Tag Archives: Wall Street Journal

Cheddar Revolution: Moldy Yet?

Kris Maher and Amy Merrick at WSJ:

Playing a game of political chicken, Democratic senators who fled Wisconsin to stymie restrictions on public-employee unions said Sunday they planned to come back from exile soon, betting that even though their return will allow the bill to pass, the curbs are so unpopular they’ll taint the state’s Republican governor and legislators.

The Republicans rejected the idea that the legislation would hurt the GOP. “If you think this is a bad bill for Republicans, why didn’t you stand up in the chamber and debate us about it three weeks ago?” said Senate Majority Leader Scott Fitzgerald. “People think it’s absolutely ridiculous that these 14 senators have not been in Wisconsin for three weeks.”

The Wisconsin standoff, which drew thousands of demonstrators to occupy the capitol in Madison for days at a time, has come to highlight efforts in other states to address budget problems in part by limiting the powers and benefits accorded public-sector unions.

Sen. Mark Miller said he and his fellow Democrats intend to let the full Senate vote on Gov. Scott Walker’s “budget-repair” bill, which includes the proposed limits on public unions’ collective-bargaining rights. The bill, which had been blocked because the missing Democrats were needed for the Senate to have enough members present to vote on it, is expected to pass the Republican-controlled chamber.

Eric Kleefeld at Talking Points Memo:

A return to Wisconsin at this juncture would appear to give the green light for Walker’s legislation to pass — that is, a win for Walker’s efforts to pass legislation when numerous polls show the state disapproving of Walker, and saying he should compromise. However, at this juncture it is unclear just what is going on.

In response, Miller spokesman Mike Browne released this statement, saying only that they were continuing to negotiate towards an outcome that does not strip the bargaining rights of state workers:

“It is true that negotiations were dealt a setback since last Thursday when Governor Walker responded to a sincere Democratic compromise offer with a press conference. However, Senate Democrats have continued to reach out to the Governor and Republicans through the weekend.

Democrats remain hopeful that Governor Walker and legislative Republicans will, in the near future, listen to the overwhelming majority of Wisconsinites who believe they should come to the negotiating table in good faith to reach an agreement that resolves our fiscal issues without taking away worker rights and without hurting programs that help provide health insurance for working families and prescription drugs for seniors.”

In addition, state Sen. Chris Larson released this statement:

Sen. Miller’s comments are taken out of context in the Wall Street Journal article just released. Dems will return when collective bargaining is off the table. That could be soon based on the growing public opposition to the bill and the recall efforts against Republicans. Unfortunately, the WSJ fished for the quote they wanted, skipping this key step in logic: we won’t come back until worker’s rights are preserved.

State Sen. Jon Erpenbach also told WisPolitics that Democrats are not planning to return. State Sen. Bob Jauch, who has been one of the lead negotiators, also said of Miller’s comments: “I think he’s speaking the truth that at some point – and I don’t know when soon is – at some point we have to say we’ve done all we can.”

Christian Schneider at The Corner:

The Wisconsin politerati is all atwitter today at a WSJ report indicating that senate Democrats might soon end their Illinois exile. In the article, Democratic senate leader Mark Miller says recent polls show Walker’s budget-repair bill to be politically “disastrous” for the governor, which he says will give Democrats more leverage to negotiate portions of the larger budget bill in the weeks to come.

If this is what Miller thinks, it seems like a suspect strategy — a variation on the rarely seen Let’s capitulate to our opponent because the public currently doesn’t like what he’s doing plan. How many congressional Republicans rooted for Obamacare because they thought it would show the public once and for all how unpopular government health care could be? What if Green Bay Packer quarterback Aaron Rodgers said in an interview before the Super Bowl, “Maybe it won’t be so bad if the Steelers win — imagine how sick of Ben Roethlisberger the public will be”? It sounds like Mark Miller, in today’s parlance, has convinced himself that he’s “winning.”

Perhaps Miller’s quote was a trial balloon, meant to gauge the opposition he’ll get from his base, which has spent three weeks screaming itself hoarse on the steps of the state capitol. It would be reasonable to expect some displeasure: If Democrats do return and vote on the bill without any changes — as they had indicated they would never do — cops, firefighters, and teachers are likely to ask, “Why did I just spend three weeks in the capitol pressed up against a hippie?” Indeed, within hours of the story being published, Miller was rebuffed by some members of his own caucus.

On the other hand, it is possible that Scott Walker really has waited them out. (On his last physical, does it say “Blood Type: Tiger”?) In the past three weeks, Democrats and public-sector unions (but I repeat myself) have thrown everything they have at Walker, and he hasn’t budged. (And I do mean everything: They even tried to embarrass him by exposing the fact that in high school he had a mullet and was nicknamed “the Desperado” — unaware that in Wisconsin, this is likely to increase his approval rating.)

It seems a little short-sighted for senate Democrats to believe Walker has damaged himself irreparably. Several polls show Walker’s approval rating to be in the low 40’s, but Walker almost certainly expected to take some kind of public-relations hit when he entered this standoff.

Moe Lane at Redstate:

You see, we tend to forget that politicians are not identical, like potatoes: these fourteen men and women are just that – men and women – and it’s easy to believe that they’re getting tired, sore, and fuming about how they’ve somehow become the surrogate whipping boys for a national debate on public sector unions. Some of them might even be thinking that they didn’t actually sign up for this, that this wasn’t in the job description, and that the people urging them to exile in Illinois might not really give a tinker’s dam about them or their problems. And that this situation that they’re in is getting old. Oh, sure, no doubt a few of the AWOL senators are having a ball… but some of them are not, and the loss of message discipline in the last few days shows that.

And it only takes one AWOL senators to end this nonsense.

Scott Johnson at Powerline

Jason Stein at The Milwaukee Journal Sentinel:

The leader of Senate Democrats hiding out in Illinois is seeking a face-to-face meeting with Gov. Scott Walker and the Senate GOP leader.

Senate Minority Leader Mark Miller (D-Monona) said in a letter sent out Monday that he wants to meet with Republicans “near the Wisconsin-Illinois border to formally resume serious discussions” on Walker’s budget repair bill. Two other Democratic senators met with Senate Majority Leader Scott Fitzgerald (R-Juneau) last week in Kenosha.

Democrats have been holed up south of the state line since last month to block action on Walker’s budget repair bill, which would end most collective bargaining for public employee unions in the state.

“I assure you that Democratic state senators, despite our differences and the vigorous debate we have had, remain ready and willing to find a reasonable compromise,” Miller said in the letter.

Neither Miller nor Walker spokesman Cullen Werwie could be reached immediately for further comment. Fitzgerald spokesman Andrew Welhouse had no immediate comment.

The Wall Street Journal spurred hopes of compromise Sunday with a story citing Miller and saying the Democrats would be back “soon.” But that same night Democrats knocked that down, saying that they hoped to return soon but that there was still no development to make that happen.

Miller spokesman Mike Browne said Monday morning  that he knew of no plans for Democrats to return later in the day. The senators were scheduled to meet later in the morning or early afternoon, he said.

One of the Democratic senators, Tim Cullen of Janesville, said in a phone interview Sunday that there were no developments toward a possible compromise with Republicans and no talks scheduled for this week.

Two other Democratic senators — Jon Erpenbach of Middleton and Chris Larson of Milwaukee — said Sunday their group had no plans to come back to the Capitol until Republicans addressed more of their concerns with the budget-repair bill.

“I can tell you for a fact that nothing has changed down here,” Erpenbach said.

On Monday morning, a small, dedicated group began to chant in protest of Walker’s budget-repair bill in the Capitol rotunda.

Outside the Capitol, there is little or no sign of the mass protests that have engulfed the Capitol square in recent weeks.

On the streets surrounding the Capitol, the number of satellite trucks has dwindled to two. And the only sign of an organized-labor presence is the sight of two Teamsters semi-trailers.

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Filed under Economics, Legislation Pending

Goldbook Or Facesachs?

Anupreeta Das, Robert Frank and Liz Rappaport and Wall Street Journal:

It was supposed to be Wall Street’s hottest tech deal in years: the private offering of as much as $1.5 billion in shares of Facebook Inc. And it was a coup for the company’s adviser, Goldman Sachs Group Inc., the most envied firm on the Street.

Goldman bankers burned up the phone lines in the first week of January, pushing many of their best American clients to invest in the deal. And then, on Sunday and Monday, those same advisers were on the phone with those same clients with some bad news. They wouldn’t be getting any Facebook shares after all.

Now, Goldman has a very different mission to execute: soothing a legion of irate investors.

Goldman Sachs experienced a slowdown in many of its divisions in the fourth quarter, and earnings dropped 53 percent, to $2.39 billion, or $3.79 a share.

While the per-share profit in the quarter was modestly higher than the $3.76 a share analysts polled by Thomson Reuters were projecting, it was a stark reminder of how challenging the markets had been for firms like Goldman during the last year.

David Viniar, Goldman’s chief financial officer, told analysts in a conference call on Wednesday that the revenue slowdown came amid client uncertainty about the economy and regulatory reform. With client activity down, fees dropped, too.

Revenue in its powerful fixed income, currency and commodities unit, known as F.I.C.C., fell 48 percent, to $1.64 billion, from the period a year earlier. Investment revenue, which includes equity and debt underwriting, fell 10 percent, to $1.51 billion.

Over all, net revenue in the quarter was $8.6 billion, off 10 percent from the period a year earlier. For the year, revenue minus interest expenses fell 13 percent, to $39 billion, compared with 2009. Full-year earnings were $8.35 billion, 38 percent lower than 2009.

“Market and economic conditions for much of 2010 were difficult, but the firm’s performance benefited from the strength of our global client franchise and the focus and commitment of our people,” Lloyd C. Blankfein, chairman and chief executive, said in a statement. “Looking ahead, we are seeing signs of growth and more economic activity, and we are well-positioned to help our clients expand their businesses, manage their risks and invest in the future.”

Juli Weiner at Vanity Fair:

As the bank was reminded earlier this week, though, money can’t buy Friends: Goldman’s abrupt inability to sell shares of Facebook to select American investors has not sat well with select American investors, or with Facebook. “They pushed me hard to get here and invest, and then they pull the rug out from under me,” one such spurned Goldman client told The Wall Street Journal. “The whole thing has left a bad taste in my mouth.” To describe the highly public, fruitless Facebook fiasco, one might even invoke a phrase from Goldman’s recent past: “shitty deal.”

Earlier this month, Goldman solicited certain investors with poorly written offers to purchase Facebook stock. However, given the round-the-clock, breathless coverage of the firm’s $450 million investment in Facebook, Goldman rescinded the offer to U.S. clients in deference to “rules limiting [the] marketing of private securities.” according to Bloomberg.com. “Goldman Sachs concluded that the level of media attention might not be consistent with the proper completion of a US private placement under US law,” the bank said in a statement on Monday. “We regret the consequences of this decision, but Goldman Sachs believes this is the most prudent path to take.”

Facebook executives were reportedly “miffed” about the public scrutiny surrounding the investment opportunity, according to the Journal. The offering “turned out to be far more public than they expected.” Should have checked the privacy settings!

John Cassidy at the New Yorker:

What does this mean? Over at Dealbook, Andrew Ross Sorkin fills in some details: “Federal and state regulations prohibit what is known as ‘general solicitation and advertising’ in private offerings. Firms like Goldman seeking to raise money cannot take action that resembles public promotion of the offering, like buying ads or communicating with news outlets.”

