American politics

Democracy in America

  • The future of federalism

    Is the "repeal amendment" hypocritical?

    Dec 3rd 2010, 20:24 by W.W. | IOWA CITY

    EARLIER this week, Rob Bishop, a Republican congressman from Utah, proposed an amendment to the constitution that would allow a supermajority of states to overturn federal law. Eric Cantor, the incoming House majority leader, is said to be "very interested" in the so-called "repeal amendment". In a statement, Mr Cantor said, "The Repeal Amendment would provide a check on the ever-expanding federal government, protect against Congressional overreach, and get the government working for the people again, not the other way around."

    The amendment is the brainchild of Randy Barnett, a law professor at Georgetown University. According to the Washington Post's Dana Milbank, Mr Barnett is surprised by the enthusiasm in Congress for his certainly ill-fated idea. At this point, it's hard to see the repeal amendment as more than a makeshift stage upon which conservative lawmakers can be seen to root for their states and against Washington's usurpation and centralisation of power. 

    Mr Milbank raises a few of objections to the amendment. For one thing, he notes, it would allow the 33 least populous states to overturn legislation favoured by the 17 most peopled. For another, the repeal amendment is reminiscent of 19th-century arguments asserting the right of states to "nullify" federal law—arguments mostly deployed by racist slave-state politicians seeking to deny the federal government the authority to overturn savage local practices.

    These are not devastating objections. As it stands, the US Congress is hardly a majoritarian institution. The repeal amendment would simply add an additional route by which the country-dwelling minority can stymie the city-living masses. In any case, perhaps the amendment could be amended to require that the 33 or more states standing against a federal statute also contain at least half the national population. As for the ghost of racist federalism past, it is not about to rematerialise. Moreover, as Mr Barnett notes, there was no point in time at which 2/3 of the states favoured slavery. Such a sizable supermajority seems likely to coalesce for only for the most egregious impositions of federal power. 

    What is most amusing, and annoying, about Mr Milbank's column is the fact that he seems to believe that ye olde constitution enthusiasts such as Messrs Bishop and Cantor are mired in some kind of inconsistency when they seek to amend the hallowed document. Mr Milbank's lede contends that "it is no small irony that one of their first orders of business is an attempt to rewrite the constitution." This imagined gotcha is soon repeated:

    Cantor, Bishop and the other supporters of the amendment believe they are rebalancing the Constitution in a way the Framers would like. But it's strange that the lawmakers would show their reverence for the Founding Fathers by redrafting their work.

    What's really strange is that Mr Milbank thinks this is strange. Indeed, he explains why this is not strange immediately preceding his claim that it is. There can be no doubt that as the constitution has been amended, interpreted, and reinterpreted over the centuries, the relative decentralisation of power codified in the original has been overcome by a long trend toward greater centralisation in Washington. The originalist gripe is precisely that the constitution as it is actually interpreted is in conflict with the constitution as it was intended to be interpreted. It seems silly to stick it to originalists for insufficient reverence for what they see as an ersatz, pretender constitution. Whatever one thinks of the project of "restoring" the founding constitutional arrangement, it seems clear that the desired rehabilitation would be most swiftly achieved by intervening directly to set the wayward living constitution back on a righteous Madisonian path. More importantly, the constitution as both originally and currently understood provides for its own amendment. Mr Milbank may be surprised to discover that originalists do not consider the Bill of Rights an intolerable assault on the constitution's initial design.

    Despite the doubtful future of the repeal amendment, I would welcome substantive discussion of the merits of a reinvigourated federalism. As a matter of principle, I favour greater decentralisation for reasons well articulated by the likes of Friedrich Hayek and Karl Popper. We're most likely to discover the most effective policies if we leave a multitude of jurisdictions ample space for free experimentation. At the same time, vocal proponents of restoring state power and autonomy usually seem animated by a desire to insulate their reactionary hamlets from larger liberalising trends. The rise of marijuana legalisation and gay marriage as state's rights issues may be changing the complexion of the debate. However, for the time being, centralisers remain largely motivated by the colonial impulse to civilise the savages while decentralisers remain largely motivated by unattractive illiberal instincts. This makes it a bit tricky to pick sides. 

  • Wikileaks again

    WikiLeaks is a legal innovation, not a tech one

    Dec 3rd 2010, 16:04 by B.G. | WASHINGTON

    HI ALL, it's a technology correspondent, sneaking over to the American politics blog. I couldn't help but overhear your conversation about WikiLeaks, and I feel like I have to jump in and say something.

    The internet is not magic.

    Many of the posts I've read about WikiLeaks, here and elsewhere, have expressed a certain technological fatalism. For example, Andrew Sullivan writes that the "culprit" is the internet; downloads can be shifted among servers, distributing responsibility. David Frum believes that WikiLeaks is a kind of digital IED, requiring nothing more than "servers and a thumb drive". My colleague W.W. points out that technology compresses data, making it easier to make off with. While I agree that technology and the internet make information sharing easier, I think we are placing too much emphasis on this aspect of WikiLeaks's operation.

    There is an assumption that you can put data on the internet and whoosh, it's everywhere. Just plug the thumb drive into the computer, evidently, and the rest happens by itself. It all has to do with servers or something. But thumb drives have been around for a long time, as has the internet, so why didn't WikiLeaks happen ten years ago? Just because WikiLeaks uses servers and encrypts its internal communications doesn't mean that it's a "cyber" organisation, or that it's particularly innovative in its use of technology. Many organisations, including this paper, use servers and have virtual private networks. Julian Assange, though he is technically brilliant, is not a technological innovator. He is a legal innovator.

    We are not quite sure where WikiLeaks has its servers. We can deduce, from what Mr Assange has said, that they are in Sweden, Iceland, Belgium and New York state. Mr Assange, in his obsession with revealing secrets, has compiled a list of countries with generous whistleblower-protection laws. WikiLeaks' multiple servers aren't there to back each other up; they're there to gather legal protections. Every server is subject to the laws of the state where it's plugged in, so WikiLeaks routes every submission in a clever pattern to move it through each of these locations. You can, if you don't have access to a computer, arrange with WikiLeaks a physical drop of your leaked material; they will digitise it and send it on the same multinational path. (For a fuller explanation, see what we wrote about Iceland's proposed media law on this blog earlier this year.)

    It's telling that Mr Assange hasn't placed his servers in some technically capable autocracy with a desire to thumb its nose at the world, say Iran or Venezuela. He needs liberal democracies. Their laws guarantee the safety of his information. And when trying to solve what looks like a digital problem, the best path is to consider where the problem is physically vulnerable. Anti-spammers, for example, have finally notched up some successes in the last two years by going after server locations; spammers need servers in places like America, which has reliable networks and vast fields of vulnerable personal computers. But America also has laws, and ways to enforce them.

    My gripe against Mr Assange is that he takes advantage of the protections of liberal democracies, but refuses to submit himself to them. If he wants to use the libel protections guaranteed by New York State, then he should live in New York, and commit himself to all of the safety and consequences of America's constitution. If he wants to use Sweden's whistleblower laws, then he should return to Sweden and let its justice system take its course. This, as we've written in the paper, is what distinguishes Mr Assange from Daniel Ellsberg. Mr Ellsberg did not flee America after releasing the Pentagon Papers; he stayed here and stood trial. Regardless of what you think about Mr Ellsberg's motives, he followed the basic tenets of civil disobedience: break a law, then publicly accept the consequences. Mr Assange just protects himself. 

    Julian Assange has created a legal structure that allows him to answer only to his own conscience. This is an extraordinarily clever hack of the world's legal systems. But it makes his pretense at moral authority a little hard to take seriously. And it also points toward a solution. If America feels threatened by WikiLeaks, then it should lean on its allies—Sweden, Iceland and Belgium—to strip the organisation of the protections it so carefully gathers as it shifts its information around the world. Mr Assange has suggested that he might be hounded all the way to Russia or Cuba. If he has to take all of his servers with him, it wil be harder for him to act so boldly.

