"We got into this crisis because power was overly concentrated relative to knowledge. "

[vit_r]

Knowledge today is increasingly dispersed. Power was already too concentrated in the private sector, with CEO's not understanding their own businesses.

But the knowledge-power discrepancy in the private sector is nothing compared to what exists in the public sector. What do Congressmen understand about the budgets and laws that they are voting on? What do the regulators understand about the consequences of their rulings?

The Political Economy of the Bailout by Arnold Kling