Category: Criticism

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Barack Obama Criticism Economics Financial Crisis Foreign Policy Political Philosophy The Media The Opinionsphere The Web and Technology

Must-Reads of the Week: Obama’s Accomplishments and Diplomatic Brand, Facebook, Epistemic Closure, Financial Reform, Our Long-Term Fiscal Crisis and Problem-Solving Capacity, and Mike Allen

1. Obama’s Accomplishments. Jonathan Bernstein explains how Obama has gotten so many of his legislative goals accomplished despite the GOP’s constant obstructionism: By loading up the major bills with many other smaller items. In fact, according to PolitiFact, Obama has accomplished almost a third of his campaign promises if compromises count (and a fifth if they don’t).

2. Facebook v. Google. Ian Schafer in the Advertising Age has a smart take on Facebook’s recent challenge to Google and how Facebook is trying to reorganize the web.

3. Epistemic Closure. Julian Sanchez follows up on his starting post on the epistemic closure of the right wing. Every single link he provides in the article is worth following as the conversation he started extended across many people and was full of insights all around.

4. Obama’s Diplomatic Brand. Marc Ambinder has an excellent post on “the essence of Obama’s diplomatic brand.” While Ambinder acknowledges it’s too early to assess how effective Obama’s diplomacy will be and has been, he does a good job of describing it — and little wonder it bears little resemblance to the weak, anti-American apologizing that the right sees as Obama’s trademark. Ambinder lists a few qualities, but let me focus on one:

Bush assumed a position of direct strength, not deference, when he met with leaders. Obama has been decidedly deferential, which, in the traditional binary way the media covers foreign policy, allegedly suggests weakness. From Obama’s perspective, deference is both strategic and is demanded by the goals he sets out. Treating countries as equals foists certain obligations upon them. It helps leaders deal with internal politics. Year one, Obama was the star, and wasn’t seen as a heavyweight, even by some allies. Year two is different: he’s charted a course on legacy problems (Iran, Iraq, Afghanistan, Middle East peace), so the world knows where he stands.

5. How Financial Reform is Playing. There was some disagreement around the opinionosphere about how financial reform is “playing.” Initially, there was concern that the Republicans would once again follow their tried and true strategy of: Make up stuff that’s really awful — and pretend the bill is about that. There was concern that the Obama administration didn’t have a plan for this contingency, presuming that Republicans would crack under public pressure. And then, the SEC filed suit against Goldman and Blanche Lincoln (who was expected to water down the bill) adopted the strongest language we’ve seen and the Republicans seem to be breaking ranks over this with Bob Corker critizing McConnell’s lies and Chuck Grassley voting for the bill in committee. Kevin Drum suggests McConnell crossed some line of absurdity:

[I]t turns out there really is a limit to just how baldly you can lie and get away with it…[W]e seem to have reached a limit of some kind, and McConnell crossed it. Maybe we should name this the McConnell Line or something so that we know when future politicians have crossed it.

I tend to think Matt Yglesias is more right when he observed:

This time around, though, it doesn’t seem to be working nearly as well, perhaps because people realize we’ve seen this movie before.

6. Our Long-Term Fiscal Crisis. Jonathan Chait observes what may prove to be a fatal flaw in the political strategy of the GOP on fiscal matters if they authentically do support a smaller government:

Distrust of government makes Americans distrust everything people in governemnt say or do, including cut spending, which — with the exception of a few programs seen to help “others,” like welfare and foreign aid — tends to be wildly unpopular.

Their current strategy has been to provoke a fiscal catastrophe and cut government spending in the aftermath. But Chait suggests that this strategy of starve-the-beast governance may not work. On a related note, William Galston has an astutely even-handed piece describing the fiscal problems we are facing and what the solution must realistically be. He quotes Donald B. Marron in National Affairs who explains an idea that is antithetical to ideological right wingers:

Policymakers should not always assume that a larger government will necessarily translate into weaker economic performance. As few years ago, Peter Lindert—an economist at the University of California, Davis—looked across countries and across time in an effort to answer the question, “Is the welfare state a free lunch?” He found that countries with high levels of government spending did not perform any worse, economically speaking, than countries with low levels of government spending. The result was surprising, given the usual intuition that a larger government would levy higher taxes and engage in more income redistribution—both of which would undermine economic growth.

Lindert found that the reason for this apparent paradox is that countries with large welfare states try to minimize the extent to which government actions undermine the economy. Thus, high-budget nations tend to adopt more efficient tax system—with flatter rates and a greater reliance on consumption taxes—than do countries with lower budget. High-budget countries also adopt more efficient benefits systems—taking care, for example, to minimize the degree to which subsidy programs discourage beneficiaries from working.”

Right wingers rarely acknowledge this even as they oppose measures that would improve the efficiency of government (like the VAT). They simply call it “European-style socialism” and move on with addressing why on the substance more efficient government measures shouldn’t be adopted.

