Posts belonging to Category History



The Party of NO

Well, the verdict is in. The Republicans are being cast as the party of no.  The party without ideas.  The party of obstruction.

Please make no mistake about it, this marketing push isn’t really about obstruction, but about the upcoming elections.  Just as President Clinton did brilliantly prior the 1996 elections when he cast all Republicans as following Newt Gingrich and obstructing spending laws, the Obama administration is moving forward in much the same pattern.

This is possible because the White House, regardless of occupant, has historically been able to control the news cycle.  In my opinion, this should be an indictment on journalism as a whole when alternatives which exist aren’t being reported, but simply put:  when the President talks, news happens.  When your normal representative talks, you’re lucky if you even hear about it.

It worked during the Clinton Administration on spending, it worked during the Bush (43) Administration on the Patriot Act, & it certainly might work again this time. Irregardless, the campaign is back and in high gear (here via USA Today):

…”Too often, the Republican leadership in the United States Senate chooses to filibuster our recovery and obstruct our progress,” Obama said. “And that has very real consequences.”…

Or here via NY Times blog, here via WaPo, & on and on and on…

From a critical point of view however, obstructionist should not automatically be a pejorative.   Without analyzing what exactly is being obstructed, this is little more than name calling.

As an example, if say in the 1940s Congress was actively trying to “obstruct” the intermittent of thousands of innocent Japanese-Americans, this would not only be a moral good, but any thoughts to compromise solely to be seen as a non-obstructionist would be wrong.  What would be a compromised alternative?  House arrest?

Additionally, we have to be on the lookout for the differences between the marketing of bills and their actual language.  Think of the new health care legislation.  President Obama’s promises of more health care for all at cheaper prices, simply don’t seem to be fulfilled by the 2500 page law passed… or maybe they are being fulfilled, but like the Patriot Act, no one really knows what the new legislation actually means (here via Cato):

…The Patient Protection and Affordable Care Act represents the most significant transformation of the American health care system since Medicare and Medicaid. It will fundamentally change nearly every aspect of health care, from insurance to the final delivery of care.

The length and complexity of the legislation, combined with a debate that often generated more heat than light, has led to massive confusion about the law’s likely impact….

Or on yesterday’s Meet The Press Rep. Van Hollen stated (transcripts here via MSNBC):

…The frustration is there are lots of important bills to push for jobs that are sitting over in the Senate.  But it’s not the fault of the Democratic leadership in the Senate.  I mean, frankly, you know, John Cornyn and his allies have been trying to block a whole lot of very important jobs measures.  We in fact sent a piece of legislation over very recently that would remove these perverse tax incentives to ship American jobs overseas, that give American corporations a bonus if they ship American jobs overseas….

Just like health care, the basic idea that our representatives are working on private job creation incentives is a good one.  But just like the Obama Administration’s promises on health care, Rep. Van Hollen is selling us a job creation bill which has little chance of actually creating jobs.

To translate – what they mean by “removing incentives” is to increase taxes on businesses who outsource.  Now, some may want this to happen for various reasons, but the economics are pretty straight forward.  Tax increases have never increased jobs & forcing a tax such as this could actually result in companies simply moving their head quarters as well.

To be fair, there are bills I don’t believe the Republicans should block, for instance the extension on unemployment benefits (though it seems likely to pass soon: here via The Hill).

Yes, the point isn’t that the Republicans are doing the right thing and the Democrats are failing at every single step, the point is only intended to remind us of the old saying about representative governance:

The people will get the government they deserve.

& so long as we allow marketing campaigns to have more force in elections than critical analysis does, we will likely continue to be disappointed.

Our Warriors

On each Memorial Day, I try to research at least one individual act of courage to remind myself  about the nature of those we’ve lost.

This year, I read about a 19 year old, who sacrificed himself to save his fellow soldiers.  While on patrol in Iraq, their Humvee came under attack.   His job, manning the 50 cal machine gun on top of the vehicle is critical to their success.  This day however (whole thing here):

…While Private McGinnis was manning the M2 .50-caliber Machine Gun, a fragmentation grenade thrown by an insurgent fell through the gunner’s hatch into the vehicle. Reacting quickly, he yelled “grenade,” allowing all four members of his crew to prepare for the grenade’s blast.  Then, rather than leaping from the gunner’s hatch to safety, Private McGinnis made the courageous decision to protect his crew. In a selfless act of bravery, in which he was mortally wounded, Private McGinnis covered the live grenade, pinning it between his body and the vehicle and absorbing most of the explosion. Private McGinnis’ gallant action directly saved four men from certain serious injury or death….