So Goldman couldn’t go ahead with the Facebook offering because it would be getting too many media inquiries? Come on. Only last week, Groupon, the group-buying Web site, raised $950 million in a private placement arranged by Allen & Co., the boutique investment bank. Extensive media coverage of that deal didn’t prevent some of Silicon Valley’s leading venture capital firms from plonking down almost a billion dollars, which Groupon is planning on using to fund its expansion prior to an I.P.O.

Goldman could easily have arranged a similar money-raising exercise for Facebook. However, it probably wouldn’t have been able to do such a deal at a valuation of fifty billion dollars—the price it has purportedly put on Mark Zuckerberg’s business. Despite Facebook’s rapid growth, many venture-capital outfits would have been reluctant to buy its equity at a multiple of thirty or forty times revenues. (Estimates of Facebook’s revenues range from one to two billion.) Rather than tapping the VCs at a lower valuation, Goldman decided to set up a special-purpose vehicle (i.e., a shell company) through which hundreds, and perhaps thousands, of wealthy individuals (American and foreign) would be offered the privilege of purchasing Facebook stock prior to an I.P.O.

With all due respect to Goldman and its high-priced attorneys, it wasn’t a hostile media that upended this plan. It was the fact that it appeared to many people (not just reporters) to be a blatant effort to circumvent the Securities Exchange Act of 1934, which decrees that any company with more than five hundred shareholders is legally obliged to issue public financial statements, something that Facebook is keen to avoid, at least for now. Under Goldman’s scheme, all the investors in its special-purpose vehicle would be counted as a single “beneficial” shareholder, thereby excluding Facebook from this disclosure provision. (An illuminating discussion of the legal niceties can be found at Dealbook.)

Having been a keen observer of Goldman for some twenty-five years (sometimes as a critic but often as an admirer of its meritocratic culture and the quality of the people it employs), little that the firm does surprises me. But this entire imbroglio has left me puzzled and raised more questions in my mind about Goldman’s senior management.

It is surely fair to assume that the bright spark in Goldman’s investment-banking division who came up with the original Facebook proposal hadn’t seen the report of the Business Standards Committee. Let’s further stipulate that when somebody more senior asked him (her) if the deal was legit, he (she) said, a) Goldman’s top lawyers had signed off on it, and b) it would give Goldman a lock on Facebook’s I.P.O., which many bankers expect to be the biggest (and most lucrative) yet seen in the United States.

Felix Salmon:

In other words, Facebook has a speculative shareholder for the first time, now that it’s made its decision to get into bed with Goldman. And Goldman will think nothing of buying puts or selling calls on Facebook shares — or even dumping its shares outright, if it’s allowed to do so — if that’s what it needs to do to protect its $450 million investment.

As the same time, however, one of the main unwritten rules of IPOs of young companies is that they always need to be priced at a level above their last funding round. If Facebook can’t IPO at a valuation significantly north of $50 billion, then it probably won’t come to market at all. (That probably explains why bidders on SecondMarket are happy to buy at a $70 billion valuation: they’re betting that when Facebook goes public, it’ll be worth more than that.)

A lot of stuff can happen to Facebook between now and a 2012 IPO. And if Goldman is shorting Facebook rather than massaging its valuation and orchestrating an IPO which values the company at $70 billion or more, then maybe Facebook won’t go public at all next year. Maybe, indeed, Facebook will learn from this whole episode that dealing with investment banks is an unpleasant and expensive exercise, and will try to avoid doing so in future as much as it possibly can.

John Hudson at The Atlantic with a round-up.

John C. Abell at Wired

Joe Weisenthal at Business Insider:

The Facebook deal itself was already going to be controversial, because at first blush it came off like Goldman finding a way to skirt securities regulations (though later it was made clear that regardless of whether it did a real IPO, Facebook would report financials).

As for the current mess, it’s still a little unclear how it happened.

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They Write Op-Eds, Too, Part III

Barack Obama in The Wall Street Journal:

For two centuries, America’s free market has not only been the source of dazzling ideas and path-breaking products, it has also been the greatest force for prosperity the world has ever known. That vibrant entrepreneurialism is the key to our continued global leadership and the success of our people.

But throughout our history, one of the reasons the free market has worked is that we have sought the proper balance. We have preserved freedom of commerce while applying those rules and regulations necessary to protect the public against threats to our health and safety and to safeguard people and businesses from abuse.

From child labor laws to the Clean Air Act to our most recent strictures against hidden fees and penalties by credit card companies, we have, from time to time, embraced common sense rules of the road that strengthen our country without unduly interfering with the pursuit of progress and the growth of our economy.

Sometimes, those rules have gotten out of balance, placing unreasonable burdens on business—burdens that have stifled innovation and have had a chilling effect on growth and jobs. At other times, we have failed to meet our basic responsibility to protect the public interest, leading to disastrous consequences. Such was the case in the run-up to the financial crisis from which we are still recovering. There, a lack of proper oversight and transparency nearly led to the collapse of the financial markets and a full-scale Depression.

Over the past two years, the goal of my administration has been to strike the right balance. And today, I am signing an executive order that makes clear that this is the operating principle of our government.

This order requires that federal agencies ensure that regulations protect our safety, health and environment while promoting economic growth. And it orders a government-wide review of the rules already on the books to remove outdated regulations that stifle job creation and make our economy less competitive. It’s a review that will help bring order to regulations that have become a patchwork of overlapping rules, the result of tinkering by administrations and legislators of both parties and the influence of special interests in Washington over decades.

The Executive Order

Chris Good at The Atlantic. More Good:

The business community is praising President Obama’s new regulatory initiative, while retaining a degree of skepticism that meaningful change will come.

Obama rolled out a plan this morning to minimize the burdens of regulation on businesses, introducing it in a Wall Street Journal op-ed. Obama said the administration will seek input from businesses, and he issued a memo and executive order requiring executive agencies to review existing regulations and make compliance info searchable online.

“We welcome President Obama’s intention to issue an executive order today restoring balance to government regulations,” said Thomas Donohue, president and CEO of the U.S. Chamber of Commerce, the nation’s most prominent business group.

“While a positive first step, a robust and globally competitive economy requires fundamental reform of our broken regulatory system.  Congress should reclaim some of the authority it has delegated to the agencies and implement effective checks and balances on agency power,” Donohue continued, in a statement issued by the group.

Health care and financial reform should be examined as well, Donohue said: “No major rule or regulation should be exempted from the review, including the recently enacted health care and financial reform laws.”

It remains to be seen what will come out of this new roll-out. Obama has held a tricky relationship with business as president: Business coalitions like the Chamber supported his stimulus plan at the outset of his presidency, but the pushes to reform energy, health care, and Wall Street didn’t thrill them as much.

Jonathan Adler:

It reaffirms the basic principles outlined in President Clinton’s Executive Order 12866, issued in September 1993, and continues to require agencies to conduct cost-benefit analyses of proposed rules.  As noted in the President’s op-ed, it also requires agencies to engage in  “retrospective analysis” of existing rules so as to accelerate the pace at which outdated regulations are revoked.  Specifically, it requires all agencies to develop a plan for such retrospective review within 120 days.  If the White House Office of Information and Regulatory Affairs ensures such reviews are meaningful, this could be a significant and positive step.

Michelle Malkin:

While the Sherlock Homes of 1600 Pennsylvania sleuths around in search of “the right balance” that they’ve skewed catastrophically over the last two years, the mother of all job creation-stifling regulations — Obamacare — awaits repeal.

“Balance” my you-know-what

Bruce McQuain at Q and O:

Of course on the other side of that are those saying “since when is it a function of government to decide what gas mileage a car must get?”  The entire premise that it is a function of government is built on belief in a “justified” level of intrusion far beyond that which any Constitutional scholar would or could objectively support (that’s assuming he is a scholar and an honest one).  In fact the example perfectly states the obvious difference between big government advocates and small government advocates.  BGA’s think it is government’s job to dictate such things – that it is a function of government to do so.  SGAs believe it is the market’s job to dictate such things and that government shouldn’t be involved in these sorts of things.

So in essence, while the Obama op/ed has all the proper buzz words to attempt to sell it as a pro-business, small government move, it is in fact simply a restatement of an old premise that essentially says “government belongs in the areas it is now, we just need to clean it up a little”.

This really isn’t about backing off, it’s about cleaning up.  It isn’t about letting the market work, it’s about hopefully making government work better.  And while Obama claims to want to inform us about our choices rather than restricting them, I’ll still be unable to buy a car that doesn’t meet government standards on gas mileage even if I want one.

Now that may not seem like something most of us would want – few if any of us want bad gas mileage and the cost it brings – but it does illustrate the point that government regulation really isn’t about providing choice at all, it is and always will be about limiting them.  And all the smooth talking in the world doesn’t change that.   It’s the nature of the beast.

Choire Sicha at The Awl:

The president’s last executive order was signed between Christmas and New Year’s. It codified the bias in hiring towards college graduates (and more and more in America, those without college degrees will never have access to decent work!), but at least demanded the creation of entry level positions in the government for recent college graduates and veterans. The Wall Street Journalextends a statement from the president today, promoting his new executive order, which we shall call Operation Untangling. The plan apparently means that every government agency must identify which of their regulations are stupidest, and make them go away, supposedly. For instance, Obama trumpets that they just changed the EPA regulations that ensured saccharine was treated as a toxic chemical. American, onward and upward, very, very slowly. Anyway there’s lots of dog whistle noises in here about business and regulation that are designed to appeal to particular people but judging from the reaction, it’s just another chance for everyone to complain from various opposing viewpoints about how America is broken.

Mike Konczal at Rortybomb:

It’s fine as far as it goes. Here’s where it would be helpful if Obama picked some fights and put out some reform markers, because I can’t tell if this is just cover to go after proxy access rules as a way of making peace with the business community.   It’s worth noting that, as far as I read it, we’d have the same exact financial crisis, the same criminal securitization chain, the same uncapitalized derivatives positions, the same shadow banking panic if we regulated the financial sector with these guidelines.

And the things that actually acted on these principals in the past two years – the CFPB which has consolidated regulatory burdens across agencies in order to make regulations more clear, interchange reform which created a market between credit cards and debit cards to de facto create a market rate of credit at the individual merchant level – were bitterly opposed by the industries in question.

More generally I don’t like the notion that regulation is conceptually some sort of brakes on markets, a dial that can be turned up or down until some sort of optimal space is hit. I think of regulation as a means of handling the consequences of a specific market, both by setting up the terms on which the market plays as well as the mechanisms for handling conflicts and the way things collapse.  How does a firm fail?  How do other firms compete, and under what terms is information disclosed to the market?  In some ways this is obvious: the nuclear energy market would not exist in its current form without the government.  I’d be more likely to support for crazy loans if our bankruptcy courts were designed to modify primary household debt and also if we reformed the bizarre way we deal with junior liens, a conflict people knew about at the beginning of the housing bubble.

Ann Althouse:

And here‘s the underlying Wall Street Journal op-ed by Barack Obama, which features an illustration of a man — not Obama… he looks a bit like Don Imus — in a gray business suit, running with scissors — running with scissors! — cutting his way through an abstract field of red tape. In the op-ed, Obama is all about carefully and thoughtfully weighing the value of particular regulations in relation to the burdens they impose, so the picture is amusingly inapt.

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Filed under Economics, Political Figures

The Mommy Wars Go International

Amy Chua at Wall Street Journal:

A lot of people wonder how Chinese parents raise such stereotypically successful kids. They wonder what these parents do to produce so many math whizzes and music prodigies, what it’s like inside the family, and whether they could do it too. Well, I can tell them, because I’ve done it. Here are some things my daughters, Sophia and Louisa, were never allowed to do:

• attend a sleepover

• have a playdate

• be in a school play

• complain about not being in a school play

• watch TV or play computer games

• choose their own extracurricular activities

• get any grade less than an A

• not be the No. 1 student in every subject except gym and drama

• play any instrument other than the piano or violin

• not play the piano or violin.

