In response to my post on Obama’s PAC pledge, Misty asked a question about what did I mean about “incentives.” It’s a fair question and one that is best answered by using a recent constituent letter I received from Senator Hatch’s office after I emailed his office asking him to oppose the farm bill.
In my view, Hatch’s letter perfectly illustrated both the pork spending problem and the incentives issue that drives decision making and $$ flow in DC. Hatch gave no principled justification as to why this farm bill was the right thing for government to do. Every rationale he used in his letter pointed to one overriding theme–bring home the bacon or in the case of this farm bill all the benefits, special programs, business perks.
So how does this answer the incentives question? Toward the end of his letter, he also mentioned that this bill was supported by “many agricultural groups in our state.” PACs (or in this case agricultural special interests groups) know that Sen. Hatch needs votes and that he needs money to run a campaign. PACs offer both to the elected official. PACs and special interested groups on the other hand need the people with the power of the purse (or the ability to take from one person and redistribute to another which would be illegal if PACs did it on their own) to do their bidding–they need their Sen. Hatch’s who have compromised to the point that all they have left to offer their constituents is BACON versus principled leadership.
So there you have the recipe for the continuation of the DC incentive love fest: [INCENTIVE for the Politician) votes which equal reelection and continued power and [INCENTIVE for the Special Interest] the growth of government programs or contracts or a general redistribution of wealth directly designed to benefit them. Of course all this is paid for by yours truly: you and me the taxpayer.
This lovefest is what Frederic Bastiat eloquently describes as “legal plunder.” And as it relates to our government today, we see a Bastiat’s Universal Legal Plunder played out over and over again and unfortunately not just by our own Sen. Hatch.
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Bastiat on Legal Plunder:
“See if the law (senators or congressmen/women) takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime…
“The person (agricultural interest in the above example) who profits from this law will complain bitterly, defending his acquired rights. He will claim that the state is obligated to protect and encourage his particular industry; that this procedure enriches the state [or its citizens]…
“Do not listen to this sophistry by vested interests.”
It’s almost like listening to the news every day.