7. Our Problem-Solving Capacity. Stephen Walt has a very long and very, very good post that attempts to balance optimism (global violence is at historic lows!) with some pessimism:

One way to think about the current state of world politics is as a ratio of the number of important problems to be solved and our overall “problem-solving capacity.” When the ratio of “emerging problems” to “problem-solving capacity” rises, challenges pile up faster than we can deal with them and we end up neglecting some important issues and mishandling others.  Something of this sort happened during the 1930s, for example, when a fatal combination of global economic depression, aggressive dictatorships, inadequate institutions, declining empires, and incomplete knowledge overwhelmed leaders around the world and led to a devastating world war…

[Today] Washington D.C. has become synonymous with the term “gridlock,” leading the Economist magazine to describe the U.S.  political system as “a study in paralysis.” Obama did get a health care reform package through, but it still took an enormous effort to pass a watered-down bill that pandered to insurance companies and other well-funded special interests. Meanwhile, decisive action to address climate change, the persistent U.S. budget deficit, or financial sector reform remain elusive, and it’s going to get a lot tougher if the GOP makes big gains in the 2010 midterms. Nor is it reassuring to realize that the Republican Party seems to be taking its marching orders from two entertainers — Rush Limbaugh and Glenn Beck — the latter of whom has made it clear that he’s interested in making money and doesn’t really care about public affairs at all…

Nor is this problem confined to the United States. Japan’s ossified political order remains incapable of either decisive action or meaningful reform; the Berlusconi-government in Italy is an exercise inopera bouffe rather than responsible leadership, French President Nicolas Sarkozy’s early flurry of reform efforts have stalled and Mexico remains beset by drug-fueled violence and endemic corruption. Britan’s ruling Labor Party is a spent force, but the rival Conservatives do not present a very appealing alternative and may even lose an election that once seemed in the bag. And so on.

There are some countries where decision leadership is not lacking, of course, such as China (at one end of the size scale) and Dubai (at the other). Yet in both these cases, a lack of genuine democratic accountability creates the opposite problem. These government can act quickly and launch (overly?) ambitious long-term plans, but they are also more likely to make big mistakes that are difficult to correct them in time…

In short, what I am suggesting is that our inability to cope with a rising number of global challenges is not due to a lack of knowledge or insufficient resources, but rather to the inability of existingpolitical institutions to address these problems in a timely and appropriate way.

8. Mike Allen. Mark Leibovitch in the New York Times Magazine has an excellent profile of Mike Allen of Politico and how that organization is changing the news business by covering it like some combination of ESPN and Facebook’s feed of data on the activity of your friends. As a character study, it succeeds given Mike Allen’s unique personality — and as a look at the changing media landscape in politics, it succeeds in raising many questions about where we’re headed. Marc Ambinder responds.

[Image by me.]

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Criticism Domestic issues Politics The Opinionsphere

How Not To Prove Someone Is Not a Racist

[digg-reddit-me]Mark Krikorian has a post over at National Review’s The Corner defending the leader of an anti-illegal-immigration group called D.A. King and attacking the Southern Poverty Law Center in general, and specifically for labeling the Dustin Inman Society led by King a group that is spreading bigotry.

Now, King named the group after a clear victim of what he seems to call the “invasion” of “brown people” — a boy named Dustin Inman who was killed in a car crashed by an illegal immigrant. (Because legal residents don’t accidentally kill people in car accidents approximately 100 times a day.) A quick Google search reveals that King uses racialized language and seems uncomfortable with Hispanics — he said he said a pro-immigrant march seemed like some Mexican village — which is why his “first act on a safe return home was to take a shower;” and warned darkly of the “invasion” of the “brown people” and of “parasitic ethnic hustlers” who favored amnesty; and he did at least once apply the “illegal aliens” simply to all the Hispanics in various photos. I mean — that’s just what 5 minutes on Google and a few clicks around his own website show — maybe it represents his body of thought and maybe not.

But what I wanted to comment on was this Mark Krikorian post. But instead, let me just re-post a few portions of it, with all bolding done by me…

Just typing “Southern Poverty Law Center” makes me want to scrape off my shoes…

[T]he SPLC includes such targets (including, I’m proud to say, the Center for Immigration Studies) in lists of those “spreading bigotry,” or whatever,…

This happens all the time, but one example that came to my attention was the Dustin Inman Society, a mainstream (and quite effective) anti-illegal-immigration group in Georgia headed by D.A. King… The point is not whether D.A. is a hater (he’s not — I’m not even sure he’s a restrictionist, since he limits himself to illegal immigration, and I’ve never heard so much as an epithet from him, even in private, let alone any Zionist conspiracies or Trilateral Commissions or even longing for the Lost Cause)…

I’ve rarely heard a better defense of someone than Krikorian’s of King: “I haven’t heard the guy slur blacks or Hispanics as most people I know do! Even in private! Isn’t that incredible! And he doesn’t even long for the good old days when Mexicans were in Mexico and blacks were slaves! Or rail against Jews! The guy’s a saint practically!”

