Thanks, George W Bush, for the BP escrow fiasco

Daniel Rothschild
June 18th, 2010
Politics

In today’s New York Times, David Sanger analyzes President Obama’s expansive use of the presidency not as a bully pulpit but to act as planner/shareholder/dad-in-chief:

But President Obama’s successful move to force BP to establish a $20 billion compensation fund that the company will have no voice in allocating — just a down payment, the president insisted — may have been the most vivid example of what he recently called his determination to step in and do “what individuals couldn’t do and corporations wouldn’t do.” With that display of raw arm-twisting, Mr. Obama reinvigorated a debate about the renewed reach of government power, or, alternatively, the power of government overreach. It is an argument that has come to define Mr. Obama’s first 18 months in office, and one that Mr. Obama clearly hopes to make a central issue in November’s midterm elections.

The real issue here isn’t — or at least shouldn’t be — the “size and scope” of government, to employ that chestnut. What’s really frightening about the way that Obama sees his role as unconstrained by law or regulation on what he can or cannot do. If the president decides that a private company should establish an escrow fund with the federal government, he doesn’t need a law or regulation to set up how this works. He just needs what Rahm Emanuel calls “a power other presidents have used — you call it jawboning.”

It may make every bit of sense for companies that drill offshore to, in the case of an environmental catastrophe, have an escrow fund managed to pay the victims of their recklessness, carelessness, or bad luck. And as Richard Epstein argued, BP doesn’t deserve to have its liability capped.

But if this is the case, there should be some kind of legal or regulatory means for addressing this. A whim of the president is not, in a country that can meaningfully be said to be governed by the rule of law, sufficient basis for this. And by putting the money in an “escrow fund,” it gives the illusion that there’s some kind of contractual or due process mechanism at play here. There isn’t. Procedure matters in a liberal democracy; getting to the “right result” isn’t enough.

Of course, Obama couldn’t do this if his predecessor hadn’t teed up such a perfect shot for him. So well done, Republicans. Your insistence that the “unitary authority” of the president allowed him to imprison and execute at will has been reapplied from real people to the legal persons that are corporations. Nothing Obama’s doing is inconsistent with the Bush doctrine on presidential power. The target has merely shifted. Heck, it’s really just a continuation of existing Bush administration policy: Hank Paulson did the same thing when forcing banks to take TARP money, though at least TARP could hide behind the fig leaf of congressional action.

Somewhere from his lair on Skullcrusher Mountain, Dick Cheney is smiling. And remember, libertarians told you so.

How to get free breast implant surgery
David Brooks misreads the “center”
Libertarian sentiment has finally gone mainstream
So what happens when BP succeeds?
Arthur Brooks’ “The Battle”

http://patriotsteelbuildings.us self storage construction

I Too Like the Blog here. Keep up all the work. I too love to blog. This is great everyone sharing opinions
http://tvgamedepot.com Earnest Banick

You built some beneficial details there. I did a look for within the matter and observed most folks will consent with your webpage.
http://fitnessbetter.com Yadira Meleski

Thank you for another great article. Where else could anyone get that kind of information in such a perfect way of writing? I have a presentation next week, and I am on the look for such information.
http://www.gofreelance.com/writing/ freelance proofreader jobs

Great! But I completely different thoughts myself. But I certainly support your right to think what you want.
http://www.watchs-replica.net omega replica watches

Hey, I think your mostly on track with this, I won’t say I totally agree , but its not really that much of a issue.
http://www.diadiem.com/ Ho Chi Minh City

How comes your deleting my comments?
http://okayliving.com Fermin Sandy

wow, awesome post, I was wondering how to cure acne naturally. and found your blog by bing, many userful stuff here, now i have got some idea. bookmarked and also signed up your rss. keep us updated.
http://www.replicahandbagsite.com chanel handbags

You got a surely useful blog I be experiencing been here reading exchange for upon an hour. I am a newbie and your ascendancy is profoundly much an ardour for me.
http://www.replicahandbagshermes.com knockoff handbags

Pussssyyy I am thirteen and I can drink higher then this girl
http://www.replicahandbagshermes.com replica hermes handbags

Hi there may I use some of the information here in this post if I provide a link back to your site?
http://www.watchs-replica.net replica hublot watches

Pussssyyy I am thirteen and I can drink higher then this girl
http://www.watchs-replica.net replica hublot watches

found your site on del.icio.us today and really liked it.. i bookmarked it and will be back to check it out some more later
http://www.watchhandbag.com replica rolex submariner

Printing and Mailing is a great way of marketing all around even in this internet savvy world. I recently started a new business and got great response from postcard mailing services.
http://www.watchhandbag.com replica rolex yachtmaster

Hi, can I quote some of the content found in this entry if I provide a link back to your site?
http://www.yywatches.com replica Chopard watches

I was just looking at relevant blog posts intended for a project research and My partner and i happened to stumble on yours. Many thanks for this valuable info!
http://londonontario.indymedia.org/?q=user/124439 Vickey Pagoda

Cool! But I my own thoughts myself. But I definitely support your right to think what you like.
http://www.topareplicas.com Louis Vuitton

Hi there, just wanted to get off my chest that I think this blog is great, it has just the detail I am looking for. Please feel happy about the fact that this is only the second website I have saved in over 6 weeks. Keep up the lovely work and I look forward to making some more reactive comments over the next few weeks
http://www.bestbeijingescort.com shanghai escort

Very nice and informative article. Thanks for the quality content and I hope you update your blog frequently as Im interested in this topic. Ive already bookmarked this article. Thanx!
http://www.osobistefinanse.pl Kredyty

I find myself coming to your blog more and more often to the point where my visits are almost daily now!
http://www.escortshanghaiescort.com shanghai massage

I love reading your blog. You seem like a natural in sharing your experiences. I am starting my blog as well, do you think only natural writers can have something to share?
http://www.massagebeijingmassage.com shanghai massage

You certainly deserve a round of applause for your post and more specifically, your blog in general. Very high quality material.
http://www.no1shanghaimassage.com shanghai escort

So, I move home and all the sudden it’s my job to fix the internet and satellite tv because lightning struck the pole and the dish
http://www.vipshangheiescort.com shanghai escort

I really loved this post. You write about this topic very well. I really like your blog and I will definetly bookmark it! Keep up the great posts!
http://www.osobistefinanse.pl Kredyty

I just book marked your blog on Digg and StumbleUpon.I enjoy reading your commentaries.