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Underground Government: The Off-Budget Public Sector
Book by Bennett, James T., Dilorenzo, Thomas J.
184 pages, Paperback
First published April 1, 1983
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August 8, 2024
ARE "OFF-BUDGET ENTERPRISES" A FORM OF "SECRET" AND UNREGULATED GOVERNMENT?
At the time this book was first published in 1983, James T. Bennett and Thomas DiLorenzo were economists at George Mason University. They wrote in the Preface, "we were amazed at how little had been done on the subject of off-budget activities of government... We believe that the taxpayer should be seriously concerned about the operating methods of all levels of government and especially about off-budget devices for evading restrictions on taxation, expenditure, and debt. The story that unfolds in this book should disturb those who believe that a balanced budget amendment is the panacea for a federal government that is increasingly out of control."
They admit early on, "Unfortunately, it is simply impossible to obtain data on OBEs (off-budget enterprises). Most states do not keep statistics of corporations established by local governments. Indeed, for politicians, an important part of the intrinsic appeal of the OBE device is that its operations are not publicized." (Pg. 37)
They argue, "Given the total number of off-budget operations, it is reasonable to assume that thousands of individuals who are not counted as public sector employees actually work for public corporations. All statistics on public sector employment, therefore, understate the true size of government." (Pg. 45) They add, "OBEs, however, are free from such inconvenient encumbrances, since civil service regulations do not apply to these organizations." (Pg. 46)
They observe, "When public operations are conducted on-budget, there is at least some measure of accountability of public servants to the taxpayer... on-budget activity is conducted more openly, and public sector behavior may be challenged periodically in elections." (Pg. 56) They assert that "OBEs have been used by state governments to force the INDIRECT taxpayer support for projects which the private capital markets and voters had previously rejected." (Pg. 79)
At the time this book was first published, it was truly a pathbreaking study. Forty years later, many of its arguments still retain vigor and relevance.
At the time this book was first published in 1983, James T. Bennett and Thomas DiLorenzo were economists at George Mason University. They wrote in the Preface, "we were amazed at how little had been done on the subject of off-budget activities of government... We believe that the taxpayer should be seriously concerned about the operating methods of all levels of government and especially about off-budget devices for evading restrictions on taxation, expenditure, and debt. The story that unfolds in this book should disturb those who believe that a balanced budget amendment is the panacea for a federal government that is increasingly out of control."
They admit early on, "Unfortunately, it is simply impossible to obtain data on OBEs (off-budget enterprises). Most states do not keep statistics of corporations established by local governments. Indeed, for politicians, an important part of the intrinsic appeal of the OBE device is that its operations are not publicized." (Pg. 37)
They argue, "Given the total number of off-budget operations, it is reasonable to assume that thousands of individuals who are not counted as public sector employees actually work for public corporations. All statistics on public sector employment, therefore, understate the true size of government." (Pg. 45) They add, "OBEs, however, are free from such inconvenient encumbrances, since civil service regulations do not apply to these organizations." (Pg. 46)
They observe, "When public operations are conducted on-budget, there is at least some measure of accountability of public servants to the taxpayer... on-budget activity is conducted more openly, and public sector behavior may be challenged periodically in elections." (Pg. 56) They assert that "OBEs have been used by state governments to force the INDIRECT taxpayer support for projects which the private capital markets and voters had previously rejected." (Pg. 79)
At the time this book was first published, it was truly a pathbreaking study. Forty years later, many of its arguments still retain vigor and relevance.
Displaying 1 of 1 review