Categories
Law National Security Politics The Bush Legacy The Opinionsphere The Web and Technology

NSA’s Secret Pinwale Program Used to Spy on Bill Clinton

[digg-reddit-me]James Risen and Eric Lichtblau of the Times – who previously broke the wireless wiretapping story – relay concerns of a number of Congressmen about the extent of email surveillance by the NSA. These Congressmen are concerned about the number of domestic emails being intercepted and analyzed under the current program – which is identified as “Pinwale.” Marc Ambinder identifies this as the fourth NSA anti-terrorist surveillance program we’ve found out about in his piece responding to the story. Risen and Lichtblau also reveal for the first time that it was this Pinwale program that was at the heart of the dispute that led to the dramatic middle-of-the-night hospital room showdown between Acting Attorney General Comey, ailing Attorney General Ashcroft, and FBI director Mueller and White House Counsel Alberto Gonzalez and Chief of Staff Andy Card.

But what got my attention was a small side-note buried in the story:

The former analyst added that his instructors had warned against committing any abuses, telling his class that another analyst had been investigated because he had improperly accessed the personal e-mail of former President Bill Clinton.

I had presumed the program worked by screening vast amounts of email for keywords and perhaps tracking who particular people emailed, creating webs of relationships – with attempts to filter results to exclude Americans. This is how the program had been described – and through most of this most recent piece, it clearly suggests the program works this way. But this particular item here suggests that this NSA program is of a different sort – and  is capable of accessing any email account individually – and that this is so easy to do that one can look into a prominent former official’s emails just to see what’s up.

The possibility of abuse in this is clearly enormous  – from spying on one’s girlfriend or wife to fishing for embarassing information on politicians whose job it is to regulate you.

What this story confirms is that if the potential for abuse exists, abuse will occur.

[Image by jacromer licensed under Creative Commons]

Categories
Barack Obama Domestic issues Health care Politics The Opinionsphere

Are The Pieces Aligning on Health Care?

[digg-reddit-me]David Brooks’s column is quickly becoming one of the most insightful, inside looks at the larger plans of the Obama administration (which suggests a column kneecapping Obama is forthcoming so Brooks can maintain his conservative cred). His latest column is practically gushing – but it certainly paints a plausible picture of what the Obama administration sees as it’s game plan on health care. Brooks starts his piece with this half-jesting, half-admiring set-up:

Let’s say that you are President Obama. You’ve inherited a health care system that is the insane spawn of a team of evil geniuses from an alien power. Pay is divorced from performance. Users are separated from costs. Rising costs threaten to destroy your nation and everything you hold dear.

You also know that [the only] two approaches [to actually fixing this] have one thing in common. They are both currently politically unsellable. Others have tried and perished. There are vast (opposing) armies arrayed against them. The whole issue is a nightmare.

You are daunted by the challenges in front of you until you remember that by some great act of fortune, you happen to be Barack Obama. This calms you down.

He then goes on to describe a strategy which runs like this:

  1. Table-setting. Court everyone – get everyone to the table and agreeing on some basic meaningless “pablum.”
  2. Congress. Ask Congress to put something together, keeping your distance as they investigate and write many competing proposals.
  3. The Long Tease. Refuse to rule anything out or commit to anything – thus keeping all the interest groups at the table.
  4. The Scrum. At the end of the summer session, when Congress actually begins to assemble health care in a series of all-night sessions, take a stronger role. But be willing to compromise. This scrum needs to end quickly – and send the bill off to be passed before the interest groups have time to realize who has and hasn’t been taken care of.
  5. MedPAC. Include in the bill this medical equivalent of the Federal Reserve – an independent, technocratic body to oversee the industry. This is where the real reform will stem from.

This scenario sounds plausible – although a David Brooks column explaining it would seem to undermine the strategy itself.

So far, the Obama administration has been extremely impressive in how it has managed the health care debate. They make it seem as if things really are going according to plan so far – an extraordinary thing given the history of Washington and health care. For example, Ezra Klein provided some insight into why the American Medical Association quickly retracted it’s direct opposition to a public option in the health care debate, citing this Roll Call piece:

Top aides to Senate Finance Chairman Max Baucus (D-Mont.) called a last-minute, pre-emptive strike on Wednesday with a group of prominent Democratic lobbyists, warning them to advise their clients not to attend a meeting with Senate Republicans set for Thursday.

