A sign of things to come

This article that appeared last week in Business Week and republished on Yahoo News scares me to a great extent - at least the symbolism of it.

The economic fall of New York City due to the financial crisis is contrasted to the boom of Washington, D.C. in the piece by Peter Coy. But I see it as a microcosm of the larger shift our nation seems to be undertaking from capitalism to socialism. Washington's boom corresponds with the growth in power and reach of the federal government, which has come to echo the old saw about Washington's southern efficiency and northern charm.

Our state is a beneficiary of this shift in power, although I feel that as a whole it's detrimental to the interests of the state. Because a large portion of the population in our state has a direct or indirect stake in a large, powerful federal government (either directly as an employee or indirectly in serving among the many entities who seek to shape federal policy) they tend to view government as something to be desired and not feared. While Governor O'Malley sees the state as "One Maryland" the part he caters to is that part which tends to depend on the government for some aspect of their existence, whether through employment or handout.

On the other hand, New York City's wealth and power was predominantly built up by the hard work of millions of Americans who wanted to invest in their future and their children's future. But much of that wealth was blown away in the market crash which, ironically, was brought about in part by events occurring in Washington. It's quite unfortunate that markets now listen to what the government does more often than what happens with the Dow Jones Industrial member companies.

In a perfect world, Washington D.C. would be a sleepy backwater on the order of our smallest state capital, with just enough facilities to address the functions Constitutionally mandated for a limited federal government. Alas, this doesn't seem to be the case anytime soon.