Vikings and Pirates and Taxes, Oh My!
Today’s episode of “Hagar the Horrible” could be an epigraph for the new Fall 2009 issue of Cato Journal.
This issue includes Greek economists Michael Mitsopoulos and Theodore Pelagidis on “Vikings in Greece: Kleptocratic Interest Groups in a Closed, Rent-Seeking Economy” as well as Peter Leeson, author of The Invisible Hook: The Hidden Economics of Pirates, writing (with David Skarbek) on the effects of foreign aid. As for taxes, well, editor Jim Dorn has assembled a number of useful papers:
- Andrew T. Young on taxing, spending, and “fiscal illusion”
- Michael J. New on the “starve the beast” hypothesis
- Alan Reynolds on Paul Krugman’s misunderstanding of the monetary and fiscal lessons of the Great Depression and Japan’s lost decade
And on the general rapaciousness of the state, don’t miss Jason Kuznicki’s careful review of government racial discrimination from the end of Reconstruction until the civil rights movement.
Filed under: Cato Publications; General; Tax and Budget Policy
Who’s the Isolationist?
There may be no more vicious epithet from neoconservatives these days than “isolationist.” One would think the term would mean something like xenophobic no-nothings who want to have nothing to do with the rest of the world. No trade or immigration. Little or no cultural exchange and political cooperation. Autarchy all around.
But no. ”Isolationist” apparently means something quite different. Never mind your views of the merits of international engagement. If you don’t want to kill lots of foreigners in lots of foreign wars you are automatically considered to be an isolationist.
President Bill Clinton called Republican legislators “isolationists” for not wanting to insert the U.S. military into the middle of a complex but strategically irrelevant guerrilla conflict in Kosovo. (He made the same criticism against them for not supporting even more money for foreign aid, which presumably meant the Heritage Foundation was filled with isolationists at the time).
But the definition is even broader today. It means not willing to go to war for any country that clamors for a security guarantee irrespective of its relevance to American security. At least, that appears to be the definition applied by Sally McNamara of Heritage.
On Monday in National Interest online I criticized the argument advanced by Ms. McNamara and others that alliances and military commitments automatically prevent war. More specifically, the claim is that if only the U.S. would bring the country of Georgia into NATO — or simply issue a Membership Action Plan, which neither offers a security promise nor guarantees NATO membership — Moscow would never dare take the risk of attacking Georgia.
History suggests this is a dangerous assumption. Both World Wars I and II featured alliances that were supposed to prevent conflict but which instead acted as transmission belts of war. One can argue whether or not the alliances were prudent. One cannot argue that they prevented conflict as so many people thought (and certainly hoped) they would.
Thus, alliances should be viewed as serious organizations. A promise to defend another nation should be treated as a momentous undertaking. And the public should be aware of all of the risks of policies advanced by the nation’s leaders. This should go double when a nuclear-armed power is involved and treble when the geopolitical stakes are trivial for the U.S. while significant for the opposing state.
For suggesting this Ms. McNamara argues that I am both an isolationist and a neo-isolationist. (I’m not sure of the difference between the two. Maybe the latter indicates that she realizes I believe in free trade, increased immigration, and international cooperation, which makes for a curious kind of “isolationism.” Still, advocating a reduction in military commitments and the consequent risk of war, rather than a policy of galloping about the globe tossing security guarantees hither and yon, apparently means I am at least a “neo-isolationist.”)
Even worse, I am accused of “appeasement” for suggesting that being prepared to trade Washington for Tbilisi is a bad bargain. Ah, the “A” word. To count the cost and not support every commitment, no matter how distant or irrelevant, is the same as encouraging the next Adolf Hitler.
Please.
Even as America’s Troops Leave Iraq, the Waste Goes On
The U.S. government has been providing so-called foreign aid for decades, but the waste never stops. So it is in Iraq.
Provincial reconstruction teams in Iraq are scrambling to submit a large number of multimillion-dollar aid project proposals by July 15, something critics suggest will result in a rash of big construction projects they were never intended to run.
