By Rodney LaBruce

“The road to freedom is paved with incremental steps.”
— James M. Buchanan

I’ve talked before about how important it is to understand the connection between James M. Buchanan and Charles Koch. While others helped with the strategy, these two were key players. Understanding their relationship helps explain the current Republican Party, which now often follows a libertarian approach.

James M. Buchanan: Public Choice Theory Expert

James M. Buchanan (1919–2013) was a top economist who changed how we think about political decisions. He believed that people, even in government, act mainly out of self-interest, which can lead to inefficiency and poor management. This idea won him a Nobel Prize in 1986.

The Samaritan’s Dilemma: The Cost of Helping

In 1975, Buchanan wrote “The Samaritan’s Dilemma,” using the story of the Good Samaritan to show how generosity can create dependency. He suggested that helping too much might make people reliant, which goes against the idea of helping those in need.

Shaping Policies Around Self-Interest

Buchanan looked at how to create government policies that align personal incentives with the public good, reducing waste and government size. His ideas greatly influenced conservative and libertarian thinking, especially about limiting government and decentralizing power. His book “The Calculus of Consent” further spread these ideas.

The Connection with Charles Koch

Buchanan and Charles Koch both wanted to limit government, boost free-market economics, and reduce public-sector influence. In the 1970s, Koch funded Buchanan and similar thinkers at places like George Mason University’s Center for the Study of Public Choice. They aimed to reform areas like public education, social security, and the judiciary by decentralizing and privatizing them.

A Tense Partnership

Despite their shared goals, Buchanan and Koch had some disagreements. Buchanan was cautious about Koch’s push for quick changes. However, Koch’s financial support helped spread Buchanan’s theories, making them influential in conservative circles and think tanks across the U.S.

The Strategy of Gradual Change

Their partnership led to a common strategy today: making gradual changes presented as “reforms.” By introducing privatization as small improvements, the larger agenda becomes more acceptable. This method, sometimes called “slow-motion demolition,” works by waiting for public opinion to catch up, allowing irreversible changes before opposition grows.

Here are some examples in politics where gradual changes presented as reforms have been used to introduce larger agendas:

1. Privatization of Public Services: In the United States, there has been a gradual shift towards privatizing public services such as education, healthcare, and transportation. For instance, charter schools have been introduced as an alternative to public schools, framed as a way to improve education through competition. Over time, this has led to a broader acceptance of privatization in education.
2. Welfare Reform: The welfare reforms in the 1990s, particularly the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, introduced incremental changes to welfare programs. These changes were presented as necessary reforms to reduce dependency on government assistance. Over time, these reforms significantly altered the welfare system, making it more restrictive.
3. Healthcare Policy: The introduction of Health Savings Accounts (HSAs) in the United States was a gradual step towards shifting healthcare costs from employers and the government to individuals. HSAs were promoted as a way to give people more control over their healthcare spending. This incremental change has contributed to a larger trend towards privatization and consumer-driven healthcare.
4. Environmental Regulations: In some countries, environmental regulations have been gradually rolled back under the guise of reducing bureaucratic red tape and promoting economic growth. These changes are often presented as minor adjustments but can lead to significant reductions in environmental protections over time.
5. Labor Laws: Changes to labor laws, such as the introduction of more flexible working hours and gig economy regulations, have been framed as modernizing the workforce. These incremental changes can lead to a broader acceptance of less secure employment conditions and reduced labor protections.

These examples illustrate how gradual, incremental changes can be used to implement larger policy shifts without triggering immediate public backlash. These relatively small, incremental changes happen every year.

The Broader Agenda in Action

Take Robert W. Poole Jr., co-founder of the Reason Foundation. Influenced by Buchanan’s public choice theory, Poole promoted privatization to fix government inefficiency, especially in transportation. This step-by-step approach can hide a major shift in public policy, making it hard to reverse once people realize its full impact.

Robert W. Poole Jr.'s step-by-step approach to privatization, particularly in transportation, involved several key strategies. Let’s see if you recognize any of them:

1. Identifying Inefficiencies: Poole began by highlighting inefficiencies in government-run transportation systems. He pointed out issues such as high costs, poor service quality, and lack of innovation.
2. Promoting Public-Private Partnerships (PPPs): He advocated for the use of public-private partnerships as a way to introduce private sector efficiency into public services. This involved contracting private companies to manage and operate transportation services while the government retained ownership.
3. Incremental Implementation: Poole suggested implementing privatization gradually. For example, starting with smaller projects like toll roads or specific services within larger transportation systems. This allowed for testing and demonstrating the benefits of privatization without overwhelming the public or the system.
4. Showcasing Success Stories: He used successful examples of privatization from other regions or countries to build support. By showing tangible benefits such as cost savings and improved service quality, he aimed to gain public and political backing.
5. Policy Advocacy and Research: Through the Reason Foundation, Poole conducted and disseminated research on the benefits of privatization. This research was used to influence policymakers and shape public opinion. The research was of course funded by his own organization.
6. Legislative Support: He worked to gain legislative support for privatization initiatives. This involved lobbying for laws and regulations that facilitated the involvement of private companies in public transportation projects.
7. Addressing Public Concerns: Poole addressed concerns about privatization by emphasizing accountability measures, such as performance-based contracts and regulatory oversight, to ensure that private companies met public service standards.

By following these steps, Poole was able to gradually introduce privatization in a way that minimized resistance and allowed for the demonstration of its benefits before broader implementation.

In summary, these ideas are foundational to understanding the structural shifts happening today. The strategy of small changes, marketed as sensible reforms, conceals a broader agenda aimed at gradually turning public assets and services into private entities.