I
had a student in an economic class I teach ask a question about an economic
issue of the government “crowding out” business. The answer to the question was
simple but not. :)
I pointed out there are a variety of
views in economics. Even authors of the textbooks have a slant on the subject
while trying to share principles. Economic “crowding out” boils down to
business feeling it is left out of the flow of money on services, products and projects
in the US by government.
This issue is a loaded political
question as well. Republicans feel strongly that government should stay out of
business type projects, services and products. Democrats view this as part of
the process of government of helping the citizens especially when times are
hard.
The Government operating projects
themselves such as “Public Works” projects during the “Great Depression” is a
concern for those worried about “crowding out”. At that time unemployment was so high that the
government stepped in to create jobs itself. For a variety of reasons the
government did not depend on the local business community to do that. Remember many
large and small businesses had gone out of business themselves leaving a huge
void of jobs. Public Works projects were viewed as “crowding out” even
though at the time the void of businesses was huge.
An example of "crowding
out" on a personal level was presented to me by an individual less than a
year ago. The person's grandfather during the "Great Depression" felt
he was "crowded out" in the development of the Grand Coulee Dam
project. The dam was built through a huge “Public Works” project. This meant
the government ran the project and hired the workers directly. http://www.usbr.gov/pn/grandcoulee/
The catch I saw here was if the
project had been put up for bid the project would have required a very large
business to have the skills to handle a project of this size. This individual’s
grandfather obviously was not a large enough business even by today’s standards
to bid on the government contract of this size in the first place. He “might”
have had a chance as a subcontractor but in that time period even that would
have been doubtful. Subcontractors even today usually go to the “friends” of
those that win the large government contract. This person’s grandfather lived
in a little tiny town in Eastern Washington State. The contract more than
likely would have been won by a large company out of the region who knew how to
handle very large dam projects. It made for a “good family story” why they are
not rich now. The family felt they were “crowded out” of the money stream. It
has kept the family believing strongly though that the government should stay
out of business. It would be interesting in how they view Sustainability today.
My “family story” is completely
different when it comes to the Grand Coulee Dam project. My grandfather was
hired by the government to be a time clock keeper on the project. This job
saved my family from destitution during the Great Depression. The chances of
the individual’s grandfather hiring my grandfather to do that was next to nil.
While his family was mad they did not get rich. Mine was thankful they were
kept from extreme poverty. Besides this work my grandparents worked in every
way to sustain the family. They sold
fish in the hot summer to workers in the hop fields. They canned all the fruit they could, stocked
up for the winter and recycled all they could. My grandparents when the Great
Depression started to disappear moved to Western Washington State and opened up
a Long Term Care business because my grandmother was a nurse. She could not get a job during the
Depression. This successful business
gave jobs to my mother, a college education to my uncle and an interest in
business and healthcare to the grandchildren.
My
husband’s family had a similar story but they were in the logging industry
during the Depression. They canned and
recycled everything. Then they developed
an insulating business during the post WWII housing boom. My husband’s mother, also, had a job in the
business. The business sustained my
husband’s four generational home.
Remember in all economic issues
there are winners and there are losers.
Now how
does this family story relate to our views of Sustainability?
My
husband and I have spent our lives trying to work hard and reach for every
opportunity that was available.
Sustainability of the family has held the highest priority for us. Sustainability means working hard, storing
the necessities of life to hedge against emergencies, recycling items,
conserving where possible, living several generations together if need be [our
son and grandson live with us], yet enjoying the benefits of the current
economy such as technology and still yes, having time for family, extended
family and friends. This seems simple
but as you know it requires commitment to the principle of the Sustainability
of the Family. This then extends to our
thinking of Sustainability of our neighborhood, county, cities near us, region,
state, country, continent and the whole earth.
Sustainability begins in the home and then extends beyond. Keeping this process going for generations is
the goal.
I am sure
you have a family story and how that impacts your views of Sustainability. Judy
