Making the Perfect the Enemy of the Good

In a recent NY Times article, “Financial Reform Endgame,” Paul Krugman seems to suggest that politicians should sometimes make the perfect the enemy of the good. The issue that gives rise to this suggestion is whether, in response to the recent economic collapse, the U.S. Congress should pass financial reform aimed at preventing future economic collapses even if the proposed reform fails to establish, among other things, an independent protection agency for consumers of financial products. According to Krugman, the answer is no, because passing such a defanged version of reform today, while doing little to prevent a future economic collapse, would provide society with a false sense of security, which, in turn, would prevent politicians from passing a more robust version of reform tomorrow. Continue reading “Making the Perfect the Enemy of the Good”