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...certainly wouldn't have been opposed to every government intervention in the market. On financial reform, it's easy to imagine Smith supporting the creation of a Consumer Financial Protection Agency and crackdowns on giant financial institutions. He might have also favored the just-passed health care reform bill, at least the part that requires states to set up exchanges to ensure retail competition for health insurance...

Author: /time Magazine | Title: What Would Adam Smith Say? | 3/25/2010 | See Source »

Congress is now approaching a crucial opportunity for financial reform. Such a reform must be tough and intelligent, as a weak reform would create a dangerously false illusion of security and stability. The House passed a major regulatory bill in December, and now Chris Dodd has brought his own Senate proposal to the floor, for debating over the next few weeks. Financial regulation must specifically address capital requirements for banks, the tools to liquidate failed financial institutions, consumer protections, derivative trading, and the immense trading operations of many major investment banks...

Author: By Ravi N. Mulani | Title: A Full Overhaul | 3/25/2010 | See Source »

...paper on the crisis, while requirements should not be onerous, they should leave banks in a position to effectively manage during most crises. The current legislation in the Senate directs regulators to enforce higher capital requirements but without specific capital levels. This policy must be maintained in the final bill with specific requirements, despite almost-certain industry opposition to capital measures that would alter current ways of business...

Author: By Ravi N. Mulani | Title: A Full Overhaul | 3/25/2010 | See Source »

...Republican stonewall had its roots in a memo that William Kristol wrote in 1993, urging Republicans not to cooperate in any way with Bill Clinton on health care because, among other things, the plan represented "a serious political threat to the Republican Party." In other words, it would make Clinton and the Democrats more popular. Kristol's strategy succeeded in 1994, when Republicans won control of the House and Senate - but it failed in 2010, although Republicans, misled by momentary anti-reform polls that mostly reflect public confusion, seem intent on pushing "repeal." It remains likely that Democrats will lose...

Author: /time Magazine | Title: Can Obama Keep Delivering on His Promise | 3/24/2010 | See Source »

...reform will undoubtedly prove inadequate to the demands of a globalized, warp-speed economy and an aging population. It will have to be modified, and modified again - and one hopes the Republicans, with their natural instinct for efficiency, will participate in that process. But, however flawed, the health care bill is a sign that major, concerted public reforms are once again possible, and that the difficult work of transforming America to compete successfully in a new world of challenges can now begin...

Author: /time Magazine | Title: Can Obama Keep Delivering on His Promise | 3/24/2010 | See Source »

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