[Meeting] with a bloc of more than 20 contract lobbyists, including several former Baucus aides…“They said, ‘Republicans are having this meeting and you need to let all of your clients know if they have someone there, that will be viewed as a hostile act,’” said a Democratic lobbyist who attended the meeting.

“Going to the Republican meeting will say, ‘I’m interested in working with Republicans to stop health care reform,’” the lobbyist added.

Ezra Klein explains what this means:

They’re saying that you’re either with health reform, or you’re against it. And if you’re against it, you can’t expect to be taken care of in the final legislation. They’re not going to save your seat at the table while you’re trying to burn down the room. And the AMA, it seems, got the message.

This hardball strategy with interest groups plus the extraordinary wooing of legislators by the Obama administration that Matt Bai described in a piece this Sunday, the general agreement among most Americans including business interests that our health care system is broken, the impending deficit crisis, Obama’s mandate, and the unusual role ultra-conservative Orrin Hatch appears to be willing to play to help his good friend Teddy Kennedy achieve a dying wish (Suzy Khimm in The New Republic describes it as, “a particularly senatorial way to pay tribute to a dying friend.”) – with all of these pieces falling together, the Democrats may finally be able to achieve what Harry Truman started all those years ago.

[Image by JonathanHannpberger licensed under Creative Commons.]

Categories
Iran The Opinionsphere

A few disjointed thoughts on Iran

Thomas Erdbrink in the Washington Post:

When asked about protests and complaints, Ahmadinejad said that it was important to ask the opinions of “true Iranians” on the election. “Like the people you meet at my rallies,” he said. He described the protesters as soccer hooligans who were disappointed that their team lost the match. “This is not important,” he said. “We have full freedom in Iran.” [my emphasis]

I’ve already heard Mahmoud Ahmadinejad described as the Sarah Palin of Iran – and this invocation of the “true Iranians” only seems to make the analogy more apt – reminding me at least of Sarah Palin’s invocation of the “pro-American” parts of America.

I honestly don’t know what to make of this – Ahmadinejad’s joke about whether or not Mousavi was under house arrest:

“He ran a red light, and he got a traffic ticket,” Mr. Ahmadinejad quipped when asked about his rival.

The moment I heard that Ahmadinejad was announced as the winner, my mind flashed to an Andrew Sullivan post about a texted joke making the rounds in Tehran:

The Election Commission has announced in its last statement regarding the election that writing names such as monkey, traitor, fascist, silly, and [expletive] on the ballots will be considered a vote for Ahmadinejad.

Pepe Escobar in the Asia Times points out a rather odd statistical nugget about the election results for the other reformer in the race:

Karroubi not only didn’t win in his home province of Lorestan, he had less votes than volunteers helping in his campaign.

Escobar also explains the odd sequence of events that led to the announcement of Ahmadinejad’s “election”:

The polls closed at 10pm on Friday, Tehran time. Most main streets then were fully decked out in green. In an absolutely crucial development, the great Iranian film director Mohsen Makhmalbaf told Radio Farda how Mousavi’s main campaign office in Tehran received a phone call on Saturday at 1am; the Interior Ministry was saying “Don’t announce Mr Mousavi’s victory yet … We will gradually prepare the public and then you can proceed.” Iranian bloggers broke down the vote at the time as 19.7 million for Mousavi, between 7 and 8 million for Ahmadinejad, 7 million for Karroubi, and 3 million for Rezai.

Then all hell seemed to break loose. Phones, SMS, text messaging, YouTube, political blogs, opposition websites, foreign media websites, all communication networks, in a cascade, were shutting down fast. Military and police forces started to take over Tehran’s streets. The Ahmadinejad-controlled Ministry of Interior – doubling as election headquarters – was isolated by concrete barriers. Iranian TV switched to old Iron Curtain-style “messages of national unity”. And the mind-boggling semi-final numbers of Ahmadinejad’s landslide were announced (Ahmadinejad 64%, Mousavi 32%, Rezai 2% and Karroubi less than 1%).

The fact that the electoral commission had less than three hours to hand-count 81% of 39 million votes is positively a “divine assessment”.

