PAULSON’S PLAN: A LETTER TO THE ECONOMIST (September 29, 2008)

As you conclude your main leader about Hank Paulson’s plan to bail out the American banking system, the plan is not perfect, but it is still the best one we have (“I Want Your Money,” September 27, 2008). This applies to the financial market as a whole, as you imply. However, the argument goes further, but you seem wary of following it to the bitter end: capitalism is far from perfect, but it is still the best economic system we now have. Mind you, that is the only meaningful way to defend capitalism under any circumstances, at least until a better economic system becomes conceivable, but it is especially cogent at this moment. If anything else, everyone around the globe will feel slightly better even if Paulson wants our money, no matter whether or not we happen to be American.