TL/DR –
The concept of running the government like a business, which has been proposed by various leaders like Ronald Reagan and Donald Trump, is misguided according to the author. The author highlights the case of Reagan’s Grace Commission, which was tasked with reducing government spending but had its recommendations largely ignored, and suggests that similar endeavors, such as Trump’s proposed “Government Efficiency Commission” led by Elon Musk, might face the same fate. The author argues that comparisons between businesses and government are fallacious, citing examples such as the differing overhead costs of public and private sector programs and the fact that government policies need to promote general welfare rather than generate profit.
In 1982, President Ronald Reagan promised to “drain the swamp” and reduce government waste, appointing J. Peter Grace, CEO of WR Grace Company, to head a commission for this purpose. Known as the Grace Commission, it made over 2,500 recommendations, claimed to lower federal spending by $400 billion. However, most of these recommendations did not concern management reforms, resulting in budget increases in subsequent administrations.
Efforts to implement business-like governance continued in Kansas, with Senator Sam Brownback and Representative Todd Tiahrt introducing related legislation in 2003, which did not progress. More recently, Donald Trump pledged to create a commission for drastic government reforms, appointing Elon Musk to lead this task.
The argument that government should operate like a business is flawed. It is a misconception that businesses are efficient and governments squander taxes. An example is the Department of Transportation, whose employees, including cabinet secretaries, fly economy. In contrast, former CEO of General Electric frequently had two corporate jets available for his travel.
Medicare and Social Security, frequent targets of critics advocating for a business-like government, operate at lower costs than similar private sector programs. Some question whether businesses should be run like the government. Elon Musk may face difficulty making subsidy decisions that meet business standards.
Federal policies like crop insurance, which provides significant support to Kansas farmers, will also challenge Musk’s business-like approach. Similarly, existing brick-and-mortar infrastructure may not pass Musk’s business scrutiny. Any recommendations need to promote the general welfare rather than just profitability.
Musk, now arguably the richest lobbyist, must persuade others to adopt his proposals. Drawing parallels from history, some fear he may promote his own interests and ignore political reality, like Peter Grace, who championed anti-environmental agendas. Musk’s success will hinge on learning lessons from previous attempts at business-like governmental reforms.
So-called “best and brightest” experts, such as those appointed by President Kennedy, applied their business expertise to the Vietnam War, overlooking political complexities. Musk must not repeat such mistakes. As history shows, the pursuit of a business-oriented government can lead to unexpected consequences.
Greg Frazier, former USDA Chief of Staff, emphasizes the necessity of open debate and political considerations when discussing governmental reform. His commentary is provided by Kansas Reflector, an organization seeking to amplify diverse voices in public policy debates. More information can be found here.
—
Read More US Political News