But it all makes you wonder a bit about the crowd that Krikorian hangs out with that these things are exceptional — and proof that someone isn’t a racist. And it certainly goes a long way to demonstrate why the Republican Party won’t be winning the Hispanic vote any time soon.

[Image by MikeSchinkel licensed under Creative Commons.]

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Criticism Economics Financial Crisis Libertarianism Political Philosophy The Opinionsphere

Wall Street’s enormous profits are evidence of a poorly functioning market.

[digg-reddit-me]Matt Yglesias and Ezra Klein had 2 complementary points in posts yesterday. (Damn you, JournoList!) Yglesias:

…[L]ooking at this chart I think it’s hard to avoid the conclusion that Wal-Mart is the last thing we should be worried about. The worrying trend is the domination of the corporate landscape by super-profitable firms in the heavily regulated energy, banking, and telecom sectors.

Yglesias is making a point most commonly associated with libertarians that large firms often use the government — through favorable regulation, tax breaks and incentives, etc. — to increase their profits. For example, increasing the barriers for new firms in the industry and restraining their indirect competitors from direct competition. This follows the well-known principle that any government policy whose costs are diffused and whose benefits are concentrated will be adopted more often than not. Thus highly regulated industries tend to be dominated by a small number of large firms that make very large profits — because thanks to government regulation, there isn’t much competition. However, Ezra Klein observed:

In a competitive market, there’s really no place to make 27 cents on the dollar. Some other firm will come in and offer the same services for 24 cents, and then someone will undercut them at 19 cents, and so it will go until the profit margin narrows. Wal-Mart, for instance, has a profit margin of around 3.5 percent. Ah, capitalism.

Not so in the financial sector, though, which ever since deregulation has been posting higher and higher profit margins.

So, the exception to this trend is Wall Street — where deregulation has lead to higher profits. All of this seems quite intuitively true — both from a libertarian and from a liberal perspective — and even from a liberaltarian one.

The enormous profits taken out of every dollar (as seen in much of the the financial industry) is a demonstration of a lack of competition and thus a poorly functioning market. Of course, Goldman Sachs didn’t manage to make it on the list above — but it had more than double the amount of profit out of every dollar it took in as compared to each of the companies here. Goldman managed to take $0.26 of every dollar they made as profit to their shareholders. (And that includes the massive bonuses given to employees as expenses.) I think I need to see more data though to draw the conclusion that Klein is hinting at — that the deregulation of Wall Street increased it’s profits as a percentage of revenues — while deregulation generally has the opposite effect (as in the case of Wal-Mart).

Annie Lowery drives the point home in analyzing the 1Q results from Wall Street:

This is not quite a picture of a healthy industry. In a competitive marketplace, prices and fees at Wall Street firms should fall and margins should become thinner. On the one hand, Wall Street firms like J.P. Morgan and Goldman Sachs have seen a number of their competitors die in the past two years, and have absorbed business from the failed Lehmans and Bear Sterns of the world. But on the other hand, Wall Street profit margins have remained sky high except for a short blip during the worst of the credit crunch. And, an economist would tell you, such sustained levels of high profitability point to anti-competitive behavior…

[T]he profits point to a lack of competition. That is one thing the Dodd bill — via derivatives regulation — attempts to fix. Right now, Wall Street firms do not bid for big derivatives contracts — they simply quote a price and work over-the-counter. For that reason, derivatives are wildly profitable for the companies. The Dodd bill will force derivatives pricing to become public to the market, driving down margins as companies compete.

There’s a whole lot to unpack within these points about the nature of American capitalism and the government’s role in it.

But one key takeaway seems to be a repudiation of the most ideological take of either the left or right — and an acknowledgment that free markets are not merely what happens when the government is out of the way — but are created and maintained by a complex balancing act in which government regulates and participates. What you end up with is something less than socialism or libertarianism and more like liberalism:

Contemporary liberals reject the doctrinaire distinction between the “market” and the government that animated so much of the conflict in the 20th century. The free market should not be treated as some theoretical utopian ideal or as a perpetually lost state of innocence. And the government is not some evil force which must be reduced until it is of a size that it “could be drowned in a bathtub.” Rather the government and the free market exist together – and in a capitalist republic such as ours, each is dependent on the other. The free market does not exist in a state of nature but must be created by and maintained by the society and the state which provide the values and the rules and other conditions without which a market cannot be free. In other words, a free market is a product of a just government.

Follow-up post here.

[Image by f-l-e-x licensed under Creative Commons.]

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Barack Obama Criticism Politics The Opinionsphere

How To Identify a Member of the Tea Party

[digg-reddit-me]I met 2 members of that vibrant cultural movement pretending to be a political one, the Tea Party, last night.