Pre-election, Robert F. Worth had a few prescient words in his Times piece:

Some Iranians believe that the unruly democratic energies unleashed over the past few weeks could affect this country’s politics no matter who wins…But hope has often outpaced reality in Iran…

Categories
Foreign Policy Iran Pakistan

Generation Green: Connecting the Pakistani Lawyers Movement to the Iranian Green Revolution

[digg-reddit-me]I’m struck by the similarities between the spirit of the Iranian election – and the subsequent protests – and the Lawyers Movement in Pakistan this March. In both cases, the government promised to honor certain principles and then went back on its word – in Iran, by holding an election; in Pakistan, as President Zardari promised to reinstate Chief Justice Iftikhar Chaudhry to the Supreme Court.

Then both went back on their word – and the people, to their credit protested. They were cynical about the motives of these leaders – but they refused to react with world-weary cynicism. They knew hope – and in their hope, they gained strength.

The elite power brokers in both nations believed they could get away with whatever they wanted – apparently believing that elections and campaigns and laws were merely a cover for their power politics. But the people took these ideas seriously.

In Pakistan, President Zardari made a campaign promise to reinstate the Chief Justice of the Supreme Court known for his independence. Justice Chaudhry had been removed from his post when he appeared to be preparing to declare President Musharaff’s declaration of martial law illegal – and this act by Musharaff was considered the final straw by many in Pakistan frustrated by how the Rule of Law was constantly subverted by the elites in their power games, thus holding their entire nation back. So began the Lawyers Movement which fought to restore the Rule of Law, to remove Musharaff from power, and to reinstate the Chief Justice. After achieving some measure of the first two objectives, forcing Musharaff to resign and electing a new president, Zardari, having promised to uphold the Rule of Law and reinstate Chaudhry – the movement seemed to have won. But after months of stalling, it began to seem as if Zardari had no intention of restoring Chaudhry. Rallies continued – led by different groups across the country – building in intensity – and in a dramatic series of events, a key opposition leader broke out of house arrest to participate in a massive protest to force the reinstatement of Chaudhry. As a final show of determination, a series of rallies was supposed to culminate in a march to the Pakistani capital from all directions as the people took back their capital. In the midst of this chaos, the police and military for the first time in Pakistani history refused to control the demonstrators and stood aside. On the verge of this demonstration, Zardari gave in – reinstating the Chief Justice this March.

In Iran, the extemist mullahs panicked as the people rejected their hardline, isolationist views in favor of the offer of rapprochement with the West offered by Obama. Despite the fact that only candidates hand-picked by the Guardian Council were running – and that the reformers were led by a candidate described as an Iranian Michael Dukakis – and despite the fact that state organs and the Supreme Leader clearly favored Ahmadinejad – a grass roots movement took root on Twitter, on Facebook, in text messages, in blogs, in enormous rallies held by Mousavi in the weeks leading up to the election, and in shouts from the rooftops after the election when all other methods of communication had been cut off. And in all liklihood, according to polls by the Iranian government before the election, and leaked results after it, Mousavi won a resounding victory. And so far, the people have not backed down – as they continue to rally and agitate. After declaring the results of the election “divine,” the Supreme Leader Ayatollah Khamene has begun to show signs of relenting as he has ordered an investigation into vote fraud. Couple this with the rash of resignations and unprecedented public protests by top Iranian leaders and clerics, and there is the potential for real change.

It seems hard not to connect these two demonstrations for political rights in Pakistan and Iran. And to note that leading them is the exact young generation of Muslims whom we were so afraid of after September 11. One of the recurring themes of Osama Bin Laden’s rhetoric – and one of the key sources of his legitimacy – is his outrage at the corrupt dictatorships ruling the Middle East – which makes these demonstrations of the people on the edges of the Middle East reminding their leaders that they cannot tread lightly over the consent of the governed all the more significant.

And perhaps, Obama saw this before most – as he called in his Cairo speech for “a peaceful and determined insistence upon the ideals” that “government [should be] of the people and by the people sets a single standard for all who hold power.” Obama explained that legitimacy is gained “through consent, not coercion.”

It remains to be seen if the Iranian protests will be successful – though the fact that Ayatollah Khamenei has ordered an investigation into vote fraud is a slight sign to be hopeful. A stronger sign is what forced him to call for the investigation – as over this weekend in the streets of Tehran we saw a largely peaceful and determined insistence by the Iranian people on a government by consent, not coercion.

[Image from Andrew Sullivan’s blog.]

