the guaranteed student loans, the heath-care safety net in old age, the sandbags when the rivers flood -- their inherent benefits aside, these things promote a sense of common alliance and mutual obligation that dwarf narrow considerations of 'efficiency.'"

Hopeful :: Roman History and Asset Monetization(!)
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