Posted 5:06 PM by Gene

I suppose the VOLOKHHEADS of finance have already typed 10 TRILLION WORDS about our new treasury secretary; and it certainly does my standing among the WIGGLY WORMS no good to make fun of his name. But what does a treasury secretary do? Basically he's the boss of the money raisers; and if the IRS's myriad problems are any signal most recent treasury secretaries have passed by unnoticed. One could argue we haven't had a truly powerful one since Andrew Mellon, and even his department admits the Depression pretty well took care of his rep. A treasury secretary could be a national scold for saving, and for sensible tax policy; but when can he have time for that selling bonds and benignly neglecting the tax code? (Or implementing mickey mouse wage and price controls like John Connally, another secretary with a sterling rep.) Besides as two successive WIZARDS of OZ have proved the real power to move the economy lies in the Federal Reserve. They can do wonders just by changing interest rates. Moreover it does seem a cliche of government to appoint high Wall Street mucky mucks to the job, as if the Street knows anything but greed. In the end the treasury bossdom is but a passageway to a professorship, and chairing commissions.