I’m using the term “Chinese mother” loosely. I know some Korean, Indian, Jamaican, Irish and Ghanaian parents who qualify too. Conversely, I know some mothers of Chinese heritage, almost always born in the West, who are not Chinese mothers, by choice or otherwise. I’m also using the term “Western parents” loosely. Western parents come in all varieties.

All the same, even when Western parents think they’re being strict, they usually don’t come close to being Chinese mothers. For example, my Western friends who consider themselves strict make their children practice their instruments 30 minutes every day. An hour at most. For a Chinese mother, the first hour is the easy part. It’s hours two and three that get tough.

Despite our squeamishness about cultural stereotypes, there are tons of studies out there showing marked and quantifiable differences between Chinese and Westerners when it comes to parenting. In one study of 50 Western American mothers and 48 Chinese immigrant mothers, almost 70% of the Western mothers said either that “stressing academic success is not good for children” or that “parents need to foster the idea that learning is fun.” By contrast, roughly 0% of the Chinese mothers felt the same way. Instead, the vast majority of the Chinese mothers said that they believe their children can be “the best” students, that “academic achievement reflects successful parenting,” and that if children did not excel at school then there was “a problem” and parents “were not doing their job.” Other studies indicate that compared to Western parents, Chinese parents spend approximately 10 times as long every day drilling academic activities with their children. By contrast, Western kids are more likely to participate in sports teams.

Maureen O’Connor at Gawker:

This weekend, I came across “Why Chinese Mothers Are Superior” by Amy Chua. Since I have a Chinese mother, I assembled my face into a self-righteous smirk and began to read. But—woe is me!—my Chinese mother’s a fraud.For Amy Chua revealed that my Chinese mother (maiden name: Lily Chua) failed her ethnicity by failing to slave-drive me with the “screaming, hair-tearing explosions” necessary for raising a superior child. Consequently, I am not a math genius who performs open heart surgery and violin concertos simultaneously, but a blogger who spends her days contemplating Katy Perry’s breasts. I learned arithmetic not by “every day drilling,” but the way every red-blooded American does, by typing equations into my TI-86 during marathon sessions of Drugwars. (Maybe I got the “sneaky Chinaman” gene instead of the “obedient Chinese daughter” one?) And my mother and I never had showdowns like this:

Back at the piano, Lulu made me pay. She punched, thrashed and kicked. She grabbed the music score and tore it to shreds. I taped the score back together and encased it in a plastic shield so that it could never be destroyed again. Then I hauled Lulu’s dollhouse to the car and told her I’d donate it to the Salvation Army piece by piece if she didn’t have “The Little White Donkey” perfect by the next day. […] When she still kept playing it wrong, I told her she was purposely working herself into a frenzy because she was secretly afraid she couldn’t do it. I told her to stop being lazy, cowardly, self-indulgent and pathetic.

“The Little White Donkey,” just like Amy Chua’s husband, a stupid caucasian ass named Jed who lacks her superior Asian childrearing skills:

“Everyone is special in their special own way,” I mimicked sarcastically. “Even losers are special in their own special way. Well don’t worry, you don’t have to lift a finger. I’m willing to put in as long as it takes, and I’m happy to be the one hated.”

Reading Amy Chua’s article, I am sad as a broken fortune cookie. If only my Chinese mother had humiliated me in newspaper articles that would plague my dating life forever—maybe I, too, could have performed piano solos in Carnegie Hall, like Amy Chua’s daughter did, according to Amy Chua. How unlucky I am: I have never hated my mother.

My only solace: that Irish-American father’s inferior academic genes came packaged with superior genes for drinking.

That said, Amy Chua appears to have absorbed a few American parenting skills, like the incessant upper-class need to one-up every other upper-class parent in the tri-state area. Mommy bragging: The virtue that unites us all.

Ann Hulbert at Slate:

Chua’s mindset and methods—bolstered by faith in Chinese family tradition—pose a useful challenge for an era haunted by a helicoptering ethos as hard to shake as it is to like. Here is an alternative to the queasy hypocrisy of typical hyperparents, buffeted by shifting expertise that leaves them anxious about overpressuring even as they push. Chua breaks through all that. She is a crusader invigorated by practicing what she preaches: the arduous work she believes necessary to do anything well, child-rearing included. Her exacting program is incredibly time-consuming and burdensome, for her as much as her kids, and is bound to look outlandish to others. (While teaching, writing her second book, and traveling constantly, Chua types up elaborate practice instructions, which freak out one of her law students when he stumbles on them—and which are to be found on pages 163-165.) But precisely because Chua slaves away as hard as her girls do, one thing her program is not is guilt-inducing. In the end, her ordeal with Lulu teaches Chua humility and proves her daughter’s very healthy autonomy—and inspires next to no regrets.

Let’s hope a furor over the book doesn’t change all that. Boris Sidis lived to regret his boastful diatribe, or at least his wife did, lamenting poor Billy’s interlude in the spotlight, which complicated an already rocky transition to adulthood that ended in a lonely retreat. “Educators, psychologists, editorial writers and newspaper readers were furious” with her husband, Sarah Sidis wrote. “And their fury was a factor in Billy’s life upon which we had not counted.” Norbert Wiener, who battled depression to become the future founder of the field of cybernetics, was devastated as a teenager when, browsing in a magazine, he learned that his father, Leo, had claimed his son’s successes as his own, while blaming failures on the boy. Proselytizing and prodigy-raising are a fraught mix.

In a coda to her book, Chua loosens up, describing how she gave her daughters the manuscript and welcomed them as collaborators. The wise girls are wary about getting roped in. “I’m sure it’s all about you anyway,” Lulu says. As they hunker down to criticize, and make her revise, revise, revise, Sophia, now 17, issues a warning well worth keeping in mind if, or when, the mommy wars erupt over Chua’s provocative portrait. “It’s not possible for you to tell the complete truth,” Sophia tells her mother. “You’ve left out so many facts. But that means no one can really understand.” Let’s not forget that it’s only how the girls themselves understand their mother’s methods that really counts in the end.

Blake Eskin at New Yorker:

It did not escape my attention that “Jewish” was not on Chua’s list, and furthermore that her softie foil in the essay was her husband, who is identified as Jed—and is presumably why their daughters can be intimidated with threats of withheld Hanukkah presents. (Minimal Internet research reveals that Jed is, like his wife, a Yale Law School professor and a published author; his last name is Rubenfeld.) Most American Jews are comfortably assimilated, although Chua could probably forge a Sino-Soviet alliance with a few Russian-speaking recent arrivals. But even in the early twentieth century, when Jews were known for toughness (see Siegel, Bugsy; Rosenbloom, Slapsie Maxie) the stereotypical Jewish mother used what Joseph Nye would call soft power, wrapping specific and restrictive ideas about her children’s future in a nurturing bosom. This blend of stubborn guidance and smothering affection has produced successful doctors, lawyers, and engineers. It has also inspired characters from Sophie Portnoy to Estelle Costanza (who, though technically not Jewish, qualifies, too), envisioned by creative children scarred by their childhoods.

Some children, Chinese and otherwise, may respond well to “Chinese mothering,” and I hope for their sake that Chua’s two daughters are among them. But it’s simply not possible that every child becomes “the No. 1 student in every subject except gym and drama.” And not every child is well served by forcing them to try. Some children will fail with tragic consequences, others, if we are more fortunate, with literary ones, finding humor and meaning in stories of suffering. In a perfectly plotted world, one of Chua’s girls will, according to plan, become the concertmistress of a world-class orchestra, and the other will avenge herself by novel or memoir—and sell more books than her mother and father combined.

Julianne Hing at Ta-Nehisi Coates’ place:

Chua’s tone is arrogant but filled just the same with bullseye observations, and I spent a long time trying to untangle the sincere from the deadpan. So much of the piece is an accurate reflection of a specific brand of hard-ass Asian parenting. But would other people be able to sense the gleeful embellishments in her piece, the way she seems to relish insulting and threatening her kids to get them to perform? And then I doubled back: was I being too charitable to read it as exaggeration?

Meanwhile, on the other side of the Internet, one of my aunties sent the piece around to other women in my family last night. “Thought you might enjoy this,” my auntie wrote to other mothers. “Were you raised by a Chinese mother … or are you perhaps one yourself?”

My mother was horrified at the piece, called it embarrassing and terrible and outrageous, said that she resented the fact that Chua used the term “Chinese mother,” even with the disclaimers at the opening that not all Chinese mothers deserve the title, and some non-Chinese mothers could be admitted to the club of harsh, ultra-strict parenting.

Like Chua, my parents sacrificed a great deal to raise me and my siblings–they make for great stories now that we’re all adults. My mom would hand us math workbooks to occupy us during car rides the way other parents hand their kids Pop Tarts or carrot sticks. She, like Chua, packed our violins in the trunk of the minivan so we could practice even while we were on vacation and forbade sleepovers and weeknight television well into my high school years. I struggled mightily with math and science and my mother would wake me up at 6 am on weekends so we could go over math drills together for hours. Letting me fail was not an option to her, though I occasionally wished she would have. Thanks to her, I didn’t.

All of this I recognize as love.

Tom Scocca at Slate:

There are many, many bizarre and debatable notions in the memoir extract that Yale law professor Amy Chua published in Saturday’s Wall Street Journal, in which she argued that screaming at one’s children to do drill work and depriving them of entertainment or social contact with their peers are the secrets to why Chinese people raise smarter and more successful children than regular decadent Americans do. A working-class Jamaican-immigrant mother, for instance—who would be an honorary “Chinese mother,” according to Chua—might be surprised to learn that good, hard parenting means spending a week at the piano, going “right through dinner into the night,” threatening and yelling at a seven-year-old girl to force her to learn a difficult piano part. Not everybody’s boss gives out flex time as readily as Yale Law does.

But mostly, as with so many child-rearing success stories, the biggest question Chua raises is: what makes you so sure you’ve succeeded? God bless Chua’s daughters, but according to some simple arithmetic and the pictures accompanying the Journal piece, they’re considerably younger than, say, 60. Or 40. Or even 25. There’s plenty of time yet to find out what fruit all those years of rigorous “Chinese” alpha parenting—no sleepovers with friends, Chua brags, no personally chosen extracurriculars, no musical instruments other than piano and violin (sorry, Yo-Yo Ma; your parents weren’t Chinese enough)—will really bear. Marv Marinovich wouldn’t let his son eat Big Macs, either. Discipline and high standards, all the way. “I don’t know if you can be a great success without being a fanatic,” was how he put it

Rebecca Greenfield at The Atlantic

Kate Zernike at The New York Times:

In the week since The Wall Street Journal published an excerpt of the new book by Amy Chua, a Yale law professor, under the headline “Why Chinese Mothers Are Superior,” Ms. Chua has received death threats, she says, and “hundreds, hundreds” of e-mails. The excerpt generated more than 5,000 comments on the newspaper’s Web site, and countless blog entries referring in shorthand to “that Tiger Mother.” Some argued that the parents of all those Asians among Harvard’s chosen few must be doing something right; many called Ms. Chua a “monster” or “nuts” — and a very savvy provocateur.

A law blog suggested a “Mommie Dearest” element to her tale (“No. Wire. Hangers! Ever!!”). Another post was titled “Parents like Amy Chua are the reason Asian-Americans like me are in therapy.” A Taiwanese video circulating on YouTube (subtitled in English) concluded that Ms. Chua would not mind if her children grew up disturbed and rebellious, as long as she sold more books.