Born on June 14th, 1987, Private First Class Ross A. McGinnis lost his life to save others on December 4th 2006, in a place very far from home, because we asked him to go.

There are those that would say this doesn’t matter all that much since we shouldn’t be in Iraq in the first place.  There are others who would argue strongly that even if you disagree, soldiers like this one are protecting our lives and our freedoms.

For me, not all wars are about saving our freedoms.  Not every use of the military…. well, even most uses of the military, does not qualify as “protecting” Americans.  Like all countries throughout history, our military is a foreign policy tool that we don’t like to use.

For me…. it’s not about protecting me or protecting our freedoms, it’s a simple as this:  our country, through our elected representatives, asked this child to go to war.  He went.

Yeah, that’s enough for me.

Regulate Now! Afterall, we have an oil crisis!!!


Oil leaks into the Gulf of Mexico from the end of the pipe that was supposed to pump oil from the sea floor before the Deepwater Horizon oil rig exploded Photo: AP

The audacity of writers will never cease to amaze me and today is no exception.

In a piece at Salon.com, authored by Andrew Leonard, and titled Gulf oil spill gas price blackmail Mr. Leonard tries to make the case that the Obama Administration should:

Ignore critics of regulation who warn of rising pump prices. They are obsessed with the wrong bottom line.

Though his only reasoning seems to be that the opponents of new regulations only came to be after a major crisis. First, he starts with some of the current opposition statements:

The International Energy Agency is frightened, reports the Financial Times that “a knee-jerk reaction by regulators, banning new offshore licensing altogether,” in response to the Gulf oil spill, will end up increasing costs for the oil industry, and “therefore oil prices.”….

This helps us understand why he uses words like blackmail and frightened…. because these people are only looking at the bottom line.   From here, now that we understand these people are greedy and uncaring for anything other than money, he moves quickly into the timing of this opposition:

…it’s impressive to see how quickly the clamor advising the White House not to go overboard on offshore regulation has flared up. The parallels with the financial crisis are irresistible: A massive failure of markets and government oversight leads to a disaster, but before the wreckage has even been cleared away, we are told that regulatory overkill will be bad for business….

What he seemingly fails to grasp is, well, with all due respect to Mr. Leonard, he is failing to grasp the obvious – people generally don’t oppose or support regulations when they aren’t being proposed at all. So this argument about timing is completely irrelevant.

Logically, people, groups, communities, companies…. all of us have enough to worry about that we don’t usually worry about those things that aren’t happening.

It’s possible the author is unaware, but most of the pro-life movement didn’t really exist until 1973 as it wasn’t necessary prior to that. Maybe he finds this suspect as well?

But logic be damned, he uses this to springboard into the current investigation to explain why drastic changes in regulations are needed right now:

…But focusing only on the bottom line without taking into account the larger picture of what could go wrong — and what is going wrong — is exactly how we ended up with a giant Gulf oil slick in the first place….

Ironically, & potentially unwittingly, he then gives reasons why major regulation change should be avoided. By trying to conflate some idea of greed into this, but still keep the appearance of some factual stance, he states some of the issues clearly and properly notices that we don’t yet know what happened.

The main reason we don’t know – the only real people currently talking are those with a stake in not being blamed and there are 3 primary private actors and a multitude of government actors. Independent investigators will sort through all parties statements, responsibilities, duties, actions, and all the rest and hopefully come to some answer as to what really took place. Until then, any newly proposed regulation will be premature and wholly inconsistent with wise decision-making.

Additionally, he never refutes the words used by opponents, because he simply can’t. Economics shows us without emotion or emotion-filled words such as “blackmail” that regulations cost businesses money and those costs have to be borne out by the consumers.

The one interesting thing he noted was about the parallel to the financial market, but here he sees reverse of reality. The parallel Mr. Leonard should easily see is that we have a government bent on adding more and more power at the federal level attempting to use fear of another crisis to grab more power before even understanding why the crisis happened in the first place. Instead, of fearing this, he seems to be concerned only for some hypothetical lack of regulation, as if that has been the problem all along.

