Public spending has been under relentless attack in the U.S. since before President Ronald Reagan first took office. The notion that “shrinking government” grows the economy, builds character and may even save our immortal souls is now one of the verities of our political discourse: public=bad; private=good. Indeed, it was the central belief uniting Tea Party members during this year’s campaign. Research and experience don’t support this conviction, but here we are.
The massive government spending that was deployed to push the economy back from the brink of depression has aggravated the always inflamed passions on this issue. With red lights flashing and sirens wailing, anti-spending Tea Party-backed politicians are now riding to Washington to slay – or at least rein in – the beast of government.
This is the narrative we live with.
There is an alternative narrative however, supported by years of research, that tells a different tale, one in which public spending is a positive good, for the economy and society. In this narrative, public spending rises naturally as societies prosper and voters – demanding better infrastructure and better public services for themselves and their families – understand the need to pay for the kind of society in which they want to live.