No laughing matter

Political decay threatens developed economies

The joke on Tuesday was that Italians created a political crisis so the Americans wouldn't feel so bad. By Wednesday, the punch line was reversed. The reasonably competent Italian government will stay in power and Silvio Berlusconi, the disruptive billionaire and former prime minister, looks weakened. The United States, however, remains at a budget impasse and its obstructive politicians are rampant.

There's really no need for shame in either nation, because these days stumbling democracies are more the norm than the exception. Of the leading global economies, only Japan and Canada can claim strong governments. Both came about after many years of ineffective administrations. The German election left it without a government. Britain has a feeble coalition and the French president is setting new records for unpopularity.

Each country has its own story, but there is a common theme. The traditional categories of left and right are almost meaningless in today's high-tax, big-government states. The narrowing of differences leaves mainstream political parties adrift and struggling to attract competent and principled leaders. Too many politicians are after influence or wealth, and extreme ideologues find too little opposition.

Since governments are the single most important part of any modern economy, their weaknesses are a significant negative. Fortunately, reasonably competent civil services do most of the day-to-day work, and are usually immune from the shenanigans involving elected officials. Only in the United States has the political mess forced regular government offices to close.

Elected officials, however, are supposed to make some important economic decisions. Bickering vote-seekers and influence-peddlers are unlikely to make good ones, especially ones which are ultimately beneficial but initially unpopular. No wonder that Italian and French reforms have been delayed for decades, that UK housing is a long-running catastrophe and the United States can't fix its health care system.

Considering the weaknesses, it's remarkable how well the economic and political systems wind up working. Governments were able to respond reasonably well to a severe recession, with no significant civic unrest. Bold leaders could do much better, though, than merely avoid failure.