Paulson Net
One of the more fascinating aspects of the Paulson Plan -- which its own advocates mystifyingly chose to call a bail-out -- is the way that economists and other well-informed people tore into it from around the country. The Internet accelerated, deepened and magnified the response, such as has never been seen before in connection with a financial maneuver of this sort.
The traditional approach sought by Paulson and Bernanke was to conceal the basic nature of the plan, ask for trust, insist on dispatch, and brook no involvement from the outside. Presumably, they called a few people on Wall Street, took counsel from their expert staff, chatted a bit with some senior staffers on the Hill and a few of the members, and believed that when in the fullness of time their actions became transparent to the market, perhaps weeks from now, they would be judged on the results.
It does not appear as if the Internet permits the traditional approach to work anymore. That raises the question of whether such policy making ought to be done in the open. If there are no secrets, why not discuss the whole matter openly, but still expeditiously? Indeed, if Treasury had asked for widespread input over the last few months to the question of dealing with this sort of problem, it is not implausible that it would have come up with a better plan last week -- one that would have been adopted sooner, with less Presidential politicking by the Suspender and a more tolerant public acceptance.
But what you are describing is the Agora, in ancient Athens. Could it be that the Democratic ideal of Ancient Greece is almost within our grasp? That we have ALMOST progressed to the level of civilization the Athenians attained 2900 years ago?!?
The wonders of of progress and evolution will never cease to amaze...
September 28, 2008 1:17 AM | Reply | Permalink
But that assumes that the purpose of the plan was to make a difference to the country as a whole. There is ample reason to doubt.
September 28, 2008 3:28 AM | Reply | Permalink
Hmmm.... sounds like open source government. I like the idea!
September 28, 2008 8:19 AM | Reply | Permalink
I keep wondering when people will go ballistic over the fact that the only evidence that there is a problem to be solved is that Paulson and company say there is a problem. No data, no analysis, no charts, nothing but a statement that we are expected to accept without question. I still don't know if there really is a problem worthy of government intervention.
September 28, 2008 12:26 PM | Reply | Permalink