Categories
Barack Obama Election 2012 Foreign Policy Iran National Security Romney The Bush Legacy The Opinionsphere The War on Terrorism

A New Phase in the Culture War: National Security

[digg-reddit-me]As Barack Obama and Dick Cheney prepared their dueling speeches last month, Reihan Salam observed:

National security has become part of the culture wars, only with Dick Cheney as the new Jerry Falwell. It doesn’t matter that Obama is escalating the war in Afghanistan or that he’s embraced rendition. To Cheney, Obama’s anti-torture stance represents the moral vanity of a naïve one-worlder.

We’ll be hearing much more about this new culture clash. During the hearings on Obama’s first Supreme Court appointment, Republicans will spend more time hammering the Democratic nominee on Hamdan v. Rumsfeld and Boumediene v. Bush than about Roe v. Wade. At the moment, Obama looks untouchable. But the politics of national security could prove his undoing.

This observation is seeming more and more apt as the months go by. And yesterday morning’s appearance by Mitt Romney on This Week With George Stephanopoulos suggested that if Romney has anything to do with it, the Culture War will extend to foreign policy as well.

Foreign policy and national security have always been matters of contention between the political parties – but Culture War issues functioned a certain distinct way.

In some sense, the Culture War can be traced back to the “psychodrama of the baby boom generation” as they fought over Vietnam and then social issues. By the 1990s, the Baby Boom generation dominated most institutions in the country and  a large number of Americans had divided into two warring camps along a familiar lineup of issues: abortion, homosexuality, guns, censorship, separation of church and state, etcetera. Each party became dominated by those with the most extreme positions on these issues. There were only two ways for savvy politicians to position themselves – to triangulate and try to find some reasonable accommodation; or alternately to find a reasonable position and  make sure that they were wrong – but on the right side of the issue. During this time, issues of national security and foreign policy didn’t break down in the same partisan way. Republicans opposed Clinton’s proposed anti-terrorism measures; Democrats were more hawkish than Republicans in Bosnia – and in both cases, neither side was completely aligned. These issues weren’t litmus tests – but matters upon which reasonable people could and did disagree.

Then came September 11 and George W. Bush’s and Karl Rove’s explicit decision to use the War on Terror as a political weapon. There were no mainstream Democrats opposed to most aspects of Bush’s emergency measures, so Rove tried to make any slight suggestion of disagreement tantamount to treason. Though this worked well enough as a political tactic, it still hadn’t moved national security issues into the Culture War entirely.

The turning point came when allegations of torture began to surfare – and the photos of the abuse at Abu Ghraib came to light. Everyone was shocked – Republican and Democrat. Everyone condemned it. Except the far-right partisans. I remember reading The Corner and other blogs around this time – and an extraordinary thing happened. For weeks, these men and women had been insisting that America did not torture – only, maybe  some bad apples  – and that to suggest we did torture was a form of America-hating. Then, almost overnight, all of these same men and women began to talk about ticking time bombs and demanding to know why we shouldn’t torture a terrorist who hated America!

Perhaps it had something to do with the fact that it was an election year – and with everything viewed through this prism, it’s easier to justify something awful. But regardless of the reason, in that moment, national security became part of the culture war. Karl Rove accomplished what he had been trying to do. He polarized the electorate so that it became necessary for any savvy politician on the right to be wrong on the right side of these issues.

By 2008, this was evident – as the sensible position that there had been overreach in Bush’s War on Terror – and that for example, Guantanamo should be closed down – gave way to Mitt Romney declaring that he would “double Guantanamo” to cheers. It’s a nonsense phrase – but the Culture War isn’t about policy – but about position.

Now, Romney is continuing this – and pushing it into foreign policy.

Yesterday morning, Romney, adopting the freedom of expression and lack of accountability typical of  party out of power, launched a critique of Obama’s response to the Iranian elections – and to the Middle East in general:

Romney criticises Obama’s use of “sweet words” (sounding eerily similar to Zawahiri who denigrated Obama’s “elegant words“) – yet his only suggestion for how to react differently to the Iranian elections would be to use Romney’s own words – which admittedly aren’t as “sweet” or “elegant.” And of course while Romney denigrates Obama for relying on words without action – Romney’s only response to the Iranian election is to use his own words.

