The federal government must adapt to crisis

This article originally appeared in the Puget Sound Business Journal on May 28, 2020.

Effective leaders look to the past to chart a course forward. Bold and decisive actions to support our economy, as those taken by Congress, demonstrate how a strong federal government can mitigate national emergencies.

As we saw at the outset of the 2008 recession, a slow and weak response can prolong the pain.

Already, we see valuable lessons emerging from our current crisis. Some leaders stepped up to respond. Others wasted precious weeks with a disjointed response.

The dual responses can help us better understand where change and reforms can improve our federal government. Doing so requires a firm grasp of history and an understanding of the government’s purpose.

At the chartering of the nation, two of the greatest American minds debated a form of government that they believed would ensure both liberty and security for the newly freed colonies. James Madison, a Republican, and Alexander Hamilton, a Federalist, were collaborators and opponents. Arguing for the Republicans, Madison desired a federal government, led first by the public. Hamilton, leading the Federalists, envisioned a strong central government to lead.

Neither man was entirely successful. The compromise resulted in a revolutionary system of government that borrowed the best ideas that the world had to offer at the time.

The clash of ideas precipitated a government that was nimble and efficient and which followed in the emerging liberal traditions of Western Europe. It attempted to balance power and rewarded merit over wealth and tradition. Over time, the very limited federal government proved to be insufficient in dealing with great crises. Still, it proved adaptable.

Before the Great Depression, the most severe period of economic contraction occurred during the 1890s, a crisis that received almost no federal intervention. It was President Cleveland who, while vetoing a relief bill for Texas farmers in 1887, said: “The people support the government, the government should not support the people.”

In the aftermath of the recession of the 1890s, the limited federal government slowly gave way to an interventionist one. The public and its leaders studied the past and adapted our government, putting it on stronger footing when the Great Depression arrived. Since then, a robust federal government has confronted crises while protecting the economy. The reforms created worker protections, environmental regulations, better access to education, safe and efficient transportation networks and utilities, Social Security, Medicare and more.

In recent years, we’ve strayed from the traditions of Hamilton and Madison that forged compromise, studied history, and borrowed the best ideas the world has to offer. Our federal government is more than equipped to confront modern challenges, but a lack of focus has left us unprepared. The economic and public health challenges of Covid-19 demand talent and resources on an unprecedented scale. How the federal government shows up in our lives signals to all Americans what we value and what we prioritize.

In government, as in business, focus and adaptability are critical for success. The government’s focus is a tool that can shape and improve society, but, as with all tools, it can cause harm and waste if poorly wielded.

For many reasons, the federal government has grown immensely in the last century, yet it remained unprepared for our current crisis. The United States has the greatest minds, institutions and enterprises in the world, but our public sector has not adapted like businesses and other nations have.

South Korea, Taiwan, Germany and Denmark demonstrated how smart governments respond to crisis. They learned, changed behavior, sought the advice of experts and moved quickly. In doing so, they earned the trust of the people and prevented greater disaster.

Americans have done this before, weathering crises and positioning ourselves to thrive in their aftermaths. Just a few months ago, huge relief packages passed by Congress would have been unimaginable, but we’ve proven we can work together and create change. The responsibility now is to make sure we grow by changing for the better.