Sidney Shapiro, Wake Forest University and Joseph P. Tomain, University of Cincinnati
The U.S. government is attempting to dismantle itself.
President Donald Trump has directed the executive branch to “significantly reduce the size of government.” That includes deep cuts in federal funding of scientific and medical research and freezing federal grants and loans for businesses. He has ordered the reversal or removal of regulations on medical insurance companies and other businesses and sought to fire thousands of federal employees. Those are just a few of dozens of executive orders that seek to deconstruct the government.
More than 70 lawsuits have challenged those orders as illegal or unconstitutional. In the meantime, the resulting chaos is preventing the government from carrying out its everyday functions.
The administration accidentally fired civil servants who were responsible for safeguarding the country’s nuclear weapons, preventing a bird flu epidemic and overseeing the nation’s electricity supply. A Veterans Administration official told NBC, “It’s leading to paralysis, and nothing is getting done.” A spokesperson at a nationwide program that provides meals to seniors, Meals on Wheels, which the government helps fund, said, “The uncertainty right now is creating chaos for local Meals on Wheels providers not knowing whether they should be serving meals today.”
Our recent book, “How Government Built America,” shows why the administration’s aim to eliminate government could result in an America that the country’s people have never experienced – one in which free-market economic forces operate without any accountability to the public.
A combination of regulation and freedom
The U.S. economy began in the Colonial era as a mix of government regulation and market forces, and it has remained so ever since. History shows that without government regulation, markets left to their own devices have made the country poorer, killed and injured thousands, increased economic inequality, and left millions of Americans mired in desperate poverty, among other economic and social ills.
For example, approximately 23,000 people died from workplace injuries in 1913. In 2023, that figure was just 5,283, largely because the Occupational Safety and Health Administration began regulating workplace safety in 1971. Similarly, the rate of deaths in vehicle crashes per mile driven has decreased 93% since 1923, which can be mainly attributed to the ways government has made vehicles and highways safer.
Government funding and regulation have yielded countless economic benefits for the public, including the launch of many efforts later capitalized on by the private sector. Government funding delivered a COVID-19 vaccine in record time, many of the technologies – GPS, touchscreens and the internet – that are key to the functioning of the cellphone in your pocket, and the highway system that enables travel throughout the country.
Government management of the economy has prevented economic downturns and enabled quicker recoveries when they have occurred. Government regulations keep private businesses from engaging in reckless economic behavior that harms everyone, as happened in 2008 when loopholes in rules and enforcement allowed the banking industry to invest billions of dollars in worthless securities. The government then spent trillions to prevent major banks from collapsing and to stimulate the nation’s economic recovery.
More recently, in response to the COVID-19 pandemic, the government spent $3.1 trillion to keep the economy healthy.
Food and water are safe because the Food and Drug Administration and the Environmental Protection Agency act to protect people from becoming ill.
Because of government oversight, Americans can safely take the medications physicians prescribe to make them better. They can safely put money in checking and savings accounts knowing that the Federal Deposit Insurance Corporation and the National Credit Union Administration reduce the likelihood of the bank or credit union failing – and ensure they don’t lose everything if trouble arises.
The Federal Trade Commission works to ensure the advertising Americans see is not deceptive, and the Securities and Exchange Commission makes sure that the companies people invest in are not making false claims about their financial prospects.
Americans know that their children can get a free public education and student loans for college or trade schools to advance themselves economically. And government has helped millions of Americans pay for housing, food, medical care and the other necessities of life even if they work full-time or cannot because of age, illness or disability.
Not a perfect record
Admittedly, there is wasteful spending – as much as $150 billion a year in erroneous payments. That is a lot of money, but it’s a tiny sliver – just 2.2% – of the $6.75 trillion the federal government spent in the 2024 fiscal year. And government has not always been a positive force in society, either.
As we describe in our book, for a very long time the federal government aided and abetted slavery and then racial segregation. It also codified the treatment of women as second-class citizens, and discriminated against members of the LGBTQ community.
Yet government has addressed these failings as Americans’ understanding of equality has evolved. Over the past century, rights for women, racial and ethnic minority groups and people with a range of sexualities and gender identities have been recognized in constitutional amendments, federal laws, state laws and Supreme Court decisions.
As our book shows, the responses haven’t always been immediate, but the president and Congress have addressed policy mistakes and incompetent administration by making appropriate adjustments to the mix of government and free markets, sometimes at the behest of court cases and more often through congressional action.
Until now, however, it has never been government policy to shut down government wholesale by defunding agencies such as the U.S. Agency for International Development or threatening to do so with the Consumer Financial Protection Bureau and the Department of Education.
Many Trump voters cited economic factors as motivating their support. And our book documents how policies supported by both political parties – particularly globalization, which led to the flood of manufacturing jobs that went overseas – contributed to the economic struggles with which many Americans are burdened.
But based on the history of how government built America, we believe the most effective way to improve the economic prospects of those and other Americans is not to eliminate portions of the government entirely. Rather, it’s to adopt government programs that create economic opportunity in deindustrialized areas of the country.
These problems – economic inequality and loss of opportunity – were caused by the free market’s response to the lack of government action, or insufficient or misdirected action. The market cannot be expected to fix what it has created. And markets don’t answer to the American people. Government does, and it can take action.
Sidney Shapiro, Professor of Law, Wake Forest University and Joseph P. Tomain, Professor of Law, University of Cincinnati
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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I wish we had leaders who would cut the bloat and pork – refining and fixing things, but being sure it is pork and bloat instead of financing a man with a chainsaw and no real knowledge. The latter is going to cost far more than it saves via various court cases (at first) and then by not helping people cut costs or improve their lives while simultaneously making us an enemy of most of the free world by aligning with the Axis powers. Then too, he plans to pave over a bit of the Rose Garden grass and wants… Read more »
Excellent — and so needed today. Thank you!
Most of this is pure hogwash. The Republicans inherited a bloated bureaucracy that had no accountability led my a demented president who had no idea where the taxpayer’s money was being spent. Sleepy Joe and Mayorkas let our country get invaded by millions of illegals with many coming from countries that are our enemies. I saw the number of 30,000 Chinese, military age, gained illegal entry. How about the ones from Afghanistan? And other enemies? USAID just blew our tax dollars on stupid projects that are now coming to light. Some of these projects were highlighted on news feeds that… Read more »