Lindsey: Brooks' Book is "Wrongheaded"
Brink Lindsey of the CATO institute has reviewed Arthur Brooks' new book at The American Prospect. He is not convinced of his arguments:
Let me make it clear at the outset: When it comes to specific questions of economic policy, Brooks and I probably agree on a great deal. Indeed, I'd bet that my opinions are much closer to his than they are to the typical reader of The American Prospect. I thought that the stimulus bill was, by and large, a waste of money, and the takeover of General Motors and Chrysler, a travesty. I opposed the recent health-care legislation and the climate bill and card-check legislation. Hey, I'm a vice president at the Cato Institute, so none of this should come as a big surprise.
But Brooks' book isn't about policy; it's about ideology and how to engage in politics. And it is, I'm sorry to say, a thoroughly wrongheaded way to approach these questions. The attempt to turn economic policy disputes into a populist cultural crusade rests on deep-seated confusion about the nature of those disputes and how best to effect constructive policy change. Brooks' key move is to cast our "free enterprise system" as an instance of American exceptionalism -- in contrast to the social democracy of Europe and other advanced nations. Thus, economic policy becomes fodder for cultural politics: Supporters of free markets are defending a unique and precious American heritage, while members of the "30 percent coalition" have thrown in with the foreigners -- worst of all, with effete, decadent Europeans.
To treat Brooks' narrative seriously, it's helpful to break down the concept of the "free enterprise system" into two separate and distinct elements. The first is free markets; the second, small government. They need not be a package deal. Governments can effectively stifle enterprise and competition without spending a lot of money, while a large public sector and a vibrant private sector can go hand in hand. So let's look at each component separately.
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