Long before Martin Wolf became the chief economics columnist for the Financial Times, he wrote the newspaper letters--lots and lots of letters. It was the early 1980s, the height of the Thatcher era, and Wolf was running research at a think tank in London that was sympathetic to the government's pro-trade agenda. The FT's letters section became the ideal place to take to task all those who would stand in the way of the first waves of globalization.
With a British gentleman's cutting subtlety, Wolf parried with other letter writers over everything from tariffs to agricultural subsidies to the German textile industry. He assailed the arguments of a Mr. Mitchell as ""?'codswollop' raised to a high power." Taking apart the logic of one Mr. Calvert, Wolf quoted nineteenth-century French economist Frédéric Bastiat: "Absurdity is the limit of inconsistency." Arguing with a Mr. Smith about the oil shock of 1983, Wolf's didactic style was on full display:
How does Mr Smith reach his conclusion? The unstated argument appears to go as follows: in order to prove the economic optimality of competitive general equilibrium, one needs to assume a full range of contingent and future markets. A full range of such markets does not exist. Consequently, the actual equilibrium is not optimal. Centralised co-ordinating agencies might, therefore, improve on the market. The actions of the Japanese and other governments are generally held to improve on the workings of the market. Accordingly, co-ordinating action by the British Government would improve on the market.
When stated in the above way, the argument looks a little silly.
Today, Martin Wolf has moved on to bigger targets than Mr. Smith. Hired as an editorial writer by the FT in 1987, he is arguably the most widely trusted pundit of the current economic crisis. Consider the people who count themselves fans of his column. Larry Summers: "He is probably the most deeply thoughtful and professionally informed economic journalist in the world at this point." Harvard economist Kenneth Rogoff: "He really is the premier financial and economics writer in the world." Mohamed El Erian, CEO of PIMCO, the world's largest bond investor: "He is, by far, the most influential economic columnist out there. His columns are eagerly anticipated.”
Knowing that Wolf is widely read and highly esteemed, major players in the economic world court his approval. The day after Treasury Secretary Timothy Geithner announced details of the Public-Private Investment Program, he called his old friend Wolf, who he knew was working on his Wednesday column. Geithner wanted to explain--and defend--the initiative. Wolf listened politely and, the following day, slammed the program as the "vulture fund relief scheme."
Alan Bersin, Obama's "Border Czar," rips apart arguments to legalize drugs in the U.S., suggesting that there is much more we can do to educate Americans and crack down on supply: "I wouldn't concede on this one at all." Bersin is the Assistant Secretary for International Affairs and Special Representative for Border Affairs at the Department of Homeland Security.
Pieces by Obama's new regulatory czar.
How should the courts interpret the Constitution?
Toward a theory of Obama-ism.
The Massachusetts gay marriage decision is federalism at its best.
Just how destructive is conspicuous consumption?
The fine line between "law" and "politics."
Intellectual rigor. Honest reporting. Influential analysis. Don't miss another issue of the magazine considered "required reading" by the world's top decision-makers. Subscribe today.
Read Full Article »