“It’s been a little surprising, and a little bit intense, definitely,” Ms. Chua said in a phone interview on Thursday, between what she called a “24/7” effort to “clarify some misunderstandings.” Her narration, she said, was meant to be ironic and self-mocking — “I find it very funny, almost obtuse.”

But reading the book, “Battle Hymn of the Tiger Mother,” it can be hard to tell when she is kidding.

“In retrospect, these coaching suggestions seem a bit extreme,” she writes in the book after describing how she once threatened to burn her daughter’s stuffed animals if she did not play a piano composition perfectly. “On the other hand, they were highly effective.”

In interviews, she comes off as unresolved. “I think I pulled back at the right time,” she said. “I do not think there was anything abusive in my house.” Yet, she added, “I stand by a lot of my critiques of Western parenting. I think there’s a lot of questions about how you instill true self-esteem.”

David Brooks at the New York Times:

I have the opposite problem with Chua. I believe she’s coddling her children. She’s protecting them from the most intellectually demanding activities because she doesn’t understand what’s cognitively difficult and what isn’t.

Practicing a piece of music for four hours requires focused attention, but it is nowhere near as cognitively demanding as a sleepover with 14-year-old girls. Managing status rivalries, negotiating group dynamics, understanding social norms, navigating the distinction between self and group — these and other social tests impose cognitive demands that blow away any intense tutoring session or a class at Yale.

Yet mastering these arduous skills is at the very essence of achievement. Most people work in groups. We do this because groups are much more efficient at solving problems than individuals (swimmers are often motivated to have their best times as part of relay teams, not in individual events). Moreover, the performance of a group does not correlate well with the average I.Q. of the group or even with the I.Q.’s of the smartest members.

Researchers at the Massachusetts Institute of Technology and Carnegie Mellon have found that groups have a high collective intelligence when members of a group are good at reading each others’ emotions — when they take turns speaking, when the inputs from each member are managed fluidly, when they detect each others’ inclinations and strengths.

Participating in a well-functioning group is really hard. It requires the ability to trust people outside your kinship circle, read intonations and moods, understand how the psychological pieces each person brings to the room can and cannot fit together.

Laura Donovan at The Daily Caller:

In a letter to the New York Post, Sophia Chua-Rubenfeld responded to the critics of her mother’s recent Wall Street Journal piece, “Why Chinese Mothers Are Superior,” which details the numerous restrictions Chua imposed upon her two daughters during their childhood. Among many other things, Chua has been blasted for forbidding her daughters from attending sleepovers and calling one of her girls lazy, cowardly, self-indulgent, and pathetic for playing a piano piece incorrectly.

In “Why I Love My Strict Chinese Mom,” Chua-Rubenfeld says outsiders don’t know what her family is actually like.

“[Outsiders] don’t hear us cracking up over each other’s jokes,” Chua-Rubenfeld wrote. “They don’t see us eating our hamburgers with fried rice. They don’t know how much fun we have when the six of us — dogs included — squeeze into one bed and argue about what movies to download from Netflix.”

Though it was “no tea party” growing up under all Tiger Mother’s rules, Chua-Rubenfeld claims to be more independent as a result of her rigid upbringing.

“I pretty much do my own thing these days — like building greenhouses downtown, blasting Daft Punk in the car with Lulu and forcing my boyfriend to watch ‘Lord of the Rings’ with me over and over — as long as I get my piano done first,” Chua-Rubenfeld wrote.

Chua-Rubenfeld may have thicker skin than her mother’s critics think. Chua has received lots of flak for rejecting the “not good enough” birthday cards her daughters made, but Sophia writes that she wasn’t all that offended.

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Filed under Books, China, Families

Danger, Danger, Will Robinson! (Predictable Headline #424)

Mark Brown and Nathalie Boschat at WSJ:

Two leading rating firms have cautioned the U.S. on its credit rating, expressing concern over a deteriorating fiscal situation that they say needs correction.

The warnings issued Thursday echoed prior statements by the companies, however, and financial markets largely ignored them. Treasury yields, which move in the opposite direction as prices, were lower in late-morning trade and the cost of insuring U.S. debt against the risk of default, already below that of Germany, the euro-zone benchmark, barely budged.

“My traders are shrugging it off as stuff we’ve heard before,” said Tom Di Galoma, head of interest-rate trading at Guggenheim Partners in New York.

Moody’s Investors Service said in a report that the U.S. will need to reverse an upward trajectory in the debt ratios to support its triple-A rating.

“We have become increasingly clear about the fact that if there are not offsetting measures to reverse the deterioration in negative fundamentals in the U.S., the likelihood of a negative outlook over the next two years will increase,” said Sarah Carlson, senior analyst at Moody’

Kevin D. Williamson at National Review:

If you think the 2008 financial crisis was bad, ask yourself this: Who is big enough to bail out the United  States? Answer: Nobody.

Note to Washington: If you thought the Tea Party looked like an angry mob, wait until you see what happens when Social Security checks start bouncing.

James Pethokoukis:

I am pretty sure these folks will lower the U.S. debt rating the day after bond and currency markets go nuts in, as the econ guys say, “a non-linear event.”  That’s right, a Black Swan, baby. Instead of a gradual repricing of U.S. debt, there’s a sudden and seemingly unpredictable break. Of course,  a lack of action by Washington makes such a happening completely predictable.  One interesting bit is the remark by Sirou on the jobless nature of the recovery. Not only is high unemployment costly, but it is a sign of a lack of vigor in the economy. Slow growth will only make it that much harder to escape the debt trap.

Ed Morrissey:

This makes the imperative to seriously cut spending all the more urgent.   We cannot run deficits that amount to a third of our budget any longer, and we can’t afford to tax our way up to the spending level at which we currently operate.  We have to start cutting large amounts from pretty much all phases of federal government, and especially need structural reforms in entitlements to genuinely reduce spending rather than just slow the rate of increases.  And that has to happen now.

Doug Mataconis:

Even a drop from AAA to AA would mean hundreds of billions of dollars a year in additional interest expenses, which is one budget expense that we cannot cut.

As of Tuesday, the National Debt is $14,019,559,567,587.86. We are long past the time when we should have been dealing with this.

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Falling, Falling, Falling

Sudeep Reddy at WSJ:

In California, former auto worker Maria Gregg was out of work five months last year before landing a new job—at a nearly 20% pay cut.

In Massachusetts, Kevin Cronan, who lost his $150,000-a-year job as a money manager in early 2009, is now frothing cappuccinos at a Starbucks for $8.85 an hour.

In Wisconsin, Dale Szabo, a former manufacturing manager with two master’s degrees, has been searching years for a job comparable to the one he lost in 2003. He’s now a school janitor.

They are among the lucky. There are 14.5 million people on the unemployment rolls, including 6.4 million who have been jobless for more than six months.

But the decline in their fortunes points to a signature outcome of the long downturn in the labor market. Even at times of high unemployment in the past, wages have been very slow to fall; economists describe them as “sticky.” To an extent rarely seen in recessions since the Great Depression, wages for a swath of the labor force this time have taken a sharp and swift fall.

Huffington Post:

When hard times hit, employers typically are reluctant to reduce wages. But this downturn has been different: More than half the workers who found new work by early 2010 after losing jobs between 2007 and 2009 said their pay had dropped, according to Labor Department data cited in the WSJ. A full 36 percent said the new job paid 20 percent less than their former one.

While headlines have focused on the national unemployment rate of 9.4 percent, the pain extends far beyond those 14.5 million who are deemed officially unemployed by government statistics. The only other instance of such severe wage reductions since the Depression was during the recession of the early 1980s, but the current slump is on track to be far worse, the WSJ notes.

Among people who are lucky enough to have work, living standards have been significantly downgraded. Almost a third of America’s working families are now considered low-income, earning less than twice the official poverty threshold, according to a recent report. The recession reversed a period of improvement.

This trend spells a grim future for the American worker, and for the American economy.

“They’re no longer working actively, with a chance to advance and gain more experience and skills,” said Brandon Roberts, manager of the Working Poor Families Project and a co-author of the report on low-income working families. “They’re just putting pieces together to stay afloat, to meet basic needs.”

Calculated Risk:

Even for those who can find work, the impact of the great recession lingers …

Note: Wages are typically sticky downward for those workers who do not lose their jobs – but for those who lose their jobs, wages can fall sharply when they eventually find new work (this happened in the early ’80s too).

James Pethokoukis:

Some liberal economists, for instance, claim wages have been falling since the Golden Era of the 1970s. More likely that they actually went up by at leasts 20 percent in real terms, according to researchers at the Fed.  But I have no doubt that wage growth slowed during the downturn and many folks have suffered a real and permanent loss of income. I think you will hear Democrats talk more and more about wage insurance — having government temporarily make up the shortfall between old and new jobs — especially with Gene Sperling back in the White House. He is a big proponent of the policy.  And we shouldn’t forget that John McCain proposed something like this back in 2008 during the campaign.

Ezra Klein

Rob Bluey at Heritage

Ryan Avent at Free Exchange at The Economist:

Is downward wage rigidity a problem? Mr Reddy’s anecdotes indicate that many of those who’ve been without work for a long time are willing to take new jobs at significant pay cuts, but perhaps others are still holding out for the wages they’re used to.

On the other hand, there may not be jobs available for them. Why would that be the case? Why wouldn’t firms swap out older, more expensive workers for the cheaper unemployed ones available to them? One possibility is that firms are worried about the disruptive impact of such workforce turnover and have decided that it’s better to keep employing existing labour at existing wages. But then we might expect new firms to start up and hire jobless workers; if the unemployed were just as productive as the employed, new businesses could operate at a significant cost advantage over competitors. But Robert Hall argues that credit conditions remain tight for new businesses, who are the big job creators.

Or it could be that jobless workers are simply much less productive than those who continue to work. Ragu Rajan indicates that this kind of structural explanation could be behind most current unemployment, and he therefore emphasises the importance of retraining. But if so many workers are now too unproductive to hire, one has to ask why firms had them on payrolls before the recession. Mr Rajan points to the unusual growth and subsequent collapse in the construction industry, but as Mr Shimer notes unemployment has basically doubled among all subgroups within the labour force. The data seem not to point toward structural factors as the primary driver of unemployment.

Perhaps the problem is a shortfall in demand, which is preventing existing firms from expanding. It could be that the real interest rate simply isn’t low enough to induce firms to invest in new plants and equipment—investments that would produce corresponding jobs.

These are the factors with which economists are currently wrestling in an attempt to understand unemployment. I do think it’s worth pointing out that a little bout of inflation would be helpful in resolving all of the above issues, with the possible exception of structural skills mismatch. So I continue to find criticism of the Fed’s decision to resume easing perplexing.

Ed Morrissey:

In one sense, this is just the normal response to supply and demand.  Labor is a commodity in that sense, and the cost of labor increases when supply is short, and decreases when supply is glutted.  As a hiring manager for several years in the Twin Cities, we had to repeatedly increases wages across the board (not just for new hires) to keep staff on board and to entice qualified applicants to work for us when unemployment in the area was in the 3% range.  Right now it’s more like 7% in this region, and I’m certain that had I remained in that career, I would be finding it much easier to keep the call center staffed without having to raise compensation levels at all.

It may not be quite as bad as it sounds, either.  While compensation falls as the jobless have to settle into new, less-lucrative jobs, prices are also falling in other areas, especially in real estate.  Retail prices have stabilized, but retailers are still relying on heavy discounting to move inventory.  Buying power may not be declining as much as wages, although it’s certainly not increasing.

