Archive for April, 2009
Appointees Are Like Astronauts
Did you ever notice how astronauts are praised simply for being astronauts? They have heroism imputed to them simply for what they might do in the future.
So it is with political appointees, such as the chief technology officer President Obama named Saturday morning during his weekly radio and Internet address. Reports the Wall Street Journal:
Silicon Valley execs and tech bloggers sounded genuinely excited about Obama’s choice Saturday morning and tech industry lobbying groups TechNet and the Business Software Alliance quickly released statements of support, as did several tech heavyweights.
Would any group with business before the government, hoping for influence and goodies from the White House, not praise an appointee? We learn from these paeans precisely nothing.
To me, Aneesh Chopra is an empty vessel. He looks like a nice person and appears to have suitable experience for the job he’s been named to. My substantive comments about him will wait until there is something on which to comment. I look forward to his first space-walk.
Miron, Calabria Join Cato Institute
Jeffrey Miron, Director of Undergraduate Studies at Harvard’s Department of Economics, has joined the Cato Institute as a Senior Fellow.
“I am delighted to be working with Cato,” Miron said. “This is a crucial moment in our nation’s history, and Cato’s mission – increased understanding of the virtues of limited government, free markets, individual liberty, and peace - has rarely been more important.”
Miron will help Cato’s economic team promote dynamic market capitalism and economic freedom through media appearances and policy analyses, in addition to speaking engagements and outreach to the academic community. He is the author of Drug War Crimes: The Consequences of Prohibition (Independent Institute, 2004) and The Economics of Seasonal Cycles (MIT Press, 1996), in addition to numerous opeds and journal articles.
Miron will retain his affiliation with Harvard. Prior to joining Harvard, he served as chairman of the Department of Economics at Boston University. Miron received his Ph.D. in economics from the Massachusetts Institute of Technology.
Mark Calabria, a veteran staff member of the Senate Committee on Banking, Housing & Urban Affairs, has joined the Cato Institute as Director of Financial Services Regulation.
“I join Cato with a great sense of excitement and urgency,” Calabria said. “Cato has long been a strong, and sometimes the only, voice for expanding and protecting individual choice. We are confronted with stark choices regarding the regulation of our financial markets: whether to expand the role of politics in deciding who will get credit and what institutions will fail. In a time when markets and freedom are being questioned and attacked, Cato’s mission of understanding the impact of government proposals is all the more necessary.”
Calabria will lead Cato’s efforts in developing solutions to what ails the U.S. financial markets that do not include more oppressive government regulation. He will also help educate the public, via media appearances and other outreach, as to how the government itself contributed heavily to the disruptions now occurring in the financial sector.
In addition to his work on Capitol Hill, Calabria served as Deputy Assistant Secretary for the Office of Consumer and Regulatory Affairs, U.S Department of Housing and Urban Development, and was also senior economist at the National Association of Realtors. Calabria earned his Ph.D. in economics from George Mason University.
“We are delighted to have two of the nation’s most effective proponents of free markets and individual liberty on board now at Cato,” said Cato founder and president Ed Crane. “Mark Calabria and Jeff Miron are distinguished economists who will play an important role in advancing Cato’s mission in the months and years ahead.”
The CIA Is Not the Nation’s Security
Michael Hayden went on Fox News Sunday this week, fiercely objecting to the Obama administration’s release of Bush-era memos regarding “enhanced interrogation techniques.” He and three other former CIA directors objected to the release.
That common front might draw the memo release into doubt if it wasn’t a given that CIA directors are always going to defend the interests of the CIA.
Hayden trotted out the tired “war” on terror metaphor. This framing may be exciting to him and his colleagues, but it is strategic error to address terrorism this way, and the American public chose a presidential candidate last November who campaigned to emphasize hope over fear. Intoning about war did not help Hayden’s case.
The heart of his argument was that release of the memos would allow our enemies to train for “enhanced interrogation techniques” and that we would lose the benefits of those techniques. But a telling moment came when he shifted his argument:
There’s another point, too, that I have to make, and it’s just not the tactical effect of this technique or that. It’s the broader effect on CIA officers. I mean, if you’re a current CIA officer today – in fact, I know this has happened at the agency after the release of these documents – officers are saying, “The things I’m doing now – will this happen to me in five years because of the things I am doing now?”
Moving from tactical considerations to the “broader effect,” Hayden spoke of how the memo release would chill CIA activity. That’s not irrelevant, but it’s not the broader effect that matters: the strategic effect of using torture in counterterrorism activity. Like the myopic critic I wrote about in my post last week, Hayden is not focused on countering the strategic logic of terrorism, but on defending the interests of the agency he headed.
