The Obama Administration appears to me to be pursuing many goals, poorly. Here are four:
1) The stimulus failed to meet Larry Summers' famous criteria of timely, targeted, or temporary.
2) The cap and trade legislation maximizes rent-seeking (favoritism toward particular businesses) and minimizes carbon reduction.
3) The proposed financial reforms are mostly cosmetic and fail to address the key issues of housing policy and regulatory capital arbitrage.
4) In championing health care reform, the President stresses the unsustainability of our current system, while insisting that nothing will change (you can keep your insurance, keep your doctor, etc.).
The
pattern that I see is one of following the path of least political
resistance, even if it means failing to make any significant
contribution to solving the actual public policy problem. I cannot say
that I am completely shocked by this. It is sort of Public Choice 101.
But there are a lot of bright, highly-educated people in the Obama
Administration who, if they were to step back and evaluate what is
happening, would see the pattern for what it is. They believe that they
inherited such bad policies that they could not possibly do worse. That
belief is starting to look shaky.




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