Paulson Equals Hope

As Treasury Secretary, Hank will be my principal advisor on the broad range of domestic and international economic issues that affect the well-being of all Americans.

--George Bush

Mr. President, if confirmed, I look forward to working with you, your administration, and the Congress to help keep the American economy strong and competitive.

--Henry Paulson

Great news for America and for the world. The U.S. has its best Treasury Secretary since Robert Rubin stepped down in 1999. Rubin took over in early 1995, a low point in the Clinton administration. Paulson, who appears to have accepted the job after months of saying no, is probably aware of how much Rubin was able to accomplish during a tough time for his president, and knows that if one person can make a difference for the economy, it is a Goldman Sachs CEO.

Several commentators have noted that Paulson’s China experience (he has visited the country over 70 times in the past decade) is a special qualification that will particularly serve the U.S. well at a time when China has such significant and complex influence over America’s economic future. Paulson could almost instantly become the Bush administration's most important voice on China.

Paulson’s appointment says much about the rising influence of Bush Chief of Staff Josh Bolton, a Goldman Sachs alumnus. It’s possible that the key to Paulson’s influence over Bush and the U.S. in the next two-plus years will be his personal relationship with Bolton, once the junior, now in the more powerful position.