    (Photo credit: AFP)

  • Art and politics

    Congressional curators

    Dec 2nd 2010, 21:27 by R.M. | WASHINGTON, DC

    I JUST walked by a church with no less than six crosses and a mosaic of Saint Matthew outside, suffering in the elements on this blustery day. On nicer days I have no doubt these Catholic monuments double as roadways for all kind of insect and toilets for any number of birds. And yet John Boehner, Eric Cantor and William Donohue, the president of the Catholic League, seem unconcerned. What they are concerned about is 11 seconds of a four minute video, which is part of a much bigger art exhibit at the National Portrait Gallery, that shows ants crawling on a crucifix. In Mr Cantor's words, this is "an obvious attempt to offend Christians during the Christmas season". Mr Boehner has called for it to be taken down. Mr Donohue described it as "hate speech". Odd, then, that no one else seemed to have noticed the 11-second snippet, which has been on display since October 30th, before the Catholic League drew attention to it.

    In response to the pressure, the National Portrait Gallery has decided to take the video down. "The decision wasn't caving in," said Martin Sullivan, the museum's director, after caving in. The work, by the late David Wojnarowicz, is part of an exhibit titled "Hide/Seek", which focuses on how gay love is portrayed in art. The video, a small part of the exhibit, was meant as a tribute to another artist and former lover of Wojnarowicz, Peter Hujar, who died of a AIDS in 1987. Mr Wojnarowicz succumbed to AIDS in 1992. "The artist was very angry about AIDS and he was using that style to create a statement about suffering. His approach was based on a lot of imagery that is very Latin American, and it can be garish and unsettling," said Mr Sullivan.

    That's Mr Sullivan's interpretation of the piece. Messrs Boehner, Cantor and Donohue had a different interpretation. Given such passionately subjective opinions, you'd think they were looking at a piece of art.

    We've been down this road before, with Robert Mapplethorpe, Andres Serrano and so on. One or another group takes offence to a certain work and calls for its removal, believing that their interpretation of the work is paramount and that their sensibilities trump any freedom of artistic expression. (Simply not viewing the work doesn't seem to be an option.) The problem is compounded when the work is on display at a taxpayer-funded museum, as is the case with "Hide/Seek", though the exhibit itself has been funded by private donors and foundations. In a seemingly sensible request, Mr Cantor has called for "common standards of decency" at such institutions. But as Blake Gopnik points out, this is an unrealistic goal.

    [S]uch 'standards' don't exist, and shouldn't, in a pluralist society. My decency is your disgust, and one point of museums, and of contemporary art in general, is to test where lines get drawn and how we might want to rethink them. A great museum is a laboratory where ideas get tested, not a mausoleum full of dead thoughts and bromides.

    He adds

    If every piece of art that offended some person or some group was removed from a museum, our museums might start looking empty--or would contain nothing more than pabulum. Goya's great nudes? Gone. The Inquisition called them porn.

    Mr Gopnik, for one, is offended by Norman Rockwell, whose work is currently on display at the Smithsonian's American Art Museum. So much for common standards. But that is not really what Messrs Boehner, Cantor and Donohue want. They would like to create their own standards, and the Portrait Gallery has allowed them to. Their justification that taxpayer money is involved is misleading. For better or worse, the government has made the decision to fund art. That decision has been vigorously debated over the past 30 years, and the argument continues today. But once the decision is taken, does anyone believe our politicians should be curating the museums, dictating what is and isn't art? (We'd end up with hundreds of Congressional portrait galleries.) When dealing with such a subjective, personal experience in a pluralist society such as America, the only thing to do is rely on informed, apolitical curators whose impulse is to open the museum doors wide. And, for those who are offended, make sure there are plenty of exits. The censorship, or forced self-censorship, that these politicians are espousing should not be welcome in our public museums any more than it is in our public libraries.

    Mr Boehner's spokesman says the "Hide/Seek" exhibit is "symbolic of the arrogance Washington routinely applies to thousands of spending decisions involving Americans' hard-earned money." But I think the arrogance here lies with those who believe they can fund art, but only the art they like. As Jeffrey Miron writes, that attitude "is bad for freedom, and bad for art."

    (Photo: In an obvious attempt to offend Christians, a seagull desecrates the head of a statue in St Peter's Square in the Vatican. Credit: AFP)

  • WikiLeaks and technology

    Politics in the technological age

    Dec 2nd 2010, 17:07 by D.L. | PHILADELPHIA

    MY COLLEAGUE (along with Andrew Sullivan) is right, of course, that to focus too closely on Julian Assange in analysing the fall-out from the latest WikiLeaks document dump is to miss the larger story, which is that if Mr Assange were to be neutralised tomorrow—an eventuality some conservatives (and apparently the attorney general of the United States) have begun to fantasise about—he would quickly be replaced by some other anarchistic commando. That’s because technology makes it exponentially easier to publicise information than it once was, when everyone from admirable whistle-blowers to far-left anti-liberal subversives like Mr Assange, faced the considerable obstacle of stealing large numbers of physical documents from organisations to back up their claims. Today nearly anyone with access to private files and armed with a flash drive can easily make off with gigabytes of information attached to a keychain in the front pocket of their jeans.

    My fellow blogger and Mr Sullivan are also right to treat this development as a fait accompli. It is indeed "our new reality", as Mr Sullivan says. But could we please pause for a moment amidst all of our technological triumphalism to reflect on the potential downside to all of this antinomian empowerment of the individual? The libertarian imagination, amply furnished with metaphors of invisible hands and spontaneously generated order, is thrilled by such technological empowerment. What could be better than giving every human being on the planet the capacity to subvert all established authorities and institutions, private or public, tyrannical or meritocratic? What would be better, I submit, is lucid self-awareness about how much our liberty depends on the existence of stable, functioning institutions to protect it against those who long to extinguish it in the name of sundry anti-liberal theological and ideological projects.

    Let us also note that technology tends to reward demagoguery, as political entertainers use television, radio, the internet, and various forms of social networking to vie with one another for title of national Celebrity-in-Chief. Sarah Palin and Glenn Beck are not anomalies. They are glimpses of our political future—a future in which technology has laid low the intermediary institutions (political parties, non-partisan journalism) that once moderated, filtered, and ennobled popular discontents, leaving in their place only the technologically empowered American masses and their sycophantic, publicity-mongering leaders.

    It’s one thing to say that technology, with its power to level institutions, organise enormous numbers of people, and reward flatterers with fame, is our new reality. But it is quite another to treat this reality as an unambiguous social and political good.

  • After secrets

    Missing the point of WikiLeaks

    Dec 1st 2010, 22:54 by W.W. | IOWA CITY

    WikiLeaksDAVID BROOK's recent column and Ross Douthat's reply to my defence of WikiLeaks have helped me to pin down and articulate the source of a nagging but previously inchoate sense that somehow we're all missing the bigger picture.  

    Let me start by suggesting that the politicians and pundits calling for Julian Assange's head are playing into his hands. As all eyes track the international albino of mystery, the human and physical infrastructure of a much larger, more distributed movement continues to expand and consolidate far beyond the spotlight. If Mr Assange is murdered tomorrow, if WikiLeaks' servers are cut off for a few hours, or a few days, or forever, nothing fundamental is really changed. With or without WikiLeaks, the technology exists to allow whistleblowers to leak data and documents while maintaining anonymity. With or without WikiLeaks, the personel, technical know-how, and ideological will exists to enable anonymous leaking and to make this information available to the public. Jailing Thomas Edison in 1890 would not have darkened the night.  

    Yet the debate over WikiLeaks has proceeded as if the matter might conclude with the eradication of these kinds of data dumps—as if this is a temporary glitch in the system that can be fixed; as if this is a nuisance that can be made to go away with the application of sufficient government gusto. But I don't think the matter can end this way. Just as technology has made it easier for governments and corporations to snoop ever more invasively into the private lives of individuals, it has also made it easier for individuals, working alone or together, to root through and make off with the secret files of governments and corporations. WikiLeaks is simply an early manifestation of what I predict will be a more-or-less permanent feature of contemporary life, and a more-or-less permanent constraint on strategies of secret-keeping.  

