As the President intervenes in more and more industries, a key question is how he does it and what he is trying to achieve. Is he trying to reorganize insolvent firms while, as much as possible, preserving the rights of stakeholders as established under existing contracts? Or is he trying to achieve a "fair" outcome as he judges it, regardless of preexisting rules and agreements? I fear it may be the latter, in which case politics may start to trump the rule of lawFor a president who considers "empathy" to be the most important consideration in a Supreme Court justice, this is no surprise. Achieving some sort of mystical social justice is more important than deferring to the rule of law. And do people care? Nope, fairness sounds to a lot of people as just what we want and who cares about the rule of law?
Monday, May 04, 2009
Gregory Mankiw also has concerns about where lies the rule of law with Obama's bailout maneuvering with Chrysler.