I don't know why being a shrewd stock-picker qualifies one to be treasury secretary.
A reputation as an experienced arbitrageur is valuable in rent-seeking markets and in a social environment where profit optimizing is normative. You imply, somewhat, that the function and objectives of a treasury secretary per se preclude satisfaction of either "benefit." That assumption would be moot --fiduciary behavior constrained by cost avoidance-- if the treasury's clients were one and the same. In the US, they are not.
To Stiglitz's credit, he is a capable bean counter and talented forecaster. He knows his cash flows. The problem remains, how to enforce government solvency. Diversity is the key to economic and political evolution.
US Treasury: Duties and Functions of the Trasury Secretary
The Secretary of the Treasury is the principal economic advisor to the President and plays a critical role in policy-making by bringing an economic and government financial policy perspective to issues facing the government. The Secretary is responsible for formulating and recommending domestic and international financial, economic, and tax policy, participating in the formulation of broad fiscal policies that have general significance for the economy, and managing the public debt. The Secretary oversees the activities of the Department in carrying out its major law enforcement responsibilities; in serving as the financial agent for the United States Government; and in manufacturing coins and currency. The Chief Financial Officer of the government, the Secretary serves as Chairman Pro Tempore of the President's Economic Policy Council, Chairman of the Boards and Managing Trustee of the Social Security and Medicare Trust Funds, and as U.S. Governor of the International Monetary Fund, the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, and the European Bank for Reconstruction and Development.
The Chief Financial Officer of the government, the Secretary serves as Chairman Pro Tempore of the President's Economic Policy Council, Chairman of the Boards and Managing Trustee of the Social Security and Medicare Trust Funds, and as U.S. Governor of the International Monetary Fund, the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, and the European Bank for Reconstruction and Development.
My suggestion of Stiglitz is somewhat perverse in that in Globalization and its Discontents he lays the criticism thick on Rubin's Treasury Department. If he thinks he knows better he should be given the oportunity to prove it. I think he does know better. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
It is a concise description of the National Banking Act of 1863/1864 et seq. Let us ponder (briefly) the case law since that assures reliable, orderly issuance of "taxpayer" debt.
I take your points on Stiglitz's nomination. Let's raise the ante: is it time now to remove appointment of "the most powerful officer in the cabinet" to the plenary field? Put the candidate to a vote! Diversity is the key to economic and political evolution.
But 1) they would be dissected to death by the media; 2) they could have one debate per secretary - that would have more content than a vice-presidential debate. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
Rather, let's consider the benefits to as well as, shall we say, the inconveniences of "taxpayers" electing a treasurer. What have the people left to lose? "Savings" losses, an economic depression has arrived.
I happen to agree with Browkaw's observation --and I doubt I'm alone on principle-- to the extent, and within the new legal framework, Congress has abrogated significant, distretionary Article 1 powers to the secretary of treasury apart from instructions and rule-making by the president. Poll-smokers will be interested to monitor public opinion of the treasurer's distribution of +$700B as well as its expectations, heretofore unexamined, for the next treasurer. The public will have an opinion, and demand for pertinent information will increase.
I for example am also politically sensitive to the fact that the presidential ticket is absolutely controlled by the Democratic and Republican committees; the vice-president is not subject to democratic franchise.
So furnish these conditions for election that may or may not ultimately create friction, generally, in resolution of federal appropriations and executive allocations.
1. The treasury candidate is selected by party committee and joined to presidential ticket.
-- OR--
2. The treasury candidate is party-affiliated and off-ticket ballot.
For the sake of simplicity, assume treasury candidate(s) is eligible to receive public campaign financing (limit X ratio of general fund), if qualified by a plurality of votes in an open popular primary. Diversity is the key to economic and political evolution.
Given the extent to which the currently accepted approach to economics is being shown to be primarily a public relations front for a pack of looters, on what basis would such an economic fourth branch of government operate? The power of the purse remains the chief power of Congress, even if Congress seldom has the courage to use it. How could it stand up to a President and a Treasurer who shared goals and coordinated policies? The possible scope for unintended consequences from this proposal seem massive. If sanity be culturally normative, then by the norms of this culture I claim insanity.
