What is a Senate Seat Worth Anyway?

Illinois Governor Rod Blagojevich is probably guilty of many things, but the most recent indiscretion and the one that forced the hand of US Attorney (and my former classmate) Patrick Fitzgerald to take immediate action was Blagojevich's attempt to sell the senate seat vacated by Barack Obama. In perhaps the most blatant and public version of "Pay to Play" in history, we see just how low a public figure can stoop.

However, we also have a great chance for an Economics lesson. If you were in the market to obtain a U.S. Senate seat would be a fair value? I could regale you with my Economic acumen, but we are all much better off seeing the analysis done by Leigh Caldwell director of think tank Intellectual Business.

His analysis comes up with higher totals than I would and seems to discount that Senators actually have to work to acquire these rewards or they will certainly not be re-elected. However his analysis that the most valuable part of a Senate seat occurs after one leaves the Senate is spot on. Which brings us to think about what other things are there that you would buy and they are more valuable to you after you relinquish them?

Another Senate seat about to be awarded is the New York seat being vacated by new Secretary of State, Hillary Clinton. In a totally different fashion than the Illinois seat, NY Governor David Paterson (himself filling a seat initially won by defrocked Eliot Spitzer), is playing it very close to the vest, but is close to naming his nominee. The most likely candidates are familiar family names, New York Attorney General Andrew Cuomo and Caroline Kennedy, but I wouldn't be too surprised if someone else is named.