The reason that the problem is worse than at any time since the Depression, assuming that the WSJ is correct in that analysis, is that we have had the worst extended unemployment since that time.  The best way to resolve this problem is, not coincidentally, the best way to resolve the housing crisis and other economic woes: stimulate job-creating growth.  Unfortunately, as the Obama administration pursues its regulatory expansion, it will disincentivize that kind of domestic investment, which will perpetuate this problem for at least another two years.

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Filed under Economics, The Crisis

Parker Spitzer: The Break-Up Of The Band

Sam Schechner at Wall Street Journal:

CNN is considering replacing Kathleen Parker, co-host of its new evening program “Parker Spitzer,” according to people familiar with the matter, as the network struggles to reverse a steep slide in its evening audience.

The conservative columnist could be replaced by a new co-host to serve alongside former New York Gov. Eliot Spitzer, as executives mull a shake-up of the show, the people said, adding that no decision has been made. “Parker Spitzer” hasn’t been able to significantly build its audience since its debut just over three months ago.

Juli Weiner at Vanity Fair:

Middling cable network CNN may dispose of one half of the Parker Spitzer team. Guess which half? “CNN is considering replacing Kathleen Parker,” according to today’s Wall Street Journal. Rumors of a Parker departure have been swirling since as early as December 1, when the New York Post reported that the conservative columnist simply did not care for Eliot Spitzer. At the time, we suggested some possible Parker replacements, including Christine O’Donnell, George W. Bush, and Julian Assange. As those options are under police investigation, presumably unwilling, and under police investigation, respectively, other speculators are now recommending a new roster of potential backups. For example, Gawker proposed that “a piece of string” fill in for Parker. We like it … but think big: what about several pieces of string fashioned together to create a doll?

Flashy replacements aside, a CNN spokesperson declined to confirm or deny the rumors, telling the Journal that “the show continues to improve.” Presenting a similar sentiment last week, Phil Kent, chief executive of Turner Broadcasting, which owns CNN, characterized Parker Spitzer as “a work in progress.”

Mark Joyella at Mediaite:

CNN’s primetime programs performed poorly in 2010, which marked the network’s worst ratings performance in fourteen years.

Max Read at Gawker:

But who could bring the same ability to sit there and not talk? Ashley Dupre? Piers Morgan? Ted Williams? A piece of string?

Glynnis MacNicol at Business Insider:

The problem of course isn’t all Parker.  While her mother hen-like clucking at Spitzer – likely conceived to make viewers feel safer with the disgraced ex-governor — is interminably annoying it is far from the only problem

The show, initially taped and edited ahead of time, often feels awkward and the terrible graphics that float behind the anchor’s heads throughout are irritating and distracting.

But the real problem continues to be that Spitzer never seems to be allowed to be Spitzer: the unpredictably, fiery person New Yorkers heard so much about when he was governor. Airing the show live, and capitalizing on the unpredictability that would come along with that would be the easiest way to grab some attention.

Meantime, who to replace Parker with.   The NYPost hears it may be E.D. Hill a former Fox News anchor and co-host of “Fox and Friends” who got booted for her “terrorist fist jab” remark.

But I think CNN needs to go big here in order to reconvince people to tune.  Someone like Michelle Malkin might work — she has a wide audience, could probably hold her own with Spitzer, but is not so extreme in her views (a la Ann Coulter) as to turn off mainstream viewers.

But perhaps she’s not mainstream enough to solve the problem.  Before Parker Spitzer first went on air CNN did the regular audience testing and discovered Spitzer wasn’t as nationally recognized as they had assumed.

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Tucson

James Fallows:

After this horrible news from Tucson….

… let me amplify something I said half-coherently in a live conversation with Guy Raz on All Things Considered a little while ago. My intended point was:

Shootings of political figures are by definition “political.” That’s how the target came to public notice; it is why we say “assassination” rather than plain murder.

But it is striking how rarely the “politics” of an assassination (or attempt) match up cleanly with the main issues for which a public figure has stood. Some killings reflect “pure” politics: John Wilkes Booth shooting Abraham Lincoln, the German officers who tried to kill Hitler and derail his war plans. We don’t know exactly why James Earl Ray killed Martin Luther King, but it must have had a lot to do with civil rights.

There is a longer list of odder or murkier motives:
– Leo Ryan, the first (and, we hope, still the only) Representative to be killed in the line of duty, was gunned down in Guyana in 1978 for an investigation of the Jim Jones/Jonestown cult, not any “normal” political issue.

– Sirhan Sirhan horribly transformed American politics by killing Robert F. Kennedy in 1968, but Sirhan’s political causes had little or nothing to do with what RFK stood for to most Americans.

– So too with Arthur Bremer, who tried to kill George C. Wallace in 1972 and left him paralyzed.

– The only known reason for John Hinckley’s shooting of Ronald Reagan involves Jodie Foster.

– It’s not often remembered now, but Manson family member Lynette “Squeaky” Fromme tried to shoot Gerald Ford, again for reasons that would mean nothing to most Americans of that time.

– When Harry Truman was shot at (and a policeman was killed) on the sidewalk outside the White Blair House, the attackers were concerned not about Cold War policies or Truman’s strategy in Korea but about Puerto Rican independence.

– The assassinations of William McKinley and James Garfield were also “political” but not in a way that matched the main politics of that time. The list could go on.

So the train of logic is:
1) anything that can be called an “assassination” is inherently political;
2) very often the “politics” are obscure, personal, or reflecting mental disorders rather than “normal” political disagreements. But now a further step,
3) the political tone of an era can have some bearing on violent events. The Jonestown/Ryan and Fromme/Ford shootings had no detectable source in deeper political disagreements of that era. But the anti-JFK hate-rhetoric in Dallas before his visit was so intense that for decades people debated whether the city was somehow “responsible” for the killing. (Even given that Lee Harvey Oswald was an outlier in all ways.)

That’s the further political ramification here. We don’t know why the Tucson killer did what he did. If he is like Sirhan, we’ll never “understand.” But we know that it has been a time of extreme, implicitly violent political rhetoric and imagery, including SarahPac’s famous bulls-eye map of 20 Congressional targets to be removed — including Rep. Giffords. It is legitimate to discuss whether there is a connection between that tone and actual outbursts of violence, whatever the motivations of this killer turn out to be. At a minimum, it will be harder for anyone to talk — on rallies, on cable TV, in ads — about “eliminating” opponents, or to bring rifles to political meetings, or to say “don’t retreat, reload.”

Jack Shafer at Slate:

The attempted assassination of Rep. Gabrielle Giffords, D-Ariz., and the killing of six innocents outside a Tucson Safeway has bolstered the ongoing argument that when speaking of things political, we should all avoid using inflammatory rhetoric and violent imagery.

“Shooting Throws Spotlight on State of U.S. Political Rhetoric,” reports CNN. “Bloodshed Puts New Focus on Vitriol in Politics,” states the New York Times. Keith Olbermann clocked overtime on Saturday to deliver a commentary subtitled “The political rhetoric of the country must be changed to prevent acts of domestic terrorism.” The home page of the Washington Post offered this headline to its story about the shooting: “Rampage Casts Grim Light on U.S. Political Discord.”

The lead spokesman for the anti-inflammatory movement, however, was Pima County Sheriff Clarence Dupnik, whose jurisdiction includes Tucson. Said Dupnik at a Jan. 8 press conference in answer to questions about the criminal investigation:

I’d just like to say that when you look at unbalanced people, how they are—how they respond to the vitriol that comes out of certain mouths, about tearing down the government, the anger, the hatred, the bigotry that goes on in this country is getting to be outrageous. And unfortunately, Arizona, I think, has become sort of the capital. We have become the mecca for prejudice and bigotry.

Embedded in Sheriff Dupnik’s ad hoc wisdom were several assumptions. First, that strident, anti-government political views can be easily categorized as vitriolic, bigoted, and prejudicial. Second, that those voicing strident political views are guilty of issuing Manchurian Candidate-style instructions to commit murder and mayhem to the “unbalanced.” Third, that the Tucson shooter was inspired to kill by political debate or by Sarah Palin’s “target” map or other inflammatory outbursts. Fourth, that we should calibrate our political speech in such a manner that we do not awaken the Manchurian candidates among us.

And, fifth, that it’s a cop’s role to set the proper dimensions of our political debate. Hey, Dupnik, if you’ve got spare time on your hands, go write somebody a ticket.

Sheriff Dupnik’s political sermon came before any conclusive or even circumstantial proof had been offered that the shooter had been incited by anything except the gas music from Jupiter playing inside his head.

For as long as I’ve been alive, crosshairs and bull’s-eyes have been an accepted part of the graphical lexicon when it comes to political debates. Such “inflammatory” words as targeting, attacking, destroying, blasting, crushing, burying, knee-capping, and others have similarly guided political thought and action. Not once have the use of these images or words tempted me or anybody else I know to kill. I’ve listened to, read—and even written!—vicious attacks on government without reaching for my gun. I’ve even gotten angry, for goodness’ sake, without coming close to assassinating a politician or a judge.

From what I can tell, I’m not an outlier. Only the tiniest handful of people—most of whom are already behind bars, in psychiatric institutions, or on psycho-meds—can be driven to kill by political whispers or shouts. Asking us to forever hold our tongues lest we awake their deeper demons infantilizes and neuters us and makes politicians no safer.

Alex Massie:

So apparently a pretty stupid Sarah Palin poster from last year in which gunsights were slapped over 20 districts carried by John McCain from which the Democratic incumbent had voted for Obamacare, is now to be considered the inspiration for this atrocity. Mrs Palin has some influence, but let’s not get carried away. For what it’s worth – and readers know that I’m hardly her greatest fan – I do not think she is very much more responsible for this abomination than Jodie Foster was for John Hinckley’s attempt to murder Ronald Reagan. In any case, Palin’s poster was only a souped-up version of a campaign trope that both parties have been happy to employ in the past. (That said, Palin Presidential Futures, already worth shorting, took another dive yesterday.)

But the sordid temptations of politics are such that people who argue there’s little sensible connection between Hollywood “violence” and real-world violence now suddenly insist that it just takes a silly poster and plenty of over-heated rhetoric to inspire America’s Top Kooks to come out of the closet, all guns blazing. And of course the reverse is also true: people happy to blame Grand Theft Auto for just about anything now insist there’s no connection at all between the tone of political discourse (“Second Amendment Solutions!”) and some nut taking these notions just a little bit too seriously.

Clearly, things are a little more complicated than that. While you cannot legislate for lunatics there’s also little need to give them any encouragement. But the more we learn about Jared Loughner the more it seems probable – at this stage – that he’s the kind of mentally unstable person who neither needed nor took any inspiration from Palin or the Tea Party or anything other than powerful fantasies that were his own creation.

And this too is normal. Political violence of this type is almost definitionally unhinged but it’s striking how rare it turns out to be the case that the perpetrators can be fitted into one neat political profile or another. And even when they can their targets are frequently so at odds with the meaning of their supposed “philosophy” that trying to “make sense” of such matters becomes an even more frustrating task.

Anyway, we may think these are unusually turbulent times, fanned by unusual quantities of cheap and phoney populism, scaremongering and hysteria but this is not in fact the case. ‘Twas ever thus and the 1960s offer a perspective that might be worth looking at if only, despite all the huffing and puffing, to appreciate how calm and at peace America is these days. Remember McKinley and Garfield too, if you want to go still further back. America ain’t tearing itself apart these days, no matter how much Paul Krugman tries to persuade you it must be. The paranoid style has rarely lacked followers and, just as significantly, the centre has also always had a healthy paranoia of its own. Sometimes, as is the case today or in the aftermath of any other act of grim violence, this will seem unusually plausible.

