The Rigged Revolving Door - Our Peter Orszag problem

[Donnachaidh]

http://www.economist.com/blogs/democracyinamerica/2010/12/rigged_revolving_door

LAST July Peter Orszag stepped down from his post as the head of the Office of Management and Budget. As budget director, Mr Orzsag helped shape the first stimulus package and, more visibly, the health-care reform legislation. Apparently, the market values this sort of experience. Last week, Mr Orszag accepted a senior position at the investment-banking arm of Citigroup, an institution that exists in its present form thanks to massive infusions of taxpayer cash. Exactly how much Citigroup pay Mr Orszag is not public knowledge, but swapping tweed for sharkskin should leave him sitting pretty. Bankers who spoke to the New York Times ballparked his yearly salary at $2-3m.

James Fallows rightly observes that not only is the revolving door between Washington and Wall Street unseemly, its frictionless gliding action suggests corruption is built right into the interface between our government and our great profit-seeking institutions. Mr Fallows hesitates to impugn Mr Orszag's personal character. Who can blame a fella for throwing open the door when extravagent opportunity knocks?!

"But in the grander scheme, his move illustrates something that is just wrong. The idea that someone would help plan, advocate, and carry out an economic policy that played such a crucial role in the survival of a financial institution—and then, less than two years after his Administration took office, would take a job that (a) exemplifies the growing disparities the Administration says it's trying to correct and (b) unavoidably will call on knowledge and contacts Orszag developed while in recent public service—this says something bad about what is taken for granted in American public life. "

"When we notice similar patterns in other countries—for instance, how many offspring and in-laws of senior Chinese Communist officials have become very, very rich—we are quick to draw conclusions about structural injustices. Americans may not "notice" Orszag-like migrations, in the sense of devoting big news coverage to them. But these stories pile up in the background to create a broad American sense that politics is rigged, and opportunity too."

More at the link ---

[ChemDork]

1. Sure, but we have no LAOGAI in the USA

Yet.

[bbgrunt]

2. "But these stories pile up in the background to create a broad American sense that politics is

rigged, and opportunity too."

well, duh.

[JDPriestly]

3. How can we be sure that Orszag is not simply selling his extensive

knowledge of the Obama administration and more specifically his personal ties to Obama?

This is just horrible.

[dmr]

4. Why isn't there a law forbidding this revolving door activity?

It doesn't even appear to be a conflict of interest - it IS a conflict of interest.

I bet there are layers upon layers of conflicts between the government & banks, special interests, pharma, health, telecoms, so on and so forth.

[Donnachaidh]

5. Even if there is -- do you think anyone in this government will enforce it?

It's been speechified to death, IIRC even Obama railed against it. But nothing of substance came of it, obviously.

[dmr]

10. No, you're right. Too bad there's so much dishonesty.

But I dream on ...

:sigh:

[Rex]

6. One day someone responsible and adult enough will come along

and punish, severely, the huge criminal organizations that have cost America our future prosperity. Some day...

[SOS]

7. Citigroup Investment Banking

We live in an oligarchy.
How much evidence is needed before people wake up and figure this out?

Politics is just theater.

The real government is headquartered on Wall Street.
Washington is a Potemkin village.

[sendero]

9. Exactly..

... and they are not REMOTELY done looting the American public.

[xchrom]

8. Recommend