Wall Street Journal

January 13, 1999

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Commentary

Big Government Is Bigger Than You Think

By Paul C. Light, a senior fellow at the Brookings Institution and a contributing editor of Government Executive.

Debate over the size and scope of government has long been the stuff of politics, and the upcoming presidential election will be no different. Vice President Al Gore is certain to advertise his credentials as a "New Democrat" by taking credit for nearly 400,000 jobs cut from the federal payroll over the past five years. Traditional liberal Democratic contenders, should there be any, are likely to argue that the cuts have hit federal employee unions too hard. And former Sen. Bill Bradley, who officially entered the race yesterday, may well argue that the key issue is what government does, not how many people do it.

On the Republican side, former Vice President Dan Quayle will counter that most of Mr. Gore's "reinventions" came from cutbacks at the Defense Department. Texas Gov. George W. Bush will promise to put more government work up for private bids. Sen. John McCain will likely argue that President Clinton misled the public when he declared in 1996 that the era of big government was over.

Each of these claims has merit. The federal civil service is smaller than it was in 1993; most of the reduction has come at the lower levels of the federal hierarchy where union workers are most heavily represented; the downsizing did start at the Defense Department; there is always room for more contracting; and it was only by using the most narrow head count of civil service employment that Mr. Clinton could make his claim about cutting big government.

Yet these various claims make sense only because the size of government can be calculated in different ways. To see the true picture, one must count all the heads, including full-time federal civil servants, uniformed military personnel, postal workers and people who deliver goods and services on behalf of the federal government under contracts, grants and mandates to state and local government.

When all those numbers are added together, the federal government looks very big indeed. In 1996, the most recent year for which good numbers are available, the true size of government was just under 17 million, or roughly 10 times as large as the head count Mr. Clinton used when he announced the end of big government. That 17 million includes the 1.8 million civil servants in the president's head count plus 1.5 million uniformed military personnel, 850,000 postal workers, 5.6 million contract employees (of whom 4 million were working under service contracts), 2.5 million grant employees and 4.7 million state and local employees encumbered under federal mandates.

Although the contract, grant and mandate numbers are estimates, they suggest the presence of a huge shadow work force that accounted for 64 jobs per 1,000 Americans in 1996--not the 11 per 1,000 advertised in that year's federal budget.

How do the assorted campaign claims stack up against this more inclusive head count? Mr. Gore's claim looks strongest. The number of federal contract employees dropped almost as much during the first years of reinventing government as civil service employment did, while grant employees held steady. Factoring in continued cuts in the number of uniformed military personnel, the total federal work force was almost 750,000 smaller in 1996 than it had been in 1993. It has gotten smaller since.

Yet most of those cuts came from the Pentagon downsizing that began at the end of the Vietnam War and accelerated under President Bush. The total defense contract work force dropped 210,000 from 1993 to 1996, while military personnel and civil service employees dropped by another 385,000. And if one also removes such contract-driven agencies as the Department of Energy and NASA from the 1993-96 calculations, the federal work force actually grew slightly under the Clinton administration, mostly in crime-fighting activities at the Department of Justice.

Mr. Gore's case is weaker if he is forced to defend Mr. Clinton's claim that the era of big government is over. The president was right only if he defined government as composed solely of federal civil servants, if he counted the Pentagon and nondefense work force together, which masks the long-term growth in the nondefense civil service, and if he ignored the shadow work force, which has swelled dramatically since President Kennedy's time. Remove Defense Department workers from the civil service totals and the civilian work force has almost doubled since 1960.

Republicans also face definitional difficulties. There is no basis for arguing that government is getting bigger, and any effort to do so dismisses the substantial cuts begun under President Bush. Moreover, Republicans can argue that government is too big only if they include contracts, grants and mandates, which have long been their preferred options for cutting civil service jobs.

The key question in sifting through the numbers is not why the shadow of government is so large, but why the federal civil service is so small. The answer resides in the incentives on both sides of the political aisle to create an illusion of smallness. Democrats use the illusion to protect a more activist government, and Republicans to hide their reluctance to change the basic mission of government. And both parties cater to a public that wants a federal government that looks smaller, but delivers at least as much as it always has.

It is impossible to have an honest debate about the proper role of government without accurate estimates of the true size of government. Much as the numbers might unsettle the candidates, they are essential for sorting through the claims that will fill the air as the 2000 presidential campaign gets underway. And they just might help the public recognize just how big government must be to deliver the things they want.