Most of the time, however, the scare stories about a new era of Militiamen or whatever are seriously over-cooked. The temper of these American  times – despite what you will read everywhere today and tomorrow – is not unusually rebarbative or even uncommonly obtuse. (What might be said, mind you, is that the level of rhetoric is out of proportion to the stakes involved in the political game these days.)

The fact of the matter is that a country of 300 million people cannot help but be generously larded with oddballs, freaks, paranoids and assorted other nutters. Couple that with the American genius for self-realization and you soon begin to wonder why there isn’t more politically-themed violence than is actually the case

Radley Balko:

We’re going to hear a lot of talk in the coming days about putting an end to anti-government rhetoric. I’ve been listening to it all morning on the Sunday talk shows. Let’s get the obvious out of the way, here: Initiating violence against government officials and politicians is wrongheaded, immoral, futile, and counterproductive to any anti-government cause. As is encouraging or praising others who do. I ban anyone who engages in that kind of talk here.

But it’s worth remembering that the government initiates violence against its own citizens every day in this country, citizens who pose no threat or harm to anyone else. The particular policy that leads to the sort of violence you see in these videos is supported by nearly all of the politicians and pundits decrying anti-government rhetoric on the news channels this morning. (It’s also supported by Sarah Palin, many Tea Party leaders, and other figures on the right that politicians and pundits are shaming this weekend.)

I hope Rep. Giffords—and everyone wounded yesterday—makes a full recovery. It’s particularly tragic that she was shot while doing exactly what we want elected officials to do—she was making herself available to the people she serves. And of course we should mourn the people senselessly murdered yesterday, government employees and otherwise: U.S. District Judge John Roll, Dorothy Murray, Dorwin Stoddard, nine-year-old Christina Green, Phyllis Scheck, and Gabe Zimmerman.

That said, I long for the day that our political and media figures get as indignant about innocent Americans killed by their own government—killed in fact, as a direct and foreseeable consequence of official government policy that nearly all of those leaders support—as they are about a government official who was targeted by a clearly sick and deranged young man. What happened this weekend is not, by any means, a reason to shunt anti-government protest, even angry anti-government protest, out of the sphere of acceptable debate. The government still engages in plenty of acts and policies—including one-sided violence against its own citizens—that are well worth our anger, protest, and condemnation.

Michelle Malkin

Jonathan Martin in Politico

Keach Hagey in Politico

Nick Gillespie at Reason:

There’s no question that the GOP and its proponents are more than ready to play a similar game. Any moral lapse by a Democrat, for instance, is an ethical rot that stems directly from the malefactor’s stance on the minimum wage or Don’t Ask Don’t Tell, say, while hypocrites such as Sen. Larry Craig and Tom DeLay are ethical one-offs. The most-unbelievable response in the immediate aftermath of the 9/11 attacks was longterm GOP activist Jerry Falwell’s announcement on Pat Robertson’s TV network that gays and women wearing pants etc. were responsible for radical Islamists killing 3,000 people (even more sadly, years after Falwell apologized for his self-evidently retarded statement, conservative writer Dinesh D’Souza blew out the thesis into a full-length book). I’m not trying to be “fair and balanced” here by bringing up GOP stupidity; I’m trying to point out that we’re in a decade of this sort craptastic instantaneous spin that latches on to everything in its path. I say this as someone who was fingered as broadly responsible for the culture that produced “American Taliban” John Walker Lindh.

Readers of this site know I’m no Sarah Palin fan, but to accuse her of complicity in the murderous spree of a clearly insane person is one of the main reasons that partisan political parties are losing market share. I had myself tweeted that blaming Palin for Jared Loughner’s mass killing would be like blaming J.D. Salinger for Mark David Chapman shooting John Lennon (and as Jesse Walker pointed out, in Chapman’s case, at least we could be sure Chapman had read Salinger). Given Loughner’s fixation on grammar and the supposed lack of literacy evinced by most Americans, maybe William Safire and S.I. Hayakawa should be held responsible.

Like Matt Welch and Jack Shafer, I don’t think that today’s political rhetoric is particularly overheated or vitriolic and, even if it were, I don’t think that would be a problem. I suspect that most people are like me in that they respond to folks who actually believe something and are willing to fight for it when it comes to a particular political issue. I don’t like bipartisanship, which usually means that all of us get screwed, but it’s easy enough to respect someone you virulently disagree with if you think they are arguing in good faith.

The problem isn’t with the current moment’s rhetoric, it’s with the goddamn politicization of every goddamn thing not even for a higher purpose or broader fight but for the cheapest moment-by-moment partisan advantage. Whether on the left or on the right, there’s a totalist mentality that everything can and should be explained first and foremost as to whether it helps or hurt the party of choice.

That sort of clearly calculated punditry helps explain one of last week’s other big stories, which is how both the Dems and the GOP have really bad brand loyalty these days. In its most recent survey of political self-identification, Gallup found that the Dems were at their lowest point in 22 years and that the GOP remains stuck below the one-third mark. The affiliation that has the highest marks for the past couple of decades on average and is growing now is independent. Faced with the way that the major parties and their partisans try to bend every news story, trend, box office hit or bomb, you name it, whether truly horrific (as Saturday’s shooting was) or totally banal, is it any wonder that fewer people want to be affiliated with the Dems and Reps? This is a long-term trend. Indeed, Harris Poll numbers that stretch back to the late ’60s show the same trend: Fewer and few folks want to view themselves as Democrats and the GOP has never been popular (even though far more people consider themselves “conservative” than “liberal”). And note what Gallup are Harris are talking about there is not party registration. It’s identification and self-affiliation; how you see yourself. It’s a cultural identity.

Paul Krugman at The New York Times

Ross Douthat at The New York Times

Tom Maguire on Krugman

Nick Baumann at Mother Jones:

At 2:00 a.m. on Saturday—about eight hours before he allegedly killed six people and wounded 14, including Rep. Gabrielle Giffords (D-Ariz.), in Tucson—Jared Lee Loughner phoned an old and close friend with whom he had gone to high school and college. The friend, Bryce Tierney, was up late watching TV, but he didn’t answer the call. When he later checked his voice mail, he heard a simple message from Loughner: “Hey man, it’s Jared. Me and you had good times. Peace out. Later.”

That was it. But later in the day, when Tierney first heard about the Tucson massacre, he had a sickening feeling: “They hadn’t released the name, but I said, ‘Holy shit, I think it’s Jared that did it.'” Tierney tells Mother Jones in an exclusive interview that Loughner held a years-long grudge against Giffords and had repeatedly derided her as a “fake.” Loughner’s animus toward Giffords intensified after he attended one of her campaign events and she did not, in his view, sufficiently answer a question he had posed, Tierney says. He also describes Loughner as being obsessed with “lucid dreaming”—that is, the idea that conscious dreams are an alternative reality that a person can inhabit and control—and says Loughner became “more interested in this world than our reality.” Tierney adds, “I saw his dream journal once. That’s the golden piece of evidence. You want to know what goes on in Jared Loughner’s mind, there’s a dream journal that will tell you everything.”

Peter Beinart at Daily Beast:

Liberals should stop acting like the Tea Party is guilty of inciting Rep. Gabrielle Giffords’ shooting until proven innocent. That’s unfair. If someone finds evidence that violent anti-government, or anti-democratic, rhetoric helped trigger Jared Lee Loughner’s shooting spree, then the people making those statements should pay with their political careers. But so far, at least, there is no such evidence. Of course, Sarah Palin should stop using hunting metaphors to discuss her political opponents. She should stop doing that, and a dozen other idiotic things. But just as Tea Partiers are wrong to promiscuously throw around terms like “communist” and “death panels,” liberals should avoid promiscuously accusing people of being accessories to attempted murder. That’s too serious a charge to throw around unless you have the goods. I want Barack Obama to derail the congressional Republicans as much as anyone. But not this way.

The Giffords shooting doesn’t prove that Sarah Palin has blood on her hands. What it does prove is that when it comes to terrorism, people like Sarah Palin have a serious blind spot. On the political right, and at times even the political center, there is a casual assumption—so taken for granted that it is rarely even spoken—that the only terrorist threat America faces is from jihadist Islam. There was a lot of talk a couple of weeks back, you’ll remember, about a terrorist attack during the holiday season. And there’s been a lot of talk in the last couple of years about the threat of homegrown terrorists. Well, we’ve just experienced a terrorist attack over the holiday season, and it was indeed homegrown. Had the shooters’ name been Abdul Mohammed, you’d be hearing the familiar drumbeat about the need for profiling and the pathologies of Islam. But since his name was Jared Lee Loughner, he gets called “mentally unstable”; the word “terrorist” rarely comes up. When are we going to acknowledge that good old-fashioned white Americans are every bit as capable of killing civilians for a political cause as people with brown skin who pray to Allah? There’s a tradition here. Historically, American elites, especially conservative American elites, have tended to reserve the term “terrorism” for political violence committed by foreigners. In the early 20th century, for instance, there was enormous fear, even hysteria, about the terrorist threat from anarchist and communist immigrants from Eastern or Southern Europe, people like Sacco and Vanzetti. In the aftermath of World War I, large numbers of immigrant radicals were arrested and deported. Nothing similar happened to members of the white, protestant Ku Klux Klan, even though its violence was more widespread.

Similarly today, the media spends the Christmas season worrying how another attack by radical Muslims might undermine President Obama’s national-security credentials. But when Jared Lee Loughner shoots 20 people at a Safeway, barely anyone even comments on what it says about the president’s anti-terror bona fides. And yet Loughner’s attack is, to a significant degree, what American terror looks like. Obviously, jihadists have committed their share of terrorism on American soil in the last couple of decades—from the attempted bombing of the World Trade Center in 1993 to the 9/11 attacks to Army psychiatrist Nidal Malik Hasan’s murder of 13 people at Fort Hood in 2009. But there have been at least as many attacks by white Americans angry at their own government or society. For almost two decades, culminating in 1995, Unabomber Ted Kaczynski sent mail bombs to people he considered complicit in industrial America’s assault on nature. (A surprising amount of recent American terrorism comes from militant environmentalists.) That same year, Timothy McVeigh blew up the Alfred P. Murrah Federal Building in Oklahoma City, the second-largest recent terrorist attack on U.S. soil after 9/11. In 1996, Eric Rudolph bombed the Atlanta Olympics to protest abortion and international socialism. According to the FBI, opposition to abortion also played a role in the 2001 anthrax attacks (you know, the ones Dick Cheney were sure had been masterminded by Saddam Hussein). In 2009, Wichita, Kansas, abortion doctor George Tiller was murdered. (He had already been shot once, and his clinic had been bombed.) That same year octogenarian neo-Nazi James Wenneker von Brunn shot a security guard at the U.S. Holocaust Memorial Museum. Last February, a man angry at the federal government flew a small plane into an IRS building in Austin, Texas.

Instapundit at The Wall Street Journal

Ezra Klein:

None of this, of course, will ease the suffering of Giffords or her family, nor of any of the other individuals and families directly affected by this morning’s slaughter. For them, the process of grieving and recovering has barely begun. Loughner’s shooting might’ve been motivated by mental illness, but the people in that parking lot were motivated by democracy: It was a meeting between a congressional representative and those she represents. They were attacked for being good citizens, and nothing can ever put that right.

