This is a Cato Special Podcast. I'm Caleb Brown. President Obama wants the authority to

combine several economic development agencies into one, though it's not clear that will mean smaller government.

Chris Edwards, director of tax policy studies at the Cato Institute, says the agencies the

president wants to combine should instead simply be eliminated.

The headline that President Obama here wants is cutting government, I presume,

by trying to merge these six agencies into one, what is the

functional impact of what he's asking for?

Well, President Obama is asking for authority that some presidents in the past have had to consolidate

federal agencies and then force Congress to vote up or down on whether the

consolidation will save money.

And that's generally a good idea.

I'm suspicious with the new Obama proposal

to combine various trade and economic development

agencies that it's not really a budget cutting exercise. economic development

agencies, it will lead to bigger government.

He says, for example, that he wants to combine the Small Business

Administration with various export subsidy agencies

like the Export Import Bank.

But he says he wants to move the head of the SBA up to cabinet level status. So I'm

suspicious that President Obama wants to take half a dozen small

agencies and to create a brand new federal department which would lead

to bigger government over time.

...