Archive | May, 2008

Economic Security vs. Growth

21 May

Mark Thoma has smart things to say about the assumed tradeoff between a more dynamic economy and a more secure one:

After the Great Depression, and also after World War II, we had significant changes in the level of economic security (and there were more changes in the 1960s with the Great Society programs), but we didn’t seem to sacrifice anything in terms of economic growth, at least not as measured against other countries in the world. Now that security has eroded over the last several decades, it’s hard to see how returning to previous levels will somehow destroy our flexibility and competitiveness, and it’s not at all clear that modest steps beyond previous levels of security would have any significant impact either, particularly steps like universal health care (which could help businesses as well as their employees). So maybe the contradiction isn’t so vexing after all.

I’ve always wondered why greater economic security couldn’t, to some extent, reinforce economic growth by cutting down on the resources firms used to manage risk (like struggle with labor unions who want to keep their benefits).  One would think lowering the risk burden would lead to a more efficient allocation of capital.

Der Spiegel’s Strange American Political Coverage

21 May

One of the more bizarre and frustrating reads of the 2008 presidential race has been Gabor Steingart’s “West Wing” column for Germany’s Der Spiegel.  It’s not because Steingart has been a strong skeptic of an Obama nomination since the beginning of the primaries, it’s that his skepticism is symptomatic of a larger misunderstanding of the American political scene.  Consider this from last week’s column in which Steingart begins sensibly enough by admitting that Obama is the likely nominee:

The right to make mistakes has been exercised extensively during this campaign, at times also by the author of this column. “All of those people who’ve been dreaming of America’s first black president now have to slowly wake up. It’ll happen one day, hopefully, but not in this election,” it was claimed after Barack Obama’s losses in New Hampshire and Nevada. The column was entitled “The End of the Obama Revolution.” (more…)

The chances that the next US president will be black and a Democrat are better than ever before in American history. The revolution continues — even if the skepticism remains.

What we are talking about here, though, is not a series of mistakes. It’s betrayal. During this election campaign, a large part of the American media has neglected to carefully follow the principles of the profession. In fact, some were about as loyal to those principles as Eliot Spitzer to his wife.

Okay, so contra Steingart’s earlier ananlysis, Obama isn’t too black or inexperienced for American voters.  And why was Steingart mistaken?  Had he misread the current political moment? Nope, it’s because the American electorate (and by implication, Steingart) were betrayed by journalists who are less interested in subtantive policy discussions than style and gaffe reporting:

Many questions could be posed that are hard to beat in terms of drama. What would happen if the Democrats really were to withdraw the US Army from Iraq? How does Barack Obama plan to address the threat that the killing fields of Cambodia could be repeated in Basra and Baghdad? Does he have a plan or even an idea for dealing with the day after?

How do the Republicans plan to end the scandal of the uninsured? Some 47 million people in America now have no health insurance. Around 9 million have been added to that total during the seven years George W. Bush has been in power. This is the greatest market failure since the invention of modern capitalism.

Will Steingart be doing more than rhetorically asking about either Obama’s Iraq plans or McCain’s healthcare proposal, as if neither of these things exist?  No, he will not. But these questions are relatively easy to answer. Former Obama adviser Samantha Power made it clear (as Jonathan Chait recently noted) that any withdrawal plan will be shaped by facts on the ground, not on some months-old campaign speculation.  And John McCain does indeed have a plan–just not, as Ezra Klein (another journalist!) has pointed out, not a very good one.  Granted, there are problems with the coverage of campaigns and policy issues (something that Ezra Klein also covered incisively in this LA Times op-ed).  But Steingart’s problem stems from a confused perspective of the American political landscape.  Take this comment from his latest column suggesting that conservative parties worldwide are heading left:

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Yinz Love the Stanley Cup

19 May

If you haven’t been following the NHL playoffs, the Pittsburgh Penguins have made it to the Stanley Cup finals. Adding to the sweetness is that they defeated the Philly Flyers handily in a 4-1 series¹. And the Pens whooped them but good in game five. If you want to see the play-by-play (and you do) need to watch the Jim Shearer (of MTV2 fame) online recaps known as “Yinz Love Da’ Guins”:

6-0 Pens. Ouch.

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¹ If you’re a Flyers and Eagles fan, please don’t hurt yourself.

Fake Policy Commentary

19 May

[Subtitle: Of Course You Need Another Blog Post About Foreign Policy and Comic Books]

I’m in general agreement with this Spencer Ackerman article about imperialism and Iron Man, but the concluding sentence leads to some unintentional policy consequences, at least in the comic book world:

America either needs to submit the Iron Man armor to a series of institutions to govern its just use, or it needs to take off the suit once and for all.

I wonder what a series of institutions governing Iron Man might look like.  Perhaps a superhuman registration act?  Uh oh.  That can’t lead to good things.