Cracks in the Foundation: Refuting the Conservative Case for Low Taxes and Small Government

Rating:
Summary: Evidence against cherished assumptions
Review: Even as those on the Right achieve unprecedented political power, Ms Handelman offers evidence discrediting several of their cherished assumptions. She does so, however, by analyzing a wide variety of vital data and not by trashing her opponents. She points out that if taxes suppressed incentives and drove out venture capital as the Right claims, then the overall tax burden, which increased throughout most of the twentieth century, should have caused the US economy to wither. Instead it grew into the greatest economy in the history of the world. The author convincingly refutes Ronald Reagan's assertion that "government does nothing as well or as economically as the private sector." Her examination of outsourcing over time demonstrates that outsourcing of government work to the private sector is not proving to be a significant cost saver. And government's efficiency can exceed that of the private sector: Medicare provides more bang of the buck than private health insurance companies, and its customer satisfaction scores, measured independently, are also higher. Finally, the author provides the numbers to show that the private sector - even with tax incentives - will not be able to become the primary, much less the total support of those in society who need assistance.
Leonard S. Robins, PhD
Professor Public Administration Program, retired
Roosevelt University
Chicago IL