    Consider what young Bradley Manning is alleged to have accomplished with a USB key on a military network. It was impossible 30 years ago to just waltz out of an office building with hundreds of thousands of sensitive files. The mountain of boxes would have weighed tons. Today, there are millions upon millions of government and corporate employees capable of downloading massive amounts of data onto tiny devices. The only way WikiLeaks-like exposés will stop is if those with the permissions necessary to access and copy sensitive data refuse to do so. But as long as some of those people retain a sense of right and wrong—even if it is only a tiny minority—these leaks and these scandals will continue.

    The basic question is not whether we think Julian Assange is a terrorist or a hero. The basic question certainly is not whether we think exposing the chatter of the diplomatic corps helps or hinders their efforts, and whether this is a good or bad thing. To continue to focus on these questions is to miss the forest for the texture of the bark on a single elm. If we take the inevitability of future large leaks for granted, then I think the debate must eventually centre on the things that will determine the supply of leakers and leaks. Some of us wish to encourage in individuals the sense of justice which would embolden them to challenge the institutions that control our fate by bringing their secrets to light. Some of us wish to encourage in individuals ever greater fealty and submission to corporations and the state in order to protect the privileges and prerogatives of the powerful, lest their erosion threaten what David Brooks calls "the fragile community"—our current, comfortable dispensation.

    (Photo credit: AFP)

  • A humane stop-gap

    Debunking DREAM Act disinformation

    Nov 30th 2010, 22:23 by W.W. | IOWA CITY

    DAVID FRUM's latest column for The Week is in part a reply to my recent post on the DREAM Act. I'm not impressed. Mr Frum is either ill-informed about the proposed law or is seeking to provoke opposition by spreading falsehoods about the policy.

    Mr Frum presents several "nightmare" scenarios he says the DREAM Act would make possible. First, Mr Frum says an undocumented immigrant not covered by the provisions of the law could apply anyway using forged documents, which, even if detected, could impede the process of running the scofflaw out of the country. I can't make any sense of this. Here's what Mr Frum says:

    Even if the fraud is detected and your application is refused, you simply revert to your previous status. In the process, however, you have gained a new legal advantage: DREAM forbids the Department of Homeland Security from using any information in a DREAM application in deportation proceedings.

    Where's the "new legal advantage"? If you're in the country illegally and don't qualify for DREAM, how does DHS's inability to use bunk info in your DREAM application keep them from deporting you exactly as they would had you not filed some crooked papers? Is Mr Frum's problem with DREAM really that an undocumented immigrant can't get booted extra hard for the additional offense of lying about qualifying for legal status under DREAM?

  • Nightlife

    Bar culture, Texas-style

    Nov 30th 2010, 21:14 by E.G. | AUSTIN

    WHEN I see an opportunity to agree with my colleague M.S., I have to pounce on it. In other words, I concur with the intuition that the quality of a city's pubs has more to do with amorphous and arguably unspecifiable "cultural" factors than with economic or regulatory ones.

    I'm thinking about this in terms of Houston's bars and clubs compared to those in Austin. If regulations and zoning were the key issues, then Houston, with its whimsical approach to both, should have this category on lock. But cultural factors in Austin—the demographics of the city, the commonly held value of supporting local live music, the cultural emphasis on spending time outside—give it the edge in most estimations. To be fair, Houston also has good nightlife, which I attribute to the youth, diversity, confidence, and independence of its people. Again, those are cultural factors. To put it another way, the problem with nightlife in Washington, DC, is that it's full of people from DC...innit? 

    Of course, these are all highly subjective assessments. (And just kidding, friends in DC. I know it's a sensitive subject.) Another issue that rightly affects drinking culture in the United States, although perhaps not so much in cities like New York and Washington, is transportation. Commenters, how's the nightlife in your neck of the woods?

  • Regulation

    Pub culture and pub economy

    Nov 30th 2010, 20:10 by M.S.

    WHY are pubs in London better than bars in New York, which are better than bars in Washington, DC? I've given a good deal of thought to this question recently, though the quality of said thought has been somewhat impaired by the very high quality of the pubs in London. But Matthew Yglesias is still thinking clearly, and an interesting report by Sarah Laskow on liquor licences in the East Village gets him wondering about the natural tendency of businesses to cluster, and the suboptimal result of over-regulation.

    Street noise is a very real issue in large swathes of Manhattan and I think it's perfectly understandable that people prefer not to have lively nightlife scenes located directly outside their windows... (But) basically the East Village really "wants" to be full of nightlife establishments just like Qiaotou, China wants button factories. Restricting the creation of new button factories in Qiatou will help incumbent button makers (and alleviate neighborhood concerns about factory smoot) but it's hard to call a bar scene into existence that way. Similarly, making it hard to open a new bar in the East Village isn't going to create a button factory. It's going to create an underutilized space.

    Ryan Avent brings in the London-to-Washington comparison, and makes the key point that such restrictions actually tend to make the pubs themselves less pleasant.

    London, like cities and towns across the British Isles, is filled with pubs. They vary in type, quality, and clientele. I was very lucky this time around to find a near-perfect gastropub just a five minute walk from my flat. It was quiet and well-maintained with a great menu, and while there were always people there, there was also always a free seat. Kids were welcome during the day, as were dogs. Every time I went I thought to myself how great it would be to have such a place close by back in Washington. And every time I thought that, I immediately reminded myself that such a place, back in Washington, would be perpetually packed and fairly unpleasant. In the Washington area, you can’t have a place that’s both really good and quiet in a neighborhood-y sort of way.

    That’s largely because it’s very difficult to open new bars. And the result is a pernicious feedback loop. With too few bars around, most good bars are typically crowded. This crowdedness alienates neighbors, and it also has a selecting effect on the types of people who choose to go to bars — those interested in a loud, rowdy environment, who will often tend to be loud and rowdy. This alienates neighbors even more, leading to tighter restrictions still and exacerbating the problem.

    Megan McArdle agrees, with a caveat:

    London has a sizeable population of obnoxious drunks, many of whom decide to get into fistfights outside their local pub. (An editor at the Economist who had recently moved to the United States was asked how he had enjoyed his first New Year's in New York. "It made me quite homesick," he replied.  "All those drunks throwing up in the subway were like a breath of London.") But it is true that London also has more quiet pubs than New York—and New York, in turn, has more of them (outside of the East Village) than DC does.

    I think these observations are all apt, but I'm also wondering why a comparison of pub quality in these three places would focus primarily on regulatory or economic issues rather than that diffuse and confusing beast we call culture. I can think of two reasons why people tend to write disproportionately about economic and regulatory reasons for these kinds of problems. First, they're concrete. You can investigate the regulatory issues surrounding licensing businesses in your area pretty easily, and those rules are discrete and public and clear. Then you can analyze the expected results. Second, problems with regulatory and eocnomic origins are amenable to solution. Change the regulations and you might in principle have solved the problem, even if in this case nobody can figure out quite how to do that.

  • WikiLeaks

    Julian Assange’s anti-political politics

    Nov 30th 2010, 18:28 by D.L. | PHILADELPHIA

    ALLOW me to also respond to my colleague's post defending the latest document-dump by WikiLeaks and Julian Assange, in which he writes

    Organisations such as WikiLeaks, which are philosophically opposed to state secrecy and which operate as much as is possible outside the global nation-state system, may be the best we can hope for in the way of promoting the climate of transparency and accountability necessary for authentically liberal democracy.

    Julian AssangeI submit that this is true only if an "authentically liberal democracy" is a post-political paradise unlike any form of communal association ever seen in human history.

