The Gravy Train

The termination of Disney's special district by the Florida legislature and Governor Ron DeSantis illuminates one of the (few) down sides of our federalist system. The particulars and the petulance aside, it is worth pondering why such carve-outs exist in the first place.

A strict interpretation of our system of government would point toward a notion equivalent to blind justice. Let's call it "blind governance," and elucidate it as a level playing field, where no person or company is granted disparate treatment, whether it be legislative or regulatory.

Of course, we all know this is miles... nay, light years from reality. Government, at the federal, state, and local levels, bestows special treatment the way my wife and I hand out candy on Halloween. That is to say, by the fistful to anyone willing to ring our doorbell. It's often sold as being beneficial to the nation, or the state, or the locality, and sometimes that might even be true, but it's not blind governance in any way, shape, or form.

Unfortunately, it's often born of a form of market force that's systemic in nature. 50 states means there are 50 legislatures looking for funding - either to run things or to run their campaigns... and that's before we get to the local level. Any businessman with half a brain and enough economic clout will see opportunity. Put the word out that you're looking to build a new corporate HQ, wherein thousands or more employees will congregate, and politicians' eyes will spin like slot machine wheels. This begets offerings of special districts, tax breaks, zoning changes, regulatory relief, and on and on and on, from multiple suitors.

Anyone who reads the news has seen this countless times. Amazon recently competed out the location of its "HQ2," with 25,000 jobs at stake. New York's Long Island City was one of two finalists, but ended up losing out in part because some local pols decided they didn't care to cough up enough grift to bring the deal home. Much gnashing of teeth ensued, of course, even from the more conservative local pundits. No matter the unevenness of the playing field - it's all about the gravy. Another egregious example is that of professional sports franchises holding cities hostage, as I discussed just a couple weeks ago, but there are near-infinite other examples that don't rise to broad public awareness.

A proper way for states to compete for business would be to establish state-wide legislative/regulatory conditions that entice businesses in general. As in, "we are open for business, this is the product we offer, come on in and shop around." Specific cooperation between a government and a particular business entity is a whole other bit, and runs completely contrary to the notion of blind governance.

We libertarians (and many others) call this "cronyism" or "corporatism." While some claim that this is merely capitalism in action, there's nothing "capitalist" about leveraging government power for special benefit. This is why I draw a sharp line between being "pro-market" and "pro-business." The two are often at odds.

Disney's special district was created more than 50 years ago. From what I gather, this was Disney's way of developing its property's infrastructure as it desired and apart from the normal regulatory process.

That sounds nice.

It'd be nicer if everyone got to develop their property under the same rules, of course.

Alas, with government being as big and intrusive as it is, there's too much OPM at play, so this gravy-chasing will continue. And, sure as the sun rises in the East, the invitations to Disney have begun.

Now, flip over to the government side, and consider the plight of the libertarian-minded Congressman. These days, politicians get elected by promising to bring home the bacon from the Feds, and every spending bill of size gets peppered throughout with allocations to this district and that. Oftentimes, it's the payoff for a vote, and the Cornhusker Kickback that Senator Ben Nelson of Nebraska extorted for his 60th vote to enact ObamaCare is merely one standout among thousands of examples. Sadly, too many voters expect this bringing home of bacon - and while many pay lip service to "less government," too often it's "less for the other guys, but don't you dare touch our pork."

We have the oft-cited adage attributed to Alexander Tytler (if you noticed I wrote "attributed to," read this):

A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury...

This largesse isn't limited to direct payout. The cronyism gravy train is a big part of that game. Whether it be businesses seeking competitive advantage and playing jurisdictions against each other, or voters electing politicians based on who promises to extract the most OPM from the system, government has become a giant knotted mass of bucatini: a near-infinite tangle of conduits that move gravy (and here I dip my toe into the "sauce vs Sunday gravy" controversy) around, and the winners are, to put it crassly, those who generate the most suction.

The only way out, and it's a brutally difficult one, is to oppose such largesse even when it's heading in our direction. To elect politicians who will make whatever entity they represent, whether it be a city, district, or state, universally attractive rather than selectively inviting (or bribable). Until then, those with sufficient clout will continue to leverage the system for personal advantage, and hoover up the OPM taken from you and me.

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For the record, and lest my Italian friends disown me, I’m firmly in the “sauce” camp. Of course, not being Italian, I don’t have standing in that grand debate.

Or perhaps I do…

My father was born on an island that was Italian-controlled at the time, granting me birthright were I to press the case.

So… Sauce. Sauce sauce. Sauce sauce sauce. The gauntlet has been thrown.

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Yours in liberty,

Peter.