American politics

Democracy in America

  • Hollywood on the dole

    Draw the curtain on filmmaker subsidies

    Mar 2nd 2011, 22:43 by W.W. | IOWA CITY

    MICHAEL KINSLEY delivers a persuasive plea against the now-common practice of states dangling subsidies in front of filmmakers to lure their glamourous creative efforts, and the substantial spending that comes with it, to their proud patch of America. In particular, Mr Kinsley sticks it to Bill Richardson, the former governor of New Mexico, for sticking up for this ludicrous form of regressive redistribution despite the lean times. Writes Mr Kinsley:

    Richardson says that the film and TV subsidy has brought "nearly $4 billion into our economy over eight years" and has created 10,000 jobs. By "our," he means New Mexico. He says every state should emulate this success.

    But of course every state cannot do that because it essentially is a "beggar thy neighbor" strategy. Some of the movies that have been bribed to locate in New Mexico would have been made in New Mexico anyway. That part of the subsidy is a total waste. Most of the movies that have come to New Mexico for the subsidy would otherwise have been made in other states. New Mexicans may not care if the citizens of those states lose out, but inevitably those other states respond with subsidies of their own and New Mexico gets beggared along with everybody else.

    In any event, Richardson's statistical claims are suspect, to say the least. He would not win an Oscar for math. ...

    Taking the whole zero-sum subsidy game into account, the only sure winners are Harvey Weinstein and his ilk, who need your money like you need 25 pounds. What's more, the film and TV incentives racket is a hotbed of corruption. Mr Kinsley points us to this report by Robert Tannewald, an economist at the Center on Budget and Policy Priorities, which points out the scandalously dodgy accounting states use to justify their taxpayer-bilking incentive programmes. But the corruption doesn't end at cooking the books.

    Here in the Hawkeye state, the state government's film office got itself into a bit of a pickle playing fast and loose with tax credits for filmmakers. As a consequence, the programme was shut down and "Cedar Rapids", a comedy about an insurance conference set in, yes, Cedar Rapids, was filmed in Michigan. As Ed Helms, the star of "Cedar Rapids", summarised the matter: "Some guy was making a shitty movie in Iowa and bought a Range Rover using their tax credits." Or something like that. Despite the dreadful chill that comes of seeing an ersatz City of Five Seasons on the silver screen, the Iowa film-office scandal had a happy ending—for Iowans at least. Iowa's once and current governor, Terry Branstad, seems to have no plans of restarting it. Anyway, downtrodden Michigan taxpayers are probably too numb by now to feel another kick.

    (Free exchange has more on state movie subsidies. Photo credit: Fox Searchlight)

  • Language and opinion

    Framing climate change

    Mar 1st 2011, 22:15 by W.W. | IOWA CITY

    OUR readers are evidently fascinated by American attitudes toward global warming and/or climate change. I say "and/or" because it turns out that opinion on the subject is sensitive to the language one uses to refer to the putative meteorological phenomenon. A new paper (ungated) in the scholarly journal Public Opinion Quarterly by Jonathon P. Schuldt, Sara H. Konrath, and Norbert Schwarz examined the websites of conservative and liberal think tanks and found that conservatives are more likely to speak of "global warming" whilst liberals are inclined to speak instead of "climate change". The elite conservative usage seems to be a cause or effect (probably both) of conservative public opinion.

    Republicans were less likely to endorse that the phenomenon is real when it was referred to as “global warming” (44.0%) rather than “climate change” (60.2%), whereas Democrats were unaffected by question wording (86.9% vs. 86.4%). As a result, the partisan divide on the issue dropped from 42.9 percentage points under a “global warming” frame to 26.2 percentage points under a “climate change” frame.

    What explains this? "Global warming", the authors note, directly elicits thought of rising temperatures, which encourages the anecdotal use of unusually cold or snowy weather as disconfirming evidence, whereas "climate change" puts the emphasis on the systemic transformation of weather patterns, which offers a broader context for the odd cold snap or snowmageddon. Additionally, the authors surmise, "global warming" connotes human causation and culpability somewhat more than "climate change".

    But why isn't liberal opinion affected by the choice of semantic "frame"? Shuldt, Konrath, and Schwarz write:

    First, Democrats tended to endorse high belief (Ms = 5.94 on a 7-point scale), raising the possibility of a ceiling effect. Second, Democrats’ beliefs about global climate change might be more crystallized and thus more protected from subtle manipulations, consistent with research showing that stronger attitudes are more resistant to change.

    I take the upshot of the study to be that Americans are less polarised about climate change/global warming than they may appear. Disagreement under the "climate change" frame is really fairly mild. And the fact that conservative opinion is so susceptible to framing effects suggests a relatively low level of confidence about the issue.

    I expect ideological disagreement over climate change will decline further as the debate over climate policy takes shape in the public imagination. In my experience, many libertarians and conservatives are motivated to deny global warming because they think admitting a problem amounts to handing government a blank check and a mandate to do whatever it wants to "fix" it. Once it becomes clearer that the best policy response to climate change is a tax on carbon, which can be entirely offset by cutting taxes elsewhere, those Americans wary of opening the door to enviro-fascism will begin to relax.