The reality is there. Going back historically, let’s say, going way, way back to… how about 6 months ago? When fear of another financial crisis was & is still being used to add regulations on entities such as pay-day loan companies, on investment vehicles such as derivatives, on compensation of employees, and many, many more things which had absolutely nothing to do with the current crisis, his concern for lack of regulation seems oddly misplaced.

After all, this is not only the same administration which is pushing for specious financial regulations, but they are also the same group which after years of railing against the Patriot Act, when the time came to do something, they did. They reauthorized its use to maintain their power.

Please note though – it’s not just this administration. Historically, governments seek to expand their power, they use crises to do so, and once those crises are mitigated, they keep the power they promised us was only necessary under the circumstances.

Whether a terrorist event, an economic crisis, or even an oil spill by greedy business people, allowing the government to take more and more powers before we even have an idea of what took place is the perfect move for those who want reduced freedoms.

As Hayek stated:

‘Emergencies’ have always been the pretext on which the safeguards of individual liberty have been eroded.

Day Of Infamy…. & now rememberance

On this day, in 1941, Japan struck Pearl Harbor.  Watch actual news coverage of the event:

Some color footage, including interview with people who were there:

Journalism & International Analysis

Over time I’ve come to the conclusion that where news entities fail miserably is in their analysis with international politics.  Most pundits, writers, journalists, etc, seem to be able to semi-grasp domestic policies, albeit still in the usual, overly simplistic, fits-to-the-narrative type of way, but lose all rationality with respect to international affairs.

Interestingly enough, I think their failures in both domestic & international analysis stem from the same basic cause, oversimplification.  But it would seem that the degree to which it effects each type of analysis differs due to the lack of incentives private interests have in resolving inaccurate reports on international issues.

Thinking about the counter thought to international policy, domestic policy, we see incentives existing to resolve press inaccuracies.  For instance, if the press pushes inaccurate opinions and analysis which oversimplifies a given topic, a special interest group or two, plus at least one political party, and finally non-profits everywhere will try to enlighten by showing the fallacy of the common narrative.

This is because people rightfully see domestic issues as more directly impacting their lives.  The corollary is that our politicians, our leaders, our special interests, and our non-profits tend to focus where we as a society focus.

The problem that can stem from this seems intuitive – inaccurate press on international issues should be held as highly suspect, but get printed without much serious disagreement.   Since very little counters popular wisdom, this gives the press a power to change opinions and as well as spread myths.

This leads to all kinds of odd conclusions, with large swaths of people all over the planet prone to believe in things without substantial proof nor any degree of rational logic.

For instance believing that western countries are somehow to blame for poor countries with constant internal strife and corrupt governments which inefficiencies and lack of resources.  Or said another way, people all over believe in a zero sum game.  This is true not only in the international sense, but also when dealing with immigration and free trade issues.

Mistaken assumptions such as zero-sum games also lead to beliefs about what one thinks a President can actually do, versus what reality tends to dictate what will actually be done.  This leads to politicians making believable, yet highly impossible claims about given international situations.  This has been done to all recent Presidents, including President Obama when pulling a missile defense shield out of Poland & Czechoslovakia was made to appear as a rash decision amounting to abandoning our allies, when in fact it wasn’t a bad decision when concluding what options were open and what were the greatest threats to our security and security in the region (wrote about it here, though Mr. Obama went and said it had nothing to do with Russia… which was just amazing… wrote about that here).

It leads to pundits everywhere snidely remarking how this action wasn’t “tough” or that action was going to anger others because it was “unilateral”.  With little recourse, journalists  print all sorts of things without taking into any account the actual framework through which any given action action was taken, under what circumstances, with what available options, or really they just leave out anything resembling actual analysis.

Unfortunately, it seems no organization is immune.  A recent piece published in the Economist titled  Even greater expectations discussing the idiotic Nobel Prize Committee decision, is a far cry from the analysis for which the Economist is known.

