Church,State, Resistance1

This article problematizes a separation of Church and State that is nevertheless identified as constitutive of politics. Democracy has come to manifest a tension between the ‘autonomy’ of the political and a ‘heteronomy’ that, exceeding rationalist or social contractarian accounts of our co‐existence, is here presented as an irreducible affect of our being together. Autonomy, it is argued, resists heteronomy through all representations of democracy; yet, by contrast, heteronomy resists autonomy, and does so with the force of this affect. So if civil religion is impossible – and if we know only too well where its realizations lead: by default, to republican celebration, or by excess, to fascism – then we must take up again, and from scratch, the question of the affect according to which we co‐exist.     

Rent seekers who demand government production: Bureaucratic output and the price of complements

Many goods and services produced by government bureaus are sold at prices which do not maximize net revenues (maximize profits or minimize losses). Indeed, bureaucratic institutions typically create incentives to expand production beyond that which would maximize net revenues. Furthermore, many of the products sold by government bureaus are highly complementary to privately produced goods and services. If a bureau's output is not priced to maximize net revenues, then private sellers of various complements may be in a position to extract rents by adjusting their prices. This paper explores the implications of bureaucratically generated rents for privately produced complements. First, rent seeking can materialize when private sector interests apply pressure for expanded bureau production and lower bureau prices. Second, if the bureau does expand its production capacity beyond the net revenue maximizing level, and if a private producer obtains exclusive rights to supply complements, then the extraction of rents will result in an inefficient mix of resources in bureaucratic production. The basis of the inefficiency is not the reason often given, however. Rather, inefficiencies arise because the actual level of use is less than that which the ‘bureaucratic plant’ was constructed to produce due to the relatively high price of the complementary services.     

VICTORIA

The first half of 1979 saw a continued effort by government to rationalize departmental responsibilities and policies. In the field of human services the government established the Health Commission and the Community Welfare Services Department (discussed in more detail in the two previous Chronicles) and has responded to one of the major contemporary social issues by establishing a Victorian Employment Committee.