When I say they were members of the Tea Party, I don’t mean one of those independents discouraged by Obama that Republican operatives always claim is the typical Tea Partier.

I don’t mean a Republican partisan who thinks this is just a good re-branding.

I don’t mean Greg O’Neil.

I mean 2 actual Tea Party wingnuts.

It is rare to see them outside of their home environment (rallies involving racial epithets and mocking those damned people with Parkinson’s disease looking to be coddled) with their identifying characteristics full on display.

However, I was able to positively identify them by cataloguing the following characteristics which can serve as the start of a general checklist of how to identify Tea Party folk (with prominent characteristics in bold):

  • White.
  • Wealthy.
  • Middle-aged to elderly.
  • Generally conspiratorial, wide-eyed, and a bit paranoid.
  • Claimed that Obama, Clinton, and the Democrats were “socialists”/”communists”/”Europeans”/”elitists”/”Nazis” with all terms used interchangeably. “Muslim” or “terrorist” can also be added to this list.
  • Explained in meticulous detail the nefarious (and “anti-American”) views that “liberals”/”socialists”/etc have.
  • Were evasive when confronted with the fact that the unprecedented tax increases sought by Obama would leave the marginal tax rate historically low* and only approximately 5% points higher than under Bush.
  • Had a messianic certainty about their views.
  • Attributed this same messianic certainty to anyone who uttered a word in support of President Obama.
  • Unable to understand how anyone at all could defend “that man [Obama] who is destroying everything great about America.” When confronted with a defense of his record, replied with, “Oooooh: we’ll see in 5 years!”
  • Admiration for that greatest of presidents, George W. Bush.
  • Blamed Democrats for the fiscal crisis/recession and government in general.
  • Full of the inchoate of the populist right that arose after the election of every young liberal (1960, 1992, and 2008 specifically.)
  • Believed their views weren’t just right but obvious and that all “real Americans” agreed with them.
  • A sense that the “real Americans” needed to take their country back before it was too late.
  • Were unaware of any information from outside the right wing cocoon and denied its validity when presented with it. (The much talked about epistemic closure.)
  • Unable to fathom how someone could read the National Review and not agree with the opinions expressed there (except to say, “Well, obviously you didn’t understand…”)
  • Under the assumption that everyone else was brainwashed or otherwise evil “socialists”/”anti-Americans”/etc.
  • Explicitly compared Obama to Hitler.
  • Made a vague but somewhat hysterical statement that could be taken as a threat to the President. [“That man cannot be allowed to stay in office.”]
  • Focused on and outraged over America’s fiscal situation.
  • Knew nothing about America’s fiscal situation. Or worse actually, knew false things.
    (For example, claimed that agricultural subsidies are $400 billion a year. Also, spouted various platitudes about waste that are too vague to debunk but are certainly misleading such as the idea that most government spending is deliberate waste and that we can leave the popular Social Security, Medicare, and military budgets in place while balancing the budget. Yet in 2009 for example, if you slashed all government spending except these things, we would still have a deficit — see income of $2.105 trillion minus expenses for Social Security — $678 billion — Medicare and Medicaid — $676 billion — and the Department of Defense — $782 billion — for a total of $2.136 trillion.)
  • Told me I wasn’t a “real American.” Nor were North Easterners. Nor was anyone who went to an Ivy League school.

I have a feeling I know what it’s like to talk to Sarah Palin (but with a Dutch accent — as these people were a rarer breed of Tea Partiers, naturalized citizens from Europe).

Some characteristics I understand to be part of the Tea Party movement that these individuals did not display (perhaps because they weren’t given the chance — I walked away when I was told I wasn’t really American):

  • A feeling of reverence for Glenn Beck and Sarah Palin.
  • Outrage over “Barack Obama’s bailout” of Wall Street in the fall of 2008.
  • Allegations that Barack Obama was born in Kenya.
  • Hysteria over Barack Obama’s projections of weakness abroad and sympathy for terrorists and our enemies.

So, take this checklist out into the wilds and perhaps you too can positively identify a Tea Partier!

And feel free to add more characteristics in the comments.

* This is a cartoon rather than a graph, so it should be noted it isn’t perfectly accurate — but it visually conveys the point solidly. Reagan, for example, only had 28% tax rate for the final year of his presidency. The average top marginal tax rate under Reagan was 48%.

[Image by JoeBehrSoCal licensed under Creative Commons.]

