humani nil a me alienum puto

random rants about news, the law, healthcare law, economics and anything I find amusing

Op-Ed Columnist – Are We Home Alone? – NYTimes.com

In his New York Time op ed, Thomas Friedman thinks our political leadership is acting immaturely.  He believes that we are missing the bigger picture by riding a populist rage over the financial sector bonuses, and no one in Washington is showing adult leadership.  “There don’t seem to be any adults at the top — nobody acting larger than the moment, nobody being impelled by anything deeper than the last news cycle.”  He sees Republicans focusing on the AIG bonuses in a non-constructive, opportunistic way, and asks if they think that their “party automatically wins if the country loses?”  In addition, he thinks that the misplaced urge to “villify” persons like Geither will only lead to “ensure that no capable person enlists in government.”

But more than this, he thinks that Mr. Obama missed an important opportunity.  “[Had ]Mr. Obama given A.I.G.’s American brokers a reputation to live up to, a great national mission to join, I’d bet anything we’d have gotten most of our money back voluntarily. Inspiring conduct has so much more of an impact than coercing it.”

I liked the following passage, which summarizes, in my view, a prominent failure in the financial sector’s culture:

‘There is nothing more powerful than inspirational leadership that unleashes principled behavior for a great cause,’ said Dov Seidman, the C.E.O. of LRN, which helps companies build ethical cultures, and the author of the book ‘How.’ What makes a company or a government ‘sustainable,’ he added, is not when it adds more coercive rules and regulations to control behaviors. ‘It is when its employees or citizens are propelled by values and principles to do the right things, no matter how difficult the situation,’ said Seidman. ‘Laws tell you what you can do. Values inspire in you what you should do. It’s a leader’s job to inspire in us those values.'”

Of course, all this populist outrage does not fix the current mess.  It’s the absence of a clear plan to address the banking crisis that has allowed “all kinds of lesser issues and clowns [to ]have ballooned in importance and only confused people in the vacuum.”  But the “big issue — the real issue — [is ]the president’s comprehensive plan to remove the toxic assets from our ailing banks, which is the key to our economic recovery,” not punishing corporate executives, even those that are clearly receiving obnoxious bonuses that they should not.

Personally, I’m not sure we would not, in any event, have these “lesser issues” and “clowns” coming to the fore and distracting the policy debate.  I think there is such a pervasive sense that things have gone very wrong, that I am personally hurting, that my neighbor or family member is ‘really hurting’ through loss of home, loss of employment, and, certainly, loss of retirement savings, that outrage is real.  Let’s hope some adults can focus this outrage in a constructive way to establish some sound policy fixes.  I do hope, as Friedman concludes, that a Geither plan will be out next week, it will be specific and thoughtful, and the “president will pull the country together behind it” because “our country, alas, is not too big to fail.”    Edit Post ‹ humani nil a me alienum puto — WordPress

via Op-Ed Columnist – Are We Home Alone? – NYTimes.com.

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