  • GOP budget cuts

    A million here, a million there, you're still not talking about real money

    Mar 1st 2011, 20:27 by M.S.

    SPEAKING of above-average teachers who create social value not reflected in their salaries, it took George Will, of all people, to call my attention to the fact that Teach for America has apparently been designated an "earmark" in the GOP budget and slated for elimination. Teach for America costs the federal government $21m a year.

    That's what happens when you pass an $858 billion tax cut and then try to make up for it with cuts to domestic discretionary spending. Now if we can just eliminate 20,000 more programmes like Teach for America, we might get back to deficit-neutral, though it's an open question whether future Americans will care about our achievement since they won't know how to add.

  • Unions

    The importance of Walker and Rhee

    Mar 1st 2011, 17:32 by R.M. | WASHINGTON, DC

    I WAS one of many Washington residents who was disappointed when Michelle Rhee resigned her post as schools chancellor following the defeat of her boss, Adrian Fenty, in last year's mayoral race. But there were many more Washingtonians who were happy to see her go, and over on Slate last week Richard Kahlenberg had a thoughtful essay admonishing fans of Ms Rhee for buying into her seductive and simplified message about education reform. His reproachful tone is often warranted, but I would take issue with one of Mr Kahlenberg's complaints: that Ms Rhee eschewed collaboration with the teachers unions. While there is no doubt Ms Rhee was an overly combative figure, the author's argument rests on the assumption that the DC teachers union was a willing collaborator. Mr Kahlenberg's broader prescriptions also take for granted that teachers unions are ready for reform. That is debatable, and the case of Ms Rhee is helpful in understanding the current fight over public-sector unions. 

    To take one example from Ms Rhee's tenure, Mr Kahlenberg says the chancellor focused on firing teachers "in a fashion that unfairly demean[ed] large numbers of educators", while ignoring an alternative policy called peer review, a somewhat controversial evaluation procedure in which expert teachers critique their colleagues. Mr Kahlenberg notes that the American Federation of Teachers (AFT), the nation's second-largest union, supports peer review. But that invites the question of why it has been sparingly adopted across the country. And the answer is because reforming the evaluation system has not been a union priority. Much more effort has been expended fighting the use of value-added testing than promoting policies like peer review. More importantly, evaluation reform means little unless the process for firing bad teachers is streamlined, and there has been little movement on this front. Even in peer-review systems, the unions still go to bat for those deemed "ineffective". 

    On another controversial issue, merit pay, Mr Kahlenberg says Ms Rhee's intentions were good, but any such programme needs to be structured in a way that encourages cooperation between teachers. Fair enough, but the unions have been more wary than Mr Kahlenberg of pay reform, and efforts to change the tenure system have been bitterly opposed. As the author himself admits, "Too often, union leaders protect incompetent teachers and make it difficult to pay outstanding educators more." In general, the unions always seem to give more thought to how certain reforms may not work, and less thought to how they could.

    How does this relate to the larger debate about public-sector unions? Last week, my colleague noted that public-sector reforms, whether it be pension restructuring or allowing the firing of incompetent teachers, "will be unachievable if unions correctly understand that their opponents...are not in fact interested in collaborating with them on solutions, and are instead trying to destroy their existence as institutions." But the opposite is also true. (The AFT spent as much as $1m trying to end Mr Fenty's administration.) And this is why people like Michelle Rhee and Scott Walker, the governor of Wisconsin, play an important role in the reform process. 

    It could be said that both Ms Rhee and Mr Walker dealt with large problems by arrogantly pushing over-the-top, sub-optimal solutions. But their excessive actions were useful in forcing unions to abandon their rigid positions and play a more constructive role in the proceedings. In Wisconsin, for example, the public-sector unions only agreed to accept many of the proposed cuts to their benefits once their collective-bargaining rights were threatened. In the case of teachers, only recently have some of the unions declared themselves open to change in the face of broad support for reform. You'd like to think that collaboration and compromise would be easier to come by. But sometimes it takes an overwhelming force to dislodge a seemingly immovable object from its fixed position.

    In the case of Wisconsin, we will now see if that force (ie, the governor) can moderate itself. Perhaps not, and a compromise may prove unachievable in the short term. But in another op-ed this past weekend, even Mr Kahlenberg admits, albeit indirectly, the positive impact of people like Ms Rhee and Mr Walker. After criticising them for most of his piece, he writes, "Teachers should use this moment to articulate a powerful reform agenda." He then compliments the AFT for making a "good start" on that path. There is a reason they are acting now.

    (Photo credit: Reuters/AP)

  • Arab spring

    Who lost Egypt?

    Mar 1st 2011, 14:11 by M.S.

