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- <text id=94TT0773>
- <title>
- Jun. 13, 1994: Congress:Under the Influence:
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1994
- Jun. 13, 1994 Korean Conflict
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- CONGRESS, Page 52
- Under the Influence: Just How Sick Is the System?
- </hdr>
- <body>
- <p>By Kevin Phillips
- </p>
- <p> If Dan Rostenkowski was just about the only person who could
- get things done in Congress, as some Washingtonians were wailing
- last week, what does that say about the efficiency of government?
- It would seem to confirm a diagnosis of demosclerosis. The term
- reeks of hospital wards rather than committee rooms and sounds
- vaguely like an argument for national leg braces. But that is
- author Jonathan Rauch's point: it is a disease--of democracy,
- government and nations--that all but cripples national policymaking.
- Fortunately, though, there's probably more kick left in angry
- U.S. voters than either sclerosis gurus or Washington lobbyists
- believe.
- </p>
- <p> In a sense, demosclerosis is policy-wonk-speak for a new interpretation
- of gridlock. Over the past few years Rauch has repackaged political
- economist Mancur Olson's 1982 thesis The Rise and Decline of
- Nations, and has just published a new book, Demosclerosis, to
- explain why government keeps malfunctioning.
- </p>
- <p> Washington is losing effectiveness, Rauch says, because of America's
- late-20th century buildup of special interests and influence
- peddlers: too many lawyers and ex-Capitol Hill staffers who
- deal in access to their former bosses; too many clubs, cloakrooms
- and expensive restaurants where they all meet; and too many
- average Americans who put their incomes and subsidies ahead
- of the national interest.
- </p>
- <p> Reasonable enough so far. Bill Clinton hasn't overcome gridlock
- in part because he hasn't acknowledged that it goes so much
- deeper than government divided by branches and parties. Olson
- and Rauch offer a useful addition: it reaches down into Washington's
- interest-group structures. Olson's underpinning theory is that
- national economies make their great strides when they are young
- and have few interest groups, or in the wake of revolutions
- or wartime defeats that have decimated their elites. However,
- once countries glory in a century or more of global success--Britain in 1914, the U.S. now--that brings a tropical growth
- of lobbies, Establishments and old-boy networks that no government
- can cut through. Economic growth slows or stagnates.
- </p>
- <p> Rauch, then, is relatively gloomy about U.S. public policymaking.
- Conservatives and liberals are both stymied: the conservatives
- because they can't clean out old regulations and programs, the
- liberals because there's not enough money to start new ones.
- Bringing the federal budget deficit under control, meanwhile,
- is virtually impossible because pro-spending interest groups
- have too much power.
- </p>
- <p> Here is where the interest-group fixation and outdated definitions
- of demosclerosis start losing touch with reality. As of mid-1994,
- the Clinton Administration has succeeded beyond expectation
- in its deficit-reduction effort--the projected 1994 fiscal-year
- deficit is $200 billion, down from the $290 billion foreseen
- when Clinton took office. In part that reflected the surging
- clout of an unsung bloc of pro-deficit-reduction special interests--the mass-volume U.S. bond markets, highly leveraged corporations
- and the giant banks and investment firms that made record profits
- in 1993 by trading and speculating in bonds as interest rates
- came down. These powerhouses had a lot more clout in backstage
- Washington than the pro-deficit groups out to spend the money
- on farmers, mass transit and jobless workers.
- </p>
- <p> The Demosclerosis update of Olson is critically weak in missing
- the transition between the interest groups of a great economic
- power like the U.S. at its peak--in the 1970s, perhaps--and those a generation later when that same country is shifting
- its emphasis to finance and services and internationalizing
- its outlook. More and more U.S. policymaking influence comes
- from new elites, multinational lobbies and special interests
- that have yet to be fully recognized. The author is still using
- an obsolescent power index.
- </p>
- <p> Meanwhile, not all nations mature or "go sclerotic" in the same
- way. To economist Charles Kindleberger, author of Manias, Panics
- and Crashes, the aging U.S. is caught up "in the ideology of
- letting people make big bucks," which has also been part of
- other national aging processes, especially those of late-stage
- great economic powers. Kindleberger is working on a study "about
- life cycles of countries." Interest groups, presumably, would
- be just one discussion topic, along with atrophying institutions,
- values upheavals, changing economies, realigning elites and
- much more.
- </p>
- <p> Finally, Americans must also consider technological upheaval.
- Even as U.S. governmental and political institutions weaken,
- a major rebirth could be on the computer-chip horizon. Europe
- and Canada, as well as the U.S., are experiencing a surging
- voter demand for greater participatory democracy--initiatives,
- referendums and interactive technologies--to reduce dependence
- on worn-out party systems that interlock with special interests.
- For example, acceptance of Ross Perot's 1992 proposal to use
- national referendums to approve federal tax increases would
- leave the House Ways and Means Committee and its attendant lobbyists
- gasping.
- </p>
- <p> Democratic renewal--this country's proud specialty over more
- than two centuries--once again may be in sight. If so, we
- may soon have a new problem: demohyperactivity.
- </p>
- <p> (Kevin Phillips is the author of Arrogant Capital: Washington,
- Wall Street and the Frustration of American Politics, to be
- published in September by Little, Brown & Co.)
- </p>
- </body>
- </article>
- </text>
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