(This brings up an interesting difference: Obama uses the power of words to affect what is going on, as in his Cairo speech, his race speech, his speech on national security – while Romney insists we must use our words to express ourselves and to show what side we are on. This difference in the use of language is precisely what makes Obama an effective speaker – but this is a topic for a different day.)

What Romney forgets is that – in Andrew Sullivan’s words:

This is not about us. It’s about them.

The time may come for the president to stand with the majority of Iranians – to voice his support – but Romney’s demand for instant moral clarity demonstrates a Culture War view of foreign policy – of a need to be wrong on the right side of the issue. As a candidate, this Culture War take on national security and foreign policy can be effective – but as a governing tactic, it is disastrous.

Categories
Barack Obama Foreign Policy Iran National Security Politics Videos

Biden Says Talks With Iran To Go Forward

[digg-reddit-me]

On this morning’s Meet the Press, Joe Biden said that the Obama administration has made the decision to go forward with talks – despite the administration’s clear doubts about the fairness of the election.

I thought Biden made this point particularly well:

[T]alks with Iran are not a reward for good behavior. They’re only a consequence if the president makes the judgment it’s in the best interest of the United States of America, our national security interests, to talk with the Iranian regime. Our interests are the same before the election as after the election, and that is we want them to cease and desist from seeking a nuclear weapon and having one in its possession, and secondly to stop supporting terror.

The Obama administration’s approach to these elections has been – in my opinion as an informed amateur – nearly flawless. They have made clear that they are prepared to talk with Iran – regardless of how the elections went, rather than giving the Iranian people or leadership an ultimatum; they have declined to endorse a side in the election, letting the Iranian people decide themselves; they have been clear about their principles, but circumspect in their goals; and they have extended a clear hand in friendship – which most reports suggest the Iranian people desperately want to grasp. By refusing to give our rhetorical support to the opposition, the Obama administration is frustrating the Iranian regime’s desire to paint this uprising as an American creation – as Ayotollah Khamenei  preemptively sought to blame unrest after the election on “the enemies [of Iran who] may want to spoil the sweetness of this event … with some kind of ill-intentioned provocations.”

The Obama administration’s approach has been praised by Iranian human rights groups, as one was quoted in the Huffington Post:

The Obama administration’s approach to the election — keeping its comments low-key and not signaling support for any candidate — was exactly the right approach. While tempting, empty and self-serving rhetorical support for Iranians struggling for more freedoms serves only to aid their opponents. History has made Iran wary of foreign meddling, and American policymakers in particular must be sensitive to giving hardliners any pretense to call reform-minded Iranians foreign agents. That’s why Iran’s most prominent reformers, including Nobel-laureate Shirin Ebadi, have said the best thing the U.S. can do is step back and let Iran’s indigenous human rights movement progress on its own, without overt involvement from the U.S-however well intentioned.

As Andrew Sullivan explained:

This is not about us. It’s about them. And any interference would only backfire to the regime’s advantage.

The Obama administration realizes what Bush never did – that democracy cannot be imposed by force or ultimatum; that it must be taken by the people; that fine words extolling democracy are not enough – but a hand extended in friendship can destabilize a regime propped up by its demonization of us.

And so, the outreach to Iran and its people goes on.

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On this morning’s <em>Meet the Press</em>, Joe Biden said that the Obama administration has made the decision to go forward with talks – despite <a href=”http://www.msnbc.msn.com/id/22425001/vp/31353317#31353317″>the administration’s clear doubts about the fairness of the election</a>.

I thought Biden made this point particularly well:
<blockquote>[T]alks with Iran are not a reward for good behavior. They’re only a consequence if the president makes the judgment it’s in the best interest of the United States of America, our national security interests, to talk with the Iranian regime.  Our interests are the same before the election as after the election, and that is we want them to cease and desist from seeking a nuclear weapon and having one in its possession, and secondly to stop supporting terror.</blockquote>

