The Obama Style of Policy
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.
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