Whether the economy needs a "plan," or whether the plan will help the markets, is beside the point. The plan serves to consolidate power. Four weeks ago, the Fed and the Treasury had far more power than anyone can intelligently use. Still, they came to Congress requesting more power. Then, when the bill was passed, Paulson took even more power than what it sounded like the legislation was giving...Read the whole thing.
Knowledge today is increasingly dispersed. Power was already too concentrated in the private sector, with CEO's not understanding their own businesses.
But the knowledge-power discrepancy in the private sector is nothing compared to what exists in the public sector. What do Congressmen understand about the budgets and laws that they are voting on? What do the regulators understand about the consequences of their rulings?
Wednesday, October 15, 2008
The Knowledge-Power Divide
One of my favorite bloggers, Arnold Kling, makes a great point today about the bailout and the consolidation of more and more power in the government.