President Nixon appointed Arthur F. Burns Fed chairman. He was supposed to be one of the “good guys” — an advocate for free markets, sound money and the gold standard. But Nixon badgered and bullied him into lowering interest rates and signing off on economic “reforms” that included severing the dollar from its last connection to the gold standard. As it turns out, Burns cared more about maintaining his reputation and popularity than his principles.
The lesson is that we aren’t going to fix things by putting “good people” in positions of power.
Power corrupts.
The problem is a system that places too much power in the hands of corruptible individuals. The solution lies in decentralizing and limiting power, not in vain attempts to find the “right guy” to fill certain positions.
