Francis Fukuyama on the Financial Crisis
There is also this problem that both you and Jeff Sachs have written on, that if you’re constantly critical of government, and say you don’t like government, the government you get is going to be of lower quality because it gets deprived of talent and resources. This, in turn, confirms your view of government as incompetent and it becomes a vicious circle.
It’s what’s an economist would call a low-level equilibrium trap. You don’t want to pay taxes to get better government services because you’re convinced the government will waste any money that you give them. So you’re never in a position to get out of that. A lot of Latin America is basically in that situation, and I’m afraid that the US has now been in this situation for some time.
-Interview by Sophie Roell
