| There is, by the way, a precedent for Bush-style privatization. One major reason for Argentina's rapid debt buildup in the 1990's was a pension reform involving a switch to individual accounts - a switch that President Carlos Menem, like President Bush, decided to finance with borrowing rather than taxes. So Mr. Bush intends to emulate a plan that helped set the stage for Argentina's economic crisis.
If Mr. Bush were to say in plain English that his plan to solve our fiscal problems is to borrow trillions, put the money into stocks and hope for the best, everyone would denounce that plan as the height of irresponsibility. The fact that this plan has an elaborate disguise, one that would add considerably to its costs, makes it worse. And maybe the fact that serious financial experts, the sort qualified to be Treasury secretary, understand all this is the reason why John Snow has just been reappointed. |
Krugman does raise an interesting issue there at the end. A week ago Snow was all but gone. They wanted him gone, and they'd gone public with it. But... now he's staying. Why?
Well, according to the WaPo and others, they couldn't get the people they wanted to take his spot. And from what I remember (I can't find the link right now, too tired), he has one or two other economic posts he's trying to fill. But nobody is biting.
What does it tell you when the President of the United States gets turned down by big money, big ego Wall St. types?
Methinks Krugman may be on to something today...
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