But one way that people might pay tribute is to follow their example and attend the next meeting held by their representative. It is so easy and safe to participate in the American political system that we sometimes take doing so for granted. Today was a horrifying look into a world in which that isn’t so, and it should leave us with renewed appreciation for, and determination to protect, the world we have. On this, Giffords was way ahead of us: When the 112th session of the House of Representatives convened to read the Constitution earlier this week, she chose to read the section guaranteeing Americans the right “peaceably to assemble.”

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Filed under Crime, Political Figures, Politics

Staring At Shoes In Regards To The Wall Street Journal Article

Heather Horn at The Atlantic with the round-up

Robert Barro at The Wall Street Journal:

The unemployment-insurance program involves a balance between compassion—providing for persons temporarily without work—and efficiency. The loss in efficiency results partly because the program subsidizes unemployment, causing insufficient job-search, job-acceptance and levels of employment. A further inefficiency concerns the distortions from the increases in taxes required to pay for the program.

In a recession, it is more likely that individual unemployment reflects weak economic conditions, rather than individual decisions to choose leisure over work. Therefore, it is reasonable during a recession to adopt a more generous unemployment-insurance program. In the past, this change entailed extensions to perhaps 39 weeks of eligibility from 26 weeks, though sometimes a bit more and typically conditioned on the employment situation in a person’s state of residence. However, we have never experienced anything close to the blanket extension of eligibility to nearly two years. We have shifted toward a welfare program that resembles those in many Western European countries.

The administration has argued that the more generous unemployment-insurance program could not have had much impact on the unemployment rate because the recession is so severe that jobs are unavailable for many people. This perspective is odd on its face because, even at the worst of the downturn, the U.S. labor market featured a tremendous amount of turnover in the form of large numbers of persons hired and separated every month.

For example, the Bureau of Labor Statistics reports that, near the worst of the recession in March 2009, 3.9 million people were hired and 4.7 million were separated from jobs. This net loss of 800,000 jobs in one month indicates a very weak economy—but nevertheless one in which 3.9 million people were hired. A program that reduced incentives for people to search for and accept jobs could surely matter a lot here.

Moreover, although the peak unemployment rate (thus far) of 10.1% in October 2009 is very disturbing, the rate was even higher in the 1982 recession (10.8% in November-December 1982). Thus, there is no reason to think that the United States is in a new world in which incentives provided by more generous unemployment-insurance programs do not matter much for unemployment.

Another reason to be skeptical about the administration’s stance is that generous unemployment-insurance programs have been found to raise unemployment in many Western European countries in which unemployment rates have been far higher than the current U.S. rate. In Europe, the influence has worked particularly through increases in long-term unemployment. So the key question is what happened to long-term unemployment in the United States during the current recession?

To begin with a historical perspective, in the 1982 recession the peak unemployment rate of 10.8% in November-December 1982 corresponded to a mean duration of unemployment of 17.6 weeks and a share of long-term unemployment (those unemployed more than 26 weeks) of 20.4%. Long-term unemployment peaked later, in July 1983, when the unemployment rate had fallen to 9.4%. At that point, the mean duration of unemployment reached 21.2 weeks and the share of long-term unemployment was 24.5%. These numbers are the highest observed in the post-World War II period until recently. Thus, we can think of previous recessions (including those in 2001, 1990-91 and before 1982) as featuring a mean duration of unemployment of less than 21 weeks and a share of long-term unemployment of less than 25%.

These numbers provide a stark contrast with joblessness today. The peak unemployment rate of 10.1% in October 2009 corresponded to a mean duration of unemployment of 27.2 weeks and a share of long-term unemployment of 36%. The duration of unemployment peaked (thus far) at 35.2 weeks in June 2010, when the share of long-term unemployment in the total reached a remarkable 46.2%. These numbers are way above the ceilings of 21 weeks and 25% share applicable to previous post-World War II recessions. The dramatic expansion of unemployment-insurance eligibility to 99 weeks is almost surely the culprit.

To get a rough quantitative estimate of the implications for the unemployment rate, suppose that the expansion of unemployment-insurance coverage to 99 weeks had not occurred and—I assume—the share of long-term unemployment had equaled the peak value of 24.5% observed in July 1983. Then, if the number of unemployed 26 weeks or less in June 2010 had still equaled the observed value of 7.9 million, the total number of unemployed would have been 10.4 million rather than 14.6 million. If the labor force still equaled the observed value (153.7 million), the unemployment rate would have been 6.8% rather than 9.5%.

Karl Smith at Modeled Behavior:

Based on Cable News and a notable NYT column one might think that economists are perpetually at one another’s throats. This is far from the truth. The hierarchical nature of the economics profession lends an ecclesiastical air to many of our interactions. Brilliant figures are treated with enormous reverence.

To wit, when an eminent figure like Robert Barro says something that strikes most of as inane the most common reaction is shoe staring

[…]

For better or worse the blogosphere has changed that. Economists of all stripes will descend upon Barro over the next 36 hours. If he replies, which I suspect he will not, this will be an interesting moment.

Scott Grannis at Seeking Alpha:

Robert Barro has a good article in yesterday’s WSJ, titled “The Folly of Subsidizing Unemployment.” In it, he argues reasonably that “the expansion of unemployment-insurance eligibility to as much as 99 weeks from the standard 26 weeks” has made the economy less efficient “because the program subsidizes unemployment, causing insufficient job-search, job-acceptance and levels of employment.” My chart above helps illustrate the numbers he uses in his article, making it clear that we have never before seen such a large number of people receiving unemployment compensation. The 1981-82 recession saw a higher unemployment rate than we have seen in the recent recession, but one-third fewer people were subsidized for not working. This undoubtedly helps explain why this recovery has proceeded at a very disappointing pace.

Robert Reich:

I have the questionable distinction of appearing on Larry Kudlow’s CNBC program several times a week, arguing with people whose positions under normal circumstances would get no serious attention, and defending policies I would have thought so clearly and obviously defensible they should need no justification. But we are living through strange times. The economy is so bad that the social fabric is coming undone, and what used to be merely weird economic theories have become debatable public policies.

Tonight it was Harvard Professor Robert Barro, who opined in today’s Wall Street Journal that America’s high rate of long-term unemployment is the consequence rather than the cause of today’s extended unemployment insurance benefits.

In theory, Barro is correct. If people who lose their jobs receive generous unemployment benefits they might stay unemployed longer than if they got nothing. But that’s hardly a reason to jettison unemployment benefits or turn our backs on millions of Americans who through no fault of their own remain jobless in the worst economy since the Great Depression.

Yet moral hazard lurks in every conservative brain. It’s also true that if we got rid of lifeguards and let more swimmers drown, fewer people would venture into the water. And if we got rid of fire departments and more houses burnt to the ground, fewer people would use stoves. A civil society is not based on the principle of tough love.

In point of fact, most states provide unemployment benefits that are only a fraction of the wages and benefits people lost when their jobs disappeared. Indeed, fewer than 40 percent of the unemployed in most states are even eligible for benefits, because states require applicants have been in full-time jobs for at least three to five years. This often rules out a majority of those who are jobless – because they’ve moved from job to job, or have held a number of part-time jobs.

So it’s hard to make the case that many of the unemployed have chosen to remain jobless and collect unemployment benefits rather than work.

Anyone who bothered to step into the real world would see the absurdity of Barro’s position. Right now, there are roughly five applicants for every job opening in America. If the job requires relatively few skills, hundreds of applicants line up for it. The Bureau of Labor Statistics says 15 percent of people without college degrees are jobless today; that’s not counting large numbers too discouraged even to look for work.

Barro argues the rate of unemployment in this Great Jobs Recession is comparable to what it was in the 1981-82 recession, but the rate of long-term unemployed then was nowhere as high as it is now. He concludes this is because unemployment benefits didn’t last nearly as long in 1981 and 82 as it they do now.

He fails to see – or disclose – that the 81-82 recession was far more benign than this one, and over far sooner. It was caused by Paul Volcker and the Fed yanking up interest rates to break the back of inflation – and overshooting. When they pulled interest rates down again, the economy shot back to life.

Alex Tabarrok:

It’s not clear to me why we should assume that the share of long-term unemployment in this recession should equal that in 1983.

Barro also argues:

We have shifted toward a welfare program that resembles those in many Western European countries.

In contrast Josh Barro, son of Robert, in How much do UI Extensions Matter for Unemployment, concluded that 0.4% was probably on the high side:

Two Fed studies suggest that [extensions of UI] may have contributed 0.4 to 1.7 percentage points to current unemployment. But a closer look at this research makes me skeptical that the effects have been so large.

…The incentive effects of UI extension must also be weighed against the stimulative effects of paying UI benefits. For some reason it’s become almost taboo to note this on the Right, but UI recipients tend to be highly inclined to spend funds they receive immediately, meaning that more UI payments are likely to increase aggregate demand. UI extension also helps to avoid events like foreclosure, eviction and bankruptcy, which in addition to being personal disasters are also destructive of economic value.

As a result, I am inclined to favor further extension of UI benefits while the job market remains so weak. I am not concerned that this leads us down a slippery slope to permanent, indefinite unemployment benefits (which historically have been one of the drivers of high structural employment in continental Europe) as the United States has gone through many cycles of extending unemployment benefits in recession and then paring them back when the economy improves, under both Republican and Democratic leadership.

I call this one on both counts for Josh.

Arnold Kling:

He claims that the unemployment rate would be much lower now if Congress had not passed any extensions of unemployment benefits. I have not gone through his analysis, but I suspect that I, like Alex Tabarrok, would not find it persuasive. Nonetheless, I think there is a case to be made for allowing people to continue to collect unemployment benefits after they find a new job, until their benefits are scheduled to expire. We can argue about how generous the unemployment benefits should be overall, but for any level of benefits it is possible to reduce the disincentive to find work.

Mark Thoma:

Calling Barro’s claim questionable, as in the title, was probably too generous.

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Filed under Economics, The Crisis

The End?

Laura Rozen at Politico:

In Morning Defense, POLITICO’s Jen DiMascio and Gordon Lubold make sense of the somewhat confusing drama last night as a convoy of troops from the 4th Stryker Brigade, 2nd Infantry Division crossed from Iraq into Kuwait:

OVERNIGHT — More than seven years after the U.S. invasion, the last U.S. combat troops rolled out of Iraq and into Kuwait in the early-morning darkness. That’s two weeks ahead of Barack Obama’s schedule, but it ain’t over ’til it’s over: A U.S. Army spokesman tells CBS that the U.S. still has “plenty of trigger-pullers there.”

THE PRESIDENT, IN OHIO: “We are keeping the promise I made when I began my campaign for the presidency. By the end of this month we will have removed 100,000 troops from Iraq and our combat mission will [end].”

THE AP’S REBECCA SANTANA IN KHABARI CROSSING, KUWAIT: “For these troops of the 4th Stryker Brigade, 2nd Infantry Division, it was a moment of relief fraught with symbolism. As their convoy reached the barbed wire at the border crossing out of Iraq on Wednesday, the soldiers whooped and cheered. Then they scrambled out of their stifling hot armored vehicles, unfurled an American flag and posed for group photos.” http://yhoo.it/dcT5Wj

It’s Thursday morning, and this is Morning Defense.

IRAQ BY THE NUMBERS, from Stars and Stripes:
U.S. troops killed: 4,414
U.S. troops wounded in action: 31,897
Number of U.S. troop amputees: 1,135
Iraqi civilian deaths: 113,166
War’s operating cost: $747.6 billion
Per American: $2,435; Per Iraqi: $25,828
Estimate of the total cost of the war: $3 trillion
Cost of maintaining 50,000 troops from now to end of 2011: $12.75 billion
Cost of medical care and disability compensation for Iraq war veterans over their lifetimes: $500 billion.