    From its origins in the 17th century, liberal political theory has been motivated in part by the impulse to check the power of the state—for the sake of both individual freedom and the common good. That's what makes liberalism a theory of limited government. But from the beginning this impulse was itself limited in scope. None of the early modern liberals would have considered it either possible or desirable for the state to strive for complete transparency in matters of foreign policy and diplomacy. To do so would be to ask the state to cease abiding by the most elementary rules of human relations—including the rule so clearly explicated by my other colleague in a post far more critical of WikiLeaks:

    It's part of the nature of human communication that one doesn't always say the same thing to every audience. There are perfectly good reasons why you don't always tell the same story to your boss as you do to your spouse. There are things Washington needs to tell Riyadh to explain what it's just told Jerusalem and things Washington needs to tell Jerusalem to explain what it's just told Riyadh, and these cables shouldn't be crossed. There's nothing wrong with this. It's inevitable. And it wouldn't make the world a better place if Washington were unable to say anything to Jerusalem without its being heard by Riyadh, any more than it would if you were unable to tell your spouse anything without its being heard by your boss.

    The one line in this admirably lucid statement that I would revise is the one about how there is "nothing wrong" with this average-everyday form of duplicity. On the contrary, as a form of duplicity it is morally troubling. But sometimes securing the common good requires morally troubling actions. That's a basic fact of politics that some contemporary liberals and libertarians, like many anti-liberal leftists, will not abide. In their view, liberal checks on government—like oversight by our elected representatives—is insufficient. We need far more than that. We need to eliminate duplicity altogether.

  • WikiLeaks

    Releasing, reporting, or dumping?

    Nov 30th 2010, 15:50 by M.S.

    MY FREEDOM-LOVING colleague is absolutely right to defend the institution of WikiLeaks, and in case my earlier post was unclear, let me re-emphasise that I think we're all better off having an institution where leakers can anonymously submit important information, have it verified and get it published if it checks out. I certainly don't think Julian Assange should be prosecuted for doing this (his alleged personal behaviour is a separate and irrelevant issue). But I think the current dump of diplomatic cables is basically a poor editorial decision. I think the format of "document dumps" is an attempt to evade the very idea that the organisation is making editorial decisions, to make it merely a neutral throughput for leaked information. But I don't think that works. I think it's clear that the institution of WikiLeaks needs to recognise that it is making editorial decisions, and that those decisions need to take place in a fashion at least as transparent as WikiLeaks would like corporate and governing institutions to be. Basically, I think WikiLeaks needs an ethical review board.

    Before getting more deeply into this, let me note a couple of concerns floating around today about WikiLeaks. Matthew Yglesias makes the trenchant point that when Peter King, the representative from New York, absurdly suggests WikiLeaks be labeled a "terrorist organisation", he's demonstrating that this situation has the potential to upset current protections of freedom of the press: "Currently the rule is that it’s illegal to be the guy with legal access to classified information who passes it on to outsiders, but once you receive the leak you’re free to do what you want with it." If Mr Assange is going to be prosecuted or put on an extra-legal enemies list for doing the same thing the New York Times did with the Pentagon Papers, we're in real trouble.

    Meanwhile, Kevin Drum notes that while he instinctively found the dumping of diplomatic cables troubling, he had no such immediate qualms about WikiLeaks' forthcoming dump of the internal communications of a major bank. This, in turn, troubles him about his own instincts: what justifies the difference in attitude? One could obviously hazard that markets should theoretically be most efficient if everyone has access to perfect information while no such rule holds true for international relations. But I'm interested to see how Mr Drum thinks this issue out.

  • Overseeing state secrecy

    In defence of WikiLeaks

    Nov 29th 2010, 23:27 by W.W. | IOWA CITY

    WHILE fascinating in their own right, these WikiLeaks document dumps are also fascinating in the way they draw out fairly fundamental intuitions about the rights and privileges of the American state. Earlier today I attempted to draw up a taxonomy of different ideological/character types elicited by WikiLeaks, but quickly became mired in the complexity of it all. Rather than diagnose the world, I'll just diagnose myself in contrast to my colleague.

    In this morning's post, my worldly co-blogger characterises the content of the tens of thousands classified diplomatic cables as mere "gossip", and maintains "that grabbing as many diplomatic cables as you can get your hands on and making them public is not a socially worthy activity". I strongly disagree.

    Greg Mitchell's catalogue of reactions to the leaked cables is a trove of substantive information. For example, drawing on the documents made available by WikiLeaks, the ACLU reports that the Bush administration "pressured Germany not to prosecute CIA officers responsible for the kidnapping, extraordinary rendition and torture of German national Khaled El-Masri", a terrorism suspect dumped in Albania once the CIA determined it had nabbed a nobody. I consider kidnapping and torture serious crimes, and I think it's interesting indeed if the United States government applied pressure to foreign governments to ensure complicity in the cover-up of it agents' abuses. In any case, I don't consider this gossip. 

    I think we all understand that the work of even the most decent governments is made more difficult when they cannot be sure their communications will be read by those for whom they were not intended. That said, there is no reason to assume that the United States government is always up to good. To get at the value of WikiLeaks, I think it's important to distinguish between the government—the temporary, elected authors of national policy—and the state—the permanent bureaucratic and military apparatus superficially but not fully controlled by the reigning government. The careerists scattered about the world in America's intelligence agencies, military, and consular offices largely operate behind a veil of secrecy executing policy which is itself largely secret. American citizens mostly have no idea what they are doing, or whether what they are doing is working out well. The actually-existing structure and strategy of the American empire remains a near-total mystery to those who foot the bill and whose children fight its wars. And that is the way the elite of America's unelected permanent state, perhaps the most powerful class of people on Earth, like it.

  • Deficits

    Uncertainty and the beast

    Nov 29th 2010, 19:23 by M.S.

    BRUCE BARTLETT'S latest piece in the Fiscal Times reminds us that today's deficit problems are to a great extent the legacy of the Reagan and second Bush administration's "starve the beast" philosophy: the belief that if you cut taxes, spending will automatically come down. In fact, both administrations revved up spending at the same time they were cutting taxes, in the political equivalent of an overweight person who rewards himself with an extra helping of ice cream because he has just purchased a membership in a gym. And Kevin Drum adds the well-recognised point (on the left, at least) that this is precisely what we should expect:

    [B]asic economic principles, of the kind that Republicans are endlessly lecturing the rest of us about, predict the same thing. If you raise taxes to pay for government programs, you're essentially making them expensive. Conversely, if you cut taxes, you're making government spending cheaper. So what does Econ 101 say happens when you reduce the price of something? Answer: demand for it goes up. Cutting taxes makes government spending less expensive for taxpayers, which makes them want more of it. And politicians, obliging creatures that they are, are eager to give the people what they want. Result: lots of spending and lots of deficits.

    I think this is true, and both the current moment and the previous moment of deficit-cutting frenzy, in the early Clinton administration, suggest the public tends to develop an openness to tax hikes and spending cuts at the same time. (The hard right, of course, is different: it's never open to tax hikes, but that's another story.) But Mr Drum's way of looking at this (and my own) does contain a hidden assumption. The assumption is that when you raise taxes, people view it as making government spending "expensive", but that when you cut taxes, people don't look at the extra debt you've created, raise their expectations of future taxes needed to repay that debt plus interest, and consider government spending even more expensive. A lot of hard-money conservatives, however, believe that people act in the latter fashion. And this is the same reason why they've been arguing for the past year or two that government fiscal stimulus doesn't work.

    The clearest expression of this thesis I've read was in a note written by John Cochrane entitled "Fiscal Stimulus RIP". I'm not an economist, and don't really have any authority to weigh in on a fundamental debate between the very small group of economists, including Mr Cochrane, who believe that fiscal stimulus has a multiplier of zero or less, and the much larger group of economists, including Martin Feldstein, Ben Bernanke, Paul Krugman, Simon Johnson, Christina Romer, John Hall, Martin Eichenbaum and so forth who disagree with this belief. But at this point you sort of have to have an opinion on this question in order to have an opinion on what's been happening in the American economy over the past two years, and on what political responses make sense. My basic opinion on this point is simply derived from the fact that all the economics I'd ever read presented the majoritarian view that fiscal stimulus has some effect. But having read the challenge presented by Mr Cochrane, I had to have some reaction. So here, for what it's worth, is my layman's explanation of why I found Mr Cochrane's challenge unconvincing, beyond the fact that most economists don't seem to agree with him.

