The main division in politics has been between progressive parties who want to expand government and re...
The main division in politics has been between progressive parties who want to expand government and reduce the role of markets, and the conservatives who want to do the opposite - reduce the role of government and expand markets. What this illustrates is the intelectual and institutional inertia that has prevented serious debate about redrawing lines between public and private activities.
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The adaptive mixed economy that should be tried is basically the bilateral approach__as once described by James Buchanan__as "a set of theories of governmental failure to offset against____ the theories of market failure", he summarized his approach as "politics without romance."__
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Unmistakably,__government__cannot afford to neglect its long-term fiscal results, and it needs a more aggressive response than even current versions of a _grand bargain_ would provide.__Diminution of long-term potential growth is one reason for concern. Another is that a deeply indebted government would have less _fiscal space_ for necessary stimulus during a cyclical crisis. There_s also the risk that unreformed entitlements crowd out other priorities and transfer scarce resources from young to old.

To some, such arguments amount to fetishizing _austerity_ while the jobless suffer. Actually, the problems of the__global economies are not only cyclical but also structural, and pummeling an _austerity_ straw man can be a way to avoid addressing the latter.

Food for thought the Post proposes while recommending__well thinking : subjectivity simultaneously with the objective.

Fernando Leyva Duran

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