Imagine you are a US federal employee. Washington recently declared you “non-essential” and you are about to start your third week on enforced leave. Perhaps the government will reopen this week. Maybe it will take several more. It does not affect the big picture. You are in your fourth year of a pay freeze and it would take a lot to restore your morale. Much the same applies to the US government. Shutdowns come and go. But the system’s atrophy goes on.
Avoiding disaster is turning into President Barack Obama’s abiding role. Top of the list is stopping a sovereign default, which would eclipse any other economic damage Washington could inflict. In today’s climate, even a six-week reprieve on the debt ceiling counts as progress. But the opportunity cost of persisting with this lethally irrelevant debate is huge. The longer the US squabbles over the basic legitimacy of government, the less hope there is of making it relevant for the 21st century.
Unlike a sovereign default, the costs of government sclerosis fall mostly under the radar. But they also subtract from future US incomes. Governments in Asia are retooling to adapt to changing technology and are investing heavily in their people’s skills. With the exception of the mushrooming of the post 9/11 national security complex, Washington’s budgets have been falling.