Perhaps most appreciated was the governor’s overhaul of the Bureau of Motor Vehicles. It’s gone from one of the worst in the country—a place, he says, “where people would take a copy of ‘Crime and Punishment’”—to one of the best, with an “average visit time of seven minutes and 36 seconds.”

I had my own experience about four years ago, before the BMV was overhauled, where I made some seven trips to the license branch and various other government offices over a period of weeks just to renew my driver’s license.

But as Kim Strassel tells us in her interview with Mitch Daniels, this is only the very tip of the iceberg. In a state challenged by our reliance on the automobile industry in particular and manufacturing in general, instead of imploding like Michigan or profligate California, we had a governor whose common sense, hard work, business savvy, and courageous budgeting has left Indiana in a much better spot than many other states. Especially given our special old-economy obstacles.

The possibility that irreversible damage will be done to the American project over the next few years is real. And so it is our job to make the case for that reawakening. It won’t happen by appealing to people on the basis of lower marginal tax rates or keeping a health care system that lets them choose their own doctor. The drift toward the European model can be slowed by piecemeal victories on specific items of legislation, but only slowed. It is going to be stopped only when we are all talking again about why America is exceptional, and why it is so important that America remain exceptional. That requires once again seeing the American project for what it is: a different way for people to live together, unique among the nations of the earth, and immeasurably precious.

The Geithner announcement was repeatedly put off while each of the options was publicly discussed. In the end the political decisionmakers decided there was no politically acceptable decision. But expectations had been building, stoked higher with each postponement of the speech. When Geithner finally spoke and by omission essentially admitted that the Obama administration hadn’t come up with a solution, the stock market plummeted.

But it wasn’t only the stock prices of America’s publicly traded companies that collapsed. So did the stock of the Obama administration. A discredited stimulus package followed by an overly hyped but largely vacuous bank-rescue speech proved to be too much. The mainstream media, which had given Obama a free ride since the election, turned on their choice. In the space of just over three weeks, Obama and company squandered the greatest stock of political capital any president since Lyndon Johnson had inherited from an election.

Give these takers the chance to become rich legally.

Here is how. Let’s put every elected federal official and appointee and bureaucrat on a stock option plan. The value of these options would be tied to the health and wealth of America. Half the options would vest over two years so as to spur politicians to make immediate changes. The other half would vest over 20 years, so politicians could build a framework for enduring success and be rewarded for it.

The options would gain or lose value based on these criteria:

1.    Noninflationary GDP growth
2.    Job growth
3.    Vitality of the small-business sector
4.    Wealth growth of American households in all four socioeconomic quadrants
5.    Educational achievements of American K-12 kids versus the world
6.    Health and longevity of Americans
7.    Prevention of military or terrorist attack
8.    Reduction of the national debt

As Rich himself says, this proposal might not be exactly the way to go, or even close, but he gets at a very real and big problem in our representative democracy, one that modern public choice theorists like James Buchanan described. And which those older public choice theorists like Madison and Hamilton wrestled with as well as anyone ever has. They put a system in place that survived and mostly prospered for more than 200 years. But it does seem we need some big tweaks or even more fundamental changes to secure, once again, the blessings of liberty.

What we have to do instead is decrypt her message by filtering out all of the confusing chatter that keeps her statements encoded and difficult to follow. . . .

If you just cut out about 60% of what she says, it hangs together. . .

After two straight electoral defeats, it is time for a substantial party shake-up. We don’t need a feather duster; we need a fire hose.

We need to be honest about the root causes of our current financial crisis: loose money, crony capitalism and a lack of market transparency and information.

If Barack Obama ran for president by calling for a heavier hand of government, he also won by running one of the most entrepreneurial campaigns in history.

Will he now grasp the lesson his campaign offers as he crafts policies aimed at reigniting the national economy? Amid a recession, two wars, and a global financial crisis, will he come to see that unleashing the entrepreneur is the best way to raise the revenue he needs for his lofty priorities?

Read the whole op-ed here, and listen to a brief radio interview here.