They rightfully begin with the question the world was asking, “Is it premature to give Barack Obama the Nobel peace prize, less than a year into his presidency?”, but delve quickly into non-international events dressed up to seem as if change had already happened:

…Most broadly, he has sought to engage with opponents, saying that America would “extend a hand, if you unclench your fist”, for example to those who were earlier dismissed as an “axis of evil”. Somewhat to the discomfort of Iran’s president, Mahmoud Ahmadinejad, who had bolstered his domestic support by vilifying America as an aggressor, Mr Obama has proposed holding talks about nuclear affairs, removing a precondition that Iran first abandon enrichment of uranium. Mr Obama made withdrawal of American forces from Iraq one of the main pledges of his election campaign and has since overseen a slightly quicker run down of troops than was envisaged by Mr Bush. Towards North Korea, too, Mr Obama has dangled the prospect of bilateral talks and closer engagement.

Regarding Russia Mr Obama has developed a policy of notably warmer ties, dubbed “hitting the reset button”. Relations had become especially frosty towards the end of Mr Bush’s presidency when war broke out between Georgia, an ally of America, and Russia…

Continuing with this as reasoning:

…Yet Mr Obama’s main achievement is a change of tone in foreign policy. A speech given in Egypt in June was an eloquent call for a new understanding between America and Islam. It was designed both to assure Muslims, now thought to number 1.6 billion around the world, that America is not set on a crusade. Similarly it was intended to convey to any Americans (and others) who believe in the notion of a “clash of civilisations” that friendly ties between religions is eminently possible.

Similarly, American policy towards small and repressive regimes, ranging from Myanmar to Cuba, has shifted in mood, if not yet substance, by offering the prospect of engagement if governments demonstrate progress towards democracy…

Which to date has not only done absolutely nothing to help international cooperation, but has made our interests tougher to protect.  In nearly every UN Conference on whatever, for instance the G-20 dealing with the economic crisis, the US asks for a lot of cooperation and everyone goes their separate ways.

In some ways this is to be completely understood.  American solutions for economic issues will differ from that of Germany or the UK.  Even though the same basic problem afflicts most countries during the global recession,  their banking industries are setup with much different regulations, making the solutions for one country not necessarily compare to another country.  The separate policies might even be attempting the exact same “type” of solution, for instance increasing capital requirements, but under different systems any one specific solutions will affect different countries differently.

When it comes to reaching our hand out to those regimes, we see that North Korea, Russia, and Iran have been openly hostile to any US intents.  Iran’s deadline of October the 1st to fess up or face sanctions has come and gone, even while it was precipitated by Iran admitting to an additional enrichment facility.

And all this, including that all important warming of US-Russian relations, Russia has stated publicly the will continue to trade with Iran, meaning they will back them, if the UN, lead by the US impose stricter sanctions against Iran.

Now these situations are fluid to some extent, especially between cautious friends such as US-Russia and most of the controversial moves taken by Iran & North Korea would likely have happened to test any new US President’s resolve.

The issue is that by glossing over the realities we end up believing in myths.  Think about all that talk about “unilateral” action as if it’s a huge negative due to the controversy surrounding the last semi-unilateral decision to be made, without understanding that this is exactly as we should expect it.

No country should do something the US requests if they know in the end the analysis states otherwise.  On the international stage, Europeans, Cechs, Persians, Africians, indeed every person deserves the same representation we deserve – for their representatives to look out for their interests.

Now this can and does lead to all kinds of international policies from all different governments that appear wrong or unseemly when in truth it’s a playing field for which no one actor controls the rules which leads to countries making decisions that seem antithetical to their stated morals or goals.

It also allows one country to look at another as particularly egregious, regardless of their country’s current international policies.   It should be obvious that while beating up on your own politicians on domestic policy makes sense, doing so on the international stage is just beating yourself up.  Even if well-deserved, it’s easier to beat up on other country’s policies than it is to self reflect.

In some ways, national feeling probably affects this as well.  When most countries populations have enough information to dislike a number of other countries, going against that grain can be seen as being unpatriotic.  You certainly wouldn’t see a major political figure like Tony Blair coming to the US to air Britain’s dirty laundry or Putin to do the same in the US against Russia.

It also allows for journalists to paint country X with any brush they choose.  This helps some countries as the press will like some allies, but can obviously hurts or diminish countries for which popular sentiment doesn’t exist.

In the end, what it does is allow for a type of international superiority by enhancing nationalistic feelings.  When only reviewing other countries’ by hand picking policies, self-selecting cultural attributes, last recent controversy, crazy politicians, one can get the opinion of their general greatness over all those “other” people.

