Graft, a form of political corruption, is the
unscrupulous use of a politician's authority for personal gain. Most
governmental systems have laws in place to prevent graft although this does not
always halt political corruption.
An example of
this can be seen in progressive income taxes.
Corporations and individuals are forced to pay excessive taxes as a kind
of extortion that can be redistributed to the “masses.” Over time, rather than continue to be
robbed, they infiltrate the system and complicate it so that the tax code is
incomprehensible and full of arcane loopholes.
The net effect after a century or so of such machinations is a lower tax
rate in a system that no one understands and no one respects.
Examples
A traditional
example of political graft is when someone exchanges a political donation for
political favor (e.g. ristournes in Quebec
or tangenti in Italy ).
Grafting, however, does not require another individual to be involved. A member
of a government may embezzle money directly from government funds, make
decisions that benefit his own private economic interests, or simply use inside
knowledge of upcoming government decisions to his benefit, in a manner similar
to insider trading.
History of Graft
William M. Tweed
or "Boss Tweed" was taken out of his position in the New York State
Senate to help to prevent graft and other political corruption, but this failed.
Present Day Graft
When USAID helped
the Afghan government develop a strategy to pay civil service employees and
police officers through mobile phones, it cut out so much graft that employees
thought they were actually receiving a 30% raise.
Comments by the Blog Author
It is the opinion
of the blog author, as a certified public accountant who worked as a state
fraud examiner, that the progressive political agenda grossly encourages graft
as a necessary defense against bureaucracy.
Another power grab that essentially requires a canny defense
through increasing graft consists of the forest of regulatory agencies in the United States . It takes decades of counter-attack, but
eventually a regulatory agency in charge of something important will itself
become packed by those being regulated. A
particularly rapid example of such capture occurred with the Environmental
Protection Agency, established by Nixon in 1972 to help him look humane and get
re-elected. By the mid-90s in the Clinton administration,
this agency had become “hopelessly politicized,” in the words of Harvard-trained
M.D. and successful writer Michael Creighton.
My central point here is that those being needlessly
regulated or taxed correctly regard this as an attack and mount a slow defense
of their position by the introduction of graft into the garden of regulatory Eden . They have to do this to survive.
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