Chris Wallace showed a brief clip of White House press secretary Robert Gibbs criticizing “enhanced interrogation techniques” on a strategic level: “It is the use of those techniques . . . in the view of the world that [has] made us less safe.” Being a secretive torturer drives allies away from the United States.
Hayden didn’t get it, answering, “Most of the people who oppose these techniques want to be able to say, ‘I don’t want my nation doing this,’ which is a purely honorable position, ‘and they didn’t work anyway.’ That back half of the sentence isn’t true.”
Against the argument that the use of torture is strategic error, Hayden responded, “But it works!” Arguing its tactical utility does not meet the strategic case against torture.
And Hayden was well back on his heels when asked whether Khalid Sheikh Mohammed was waterboarded 183 times in one month.
Hayden is a fierce defender of the CIA. The CIA provides some elements of the nation’s security. But the CIA is not the nation’s security.
The Wonders of Socialized Dentistry
As we all know, the American health care system is less than perfect. An inefficient amalgam of government spending, federal tax incentives, employer-based insurance, and private providers, the U.S. system costs us more than it should for the services provided. Nevertheless, medicine in America remains far more directed by and for patients, in contrast to nationalized systems, which are usually organized by and for bureaucrats.
The results sometimes are horrific. Indeed, the best way to understand the consequences of Britain’s National Health Service is simply to read stories in British newspapers. Consider this one in the Daily Mail about the lack of adequate dental care:
Like so many young women, Amy King always took great pride in her appearance.
Standing in front of the mirror to check her make-up before a night out, the 21-year-old would always try a smile – friends told her they loved the way it lit up her face.
Eight weeks ago, all that changed. The student from Plymouth was admitted to hospital where, in a single operation, she had every tooth in her mouth removed.
Obviously, not all foreign systems do so little for their patients. France, Germany, and Switzerland all provide care differently, and in all of these nations people receive better treatment than in Britain. But no where is turning health care over to government the best way to ensure quality yet affordable medical care. Instead, control over health care should be placed back in the hands of those who have the most at stake: patients.
Washington’s Government-Centric View of the World
Too many people in Washington look out upon the beauty and bounty of America and see a vast wasteland, enlivened only by government programs. If government isn’t doing it, they think, then it isn’t being done. When the Republicans threatened to nick the budget of the National Endowment for the Arts, First Lady Hillary Rodham Clinton wailed that the proposal “not only threatens irrevocable damage to our cultural institutions but also to our sense of ourselves and what we stand for as a people.” Seriously, she thought that if the then-$167 million of the NEA were eliminated, the $37 billion that Americans spent on the arts that year would somehow disappear in a puff of smoke?
Sen. Edward M. Kennedy was even more sweeping when he said in 1992, “The ballot box is the place where all change begins in America” — conveniently forgetting the market process that has brought us such changes as the train, the skyscraper, the automobile, the personal computer, and charitable or self-help endeavors from settlement houses to Alcoholics Anonymous to Comic Relief.
And today the Washington Post weighs in with the chart below. It’s titled “Percent of GDP spent on social/family expenditures,” and it shows the United States at a shockingly low 0.7 percent, while Obama-esque countries like Sweden and France are above 3 percent. But could it really be true that America spends less than 1 percent of its wealth on families and children? Of course not. The proper title for the chart would be “Percent of GDP spent by government on social/family expenditures.” (Indeed, given the federal nature of the United States, it’s possible that the proper title would be “Percent of GDP spent by the central government on social/family expenditures.”) Every American family spends a large portion of its income on children’s needs, and a larger portion on the needs of children and parents.
The point of the article, as the caption above the chart indicates, is to argue that the Japanese government needs to spend more on programs that would encourage women to join the paid workforce. (If the government hired all the mothers in Japan and paid them to care for their neighbors’ children, would that be a better world? It certainly would raise Japan’s position on the Post’s chart!) If that’s what Post reporters believe, they’re certainly free to advocate that position. But they shouldn’t assume or imply that the government is the entire society. Families in Japan and the United States spend most of their income — or at least most of their after-tax income — on child and family needs. The chart ignores that reality and seeks to make Japanese and Americans embarrassed that government taxes and spends less in their countries than in the European welfare states.
Rare Duncan-Free Friday
As readers of this blog, and other fine blogs, have no doubt noticed over the last few weeks, Fridays have been kind of popular with the Obama administration for quietly doing questionable education stuff. Well somehow we’ve gotten through this Friday (as far as we know) without Obama and company trying to slip anything past us, leaving us with nothing new to add to recent posts like this one, and this one, and this one.