  • Crisis and the media

    The culture of crisis

    Nov 29th 2010, 17:15 by D.L. | PHILADELPHIA

    SO THE much-hyped protest against the TSA’s new airport screening procedures never materialised. That shouldn't surprise anyone. For several years now, the media, led by cable news and the internet, have hyped one crisis, scandal, or controversy after another in quick succession. Ours is an era of technologically-driven perpetual hysteria.

    Remember the peak-oil crisis of a few years back? It was quickly followed by a series of economic crises: the stockmarket crisis, the housing crisis, the credit crisis, the financial crisis. Then there was the public-health swine-flu crisis. Today there's the unemployment crisis and deficit crisis at home, while there are EU economic crises in Greece, Ireland, Spain and Portugal. The Korean peninsula is in the grip of a potentially explosive military crisis. And of course the latest WikiLeaks document dump has sparked a "global diplomatic crisis".

    Compared to all of this, last week’s controversy about the TSA was a minor matter—one perfectly suited to a short work-week and the personal anxieties wrapped up with holiday travel. Today we're on to something else, with a few longer-term fears (terrorism, President Sarah Palin) percolating in the background, ready to explode into full-on horror at a moment’s notice.

    Sadly, the pattern will almost certainly continue. The rewards that come from magnifying the significance of and threat posed by every event and trend are simply too enticing to resist. Alarmist headlines generate an agitated buzz, which spreads through the culture like a contagion, driving people to seek out information to allay their fears, which in turn generates ratings and boosts page views (and sometimes rates of presidential approval) into the stratosphere, with the most hyperbolic headlines and rhetoric often grabbing the most attention of all.

    Apparently, many newscasters, writers, commentators, politicians and bloggers believe their own hype—even those who should know better. The paranoid style in American politics is no longer confined to the radical right as it largely was when historian Richard Hofstadter first diagnosed it in his classic book. It has now spread beyond politics and into the culture at large, infecting nearly everything it touches, transforming otherwise thoughtful Americans into modern-day doomsayers anxiously awaiting imminent civilisational collapse.

    This isn't to say that the problems we so readily refer to as crises aren't worthy of attention or concern, or that the word "crisis" should be banished from journalism circles. Certainly the economic upheaval of the past few years is a serious matter, as is the heightened tension in Korea, and "Ireland's financial crisis" warrants its name. This is to say that we would be better off as individuals and as a society if we responded to these situations with equanimity instead of technologically inspired populist panic.

  • WikiLeaks

    WikiLeaks degenerates into gossip

    Nov 29th 2010, 4:50 by M.S.

    SO WE have another WikiLeaks release, and this time it's secret diplomatic cables. So far the interesting material is on Arab states' and America's relationships with Iran. It seems all those fervid background-only reports of Arab states urging America to bomb Iran, which I mistrusted at the time, were true. Call me naïve. One observation by an Arab diplomat cited in the cables seems on the ball:

    Zeid Rifai, a Jordanian, is quoted as telling a US official: “Bomb Iran, or live with an Iranian bomb. Sanctions, carrots, incentives won’t matter.”

    Fair enough, but the same observation might be made to the Arab officials who want the Americans to bomb. If they want America to bomb Iran, they're really going to have to go the very minimal distance and make the request publicly. If they can't be bothered to take the political risk of publicly making the call, they're just going to have to live with that Iranian bomb themselves.

    More broadly, though, this release seems to me to mark another step down for the WikiLeaks concept. WikiLeaks's release of the "Collateral Murder" video last April was a pretty scrupulous affair: an objective record of combat activity which American armed forces had refused to release, with careful backing research on what the video showed. What we got was a window into combat reality, through the sights of a helicopter gunship. You could develop different interpretations of that video depending on your understanding of its context, but it was something important that had actually taken place.

    Diplomatic cables are something entirely different. It's part of the nature of human communication that one doesn't always say the same thing to every audience. There are perfectly good reasons why you don't always tell the same story to your boss as you do to your spouse. There are things Washington needs to tell Riyadh to explain what it's just told Jerusalem and things Washington needs to tell Jerusalem to explain what it's just told Riyadh, and these cables shouldn't be crossed. There's nothing wrong with this. It's inevitable. And it wouldn't make the world a better place if Washington were unable to say anything to Jerusalem without its being heard by Riyadh, any more than it would if you were unable to tell your spouse anything without its being heard by your boss.

    At this point, what WikiLeaks is doing seems like tattling: telling Sally what Billy said to Jane. It's sometimes possible that Sally really ought to know what Billy said to Jane, if Billy were engaged in some morally culpable deception. But in general, we frown on gossips. If there's something particularly damning in the diplomatic cables WikiLeaks has gotten a hold of, the organisation should bring together a board of experienced people with different perspectives to review the merits of releasing that particular cable. But simply grabbing as many diplomatic cables as you can get your hands on and making them public is not a socially worthy activity.

    There are echoes here of Facebook founder Mark Zuckerberg's famously aggressive position that society is evolving towards more transparency and less privacy (a belief which is certainly convenient for a social-networking site that wants to be able to sell users' data). Maybe it's something about tech geeks, or maybe it's just related to the self-interest of people and organisations whose particular strength lies in an ability to get a hold of other people's information. But it definitely seems like we're learning a lesson here: while information may want to be free, human beings are usually better off when it's on a leash.

    (Photo credit: AFP)

  • Earmarks

    Who will weep for the earmark?

    Nov 26th 2010, 11:37 by M.S.

    REPUBLICANS aren't sure they have the votes to pass an earmark ban in the lame-duck session of congress, and I for one could not care less. Either way, fine by me. Were there no earmarks, there would be fewer bridges to nowhere, so that's good. On the other hand, were there no earmarks, there would probably be fewer of some worthy local projects we rarely hear about. Mitch McConnell's $1.2m shuttle-bus for the University of Kentucky, which we reported on last week, sounds pretty okay to me. Meanwhile, as we reported, the fiscal effect of eliminating earmarks will be either nothing at all, or at most 0.5% of the federal budget, depending on how you look at it.

    How about the civic-governance consequences? On the bright side, voters might come to have more trust in the political system if they didn't think politicians were basically trying to scarf up as many taxpayer dollars as possible from the general trough to pay for local projects that benefit their constituents. On the dark side, voters might lose whatever shred of trust in the political process they still possess if they could no longer see any tangible local results from having voted in one politician over another. On the twilight side, if we're pinning our faith in democratic governance on its ability to deliver politicians who interfere in Pentagon decisions to close useless bases, we might as well give up. Scrap the multiparty elections and hand political power over to some kind of corpocratic ruling organisation. I nominate Starbucks.

    Unlike me, a large number of people seem to think that earmarks are evil, and evidence of moral turpitude on the part of the politician involved. That means that voting to retain the earmark system is the kind of thing that could be used in a campaign ad in the next election cycle, and be very hard to defend against. In sum, I think this is an area that is ripe for bipartisan cooperation, because it doesn't make any difference, very few institutional interests really care about it one way or the other, and it's vulnerable to demagoguery. Promising!

  • North Korea

    The bright side of crazed dictatorships

    Nov 25th 2010, 17:12 by M.S.

    MY COLLEAGUE is exactly right that everyone agrees that America has "no good options" for responding to North Korean aggression. But given that everyone agrees America has no good options for deterring further provocations or for moving towards a stable resolution on the Korean peninsula, it's worth broadening the perspective a bit and looking at whether America can use this incident to achieve any of its other geopolitical goals. In fact, from certain perspectives, incidents like yesterday's shelling attack are quite helpful for American diplomacy. Which bears to a certain degree on my colleague's overarching question of whether the United States benefits by acting as a global security guarantor.

