Obama on Schultz and Leno

When President Obama appears on Ed Schultz and Jay Leno this week, it might be a good time for him to ask people how to handle the Paulson bailout of AIG executives. (AIG, American International Group, is the company that said they would cover the bets on the stocks that consisted of bundled predatory and other sub-prime loans.)

If Obama acts against the leisure class, the Republicans will accuse him of socialism. I think it’s important right now for people to know that some aspects of socialism are ok, as long as the government is accountable to the people. If we’re going to embrace socialism, our elected leaders need to choose companies or hire managers who run their operations ethically and efficiently. If people don’t like how politicians are guiding a company, they can vote them out of office.

There can still be a role for the private sector, through the competitive bidding process, and depending on the industry. Some industries, like police, fire, and the military, are better off public. Restaurants and bicycle shops may be better off private. Telephone, cable, and electricity are probably best as a mixture of public and private. Banking needs to be primarily public, but as Ellen Brown describes in “The Web of Debt,” there can be a role for private lenders as well.