A Small Suggestion for Congress

With the bailout plan going down in spectacular flames today and the markets following suit, the question is now, "what happens next." As Nate Silver points out, a big part of the failure of the plan was that Congressman in competitive districts voted against it. This shouldn't have been much of a surprise. Usually, Congress tries to adjourn well before an election without voting on anything substantial. This is because its very difficult to get Members to take hard votes with an election looming right in front of them. Can you imagine trying to pass a huge bill, with very little time for public education, just five weeks before an election?

So, here's my proposal. Treasury Secretary Paulson has already said that, even with the $700 billion he's asking for, he's only planning on using about $50 billion a month. Why doesn't Congress give him the $50 billion for next month, and then come back after the election for a lame-duck session to pass the rest of the plan (in whatever form they want)? That way, the markets can calm down a bit knowing that Paulson is able to get started right now, Congress can focus on coming up with a plan that will garner wider support without the pressures of an election a month away, and it gives them more time to explain the situation to us in the public. There is a reason that major legislation almost always happens in the first few months of a new Congress.

So let's do the smart thing here. Give Paulson some money and put this off until electoral politics won't poison the whole discussion.