Look at this as a blessing, and a chance to catch up on all the recent federal edu-action by checking out today’s Cato Daily Podcast featuring yours truly. I give a quick summary of what the Obama administration has promised and done to date, and a prediction of what it will — and won’t — do when edu-push finally comes to edu-shove. It’s a perfect bit of listening for a surprisingly uneventful Friday afternoon.
People Are Discovering A Beautiful Read
I’m a bit ashamed to admit it: I just finished reading The Beautiful Tree, Professor James Tooley’s new book recounting his remarkable travels through some of the world’s poorest slums discovering for-profit private school after for-profit private school. I’m ashamed because The Beautiful Tree is a Cato book and I should have read it long before it became publicly available. Fortunately, it seems many people outside of Cato caught on to the importance of Tooley’s work the moment they heard about it.
Yesterday, the Atlantic‘s Clive Crook blogged about Tooley’s book, calling Tooley “an unsung hero of development policy” for bringing to light — and refusing to let others blot that light out — how mutual self-interest between entrepreneurs and poor families brings education to the world’s poorest children. And there’s the companion story: How billions of government dollars have erected some relatively nice public school buildings but have created an utterly dilapidated public school system, one that enriches government employees while leaving children — sometimes literally — to fend for themselves.
In addition to the blogosphere, the national airwaves have begun carrying the uplifting story of Tooley’s findings. On Wednesday, ABC News NOW ran a lengthy interview with Prof. Tooley in which he laid out many of the book’s major themes. And the book was only released, for all intents and purposes, that same day; much more coverage is no doubt forthcoming.
It needs to be.
The Beautiful Tree, quite simply, contains lessons applicable not only to slums or developing nations, but to all people everywhere, and they need to be learned. In the United States, whether the subject is government-driven academic standards or the desirability of for-profit education, this book offers essential insights. But many readers will find the overall lesson tough to take: The cure for what ails us is not more government schooling — providing education the way we think it’s always been done — but embracing freedom for both schools and parents.
Whether or not this lesson is tough to stomach, it must be acknowledged by all who honestly seek what is best for our children. For as Tooley’s work makes abundantly clear, denying reality — no matter how unexpected or politically inconvenient it may be — only ends up hurting the people we most want to help.
The Tea Parties
There hasn’t been much here on the Cato blog about the Tea Parties this week, so I thought I should write a bit about them.
A number of sources report around 750 individual events across the country, from small towns to big cities. Hundreds of thousands of people attended.
Many if not the vast majority of these people do not go to protests or even political rallies. My parents, who sent along the pictures below of the large rally in Cincinnati, do not do big crowds or political events. Neither do many of their friends. But they were there.
The general tenor and talk were non-partisan — people are angry at both political parties for many of the same reasons: spending, growth of government, and the ever-expanding reach of federal involvement in every aspect of our lives.
It’s not just the first months of the Obama presidency that produced this reaction among normal citizens who have never before come out for political protests. The frustration on display has been building for years under Republican control. The last sad gasp of the Bush administration bailouts and the explosion of previously inconceivable spending under a Democrat-controlled government have simply pushed many common citizens well past passivity.
It’s not about party. It’s about freedom and responsibility.
These Tea Parties won’t change anything, but they are an ominous sign for our political class and a heartening one for the future. Citizens are drawing strength and encouragement from the events that could translate into voting and political action that brings real change, not just a doubling-down on failed policy.
Hope springs eternal . . .
Use Your Career Deferment to Work for Liberty
Many law firms are asking their incoming first-year associates to defer their start dates (from a few months to a full year) and are offering stipends to these deferred associates to work at public interest organizations.
The Cato Institute invites third-year law students and others facing firm deferrals to apply to work at our Center for Constitutional Studies. This is an opportunity to assist projects ranging from Supreme Court amicus briefs to policy papers to the Cato Supreme Court Review.
Interested students and graduates should email a cover letter, resume, transcript, and writing sample, along with any specific details of their deferment (timing, stipend, availability, etc.), to Jonathan Blanks at jblanks@cato.org.
Please feel free to pass the above information to your friends and colleagues. For information on Cato’s programs for non-graduating students, contact Joey Coon at jcoon@cato.org.
Week in Review: Tax Day, Pirates and Cuba
Tax Day: The Nightmare from Which There’s No Waking Up
Cato scholars were busy exposing the burden of the American tax system on Wednesday, the deadline to file 2008 tax returns.
At CNSNews.com, tax analyst Chris Edwards argued that policymakers should give Americans the simple and low-rate tax code they deserve:
The outlook for American taxpayers is pretty grim. The federal tax code is getting more complex, the president is proposing tax hikes on high-earners, businesses, and energy consumers; and huge deficits may create pressure for further increases down the road…
The solution to all these problems is to rip out the income tax and replace it with a low-rate flat tax, as two dozen other nations have done.
