Grants to Promote the Cranberry Business
An article that illuminates the relationship between
government and business in our society appeared in the Post-Crescent on October 28, 2013. The article is entitled ”Feds
to Back Cranberries in Wisconsin”, and it says,
As part of $52 million in U.S. Department of Agriculture grants to support specialty crop
producers, the Wisconsin Department of Agriculture, Trade and Consumer
Protection will partner with the University of Wisconsin researchers to help
cranberry growers reduce pesticide use and environmental threats as well as
expand the international market by determining the overwintering patterns of
the cranberry flea beetle, testing soil-drench efficiency and sharing the
information with local producers, according to a USDA news release.
“These investments will strengthen rural
American communities by supporting local and regional markets and improving
access to fresh, high-quality fruits and vegetables for millions of Americans,”
USDA Secretary Tom Vilsack said in a news release. “These grants also help growers make food
safety enhancements, solve research needs and make better informed decisions to
increase profitability and sustainability.”
Government/Business Partnership Contradicts the Radical Rightist View
Here we see a
fine example of the partnership between public and private investment that has
always supported the growth of our economy and the well-being of our people. Radical rightists like to say that government
is always the problem, never the solution, and they believe that the size of
government should be minimized in order to reduce the drag on the economy that
is produced by taxation. The taxes that we pay are seen a nothing more than
money that is drained from the private economy and that is used unproductively.
This “cranberry
grant” shows how limited and distorted the radical rightist view is. In fact,
government expenditures have always been important to the growth of the
American economy. American agriculture is one of our most successful and
profitable industries, and it is an area that has developed with government
support for more than 100 years.
President Abraham Lincoln signed the law that created the land-grant
university system. The University of Wisconsin is a part of that system, and
researchers there have for generations carried on research that has promoted
the development of Wisconsin’s agriculture. The Smith-Lever Act of 1914 established the
partnership between the land-grant universities and the US Department of
Agriculture to support agricultural extension work, which brought the results
of research to farmers in all parts of the country. Thus, American agriculture
has developed as a partnership among the federal government, the state
governments, the farmers and the businesses that support farming, and the “cranberry
grant” is only the latest fruit of this century-long partnership.
Many Industries Depend on Public Investment
Agriculture is
not alone in its dependence on public investment. The automobile business – that icon of 20th
century American industry – has always depended on public investment in roads
and highways. Without the hundreds
billions of dollars of public money spent on roads and highways by state and
local governments as well as the federal government, the automobile business
could not have developed as it has. The oil business has also benefited from
the growth of the automobile business that has been fostered by public
investment in roads. In Wisconsin, the
tourist business that supports much of the northern part of our state could not
exist without the roads. How many Chicagoans would go to Door County for the
weekend if they had to take an overnight boat from Chicago to get there?
There are plenty
of other examples. The aircraft business, another very successful American
business, has been helped for decades by the procurement activities of the
United States Air Force and by the efforts of our State Department to promote
sales of American military equipment to other countries. The internet was created with the support of
the Defense Department, and without that public investment, none of the
businesses that have grown up around the internet would exist at all.
The Role of Government in Banking
Our economy has
also benefited from the government’s banking policies. When our country was
founded, Alexander Hamilton insisted that the new federal government assume the
debts contracted by the states during the Revolutionary War, and since that
time, the full faith and credit of our government has stood behind the its
debts and through them it has stood behind the value of the US dollar. Our
businesses are able to borrow at reasonable rates all over the world because no
one doubts the stability of the dollar.
The Glass-Steagall Act and other regulations introduced during the
nineteen-thirties protected us from banking panics for more than sixty years,
and we all know what happened when those regulations were eliminated.
We Should Not Kill the Goose that Lays the Golden Eggs
I could go on,
but the point is clear. The American economy and through it the American people
have benefited greatly from the partnership between public and private
investment that is the most outstanding characteristic of the American
free-enterprise system. Minimizing the size of government would impoverish all
of us by cutting off the funds that have supported research, built our
infrastructure and promoted our products around the world. Such a policy would
also expose us to banking panics and the economic insecurity that they bring. As we work to solve our government’s current
fiscal problems and reduce its debt, we should remember these things. If we do
so, we will not kill the goose that lays the golden eggs.