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Barack Obama Criticism History New York City Politics The Bush Legacy The Opinionsphere

Must-Reads of the Week: Diabolical Republicans, Strategic Patience, Weiner, China, New York City, -20 Questions, & Glenn Beck’s Obsession With Woodrow Wilson

1. Diabolical Republicans. Noam Scheiber in The New Republic explains how the “diabolical” plan the Republicans have adopted to achieve their fiscal ends (discussed on this blog here) may backfire:

Ever since George W. Bush massively cut taxes back in 2001, squandering much of the $5.6 trillion, ten-year surplus he inherited from Bill Clinton, liberals have assumed that the fiscal game was rigged. Conservatives had been explicit about their starve-the-beast strategy—the practice of creating large deficits through tax cuts in order to force future spending cuts…

“Depriving the government of revenue, it turns out, wasn’t enough to push politicians into dismantling the welfare state,” Krugman wrote. “So now the de facto strategy is to oppose any responsible action until we are in the midst of a fiscal catastrophe.”

…I suspect…that Republicans believe precipitating a fiscal crisis will force Democrats to roll back entitlement spending (i.e., Medicare, Medicaid, and Social Security), which would be both politically unpopular and the realization of the right’s dearest policy fantasy. It’s an altogether brilliant, if diabolical, plan. Except for one minor flaw: There’s a good chance it could vaporize the GOP.

2. Strategic Patience in the Face of Long-Term Problems. David S. Broder, eminence of the press establishment, apostle of bipartisanship at all costs, proponent of convention, seems to have finally come around to Obama with this trenchant observation:

We are beginning to learn that the Obama presidency will be an era of substantial but deferred accomplishments — perhaps always to be accompanied by a sense of continuing crisis. His vaunted “cool” allows him to wait without impatience and to endure without visible despair. It asks the same of his constituents.

The backdrop of the serious long-term issues facing America is precisely what made Obama’s election so important in the first place — as this blog repeatedly argued. David Rothkopf put the matter in a wide-angled perspective:

[T]he reason the health care reform bill is important is not because it was the first major such piece of social legislation in the U.S. in decades, but rather because it represents the first in what will become by necessity an on-going series of efforts to fix deep and serious defects in the American economy. In a decade or two, this legislation is like to be seen by Americans as the beginning of a lengthy, brutal and spasmodic process to cut deficits and restore America’s leadership prospects in the global economy.

3. Answering Sarah Palin. Anthony Weiner meanwhile has arisen as the Democrat’s answer to Sarah Palin and our sensationalized media moment. (Others might argue for Alan Grayson.)

4. Chinese Predictions. Gordon G. Chang, for World Affairs, explains his argument for why the Beijing consensus cannot last and its power will soon begin to wane.

5. New York’s Neighborhoods. Nate Silver, baseball statistician and political polling expert, turned his skills to rating New York’s neighborhoods. Really interesting for locals.

6. Negative 20 Questions. Jason Kottke describes a game that “resembles quantum physics.”

7. Glenn Beck’s Woodrow Wilson Obsession. David Frum puzzles on why Glenn Beck focuses so much on Woodrow Wilson as the beginning point of all things progressive and source of evils in the modern world. There are so many more logical choices, more progressive historical figures of greater note who are more closely aligned to contemporary progressivism. And then he answers his own question:

Here’s a president who took the United States into a very controversial war, ending in an unsatisfactory peace. In response to a domestic terrorist threat, culminating in a deadly attack in lower Manhattan, this president adopted draconian domestic security policies. Oh – and his administration concluded with an abrupt plunge into severe recession.

Any parallels come to mind?

What’s taking place on Glenn Beck’s show is a coy conservative self-conversation. Maybe it’s because I’m in China now, but it reminds me of the way Chinese intellectuals in the late 1970s would discuss the first Qin emperor, as a way of debating – and denouncing – Mao Zedong without explicitly mentioning a sensitive subject.

[Image by me.]

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Criticism Domestic issues Economics Financial Crisis Politics The Opinionsphere

Republicans have an absolutely brilliant strategy on financial reform. Too bad it’s evil.

[digg-reddit-me]How did the GOP oppose Obama during the campaign? They raised fears that he was a radical, Marxist, leftist, Communist, Socialist, Muslim, Arab who hates America.

How did the GOP oppose Obama’s stimulus plan? They claimed it didn’t include tax cuts (which it did) which are the most effective way of stimulating the economy (which most research doesn’t support) that it hasn’t helped the economy at all (something which virtually all mainstream economists disagree with), and that it was part of a socialist government takeover of the economy (which it’s not).

How did the GOP oppose Obama’s health care plan? They claimed there were death panels (nope), government mandated euthanasia and abortion (nope and nope), coverage for illegal immigrants (not at all), secret socialist indoctrination of children (huh?), and that it represented a government takeover of 1/6th of the economy (so far from being true) that would increase the deficit (when it actually reduces the deficit more than any bill in history).

How does the GOP oppose net neutrality? They claim it would enable the government to control political speech on the internet – likening it to the Fairness Doctrine for radio (which is so far from what it actually does).

How does the GOP oppose cap and trade legislation? They call it a massive redistribution of wealth (which it’s not) and based on thoroughly debunked lies (which is rather dangerous bullshit).