    One goal of American foreign policy these days is to guarantee that America has options for counterbalancing rising Chinese power in the Far East. American officials would never state such a goal in so many words, as that would be obnoxious and unnecessarily provocative. Officially, we welcome China's rise as a partner in guaranteeing global stability and prosperity, and so forth. But if there were any doubt that the United States were engaged in a competition with China for East Asian sympathies, Hillary Clinton's efforts over the past six months to align America with southeast Asian countries and Japan against Chinese maritime territorial claims should have dispelled them. Incidents like the shelling attack are quite helpful for American diplomacy, because they are blamed partly on China's failure to restrain its psychotic North Korean nephews. The damage to Chinese prestige put the Financial Times's Geoff Dyer in mind of the laments he heard from a Chinese official during Barack Obama's world tour this fall:

    As Barack Obama was visiting Asia earlier this month, his friendly reception in country after country provoked a somewhat forlorn response from one Chinese official. “Look around the world, the US has dozens of well-established alliances,” he said. “We only have one.”

    That one being...North Korea. Events like the shelling attack on South Korea enhance American relations with South Korea, Vietnam, Japan, the Philippines, and to some extent Indonesia, India, Thailand, and any other country that worries about how China will behave in its region. In other words, when North Korea goes nuts, American soft power grows. Unfortunately, that kind of American soft power is based on the availability of American hard power. Countries turn to America in the face of North Korean madness because America is the only country that can dispatch a carrier task force into the Yellow Sea.

    The question my colleague asks, however, remains: why do we care? What American interests are at stake in the security positions of East Asian states vis-a-vis China? United States Navy officers routinely explain their presence in regional waters as guaranteeing that sea lanes will remain open for trade. But who is threatening to close sea lanes? No country in the world has more interest in open sea lanes than that great export nation, China. Do we really need 11 carrier task forces to protect something nobody is threatening? Wouldn't eight be enough? In other words, it seems to me that America's security presence in east Asia is helpful to the American goal of counterbalancing Chinese geopolitical weight. The question is why we're trying to counterbalance Chinese geopolitical weight, and at the deepest level, that seems like a hard question to answer.

    On the other hand, Sarah Palin's proposed Nixon-to-China gambit of switching sides in the Korean conflict has been insufficiently explored. If anybody can pull it off, she can.

  • American power

    Another day in the life of the global hegemon

    Nov 24th 2010, 21:19 by D.L. | PHILADELPHIA

    IN OUR age of metastatic opinionating, it's rare to find consensus. And yet nearly everyone agrees that America has no good options in response to North Korea's shelling of the South Korean island of Yeonpyeong. Sure, neocons such as Max Boot can always be counted on to suggest that the "ultimate solution" is "regime change". But in this case, at least, even Mr Boot recognises that we have no idea "how to achieve it." That's quite right. Plan A is—as it almost always is—unachievable without unacceptable costs. And on the Korean peninsula there are no viable Plan Bs.

    Classical deterrence theory, for example, would counsel a firm retaliatory strike against the North to deter further acts of aggression against the South. But deterrence assumes rational actors out to maximise their self-interest. Is North Korean ruler Kim Jong Il rational in this sense? Does he possess enough information to calculate his self-interest? Is he even a unitary actor—or might recent acts of bellicosity have been initiated somewhere else in the command hierarchy? We just don’t know enough about the mysterious North Korean regime to answer any of these questions intelligently.

    Hence our lack of good options. And yet, we’re there, right on the front lines with over 30,000 troops on the ground and an aircraft carrier on its way to conduct joint exercises with the South Korean military. Just as we’re there to protect Taiwan from Chinese aggression. And of course in Iraq and Afghanistan and on the border of Pakistan to impose some semblance of order on those fractious regions. The history of American foreign policy since the end of the second world war is in large part the story of a country able and willing to pay an ever-mounting price to ensure order and stability over an ever-expanding portion of the globe. First in Europe and Japan. Then in South Korea. Eventually in much of southeast Asia. Intermittently in Latin America. Most recently in the Middle East and parts of south Asia. In most cases, Africa still falls outside our sphere of immediate concern, but with instability a continuing problem in Somalia, Sudan, and other areas of the continent, we may soon feel the need to impose some form of order there as well.

    On the evening before the holiday of Thanksgiving, with well over a quarter-million American troops stationed around the globe in over 150 nations and territories, with the nation’s budget buckling under the strain of supporting our military obligations, and with tensions on the Korean peninsula arguably higher than at any time since the armistice of 1953, it seems as apt a time as any to ask ourselves: Is it all worth it? Does the United States really benefit from serving as the primary guarantor of security across vast swaths of the globe? There are no easy answers to these questions. But that doesn’t mean they don’t need to be asked.

    (Photo credit: AFP)

  • Inequality, ctd

    Banana republics and robber barons

    Nov 24th 2010, 17:28 by M.S.

    Andrew CarnegieI THINK my colleague has been drawing a useful distinction in recent posts between highly unequal societies involving hereditary wealth and class distinctions maintained by law or force, such as tsarist Russia or today's Guatemala, and highly unequal societies where the very rich mainly earn their wealth through success in business, such as today's America or China. But I'm not sure how important this distinction is to debates over inequality within the United States.

    Here's why. Perhaps you don't think inequality is a problem in America right now, but most people agree that there was an era when inequality in America really was a problem. That era was America's gilded age in the late 19th century, which featured political abuses and imbalances that are generally used to demonstrate the necessity of government regulation and the restriction of money in politics. And who were the robber barons whose untrammeled control of the economy and the political process necessitated the regulatory interventions of trust-buster Teddy Roosevelt and the progressive era? Andrew Carnegie (pictured). Jay Gould. J.P. Morgan. Businessmen, most of them self-made men, providing customers with high-quality steel, railways, and financial services at low prices. Would it be inaccurate to say that such robber barons "controlled" wealth?

    Perhaps Nick Kristof should have used the metaphors "gilded age" or "robber barons" rather than the metaphor "banana republic" in the column on inequality to which my colleague was responding. But if you think that this particular distinction invalidates the critique of inequality in America, then I'm not sure what you think was wrong with the American political and social system in the late 19th century. I think an understanding of the injustices produced by savage inequality has to take into account the historical fact that the laissez-faire economic system of late-19th-century America resulted in effective debt peonage for workers who owed their souls to the company store, and near-complete control of the political system by the vastly wealthy, opposed and ultimately broken chiefly by a political force which laissez-faire ideology at the time considered an unlawful restraint on trade: labour unions.

    Even more than my colleague, I am far from convinced that inequality in today's America is mainly meritocratic in origin. I think America basically has a two-class system, in which a few members of the upper class (which calls itself the "middle class") are catapulted through luck, talent and hard work to spectacular heights of wealth and end up with disproportionate influence over, well, everything. But even if you did think American inequality were entirely meritocratic in origin, it's not clear what the impact on your attitude towards inequality should be. A meritocracy can be as bitterly divided and unequal a society as any other.

    (Photo credit: Library of Congress)

  • The low risk of terrorism

    We're safer than we think

    Nov 24th 2010, 14:16 by W.W. | IOWA CITY

    tsaIT'S the busiest travel day of the year, so I hope you will indulge one more post on the TSA's new security policies. Whereas my colleague criticises the mindset that led to those policies, Kevin Drum bravely stood up for the policies themselves the other day. However, it wasn't clear to me from Mr Drum's post whether he believed airport security policy actually made anyone safer, so I asked him over Twitter: "So do you think all this jazz actually has/does keep people from dying in/from planes?" Mr Drum replied in a follow-up post, writing:

    Well, yeah. Obviously this isn't something that I can prove geometrically, but that's baked into the cake of security issues like this where your goal is to prevent people from even trying to blow things up in the first place. Still, we've made it very, very hard to bring explosives onto airplanes, and I think it makes sense to think that if we hadn't made it so hard more people would have tried it. For example, my guess is that the reason no one has tried a shoe bomb since Richard Reid's failed attempt is that everyone knows it won't work. Shoes are now x-rayed, so there's no point in trying.

