As a result of the “Great Recession,” its large scale and the general public’s confusion over its origins and implications, the Obama Administration has been attempting to alter the organizational function of the United States by way of a fairly significant ideological shift, before most citizens who comprise the American culture have realized it, understood it, and decided to agree with or reject it.
Usually, culture change is prerequisite of change made to organizational function – in other words, a change in mindset preempts the change in organizational function. Consider how a business operates. If a business is interested in changing how it functions, leadership initiates the effort by instilling a certain mindset or culture among its employees. With that mindset or culture in place, the organization can change, innovate, and improve how it functions.
But what has been going on in the United States in the last nine months has been quite different as a result of the incredibly unique circumstances surrounding the Great Recession of the last year.
Consider the extreme and unique nature of the Great Recession: Billion-dollar bailouts and a multi-trillion-dollar deficit. To curtail unemployment, the Administration has invested heavily in widespread government expansion — to the detriment of private industry. The Administration has also increased regulation and control of private industry and private entities, such as auto manufacturers, banking/financial institutions, the mortgage industry, exercised federal power over credit card companies, and so on, and so on.
The Circumstances Require State Action
Without even assessing these individual actions by the Obama Adminstration as either moral or immoral, right or wrong, it is clear that the extreme nature of the Great Recession would warrant significant government intervention, due to such unique circumstances. However, it’s almost indisputable, I believe, that President Obama’s want is for the United States to emulate the economic policies of European social-welfare states.
As such, I would contend that President Obama is utilizing the unique circumstances of the Great Recession and the very necessity of widespread government intervention and regulation to heavy-handedly lead a major shift in the organizational function of the United States from a democratic republic based in traditional liberal economic roots to an expansive social-welfare state — a Leviathan, of sorts. Legitimate concern from an ordinary American would be that the American culture has not changed so radically, even in lieu of the Great Recession, to dictate such drastic change to the United States’ organizational function.
The Next Great American Debate
The next great American debate will be one of capitalism versus socialism. Of course, the next great American debate is not a new one. It’s been a major ideological battle of the last century. Yet, we’ve already begun to see the debate beginning to erupt in town halls as some Americans explode in anger at the concept of state-run medicare and socialized medicine.
Because of the extreme nature of the Great Recession, extensive government intervention has been a justified mean to an important end — America’s supposed survival. And so, there has been little discontent. As such, the whole debate of capitalist versus socialist policies has been temporarily suspended, as if a game of wait-and-see.
But by the time the extent of the Administration’s attempts to change the organizational functional of the United States is clear, is there much that could be done to undo it?
I'd love to write a full-fledged counter-post on my blog. We could get a nice debate going. :)
But I only have the time to react to a few choice nuggets:
“Usually, culture change is prerequisite of change made to organizational function…”
You don't really define organizational function. But lets assume that you would consider it to represent sweeping changes to the basic role of government in its citizens' lives. Given that assumption, there were maybe two sweeping examples of this function change in the 20th century, and one in the 21st. And none had a thing to do with culture.
Out of the Great Depression, an economic crisis, came social security.
Out of WWI and WWII, political and economic crises, (vis a vis the aging 'Greatest Generation'), came Medicare.
Out of the (near) collapse of the world economic system, again an economic– not cultural crises, came the bailout of the “too big to fail” financial institutions.
(Also, it bears mention that George H.W. Bush bailed out financial institutions to the tune of $293 Billion in 1989. Was he too pursuing a socialist agenda? I know 293 billion is pretty far short of a trillion, but sheesh, it's not a small number.)
Change to function government is usually borne of response to crises, even if only perceived. It's not generally not a culture thing. And I think you'd be hard-pressed to come up with examples of culture driving changes in the *function* of government.
“However, it’s almost indisputable, I believe, that President Obama’s want is for the United States to emulate the economic policies of European social-welfare states.”
Could you please list off the European social-welfare states? Last I checked, most of them went the way of the dinosaur after Gorbachev followed Reagan's instruction.
The next Great American debate won't be capitalism vs. socialism. It will be reason vs. hubris. Will America realize that it has the ability and potential to scratch and claw it's way out of the hole it's in? Or will we stand fast, rearranging the deck chairs on the unsinkable ship?
@Patrick :
I chose to hold off a response at the time of this posting, then, ultimately, forgot about it. However, time has been my friend because it has come to prove my thesis as more and more questions have arisen and discontent has hit fever pitches as the next great American debate of socialism vs capitalism continues.
The question of European social welfare states is less “where to begin,” and more “where to end.” European states that spend between 20% and 30% of their total GDP on welfare include, in descending order, Denmark, Sweden, France, Germany, Belgium, Switzerland, Austria, Finland, Netherlands, Italy, Greece, Norway, Poland, and the United Kingdom.
The current riots in Greece are largely because the state is dead broke, and the Greek people refuse to allow the government to cut its many, many social welfare programs.
“Reason vs hubris” is, of course, a matter of complete subjective opinion. My reason is your hubris, and vice versa. As more time passes, as America falls further into debt, as the government expands to an unmatched size, etc, the debate about socialism versus capitalism will only grow hotter.
Dave