Max Fisher at The Atlantic with the round-up

Grim at Blackfive:

4/2 SBCT rides out.

The 4th Stryker Brigade, 2nd Infantry Division, which left Iraq this week, was the final U.S. combat brigade to be pulled out of the country….”Operation Iraqi Freedom ends on your watch!” exclaimed Col. John Norris, the head of the brigade.

“Hooah!” the soldiers roared, using an Army battle cry.

Shortly before midnight Saturday, a group of infantrymen boarded Stryker fighting vehicles, left an increasingly sparse base behind and began scanning the sides of a desolate highway for bombs. For many veterans, including some who made the same trip in the opposite direction years ago under fire, it was a fitting way to exit.

“They’re leaving as heroes,” Norris said of his soldiers. “I want them to walk home with pride in their hearts.”

They are heroes.  The advise and assist brigades, and the strong Special Operations contingent, remain behind for a time.  It’s a strange war that ends this way; but as Clausewitz said, war is the continuation of politics by other means.  We’re moving from war to a very tense political environment.  That’s more or less what we should expect.  What comes next?  Either compromise arises that allows tensions to ramp down, so that the political takes over from the war; or it goes the other way, and war blooms anew from the failure of politics.

Victor Davis Hanson at The Corner:

The departure of the last combat brigade from Iraq is full of symbolic weight.

1. President Obama, to his credit, dropped the nonsense from his candidacy about promising withdrawal by March 2008 and stuck to the Bush-Petraeus plan.

2. While there is violence in Iraq (as there is in Pakistan and in many nations of the Arab Middle East), the surge worked, broke the back of the resistance, and allowed some sort of consensual government to survive.

3. We are reminded by the departure that the campaign-constructed “bad” war in Iraq become okay in late 2008, while the okay war in Afghanistan turned bad, something candidate “Let me at ’em in Afghanistan” Obama probably never anticipated, as his post-campaign surprise seems to suggest.

4. We should remember that while the surge coincided with a booming economy, the departure is taking place against the backdrop of a deep recession, and borrowed money is now as big a consideration as grand strategy (e.g., it will be difficult to ever reinsert the troops at their former levels should the terrorists return) . . .

5. . . . but the 50,000-something troops left in Iraq are not weaponless, and with air support can in extremis aid the Iraqi security forces.

6. If the calm holds, George Bush will be seen in a rather different light than when he left in January 2009, not just because Iraq miraculously has functioned under a constitutional system for years now, but because we have seen how different governance is from perpetual campaigning. In the latter, the rhetorical choices are always good and bad, rather than bad and worse, as is the case when one must be responsible for consequences. In short, despite all the “war is lost,” the “surge is not working,” and the “General Betray Us,” Bush’s persistence paid off — and now Joe Biden, of erstwhile “trisect Iraq” fame, thinks that Iraq could be one of the Obama’s administration’s “greatest achievements.”

James Jay Carafano at The Corner:

In the waning days of World War II, the OSS gave FDR a briefing that would have turned his hair white, if it hadn’t been white already. The president was told to expect a sea of German saboteurs and assassins running rampant through post-war Europe. They would number in the tens of thousands. It might take years to quell the havoc.

The briefers were wrong. The Nazis did, indeed, have a “Werewolf” campaign to continue the fight after armistice, but it largely fizzled. Hundreds of thousands of American troops flooded back home sooner than expected.

Yet some stayed and, for reasons that shifted over the years, American troops remain there today. They remain in Japan and South Korea, too.

This history is not recited to suggest that Iraq is on the road to becoming the next South Korea, but it is a reminder of how the future unfolds. There is no predictable linear path, and in matters of war, everybody gets a vote — enemies as well as allies. Anyone who tells you today just how many troops will be in Iraq ten years hence and just what shape the country will be in is guessing just as much as the OSS agents who briefed FDR on the post-war nightmare that never came.

Here is what we know for sure. 1) Given the state of Iraq in 2006, the country is in a much better place today that any reasonable observer then dared hope. 2) Iraq is better off than it was in the age of Saddam. Now the country has a future, and it rests in the hands of its people. Bonus: The world is rid one of its most dangerous and bloodthirsty thugs. Yes, it was a heavy price. Freedom rarely comes cheap. 3) The surge worked. The surge never promised a land of “milk and honey.” It just promised to break the cycle of continuous, unrelenting violence, to give the new Iraqi political process a chance, and to allow the Iraqis time to build the capacity for their own security. It did that. 4) Things didn’t turn out the way Bush planned. But the vision — a free Iraq without Saddam — was achieved. Remember, things didn’t turn out the way FDR planned either. He said all the troops would be out of Europe in two years.

Here is what we don’t know. How much longer will U.S. troops need to stay there? The fact that the “combat” troops are gone does not mean that the mission is done or that U.S. troops won’t see some kinds of combat. While troops don’t and should not remain permanently in Iraq, they will obviously need to stay longer than one or two more years. Withdrawing U.S. forces too fast would jeopardize progress. Freedom may lose its momentum. Everything is contingent on events on the ground. There cannot even be serious discussions about the long-term U.S. presence until after an Iraqi government is formed.

John Negroponte at Foreign Policy:

Having landed in Baghdad as U.S. ambassador to Iraq at the end of June 2004, I find it a truly remarkable and positive accomplishment that we are able to look to the day not too far off when Iraqi security forces will be able to assume full and complete responsibility for their country’s security. At the time of my arrival, Iraqi security forces were, for all practical purposes, nonexistent. There was, for example, only one — yes, one — Iraqi army battalion and it was composed of various ethnic and sectarian elements. Today, there are some 600,000 Iraqi security forces and important strides have been made toward giving Iraq’s security organizations a national rather than partisan character. This is no small achievement; it has taken seven years to accomplish and only after some false starts and perilous moments.

In the wake of the Samarra Mosque bombing in 2006 and the ensuing sectarian strife, those of us concerned with Iraq could not have imagined the dramatic reversal of fortunes that would occur in the ensuing two years — the death of al Qaeda in Iraq leader Abu Musab al-Zarqawi, the liberation of Basra by the Iraqi army, and the extension of the government’s authority to the country as a whole. By 2008, these improvements had given the government of Iraq the necessary self-assurance to negotiate the withdrawal arrangements that are now being implemented.

But can Iraq really remain stable once U.S. troops have completely withdrawn? While there are no guarantees, the prospects for Iraq’s security and stability beyond 2011 look as good or better than they have at any time in the recent past. The Iraqi army now has close to 200 trained combat battalions, a formidable increase from the somber days when I arrived in 2004, and they are spread throughout the country. The specter of sectarianism poisoning the ranks of Iraqi military and police forces remains the single most serious threat to be guarded against. But progress since the 2007 surge in nurturing the army and police as truly national institutions has been encouraging. Vigilance and political maturity will be needed to ensure that this positive trend continues.

Conn Carroll at Heritage

Max Boot at The Wall Street Journal:

Americans can take pride in how Iraq has developed. But have we truly “won” the war? That is a hard question to answer.

Opponents of the war effort—including Barack Obama and Joe Biden—once had an interest in saying that the war was unwinnable. Now they claim that we should sit back, relax and prepare for a smooth on-time departure. If only.

Iraq has made tremendous strides, but it still has a long way to go. Violence has fallen more than 90% since 2006. Al Qaeda in Iraq has lost most of its leadership. The Jaish al Mahdi, Moqtada al-Sadr’s militia, has been silenced. But this uneasy peace is still broken by too many acts of terrorism. One still reads headlines like this one, from earlier this week: “61 Killed in Bomb Attack on Iraqi Army Recruits.” Baghdad is considerably safer than it once was but is still more dangerous than Kabul, where I’ve also visited recently. Iraq had clean elections in March but still has no new government. Investors are holding off committing funds, the Iranians are licking their chops, and various militias are nervously fingering the triggers of their AK-47s.

Iraq’s future is still to be determined: Will it continue on the path of prosperity and democracy? Will it emerge as a key American ally in the Middle East? Or will it regress into civil war or dictatorship? U.S. forces still have a vital mission: to ensure that a newly sobered Iraq does not fall off the wagon and once again imbibe the deadly brew of ethno-sectarian violence.

The primary remaining military mission is to continue providing support to the Iraqi security forces. There are now 440,000 Iraqi police and 220,000 Iraqi soldiers, but they still lack the capacity to defend their own borders. The U.S. plans to deliver M-1 tanks and F-16 fighters to Iraq, but it will be many years before the Iraqis can operate such sophisticated weapons systems on their own. In the meantime they cannot even control their own air space; that will remain the job of American personnel. The U.S. Navy will continue to safeguard Iraq’s main oil export terminal near the southern city of Basra.

The remaining political mission is even more important—to reassure all sides in Iraq’s fractious politics that their opponents will not resort to the car bomb or the powerdrill-through-the-temple to get their way. Iraq is still recovering from the trauma of internecine bloodletting—as are, for example, Bosnia and Kosovo. In Bosnia it has been 15 years since the guns went silent; in Kosovo 11 years. In both places thousands of foreign troops remain to safeguard a fragile peace.

It would be the height of hubris—the kind once displayed by George W. Bush’s prematurely proclaimed “Mission Accomplished”—to suggest that Iraq, a country of more than 25 million, needs less help in its post-conflict transition than did the micro-states of the former Yugoslavia.

Allah Pundit:

The last combat troops are out and now 50,000, er, “advisors” remain. It’s not the end of the war, in other words, but as a not-so-grim milestone for a lot of guys who are no longer in harm’s way, it’s a moment worth celebrating. Rather than waste your time by blathering at you, let me give you some reading and viewing material. Watch the two clips below from NBC, which, to its credit, did a bang-up job in covering the occasion. And note well Col. Jack Jacobs’s reminiscence about being sent to Vietnam after combat had supposedly ended there too. The fighting isn’t over yet; the question is who’ll be doing it from now on. And the NYT has an answer sure to please liberals of all stripes: “Mercenaries.”

To protect the civilians in a country that is still home to insurgents with Al Qaeda and Iranian-backed militias, the State Department is planning to more than double its private security guards, up to about 7,000, according to administration officials who disclosed new details of the plan. Defending five fortified compounds across the country, the security contractors would operate radars to warn of enemy rocket attacks, search for roadside bombs, fly reconnaissance drones and even staff quick reaction forces to come to the aid of civilians in distress, the officials said…

The department’s plans to rely on 6,000 to 7,000 security contractors, who are also expected to form “quick reaction forces” to rescue civilians in trouble, is a sensitive issue, given Iraqi fury about shootings of civilians by American private guards in recent years. Administration officials said that security contractors would have no special immunity and would be required to register with the Iraqi government. In addition, one of the State Department’s regional security officers, agents who oversee security at diplomatic outposts, will be required to approve and accompany every civilian convoy, providing additional oversight.

It’s the State Department’s show now, on an “unprecedented” scale for such a dangerous area. But can they run it with so few troops left in the country if the electoral stalemate between Maliki’s and Allawi’s factions blows up? (Ryan Crocker: “Our timetables are getting out ahead of Iraqi reality.”) That’s the story you want to read if you’re interested in the “what now?” angle. If you’re looking for something more human, i.e. troop reactions on finally getting to leave, MSNBC’s and WaPo’s pieces are the way to go.

UPDATE: James Joyner

Andrew Berdy at Tom Ricks place at Foreign Policy

Chris Bodenner at Andrew Sullivan’s place

UPDATE #2: Max Fisher at The Atlantic with another round-up

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