At Townhall, Dan Mitchell excoriated the complexity of the current tax code:
Beginning as a simple two-page form in 1913, the Internal Revenue Code has morphed into a complex nightmare that simultaneously hinders compliance by honest people and rewards cheating by Washington insiders and other dishonest people.
But that is just the tip of the iceberg. The tax code also penalizes economic growth, distorts taxpayer behavior, undermines American competitiveness, invites corruption and promotes inefficiency.
Mitchell appeared on MSNBC, arguing that every American will soon see massive tax hikes, despite Washington rhetoric.
Don’t miss the new Cato video that highlights just how troubling the American tax code really is.
U.S. Navy Rescues Captain Held Hostage by Somali Pirates
USA Today reports that the captain of a merchant vessel that was attacked by Somali pirates was freed Monday when Navy SEAL sharpshooters killed the pirates. The episode raises a larger question: How should the United States respond to the growing threat of piracy in the region?
Writing shortly after Capt. Richard Phillips was freed, foreign policy expert Benjamin Friedman explained the reasons behind the increase in piracy:
It’s worth noting the current level of American concern about piracy is overblown. As Peter Van Doren pointed out to me the other day, the right way to think about this problem is that pirates are imposing a tax on shipping in their area. They are a bit like a pseudo-government, as Alexander the Great apparently learned. The tax amounts to $20-40 million a year, which is, as Ken Menkhaus put it in this Washington Post online forum, a “nuisance tax for global shipping.”
The reason ships are being hijacked along the Somali coast is because there are still ships sailing down the Somali coast. Piracy is evidently not a big enough problem to encourage many shippers to use alternative shipping routes. In addition, shippers apparently find it cheaper to pay ransom than to pay insurance for armed guards and deal with the added legal hassle in port. The provision of naval vessels to the region is an attempted subsidy to the shippers, and ultimately consumers of their goods, albeit one governments have traditionally paid. Whether or not that subsidy is cheaper than letting the market actors sort it out remains unclear to me.
Appearing on Russia Today, Friedman discussed the implications of the increased threat and what ships can do to avoid future incidents with Somali pirates.
Since the problems at sea are related to problems on Somali land, what can Western nations do to decrease poverty and lawlessness on the African continent? Dambisa Moyo, author of Dead Aid, argued at a Cato Policy Forum last week that the best way to combat these issues is to halt government-to-government aid, and proposed an “aid-free solution” to development based on the experience of successful African countries.
Obama Lifts Some Travel Bans on Cuba
The Washington Post reports:
President Obama is lifting some restrictions on Cuban Americans’ contact with Cuba and allowing U.S. telecom companies to operate there, opening up the communist island nation to more cellular and satellite service… The decision does not lift the trade embargo on Cuba but eases the prohibitions that have restricted Cuban Americans from visiting their relatives and has limited what they can send back home.
In the new Cato Handbook for Policymakers, Juan Carlos Hidalgo and Ian Vasquez recommend a number of policy initiatives for future relations with Cuba, including ending all trade sanctions on Cuba and allowing U.S. citizens and companies to visit and establish businesses as they see fit; and moving toward the normalization of diplomatic relations with the island nation.
While Obama’s plan is a small step in the right direction, Hidalgo argues in a Cato Daily Podcast that Obama should take further steps to lift the travel ban and open Cuba to all Americans.
Fighting Piracy through Nation Building?
Even though I was on vacation last week, I followed the story of the Maersk-Alabama and Captain Richard Phillips with great interest. And I exulted when three of the four pirates met their end. The safe return of the Maersk-Alabama and her entire crew was a clear win for the cause of justice, and could serve as a model. Future efforts to protect ships from pirates are likely to include some combination of greater vigilance on the part of the shipping companies and crews, in collaboration with the navies of the many different nations who have an interest in keeping the sea lanes open and free. (This is one of the themes that I develop in my new book, and that I will discuss next Monday at Cato.)
We do not need to reorient our grand strategy to deal with pirates. We don’t need to reshape the U.S. Navy to fight a motley band of young men in leaky boats. As my colleague Ben Friedman has written, piracy is a problem, but decidedly minor relative to many other global security challenges.
But some are criticizing the approach taken to resolve last week’s standoff. They say that the only way to truly eliminate the piracy problem is to attack and ultimately clean out the pirates’ sanctuaries in lawless Somalia. This “solution” fits well with the broader push within the Washington foreign policy community that would deal with our security problems by fixing failed states.