Further, they say, big-budget projects are being put forward too quickly, are too ambitious given the scheduled 2011 withdrawal from Iraq and are crowding out simpler schemes.
“Our goal is not necessarily to help [Iraqis] with building projects,” said Rick Gohde, an engineer with the Diwaniyah provincial reconstruction team, known as PRT. “We are supposed to be beyond that. We are supposed to be training them to sustain themselves as we are getting ready to leave.”
Capt. Doug Weaver, 28, a civil affairs soldier who acts as a liaison between the military and the Diwaniyah PRT, said Monday that close to $600 million of military aid funding was made available to the PRTs last month countrywide through the Commanders Emergency Relief Program, or CERP. The funds, made available by Congress, are only available through September 30 and the deadline for project proposals exceeding $1 million is next Wednesday, officials said.
Weaver, who studied industrial engineering before he deployed, identified numerous big projects in Diwaniyah vying for CERP funds, including new electrical substations ($1 million to $1.5 million), city sewers ($750,000 to $1.25 million), an agricultural school dormitory ($1.2 million), women’s centers to provide job training for divorcees and widows ($2 million), vocational schools ($500,000 each) and upgrades to Iraqi government communications networks.
Iraqi contractors will bid for the construction work, which is expected to employ more than 1,000 local laborers in Diwaniyah alone.
But Gohde said the PRTs are not supposed to be involved in the sort of “bricks and mortar” construction that most of the big budget projects involve.
In southern Afghanistan, construction projects supported by foreign aid, such as schools and medical clinics, stand as empty shells because Taliban militants have frightened students and patients away.
“There’s been some of that in this country,” Gohde said. “I’ve heard of schools being built with no furniture or teachers. There are projects that are constructed with the best of intentions that are not utilized in the original intent or utilized at all,” he said.
Oh, well. It’s only money, as they say. And with Uncle Sam running a roughly $2 trillion deficit this year, what’s a few wasted millions (or even hundreds of millions) among friends? I’m sure next time the government will get it right!
Filed under: Foreign Policy and National Security; International Economics and Development; Tax and Budget Policy
Global Taxes and More Foreign Aid
The U.K.-based Guardian reports that the United Nations and other international bureaucracies dealing with so-called climate change are scheming to impose global taxes. That’s not too surprising, but it is discouraging to read that the Obama Administration appears to be acquiescing to these attacks on U.S. fiscal sovereignty. The Administration also has indicated it wants to squander an additional $400 billion on foreign aid, adding injury to injury:
…rich countries will be asked to accept a compulsory levy on international flight tickets and shipping fuel to raise billions of dollars to help the world’s poorest countries adapt to combat climate change. The suggestions come at the start of the second week in the latest round of UN climate talks in Bonn, where 192 countries are starting to negotiate a global agreement to limit and then reduce greenhouse gas emissions. The issue of funding for adaptation is critical to success but the hardest to agree. …It has been proposed by the world’s 50 least developed countries. It could be matched by a compulsory surcharge on all international shipping fuel, said Connie Hedegaard, the Danish environment and energy minister who will host the final UN climate summit in December. …In Bonn last week, a separate Mexican proposal to raise billions of dollars was gaining ground. The idea, known as the “green fund” plan, would oblige all countries to pay amounts according to a formula reflecting the size of their economy, their greenhouse gas emissions and the country’s population. That could ensure that rich countries, which have the longest history of using of fossil fuels, pay the most to the fund. Recently, the proposal won praise from 17 major-economy countries meeting in Paris as a possible mechanism to help finance a UN pact. The US special envoy for climate change, Todd Stern, called it “highly constructive”. …Last week, a US negotiator, Jonathan Pershing, said that the US had budgeted $400m to help poor countries adapt to climate change as an interim measure. But that amount was dismissed as inadequate by Bernarditas Muller of the Philippines, who is the co-ordinator of the G77 and China group of countries.
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