Lastly, and in my opinion, the most unfortunate consequence of this misinformation, is our inability to actually analyze international issues.  In between these simplistic news stories real trade-offs on the international stage are being made and constantly simplified.  From a high-level view the policy might appear to be utterly wrong, but in reality  might not be so.  It might simply be the least bad of all the bad options.  & it might really be the policy itself which is wrong.

For real analysis however, historical context, actions taken versus realistic options available, trends, and a number of other data points are required.  Without honest sourced information cost/benefit analysis simply isn’t possible.

Thought Experiment:: Politics as the Legal System

It seems recently that both sides of the current main stream American political system has completely reversed itself overnight allowing the American people, pundits, tv personalities, comedians, and anyone who feels like doing so, laugh at the oh so hypocritical nature of all politicians.

Surely at this point though, poking fun at both parties for doing 180s when it comes to spending wildly and the usefulness of American dissent in tough political questions, is like… well, it’s like shooting fish in a barrel…

Trying a different perspective however, I wonder if this "hypocrisy" could be considered a feature and not a bug?

For instance, it seems to me the flagrant spending spree the prior administration was on is as bad as the current spending spree this administration seems bent on. 

We know the change in administrations caused a semi-reversal on behalf of both parties.  The Democrats went from claiming the mantle of the fiscal responsibility to spending like drunken sailors and the Republicans went from quiet acquiescence of the last spending spree, to outright opposition of this one.

& while hypocritical as this certainly is, it seems to mirror what we view as a required good and feature of our current legal system: the adversary nature of the system itself.

Only when each side in a debate, or court, has zealous advocates fighting for their behalf, can we approach something close to an ideal.

Obviously we know that our court system and political system can and do result in wrongful judgments and failed policies, but any system with human actors will have failures.  Alas, as much as we may want it, perfection is not within our grasp, making humility the better part of leadership.

But talks about perfection and humility aside, and leaving aside the discussion that the US is not a "democracy", I think the debates may demonstrate hypocrisy, but they also demonstrate strength.

As Winston Churchill said when asked about the problems with Democratic systems,  "it is the worse system except as compared to all the others."

Indeed.

The Government, The Economy, & Their Predictions

A mere 10 days ago, we were told by our President, that his recovery act has diverted a disaster (here):

Good evening.  Before I take your questions, I want to talk for a few minutes about the progress we’re making on health insurance reform and where it fits into our broader economic strategy.

Six months ago, I took office amid the worst recession in half a century.  We were losing an average of 700,000 jobs per month and our financial system was on the verge of collapse.

As a result of the action we took in those first weeks, we have been able to pull our economy back from the brink. We took steps to stabilize our financial institutions and our housing market. And we….

passed a Recovery Act that has already saved jobs and created new ones; delivered billions in tax relief to families and small businesses; and extended unemployment insurance and health insurance to those who have been laid off.

Of course, we still have a long way to go. And the Recovery Act will continue to save and create more jobs over the next two years – just like it was designed to do. I realize this is little comfort to those Americans who are currently out of work, and I’ll be honest with you – new hiring is always one of the last things to bounce back after a recession.

As I wrote previously, I’m not sure what a “saved” job is or how one goes about calculating a figure, but we do know the unemployment rate is 2% higher than predicted.  Additionally, when one is contemplating whether this or any other President is truthful, we should ask if any of their other projections were correct in the first place.

From Bloomberg:

July 31 (Bloomberg) — The first 12 months of the U.S. recession saw the economy shrink more than twice as much as previously estimated, reflecting even bigger declines in consumer spending and housing, revised figures showed.

& for comparison, something we also know.  When Senator Kerry, then Senator Obama, and many other people, liberals and independents all, were dismayed by President Bush’s tax cuts during a recession and a war:

The revisions showed that the 2001 recession was less severe than originally estimated, reflecting a smaller decline in business investment. The economy actually grew 0.1 percent from the fourth quarter of 2000 to the third quarter of 2001, erasing the 0.2 percent drop previously reported.