I have gone on at length, usually with my colleagues Justin Logan and Ben Friedman, on the many reasons why an overarching strategy for fixing failed states is unwise and unnecessary. I won’t expand on that thesis here, other than to point out that of all failed states in the world, Somalia is arguably the most failed. “Fixing” it would require a massive investment of personnel, money, and time — resources that would be better spent elsewhere.
Mackubin Owens offers one of the more intriguing defenses of this approach in a just published e-note for the Foreign Policy Research Institute. Owens likens a strategy of fixing Somalia to Gen. Andrew Jackson’s military operations in Florida, a story that features prominently in John Lewis Gaddis’s Surprise, Security and the American Experience. As Owens notes, when some members of President James Monroe’s cabinet wanted to punish Jackson for exceeding his mandate — in the course of his military campaign he captured and executed two British citizens accused of cavorting with the marauders who had attacked American citizens — Secretary of State John Quincy Adams jumped to Jackson’s defense and proposed a different tack. He demanded that Spain either take responsibility for cleaning up Florida or else give it up. And we all know what happened. Under the terms of Adams-Onis Treaty of 1819, Florida became a territory of the United States. Some 26 years later, it became our 27th state.
I’ve vacationed in Florida many times. Walt Disney World is wonderful for the kids; I’ve been there six times. I spent three memorable days watching March Madness in Miami a few years back. Spring training baseball is great fun. Adams couldn’t have imagined any of these things when he acquired a vast swampland; he cared only that Florida under Spanish control, or lack thereof, posed a threat.
Obama and the Interrogation Memos: The Right Decision
President Obama’s decision to release Bush-era memos discussing “enhanced interrogation techniques” is the right decision. Critics, such as the one featured in this Politico article, fail to comprehend terrorism as a strategy. Thus, they are locked into counterproductive policies like secrecy and torture.
Let’s start with the strategic logic of terrorism: By goading strong powers into overreaction and error, terrorism weakens those powers and strengthens itself. Among other things, overreaction and misdirection on the part of the strong power draw sympathy and support to terrorists as it confirms the terrorist narrative that they are in a struggle against evil powers.
Torture or credible accounts of torture provide confirmation of a suspicion among relatively unsophisticated observers in the Middle East (once known as the “street“) that the United States is a colonist and an oppressor of Muslims and Arabs. Secrecy is a way in which such stories grow and multiply. The results of torture and secrecy are millions of people who believe, suspect, or worry that they and their culture are on the losing end of a battle for supremacy in the world. (We have some of those on the American street, too.)
From these millions emerge individuals and groups — eventually perhaps networks — who devote their creativity to developing and eventually mounting attacks on the United States and the West. (The path to terrorism is not simple or well-understood. Several panels in our January counterterrorism conference explored dimensions of this question.)
Just as important, non-participants in terrorism who are ideologically or physically nearby to inchoate terrorists decline opportunities to undermine the terrorism brewing around them. Terrorists are bad people with ugly ideologies, and their neighbors know it, but these neighbors will overlook all that if they see the United States as a wrongdoer. Because of secrecy and torture, the United States loses these natural allies and the security they would otherwise provide.
But what about the loss of enhanced interrogation techniques? “Publicizing the techniques does grave damage to our national security by ensuring they can never be used again,” says a critic, “even in a ticking-time-bomb scenario where thousands or even millions of American lives are at stake.”
The ticking-time-bomb scenario is a movie plot that evidently thrills some in the counter-terrorism community. But the chance of a significant weapon being acquired and used by terrorists is very small. The chance that U.S. authorities will know about it and know who to interrogate at just the right moment: pure fantasy. Such a moment would only arrive as the result of many, many failures on the part of U.S. intelligence and security organizations to protect our interests.
Even assuming that torture actually works, which is very much in dispute, the security given by having the sympathy of millions of people in the Muslim and Arab worlds is much, much greater than the security of having legal authorization to torture. The security of having world goodwill helps ensure that we never arrive at the ticking time-bomb moment.
If that’s frustrating to torture hawks, there are video games where they can avenge the 9/11 attacks over and over again. The rest of us will rue the failings that allowed 9/11 to happen while we work on sophisticated, strategic counter-terrorism that actually secures the country. Many in the intelligence and security communities have sophisticated views on counter-terrorism and are eager to get on with policies that aren’t counterproductive.
President Obama has made the right decision in releasing the memos — and not just right in some abstract legal or moral sense. It is the correct strategic decision for countering terrorism.
His critics’ focus on one or two trees — saplings like the “ticking time-bomb” fantasy — obscures the forest that would grow higher still should the United States persist in being a secretive torturer.
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