Categories
The Web and Technology

Brief Thoughts for the Week of 2009-06-12

  • I am not sure what to make of this… http://2006.1-click.jp/ #
  • My favorite quotation: "It takes great courage to see the world in all of its tainted glory, and still to love it." #
  • "I've been listening to my gut since I was 14 years old, & frankly speaking, I've come to the conclusion that my guts have shit for brains." #
  • If I'm ever in a position to, I'd like to think I'd be this cool about helping people out… http://xurl.jp/90r #
  • Today feels way too much like a Friday…and I really wish it were one… #
  • For whatever reason, feeling just a bit off today… #
  • Html humor: http://imgur.com/kJLcu.jpg #
  • Obama's Grand Bargain as a response to the deficit problem http://2parse.com//?p=3079 #
  • Are you supporting hatred and intolerance of Muslims, gays, and immigrants by drinking Rockstar Energy Drink? http://xurl.jp/vur #
  • Judge Sotomayor defends a racist NYPD cop http://2parse.com//?p=3063 #
  • I'm not sure why – but I love walking in the rain (if I have an umbrella) #
  • Still coughing and feeling sick dammit – thought a weekend's worth of rest would fix this issue… #
  • Make music, waste time… http://lab.andre-michelle.com/tonematrix #

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Categories
Barack Obama Domestic issues Economics Financial Crisis Health care Iran Politics The Opinionsphere

Mirror Neurons, Iran’s Fissures, Yglesian Insights, The Deficit Crisis, Rare Minerals

Once again, it’s Friday, so it’s time for my weekend reading recommendations.

1. Mirror Neurons. Daniel Lametti explains the importance of mirror neurons in the Scientific American.

2. Iran’s Fissures. Roger Cohen has been prominently writing about Iran for the past year or so – predicting and pushing for a thaw in relations. Now, on the cusp of an important election, Roger Cohen discusses Iran:

Iran, its internal fissures exposed as never before, is teetering again on the brink of change. For months now, I’ve been urging another look at Iran, beyond dangerous demonization of it as a totalitarian state. Seldom has the country looked less like one than in these giddy June days.

3. Yglesian insights. Matt Yglesias’s blog has long been on my must-read list – but he’s offered some especially insightful observations in various contexts about the free market in recent weeks. Here Yglesias speculates about the advantages of non-profit-maximizing corporations in a free market:

After all, profit-maximization is not a natural form of human behavior. I think it’s best understood as a very idiosyncratic kind of pursuit. It happens to be one that’s economically rewarded because with money to invest tend to want to invest it with would-be profit-maximizers. Thus, in fields of endeavor where the ability to raise large sums of capital on reasonable terms is a huge advantage, a profit-maximization impulse winds up being a huge advantage.

In a later post about health care, Yglesias makes a related point:

[P]art of what’s wrong with the world is that the very same people who spend a lot of time cheerleading for free markets and donating money to institutions that cheerlead for free markets—businessmen, in other words—are the very people who have the most to gain from markets being totally dysfunctional. The absolute worst place on earth you can find yourself as a businessman is in the kind of free market you find in an Economics 101 textbook. As a market approaches textbook conditions—perfect competition, perfect information, etc.—real profits trend toward zero. You make your money by ensuring that textbook conditions don’t apply; that there are huge barriers to entry, massive problems with inattention, monopolistic corners to exploit, etc.

4. How to tackle the deficit crisis. Set off by David Leonhardt’s excellent look at the forthcoming deficit crisis, the Opinionsphere quickly took this up as a theme of the week. Noah Millman at The American Scene had the best take on how to tackle the deficit crisis – once we decide to get serious. One of the main ways he suggests is to reform the tax code:

We have an income tax that is riddled with deductions that undermine its purported progressivity, and we rely on increasingly steep progressivity to justify every additional change to said code. A 1986-style reform that eliminated many deductions and lowered rates would not only be a likely booster of the economy, but would probably raise revenue – certainly on the corporate side.

5. China’s Great Game. And of course, the Financial Times reported that China has almost cornered the world market in rare minerals needed for most high tech products. I’m looking forward to some analyst really following up on this and explaining what implications – if any – this has.

Categories
Conservativism Economics Libertarianism Political Philosophy Politics The Opinionsphere

The Limits of the Free Market

George Will:

Trillions of dollars of capital are being allocated sub-optimally, by politically tainted government calculations rather than by the economic rationality of markets. Hence the nation’s prospects for long-term robust growth – and for funding its teetering architecture of entitlements – are rapidly diminishing.

The president’s astonishing risk-taking satisfies the yearning of a presidency-fixated nation for a great man to solve its problems. But as Coolidge said, “It is a great advantage to a president, and a major source of safety to the country, for him to know that he is not a great man.” What the country needs today in order to shrink its problems is not presidential greatness. Rather, it needs individuals to do what they know they ought to do, and government to stop doing what it should know causes or prolongs problems.