How does the GOP oppose Obama’s national security policies? They claim he is deliberately weakening America (when his focus has been on strengthening America), abandoning all of Bush’s policies (which he is not, to the disappointment of many progressives and libertarians), along with many other debunked claims.

How then does the GOP oppose financial reform? They are claiming that it “allow[s] endless taxpayer-funded bailouts for big Wall Street banks” and creates a “slush fund” for future bailouts. And here’s the brilliant part: while trashing Wall Street and the bailouts that saved the big firms, they are simultaneously promising Wall Street and the big firms that they will block the reforms Wall Street doesn’t want in return for massive campaign contributions.

They are following — almost to the letter — Republican pollster Frank Lutz’s proposed strategy to rake in the dollars from Wall Street for blocking any reform while railing against bailouts and how Democrats are too soft on the banks. The best way to oppose something is to pretend it’s something it’s not.

Absolutely brilliant strategy. Too bad it’s evil.

The policies they are attacking include a FDIC tax on the banks to create holdover money to allow regulators to go in and dismantle the company. Contrary to some cushy authority to bailout big firms, Senator Mark Warner describes the process being created by the financial reforms in an interview with Ezra Klein:

“Resolution,” Warner continued, “will be so painful for any company. No rational management team would ever choose resolution. It means shareholders wiped out. Management wiped out. Your firm is going away. At least in bankruptcy, there was some chance that some of your equity would’ve been retained and you could come out in some form on the other side of the process. The resolution that Corker and I have tried to create means the death of the company. The institution is gone.”

The financial reform bill is far from perfect — but it’s a good bill and nothing at all like what the Republicans are describing it as.

[Image by DonkeyHotey licensed under Creative Commons.]

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Barack Obama Criticism Domestic issues National Security Politics The Opinionsphere

The Populist Right Isn’t a Political Movement.

[digg-reddit-me]Last week, I wrote my response to the Tea Party: Government is Good! It’s one of those pieces that I wrote 10 separate drafts of, and if I had included them all, would have written some 10 pages on the subject.

So, I’ll be following up with some further thoughts on the subject periodically.

My first follow-up, the first point that made it into previous drafts, but was excised from the final one is the glaring discrepancy between:

  • the populist right’s rhetorical opposition to all domestic government action on the grounds that it is incompetent, ineffective, and a threat to liberty; and
  • the populist right’s support for apparently unlimited government power on national security and law enforcement matters on the grounds that it is highly competent, effective, and the defender of liberty.

What you get are many arguments asserting that the state is competent and effective enough to deprive some people of liberty without any check on its power, to trample on their every right and to strip away their sanity through torture, and to kill them — all in the name of protecting liberty; but — at the same time — government is so toxic to liberty, so ineffective, and markets are so fragile, that if taxes go up 1% for those making over $250,000, if corporations can’t give money directly to candidates, if Wall Street is forced to suffer more regulations, or if people are required to purchase health insurance to provide for medical care or suffer a small penalty – that if these things happen, we have descended into abject Socialism.

The common cop-out I’ve heard to explain this is that the government’s proper role is to provide for the common defense. But it is the government’s proper role to assess income taxes and to regulate interstate commerce as well.

The populist right simply isn’t ideologically coherent. Ron Paul may be, to his great credit — but it is precisely his coherence that makes him unpalatable to the rest of the populist right, the bulk of the Tea Party, and the Republican Party. The bulk of the populist right is in favor of the government’s curtailing of the civil liberties of resented minorities in the name of a War Against Terrorism. It favors wars abroad — or at least, doesn’t favor “retreat” or anything that doesn’t look tough enough. It is enamored of the war atmosphere, of the narrative of good versus evil, that permeated Fox News’s coverage of the Bush administration. It is enamored of the revolutionary atmosphere, of a nation under assault by a Hitler-wannabe, of another narrative of good versus evil, that permeates Fox News’s coverage of the Obama administration.

From a political perspective, it makes no sense to call the government too incompetent to provide postal service and yet still consider it competent enough to detain, torture and kill anyone it deems a terrorist.

The populist right, then, cannot be properly understood as a political movement. It is a cultural movement and a media phenomenon with political overtones.

[Image not subject to copyright.]

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Criticism Economics Politics The Opinionsphere

Supply-side Theology

Jonathan Chait:

A perceptive student of the supply-side theology might wonder: if revenue from higher taxes will simply be spent, why wouldn’t revenue from higher growth also be spent? But this question has never been asked, because there are no perceptive students of the supply-side theology. It’s just a series of talking points.

In any case, it’s worth keeping in mind that the entire conservative apparatus is already cranked up to insist that no tax hikes are acceptable in the pursuit of deficit reduction. I see no way around this problem unless and until the country actually begins to undergo a deficit-created economic calamity.

