Note the use of antitheses in Mr. Paulson’s political intervention: ‘Isolationism vs. Globalism’ , Populism vs Integrationism, forces of openness rooted in market principles vs. those of closure across four dimensions: trade, capital flows, innovation and global institutions: The Potemkin Village of Schumpeter’s Creative Destruction with its permanent residents of Hayek, Mises, and Friedman, has now been deserted .The Brotherhood of Capitalists, have moved to the tonier address, of the overcrowded yet luxurious Keynesian villa.
The Paulson Economic Melodrama unfolds in the hyperbolic mood. In sum, ‘we’ must remain in that Keynesian abode, and dedicate ‘ourselves’ to Capitalism’s full recovery until? The Multilateral Organizations, that is the touchstone, the instrument of that full recovery of ‘our’ economic health are NGO’s, without allegiance to any Nation State, nor to any political constituency except itself. Are they worthy of our faith and trust?
The forces that advocate for closure will resist strengthening multilateral organisations. But that only increases the risks to our citizens. While the near-term prospects of reform seem dim, I am more optimistic that this crisis will ultimately spur co-operation among major nations to begin the hard work of building a more peaceful, sustainable future.
The above is the penultimate paragraph of Mr. Paulson’s essay, that amounts to a collection of not very convincing cliches.