One thing that has frustrated me greatly over the past months has been George Will’s apparently unshaken faith in the perfection of the free market. Here he demonstrates this again – speaking of the “sub-optimal” allocation of resources by the government. I have to wonder what he makes of how the financial sector allocated resources over the past few decades. At this point, I think most of us can appreciate the value of  “sub-optimal” investment when compared to the catastrophic investments the “free market” allowed.

It’s not that I don’t think Will has a point. For one, I tend to agree with his anti-royalist attitude towards the executive branch. And secondly, I agree with him that a free market, by distributing resources and power among many actors, can achieve a kind of collective wisdom – and by allowing constant tinkering and creative destruction we allow for the possibility of positive black swans. This is the genius of the market, rooted in the knowledge that no one person or team of persons can know enough to guarantee the right decision. Instead, the best results are obtained by creating many seperate decision-making bodies and creating a structure that allows those that are actually successful to be rewarded.

But Will doesn’t seem to have noticed the serious flaws in the American and worldwide market – or at least, the only flaws he seems to have noticed are those involving government interference.

[digg-reddit-me]Even in the most traditional analysis, bankers got into this crisis largely because they were able to escape regulation. They created shadow banks, derivative products, and other complex financial instruments which were designed to evade any regulations in place. George Will and others will likely point to government-backed organizations like Fannie Mae and Freddie Mac as key causes in inflating the housing bubble – but it is difficult to actually make this case – as these institutions, for their size, weren’t that involved in the subprime mortgage market – and in fact were pushed to become involved by the enormous profits being made by the banks. What Will doesn’t want to acknowledge was that even in this most traditional analysis, the root of the problem is the misalignment of incentives rather than government distortions of the market.

What Will fails to acknowledge is that our markets are constricted by lack of government interference. The freedom of the financial marketplace – especially the distribution of power and decision-making that makes the market work – is severely restricted by the size of our banks. Their size not only makes them too big to fail, it also prevents the market from being free.

Our financial and automobile industries have ended up combining the worst aspects of socialism and capitalism – without the benefits of either – and that is even before the government stepped in.

Think about it – the free market is effective because it prevents any small set of individuals from monopolizing decision-making. Especially in the world today with so much information available and events moving so quickly, the “right” business choices to make aren’t always clear. A free market – by allowing each business to make its own choice – prevents decision-making from falling victim to individual follies. But our current economic system – with it’s enormous corporations – ends up recreating the feudal system in which power is not centered in a single place, but in a handful of powerful “princes.” While these “princes” push for free market reforms, it is not in their interest to actually achieve this ideal free market – as Yglesias points out:

As a market approaches textbook conditions—perfect competition, perfect information, etc.—real profits trend toward zero. You make your money by ensuring that textbook conditions don’t apply; that there are huge barriers to entry, massive problems with inattention, monopolistic corners to exploit, etc.

George Will himself has pointed out that those “reforms” that are passed tend to be of a specific sort, following what Will calls, “the supreme law of the land…the principle of concentrated benefits and dispersed costs.” What free market supporters rarely seem to admit is that the free market exists not in spite of the government, but because of it. And today, our market is far from free because the government has failed to protect it – and has instead allowed the worst characteristics of capitalism (exploitation of labor; externalizing as much cost to society as possible, for eg. pollution) with the worst characteristics of socialism (concentration of power and limitation of competition) to create a kind of modern feudal society. In  this feudal society, freedom is enjoyed by the “princes” of finance and industry while the creative ferment of a real free market is formally protected but effectively quashed.

I would like to see George Will take on the limitations of capitalism at some point. As a conservative and an intelligent man, he must see they exist.

[Image by mischiru licensed under Creative Commons.]

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The Opinionsphere

The more extreme the Government’s abuses are, the more compelling is the need for suppression

Glenn Greenwald:

much more critical issue here is whether the President should have the power to conceal evidence about the Government’s actions on the ground that what the Government did was so bad, so wrong, so inflammatory, so lawless, that to allow disclosure and transparency would reflect poorly on our country, thereby increase anti-American sentiment, and thus jeopardize The Troops.  Once you accept that rationale – the more extreme the Government’s abuses are, the more compelling is the need for suppression – then open government, one of the central planks of the Obama campaign and the linchpin of a healthy democracy, becomes an illusion.