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Barack Obama Criticism Economics Election 2012 Financial Crisis National Security New York City Palin Politics The Opinionsphere Videos

Must-Reads of the Week: Nukes, Inconsistencies, Graphing the Economic Crisis, Half-Hookers, Palin 2012, Mailer’s Wife, & Complex Business Models

1. Nukes. Jon Stewart and Andrew Sullivan both make the same point: Obama’s nuclear policy is the fulfillment of Ronald Reagan’s vision:

The Daily Show With Jon Stewart Mon – Thurs 11p / 10c
The Big Bang Treaty
www.thedailyshow.com

2. Inconsistencies. Matt Yglesias:

The main difference between left and right with regard to property rights is simply that the right is invested in a lot of rhetoric about markets and property rights and the left is invested in different historical and rhetorical tropes.

… Formally, the right is committed to ideas about free markets and the left is committed to ideas about economic equality. But in practice, political conflict much more commonly breaks down around “some stuff some businessmen want to do” vs “some stuff businessmen hate” rather than anything about markets or property rights per se…

Or if you look at the energy sector, you’ll see that businessmen want to push property rights for the stuff that’s in the ground (coal, oil, whatever) and a commons model for the stuff (particulates, CO2) that’s in the air. You can call that “inconsistent” if you like, but obviously it’s perfectly consistent with what coal and oil executives want! And those industries are the most loyal supporters of “right” politics around.

3. Graphing the Economic Crisis. Ezra Klein puts out some interesting graphs about the economic crisis and nascent recovery including this one:

Klein explains:

This graph is a political problem for the Obama administration (if not, in the short-term, an economic problem). But it is also necessary for all the other graphs. The bank rescue, which added temporarily to the deficit, stabilized the stock market and set the stage for its recovery. The stimulus, which also added to the deficit, helped moderate the job losses and and has contributed to recent gains. You could’ve made the lines on this graph better, but only by letting the lines on the other graphs get worse.

4. Half-hookers. Lisa Taddeo for New York magazine writes about the burgeoning half-hooker culture which exists in a bizarre alternate reality existing so close to our own where celebrities and finance guys get their women:

The general-admission crowds dance, and the table crowds dance a little more woodenly, a little more entitledly, with their finger pads on their tables. The promoters are dancing with the models and the waitresses are dancing with the bottles and everybody finds a place on the floor.

The floor people, they are just to fill the place up. The celebrities and the athletes and the tycoons are the ones for whom this world is zealously designed. A rung below in after-work pinstripes are the money guys, the Deutsche guys and the Goldman guys and the no-name hedge-fund guys—the “whales”—guys like that one over there in a Boss suit and John Lobb shoes, standing beside the table that cost him $3,000. Standing very close to it, like a Little Leaguer who wants to steal second but has never done it before. This gentleman’s not dancing, but he’s thinking about it.

There’s quite a lot to the article. A fascinating piece of reporting.

5. Palin 2012. Chris Bowers makes the argument for why Sarah will win if she runs.

6. Mailer’s Wife. Alex Witchell profiles Norris Church Mailer, Norman Mailer’s final wife, whose story moved me as I read of it:

John Buffalo Mailer [stepson of Norris:] “People are their best selves and worst selves intermittently,” he told me, “and the best marriages navigate that ride over the hurt, which I believe they did right to the end. They both had options, and at the end of the day the life they created together won out over infidelity, illness and hard times…”

7. Complex Business Models. Clay Shirsky:

One of the interesting questions about Tainter’s thesis is whether markets and democracy, the core mechanisms of the modern world, will let us avoid complexity-driven collapse, by keeping any one group of elites from seizing unbroken control. This is, as Tainter notes in his book, an open question. There is, however, one element of complex society into which neither markets nor democracy reach—bureaucracy.

Bureaucracies temporarily reverse the Second Law of Thermodynamics. In a bureaucracy, it’s easier to make a process more complex than to make it simpler, and easier to create a new burden than kill an old one.

Read the rest.

[Image by me.]

Categories
Barack Obama Conservativism Criticism Domestic issues Liberalism Libertarianism Political Philosophy Politics The Opinionsphere

Government Is Good!

[digg-reddit-me]Reagan’s deepest and most profound legacy to the right wing today, to the Tea Party, to the populist right is a selection of wry quips about the inefficacy and incompetence of government told with a grandfatherly charm. “In this present crisis, government is not the solution to our problem; government is the problem!” he said. “Government is the problem!” the placards at populist right wing gatherings now read.

This grotesque anti-government view regularly embraced and advocated by the populist right is incoherent, ignorant, and idiotic. It is the intellectual equivalent of blaming “The Man” or “Them” for all problems. While a (sometimes even paranoid) distrust of centralized power has always been part of American politics, the populist right today has elevated this sentiment to their core principle. It’s great efficiency as a rallying cry is that it papers over differences between the few but influential libertarian-minded who oppose government power on principle and the more numerous right wingers who see liberal government as an attack on their culture. What they both agree on (while a Democrat is in charge at least) is that the government is the problem.