Of course Bush started us down our current road with the first stimulus bill, because something just had to be done… which I guess presupposes that allowing 300 million people to work to bring back the economy is “nothing”…

Either way – lastly, and most importantly, we know that this has been tried before.  It took several decades to move beyond the blindness people had due to FDR’s almost cult-like status to revise the books written at the time, but the New Deal did in fact lead to a longer Great Depression that was necessary (here):

The New Deal is widely perceived to have ended the Great Depression, and this has led many to support a “new” New Deal to address the current crisis. But the facts do not support the perception that FDR’s policies shortened the Depression, or that similar policies will pull our nation out of its current economic downturn.

The goal of the New Deal was to get Americans back to work. But the New Deal didn’t restore employment. In fact, there was even less work on average during the New Deal than before FDR took office. Total hours worked per adult, including government employees, were 18% below their 1929 level between 1930-32, but were 23% lower on average during the New Deal (1933-39). Private hours worked were even lower after FDR took office, averaging 27% below their 1929 level, compared to 18% lower between in 1930-32…

No worries though – I’m sure the government is telling the complete truth about how much health care will cost, what it will do to the current system (good & bad), and all the rest of it.  We just have to believe!

…Some other articles on this as well here @ Reason.com, article on economist research @ UCLA here, & detailed research paper here @ Cato.org.

The Voice of a Revolution

On this 4th of July, during this particular time of constant change, I think it a good thing for us to look to one of our founding fathers, Thomas Paine.

During that first winter of the revolutionary war, December 1776, all seemed lost.  The General George Washington was losing every battle he engaged in, he was losing the command respect of his officers, he was losing the morale of his soldiers and many were leaving when terms of enlistment were up, others were simply deserting.  They had little food, little clothing, little training, and many challenges such as rampant dysentery.  This ragtag group was made up of mostly young men, 15, 16, 17 year olds fighting for this young country.

When the British soldiers first gazed upon this untrained, unkempt, young army, they laughed at the idea that these people thought they could win this war.

With the Declaration of Independence, signed just 5 months early, it looked as if it would go down in history as a treasonous action by those who will be punished once the war concludes with an easy British victory.  As Benjamin Franklin said, “We must all hang together, or we will most assuredly hang separately.”

Thomas Paine, then a war correspondent, could see the state of the revolution waning and saw this as a pivotal time where failure could be near.  He must do something, so he went back home and started writing a new series of pamphlets he would hope would help garner support for this revolution towards freedom.  He titled the it The American Crisis.

Almost one full year earlier, he helped foment the seeds of the revolution through his pamphlet titled Common Sense.  Laying out a very powerful argument for Independence in January of 1776, he published it anonymously signing it only as “written by an Englishman”.

While Common Sense carried the colonies through the signing of the Declaration of Independence, so too would The American Crisis, help give strength to the revolution at one of its lowest points.

THESE are the times that try men’s souls. The summer soldier and the sunshine patriot will, in this crisis, shrink from the service of their country; but he that stands it now, deserves the love and thanks of man and woman. Tyranny, like hell, is not easily conquered; yet we have this consolation with us, that the harder the conflict, the more glorious the triumph. What we obtain too cheap, we esteem too lightly: it is dearness only that gives every thing its value. Heaven knows how to put a proper price upon its goods; and it would be strange indeed if so celestial an article as FREEDOM should not be highly rated. Britain, with an army to enforce her tyranny, has declared that she has a right (not only to TAX) but “to BIND us in ALL CASES WHATSOEVER,” and if being bound in that manner, is not slavery, then is there not such a thing as slavery upon earth. Even the expression is impious; for so unlimited a power can belong only to God.

For anyone interested in the history of the American revolution and celebrating this Independence Day, would do well to look at Thomas Paine’s advice still today.

‘Tis surprising to see how rapidly a panic will sometimes run through a country. All nations and ages have been subject to them. Britain has trembled like an ague at the report of a French fleet of flat-bottomed boats; and in the fourteenth [fifteenth] century the whole English army, after ravaging the kingdom of France, was driven back like men petrified with fear; and this brave exploit was performed by a few broken forces collected and headed by a woman, Joan of Arc. Would that heaven might inspire some Jersey maid to spirit up her countrymen, and save her fair fellow sufferers from ravage and ravishment! Yet panics, in some cases, have their uses; they produce as much good as hurt. Their duration is always short; the mind soon grows through them, and acquires a firmer habit than before.

For it’s still true today; fear, panic, desperation, are all fleeting emotions, or at least should be, when the price that is being paid is laid at the altar of freedom.