Government by Deal: What Happens When Everything Becomes Negotiable? (#291)
Digest
This podcast critically examines the current administration's approach to governance, contrasting "retail governing" through individual deals with the more traditional "wholesale governing" that establishes broad rules. It argues that while the administration appears active, it lacks durable, systemic change, often opting for private deals over legislative processes due to perceived difficulties in Congress. This reliance on deal-making, driven by presidential leverage and a desire to control the narrative, erodes the rule of law, fosters corruption, and creates economic instability by replacing predictable frameworks with short-term arrangements. The discussion highlights the overreach of federal power, particularly over institutions like tech companies, and calls for Congress to reassert its role to restore balance and prevent future abuses. Ultimately, the podcast suggests that true strength in governance lies in restraint, transparency, and collaboration with Congress, rather than unilateral action.
Outlines
The Illusion of Action and the Shift to Deal-Making
The podcast introduces the concept that government actions often appear constant but are increasingly characterized by deal-making rather than systemic change, potentially weakening institutions and the rule of law. It contrasts the current presidency's focus on immediate actions and news cycles with a lack of durable, legislative achievements, explaining this shift towards "retail governing" through individual deals instead of broad "wholesale governing."
Federal Spending, Private Deals, and Institutional Temptation
Despite anti-big government rhetoric, federal spending remains consistent, with a reconciliation bill slightly increasing it. Presidents may prefer private deals over legislation due to ease of execution and personal negotiation styles, even though this approach is less effective for systemic change. Institutions are tempted by these deals due to government leverage, leading them to minimize damage rather than pursue ideal interactions.
Overreach of Federal Power and the Need for Congressional Action
The podcast argues that the federal government wields excessive leverage over institutions, which is being abused. Reducing this power requires legislative changes and congressional assertion, with institutions also able to lessen their reliance on federal funding. The government's regulatory power over sectors like tech companies necessitates a strong relationship with the administration. The bending of presidential power to personal whim is an abuse that Congress must address to rein in these powers.
Consequences of Deal-Making and Future Governance
The primary issue is Congress's inactivity, creating vacuums filled by the President and courts, disrupting the balance of power. When governance becomes solely about deals, it leads to corruption and undermines the rule of law by deforming the economy and eroding equal treatment. Replacing stable government with short-term deals reduces risk-taking and economic dynamism. Future presidents would benefit from restraint, transparency, and collaboration with Congress, as true strength lies in these approaches rather than unilateral action.
Keywords
Retail Governing
A style of governance focused on direct, individual interventions and deal-making with specific institutions, rather than establishing broad rules for entire sectors. This approach prioritizes immediate news cycles and targeted outcomes.
Wholesale Governing
A comprehensive approach to governance that involves creating rules and arrangements applicable to entire sectors of the economy or society. This method aims for systemic, long-term change and predictability.
Durable Change
Refers to changes in policy, institutions, or norms that are lasting and persist over time, often achieved through established legislative or regulatory processes, as opposed to temporary actions or executive orders.
Rule of Law
The principle that all individuals and institutions are subject to and accountable under the law, which is fairly applied and enforced. It emphasizes predictability, equality, and the absence of arbitrary power.
Congressional Assertion
The act of Congress actively exercising its constitutional powers and responsibilities, particularly in oversight and lawmaking, to counterbalance executive power and maintain the separation of powers.
Federal Spending
The podcast discusses federal spending patterns, noting consistency despite anti-big government rhetoric and highlighting how reconciliation bills can increase spending, particularly for defense and immigration enforcement.
Presidential Power
Examines the use and potential abuse of presidential power, contrasting direct action and deal-making with legislative processes, and emphasizing the need for restraint and congressional oversight.
Institutional Leverage
The podcast explores how the federal government uses its power and funding to influence institutions, creating temptation for private deals and potentially leading to overreach.
Q&A
What is the difference between "retail governing" and "wholesale governing"?
"Retail governing" involves direct, individual deals with specific institutions, often to influence the news cycle. "Wholesale governing" creates broad rules and arrangements for entire sectors, aiming for systemic and lasting change.
Why might a president prefer making private deals over passing laws?
Passing laws requires congressional cooperation, which is difficult. Private deals are more easily executed by the president alone, lack accountability to oversight, and align with a personal image as a negotiator.
What are the implications of a shift towards deal-making instead of rule-making?
This shift can lead to a loss of the rule of law, as individuals seek personal advantage in relation to the president, deforming the economy through corruption and undermining the principle of equal treatment under neutral laws.
How can the power of the federal government over institutions be scaled back?
Scaling back requires legislative changes and congressional assertion. Institutions can also reduce their reliance on federal funding and power, recognizing the leverage it grants the government.
What is the biggest misconception about how the current White House exercises power?
The deepest misconception is that a coherent plan is being pursued and effectively implemented. While various ideas exist, the execution has been frantic and unfocused, lacking concerted action and legislative progress.
Show Notes
The government feels louder and faster than ever: executive actions, constant disruption, everything happening at once.
But Yuval Levin of the American Enterprise Institute argues that all this motion may be masking something deeper. He explains why durable change comes from laws passed by Congress - not one-off deals- and why the shift from rule-making to deal-making could shape the future in unexpected ways.
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