This political coalition is animated primarily by anti-government rhetoric. While on some level it is a mere ideological trope, fervently believed only by the ignorant, used to rally the base to a revolutionary fervor and to create party unity, it has taken on the patina of truth in the eyes of so many it must be challenged.

Government is not inherently bad, inefficient, incompetent, destructive of liberty, or even liberal. Instead government is probably the single most influential force for good in our daily lives, acting in ways barely noticed even as its absence and failures would be and are noticed.

Friedrich Hayek, that great right wing theorist, said in his speech accepting the Nobel prize for economics, that the government had erred in attempting to engineer society. The proper role of government, Hayek believed, was that of a gardener tending her garden rather than of an engineer creating a machine. The populist right has bastardized this critique of Hayek’s and taken to demonizing the gardener while praising the garden as the greatest great thing since great things began to get greater (as Sean Hannity often says.)

What is lost in the populist right wing view is that our society, our economy, our nation, this greatest great thing ever, would not exist without the government tending it. I have been challenged – with apparent seriousness – to name anything the government ever did that was worthwhile.

In fact, the greatest product of the government is America itself – which, though like a garden has many individual parts, is given coherence by the gardener. The government has 4 main roles in shaping our nation:

1. Government acts as a check on corporations. Corporations exist to make profits – and as such externalize as many costs as they can; history has demonstrated that given the choice between doing the moral thing and doing the profitable thing, corporations will do the profitable one. This isn’t to say they are evil – it is merely to acknowledge their nature. Thus, given a choice between polluting the communal air and taking expensive steps to reduce that pollution, corporations have chosen to pollute. The costs of their actions are diffused while the benefits and profits are concentrated. Given the vibrancy of America’s market economy and the growing power of corporations, this is perhaps government’s most important role: to ensure that corporations have the incentive to make the moral choice. Most often this is accomplished with regulation, which though demonized by the populist right, is essential to America’s vibrant society and free market. Regulation is what allows us to open a can of beans without finding a human finger, to buy a standard mortgage and know our rights are still protected to some basic degree, to eat poultry without worrying too much over food poisoning, to buy a car and know it has met certain safety requirements, to breathe fresh air and to drink clean water. We can do all of this because of government regulation acting as a check on corporate greed.

2. Government underwrites social order. While the government is not present at every moment in our lives, it underwrites a certain type of order and undertakes to ensure that certain elements of a partially unspoken social bargain are upheld. For example, the government provides courts of law to resolve disputes and employs people to prosecute crimes. It has undertaken various steps to prevent terrorist attacks. It maintains regulations as above. When there is a crisis, the government assumes greater powers and responsibilities to protect the status quo and restore order.

3. Government makes long-term investments in the nation. While corporations and individuals control most investments, the government has, since its inception, funded various long-term projects from investments in infrastructure to space travel to education to medicine to military technology. These investments have led to everything from sending men to the moon to creating the internet.

4. Government provides certain services. From subsidies for the elderly (Social Security) to disability and unemployment benefits to disaster relief to cheap postage, to – soon – a transparent and standardized marketplace for health insurance – the government provides a selection of valuable services that are important yet under-served by the marketplace dominated by corporations looking for large, quick profits and non-profits that are often underfunded.

The internet itself is a great example of the role government plays in our lives. It was based on technology created by government scientists. It was enabled by government regulators who prevented AT&T from blocking access to their infrastructure which would have choked off the internet before it began. Access to the internet making it more widespread has been enabled by government programs as well as individual and corporate decisions. (For a neat list of how the government affects everyone on a daily basis, take a look at this article by Douglas J. Amy.)

This view of government is inherently liberal, even as the goods provided can be more broadly appreciated. Without government, there would be no rule of law, no free market, no corporations (which are government-created entities), no property, no freedom of speech or religion or assembly. Individuals without the protection of government have the freedom their power allows them to seize. With the careful use of government though, restrained and judicious, individuals can be empowered.

Liberalism, like the conservatism of William F. Buckley, Friedrich Hayek, Edmund Burke, Dwight Eisenhower, and even Ronald Reagan, is not about extending the role of government everywhere. It is the path between seizing the commanding heights of the economy and the anti-government hysteria of the populist right in which the government is used to empower individuals:

Liberalism in a market-state must exhibit a preference for the individual over the corporation and government and must empower individuals against bullying and coercive measures of these large institutions.

Sometimes that means the government must be constrained; and sometimes that means it must use its power to balance against other forces such as large corporations.

Government, used wisely, is good and the creator of free markets and the guardian of individual freedoms. This isn’t just a liberal idea or a conservative one. It is an American idea – indeed, the base of our American system.

[Image by Pittsford Patriot licensed under Creative Commons.]

*I have only been using the term, “government” here – but I mean, the federal government. I have used the terminology this way so it may better function as a response to the populist right which generally speaks of “the government” when they mean only the federal government.