I don’t want to crow that I have pondered these things for some time but I have recently seen a couple of posts on some sites where people are beginning to wonder about the problems of size and complexity and interconnectedness that are at least a chunk of the problems bringing the Euro down and that I also think had. I think that its still a nascent thought but R. Fernandez had a pretty good post here that tied this together
I think some of this is in response to the Rauche Book Demosclerosis The Silent Killer of American Government, (which is mentioned in the Belmont Club piece) but I think that this is just one part of the overall puzzle.
demosclerosis…. which Jonathan Rauch defines as “government’s progressive loss of the ability to adapt” as a side-effect of the postwar style of politics that emphasizes interest-group activism and redistributive programs.” In Phillip Longman’s book review of Rauch’s Demosclerosis: The Silent Killer of American Government. – “Rauch rightly asserts that the “American system of governance today is much less at the mercy of any narrow manipulative few than at any time in the past.” The era of back room bosses who called the shots in service of rich patrons is long gone. But that has hardly brought about a more effective, or even more equitable, government, Rauch observes, because it has been replaced by a coalition representing virtually everyone. “We have met the special interests and they are us,” Rauch writes. “Much as mutual funds have offered ordinary people the access to almost every type of productive investment, so interest groups have offered ordinary people access to almost every kind of redistributive investment.””