    American life after 9/11 has been marked by flailing, unfocused violence abroad combined with a timorous, paranoid crouch at home. Our desperate flag-waving and chest-beating only makes more vivid that this has been an age of fearful truculence and squandered liberty upon which we will some day look back with shame. No offence intended to Mr Drum, but his response here neatly encapsulates the mentality I find so frustrating.

  • Airport screening

    Grow up, America

    Nov 23rd 2010, 21:53 by D.L. | PHILADELPHIA

    airport screeningTHE American people are in a foul mood. Unemployment is stuck near 10%. Paying off debt is no damn fun. And now government employees have started taking naked pictures of us at the airport while offering the option of a genital rub-down as an alternative form of humiliation.

    But really, my fellow Americans, what did you expect? After September 11th, you told the government: Don’t let this happen again! "This" meant the hijacking and weaponisation of loaded airplanes. Everyone understood that if something like "this" did happen again, heads in Washington would roll. That's a pretty good incentive for government agencies to act, and possibly overreact. Which is what they've pretty clearly done with recently instituted airport-security policies. 

    But we asked for it! Which makes efforts to describe the anti-TSA outcry as an authentically libertarian reaction against the Nanny State so maddening. Like the 62% of tea-partiers who denounce "government" in the abstract while also telling pollsters that they're perfectly happy with Social Security and Medicare, a large portion of those who claim to favour a rollback of enhanced airport screening would undoubtedly demand blood from politicians and bureaucrats moments after a successful terrorist attack. Americans don’t want a minimal state. They want a minimal state that provides all the protections of a maximal state.

    Children have trouble accepting the need for trade-offs among competing goods. But adults—not to mention citizens of a free society—should be more sophisticated. They should be capable of grasping the elementary point that government services and low taxes, like freedom and security, are goods that stand in sharp tension with each other. And yet here we are, witnessing just the latest in a series of public temper-tantrums over the fact that not all good things go together. I’d love to think that this will be the last such outburst. But I wouldn't bet on it.

  • Deficit commission

    Greg Mankiw and the earned-income tax credit

    Nov 23rd 2010, 19:00 by M.S.

    WHEN presidential deficit commission co-chairs Erskine Bowles and Alan Simpson released their summary of possible reforms on November 10th, they included a list of options for reforming income-tax rates and tax expenditures, also known as loopholes and exemptions. Their first option involved eliminating all tax expenditures and lowering the top marginal rate to 23%, from the current 35%. A second option eliminated all tax expenditures except for the child tax deduction and the earned-income tax credit (EITC), which sends tax refunds to the poor, and cut the top marginal rate to 24%. A third option eliminated all tax expenditures except the child tax deduction and the EITC and proposed to "Reform Mortgage, Health, and Retirement Benefits at 80% of Current Level and Switch to Territorial System." This put the top marginal rate at 27%. Liberal-leaning commentators immediately cried foul. What sort of deficit-reduction commission proposes cutting the top marginal income-tax rate? Conservative-leaning commentators then criticised the liberal-leaning commentators: the commission chairs weren't actually proposing to cut the top marginal rate to 23%. They were simply engaged in a standard budgeting exercise: cut out all the tax expenditures to see how low it could bring rates. Then gradually add back in the tax expenditures you genuinely want to keep, until you arrive at a level that keeps the important deductions while cutting the deficit.

    In an op-ed in this weekend's New York Times, Greg Mankiw praises the general outlines of the deficit commission's proposals. But he doesn't treat the cuts in marginal rates as theoretical budgeting exercises. He seems to think they really want to cut the top marginal rate to 23%.

    Under their plan, the top tax rate would fall to 23 percent from the 35 percent in today’s law (and the 39.6 percent currently advocated by Democratic leadership).

    This is isn't exactly true, which is why we reported that the top rate would fall to "as low as" 23%. In fact, Messrs Simpson and Bowles included a lot of other revenue-raising options under different versions of their plan. Their Option 2, which they call a "Wyden-Gregg style reform", envisions three tax brackets at 15%, 25%, and 35%, tripling the standard deduction to $15,000 for individuals, and a range of other reforms. The version Mr Mankiw has picked out is the one with the lowest top marginal tax rate. It happens to involve eliminating the EITC, which is generally agreed to be one of the best poverty-reduction measures in the American social safety net and was originally enacted as a conservative alternative to welfare that benefits the poor with minimal impact on work incentives. Is this really the version of the plan Mr Mankiw finds most appealing? Mr Mankiw is disappointed at liberal reaction to the plan:

    Pundits on the left are suspicious of any plan that reduces marginal tax rates on the rich. But, as Mr. Bowles and Mr. Simpson point out, tax expenditures disproportionately benefit those at the top of the economic ladder. According to their figures, tax expenditures increase the after-tax income of those in the bottom quintile by about 6 percent. Those in the top 1 percent of the income distribution enjoy about twice that gain. Progressives who are concerned about the gap between rich and poor should be eager to scale back tax expenditures.

    This is a bit slippery. It depends which tax expenditures you're talking about. The mortgage-interest deduction mainly benefits rich people, because rich people own more expensive houses and pay higher marginal tax rates. Non-refundable credits in general tend to benefit the wealthy. But refundable credits like the EITC benefit poor people. If Mr Mankiw wants to eliminate tax expenditures but understands progressives' concern about the gap between rich and poor, perhaps he could embrace a version of the plan that cuts back the mortgage-interest deduction, exemptions for energy companies, and so on, but leaves the EITC and other refunds focused on reducing poverty in place. How's that for a compromise?

    (Photo credit: Bloomberg)

  • Republican foreign policy and the New START treaty

    Power and ideas

    Nov 23rd 2010, 17:09 by D.L. | PHILADELPHIA

    YESTERDAY I wrote that Republican opposition to ratification of the New START treaty with Russia could be traced to the influence of delusional neoconservative ideas about America’s strength—or rather, its invincibility. Instead of formulating policies suited to "a world governed by economic, budgetary, military, and diplomatic limits", neocons indulge in magical thinking, pretending that America is so exceptional that it need never "sit at a negotiating table, entertain a mutually beneficial compromise, or ratify a treaty with any nation that would dare to pursue interests contrary to our own in any region of the world." This is a fantasy dangerously detached from the reality of a world in which "the United States is very powerful but far from free to do whatever it wants without constraint."

    Shortly after my post appeared, Stephen Walt wrote a post at Foreign Policy that made something close to the opposite argument. According to Mr Walt, Republicans are opposing ratification not because they believe America is more powerful than it is; they are opposing ratification because America is in fact more powerful than it should be. The US is, in Mr Walt's words, "too secure for its own good." Facing no serious external threat, being "as secure as any state could ever expect to be", America has grown reckless, permitting "politicians to use foreign policy as a partisan political football, and to indulge special interests and other ideological fixations." The problem isn't delusional ideas, in other words, but rather the practical consequences of the country's status as a hyperpower.

    Mr Walt is surely right, up to a point. The international context—and above all America’s enormous military and economic might within that context—is a necessary condition for explaining Republican opposition to the New START treaty. But it is far from sufficient. To go further, we must take ideas more seriously than Mr Walt and his fellow realists typically do. We need to ask why neoconservative ideas about the proper exercise of American power have won out among Republicans over the far more sober and sensible ideas of realists like Richard Luger, Henry Kissinger, James Baker, Brent Scowcroft, and, yes, Stephen Walt.

  • Patterns versus rules

    A caveat about inequality

    Nov 23rd 2010, 14:11 by W.W. | IOWA CITY

    I SHOULD probably sit back and silently enjoy the compliment, but I'd like to add a caveat to a blog post/letter-to-the-editor praising my latest disquisition on inequality from Don Boudreaux, an economics professor at George Mason University. Mr Boudreaux writes:

    Rich Americans, Mr Wilkinson rightly points out, overwhelmingly are business people who serve the middle-classes and not political, military, or ecclesiastic predators who steal from peasants.

