Will the downturn lead to dangerous accumulation of power in Washington?

Joel Kotkin describes a dangerous centralizing of power in Washington that may result from the economic downturn.

Too many Americans fail to recognize the importance of divided economic and political power in protecting the rights of all Americans. They assume that the nice words of the Constitution guarantee our rights. In that analysis, the centralization of power in Washington aids in the protection of rights rather than endangering them.

The founders were correct in seeking to divide power among the branches of the national government and between the national and state governments. Perhaps even more important, capitalism's extreme division of economic power among millions of competitive business entities and individuals makes accumulation and maintenance of political power in a few hands extremely difficult.

The transfer of increased authority over American business to Washington either through regulatory authority or the promise of bailout money threatens that essential dispersion of economic power. Furthermore, accumulation of greater control over economic success in Washington increases the importance of gaining and maintaining political power in Washington. This is what has led to political instability in many countries.