    This fact makes Mr Kristof’s claim that wealth is “controlled” in America highly misleading.

    Except insofar as rich Americans succeed at getting government to protect their wealth with special privileges, such as tariffs, wealth is not “controlled.” Wealth is created only by serving consumers—that is, by making others wealthier—and it flees from those who stop serving consumers. Should Apple stop producing innovative products that consumers willingly buy, Steve Jobs’s fortune will disappear. Should Southwest Airlines start charging uncompetitive fares, its shareholders’ wealth will dissolve. Should a super-wealthy hedge-fund manager consistently fail to increase the value of his clients’ portfolio, he will become a not-so-super-wealthy ex-fund-manager. 

    I agree with the thrust of Mr Boudreaux's comment, but I'm increasingly sceptical that the fortunes of the richest Americans are overwhelmingly the result of their having created new wealth rather than an effect of the way the institutional rules of the game determine winners and losers. Now, the organisation of our basic economic, political, and legal institutions have impossibly complicated distributive consequences, and this makes it impossibly tricky to tease out how much of an individual's holdings derive from the creation of real economic value, and how much derive from subsidies implicit in a market order that is anything but perfectly competitive in the blackboard sense. 

    In many ways, Apple in its second run under Steve Jobs is a paradigm case of wealth creation in a competitive market. When commentators seek to explain Apple's success relative to its competitors they invariably cite the role of Mr Jobs' demanding perfectionism in making Apple products objects of functional beauty that inspire almost fetishistic desire and devotion. However, the entire computer industry exists and operates inside a structure of intellectual property law that is nothing if not a system of government-granted and government-protected monopoly. Whether or not this kind of IP regime on the whole creates or destroys wealth is not easy to say, but there is no denying that it has profound distributive consequences. One imagines the talented Mr Jobs would do rather well in a system with much less expansive intellectual property protections, but it's also hard to see how he or Bill Gates or Larry Ellison would have accumulated such titanic fortunes in a more libertarian, more competitive market. Nathan Mhyrvold's dubiously productive patent portfolio strategy certainly wouldn't pay so well. 

  • New START treaty

    The era of magical thinking

    Nov 22nd 2010, 19:29 by D.L. | PHILADELPHIA

    THIS is a very bad moment in the United States for thoughtfulness on foreign affairs—at least in the popular press and in the halls of Congress. Exhibit A: The ongoing fight over ratification of the New START treaty with Russia. Over the past two decades, a series of arms-control agreements have led to negotiated reductions in nuclear weapons from roughly 12,000 to the current level of around 2,000. New START would bring that number down a bit further, to 1,550, while also strengthening verification and transparency for monitoring treaty compliance. That's what's usually called a no-brainer.

    And yet key Republicans in Congress—most recently and damagingly Jon Kyl, a senator from Arizona—have repeatedly acted to delay a ratification vote, even though doing so might scuttle the treaty. These senators are supported by a number of right-wing foreign-policy thinkers (including John Bolton, Eric Edelman, Jim Woolsey, and John Yoo) who strongly oppose ratification. But the Obama administration has pushed back hard, responding to most of the specific questions put forth by sceptics of the pact. On Saturday Robert Gates singled out concerns that the agreement might inhibit development of missile-defence programmes, saying, "Anything that we have in mind now or in the years to come that we haven't even thought of is not prohibited." The administration has also put forward $85 billion over the next ten years to modernise America's nuclear infrastructure, the state of which seems to be the primary concern of Mr Kyl. Even hawks such as Robert Kagan and Max Boot have found the treaty worthy of passage, if not perfect. And an impressive group of Republican former officials who negotiated earlier (and much more drastic) cuts in America's nuclear stockpile have lined up behind the agreement.

    So Republican opposition is difficult to comprehend, but perhaps a recent blog post from Commentary’s John Podhoretz can help us understand the mindset of the treaty's naysayers. Brushing by the arguments of Mr Kagan and Mr Boot, Mr Podhoretz finally settles on the following as the "worst thing" about the agreement: New START creates "a parallelism between American strength and Russian strength that is a very, very bad precedent in terms of how we ourselves think about American power."

    "How we ourselves think about American power." That is the withered remnant of neoconservative thinking about foreign policy—a remnant that today, through Fox News and the other organs of right-wing opinion-formation, increasingly dominates the Republican Party. It has no interest in understanding the complicated world beyond American shores—a world filled with nations we cannot simply manipulate and control for our own ends, a world in which the United States is very powerful but far from free to do whatever it wants without constraint. Instead of realistically reflecting on the challenges confronting America in the emerging multi-polar world, Mr Podhoretz and his ideological compatriots are interested only in us—in bucking up our will and resolve, in inoculating us against self-doubt, in leading an endless pep rally in our own honour during which we are repeatedly told how exceptional we are in both power and virtue. So exceptional, in fact, that we will not deign to sit at a negotiating table, entertain a mutually beneficial compromise, or ratify a treaty with any nation that would dare to pursue interests contrary to our own in any region of the world.

    But indulging in the fantasy of American invincibility will not make it so. It is a form of magical thinking dangerously disconnected from the world we actually inhabit, a world governed by economic, budgetary, military, and diplomatic limits, even for the United States. That should be an obvious point. Alas, in America today it is not.

    (Photo credit: AFP)

  • Chris Christie

    The conservatives' new crush

    Nov 22nd 2010, 17:57 by E.G. | AUSTIN

    ONE of my hypotheses about politics is that voters reward candour, or would if they encountered it more often. So I've spent part of Monday morning puzzling over YouTube clips of Chris Christie, the governor of New Jersey, who is becoming famed for his aggressive and even adversarial rhetorical stance—not just with the press and his political opponents but with regular people, members of the public, people who show up at his town-hall meetings. See, for example, how he scolds this teacher.

    Jason Zengerle, writing in New York magazine, explains that these clips are becoming Mr Christie's semi-viral calling cards:

    Almost everywhere Christie goes, he is filmed by an aide whose job is to capture these “moments,” as the governor’s staff has come to call them. When one occurs, Christie’s press shop splices the video and uploads it to YouTube; from there, conservatives throughout the country share Christie clips the way tween girls circulate Justin Bieber videos.

    The suggestion of stagecraft arguably violates the spirit of candour I was hoping for. Nevertheless, these clips, Mr Zengerle argues, have helped endear Mr Christie to the conservative chattering class, which is casting around for a leader, being unenthused about the presumptive options (Mitt Romney, Tim Pawlenty, Sarah Palin...). This "explains conservatives’ serious—and sudden—infatuation with Chris Christie", he writes. Let's cast our minds back to the time when conservatives went on a subarctic cruise and came back with a collective crush on the little-known governor of Alaska, and agree that in politics as in life, infatuation has at best a cosmetic resemblance to the difficulties and drudgery of love.

    Mr Christie has denied any interest in running for president in 2012—"Short of suicide, I don’t really know what I’d have to do to convince you people that I’m not running"—but has nonetheless been fundraising in Indiana, speaking in Iowa, etc. So my question, regarding the governor: would this forthrightness eventually backfire? If we transplant Mr Christie from the East Coast to the Midwest, does his style read as less bracing, more brutal?

About Democracy in America

In this blog, our correspondents share their thoughts and opinions on America's kinetic brand of politics and the policy it produces.

Advertisement

Advertisement

Latest blog posts - All times are GMT

Picture perfect
From Babbage - 31 mins ago
China 2030
From The World in 2011: Cassandra - December 4th, 15:19
High-speed buses?
From Gulliver - December 3rd, 22:14
Link exchange
From Free exchange - December 3rd, 21:15
Expensively unpredictable
From Prospero - December 3rd, 20:36
More from our blogs »

Products & events

Stay informed today and every day

Subscribe to The Economist's free e-mail newsletters and alerts.


Subscribe to The Economist's latest article postings on Twitter


See a selection of The Economist's articles, events, topical videos and debates on Facebook.

Advertisement