    EIGHT years after the craziness that was the invasion of Iraq, I barely have the patience to address neo-conservative fantasies about how to turn political evolution in the Muslim world into a story that's somehow all about America liberating grateful locals. So I'm glad Daniel Larison still does, though, in responding to Niall Ferguson, he seems to be almost out of patience too:

    The sobering thing about rapid political change in these countries is that there really is very little that the U.S. could have done differently in just the last few years that would have produced a significantly different outcome. Democratists look at what happened in the 1980s, they reason foolishly that 1989 happened because of what the U.S. and Western allies did in supporting political dissidents, and they conclude that “we did it before, we can do it again!” Just as Iraq war supporters stupidly invoked Japan and Germany as meaningful precedents for the political transformation that could happen in Iraq, Ferguson is invoking the successes of eastern European dissidents as precedents for what could have happened in the Near East.

    What makes Ferguson’s comparison even harder to take is the presumption that Western support for eastern European dissidents was important to their success, when the success of eastern European revolutions in 1989 rested almost entirely with the peoples of those countries. Ferguson’s analysis and recommendations seem to hinge on believing that Western support for dissidents in communist states was important to the successful political transition in those states, because Ferguson can’t seem to imagine foreign political movements that succeed or fail regardless of what Westerners do or don’t do...If there is anything more pathetic than the usual round of “who lost [fill in the blank]?”, it is the risible attempt to claim that all would be well if there had just been more American emphasis on democracy promotion earlier on.

    I think I can suggest one thing that's more pathetic than the usual round of "who lost [fill in the blank]", and that would be a round of "who lost [fill in the blank]" when we won. Nobody lost Egypt! Egypt just ousted its dictator in a non-violent popular revolution! It's going to have democratic elections in six months! In what perverse universe does this count as a defeat for American foreign policy, for the West, for enlightenment civilisation, for lovers of human rights? Sweet Douglas Feith, what do these people want?

  • Countervailing what?

    After unions

    Feb 28th 2011, 21:12 by W.W. | IOWA CITY

    IN HIS Newsweek column, Ezra Klein tells us why he thinks we still need unions. Among other reasons, Mr Klein mentions this classic:

    [U]nions are a powerful, sophisticated player concerned with more than just the next quarter’s profit reports—what economist John Kenneth Galbraith called a “countervailing power” in an economy dominated by large corporations. They participate in shareholder meetings, where they’re focused on things like job quality and resisting outsourcing. They push back on business models that they don’t consider sustainable for their workers or, increasingly, for the environment. In an economy with a tendency toward bigness—where big producers are negotiating with big retailers and big distributors—workers need a big advocate of their own. 

    There's clearly something to this, but I don't think the matter is so clear. Unions are at least likely to amplify as contain the power of big business. Over at Economics by invitation, our debate forum for dismal scientists, Gilles Saint-Paul offers a powerful summary of what I take to be the standard economic critique of labour unions, including this rebuttal of the "countervailing power", argument:

    Unions do not provide a countervailing force to the supposed power of big business. Whenever big business gets rents from monopoly power, unions often manage to share some of those rents (this explains why unions are more present in concentrated industries like automobiles, as opposed to, say, retail trade). This benefits the employees of big business, and it has indeed been shown that these employees enjoy higher wages and greater fringe benefits. But by raising labour costs it further adds to the harm done to consumers (and workers in the competitive sector) by the monopoly power of business. In addition to being too high because firms collude, the price is also too high because employees collude. Furthermore, the interests of the union and their employers are convergent whenever they deal with the outside world: both want to increase the revenue that the firm or the industry can extract through lobbying activities. To the extent that union leaders provide additional voices, unionisation adds to the lobbying power of an industry.

    Private-sector unions and big business come to blows over a cutting-the-cake problem. But the interests of labour and capital are aligned when it comes to the size of the shared cake. Auto workers certainly did not act as a countervailing force when it came time for failing American car manufacturers to seek subsidies from taxpayers. And this is why my brow furrowed when Mr Klein said unions "push back" on business models that aren't environmentally sustainable. I think you'll find that unionised coal miners are as unenthusiastic as the coal companies they work for about regulations that would restrict the growth of mining operations or reduce demand for coal.

    However, Mr Klein is surely correct that unions are antagonists to businesses that seek to enlarge the cake in ways unlikely to be shared by domestic union workers. When unions successfully resist outsourcing, they hurt consumers, foreign workers, and the competitiveness of their firm, which eventually leads to domestic layoffs or reduced domestic job-creation. This is not the sort of countervailing we're hoping for.

  • Partisanship

    A vague thought on global polarisation

    Feb 28th 2011, 18:43 by M.S.

    OVER the weekend Ronald Brownstein made the point in National Journal that the opposition of today's Republican governors to Barack Obama's agenda is much fiercer and more ideological than anything Bill Clinton had to face from their predecessors, and that this is part of the increasing polarisation of American politics: "American politics increasingly resembles a kind of total war in which each party mobilizes every conceivable asset at its disposal against the other. Most governors were once conscientious objectors in that struggle. No more." Steven Pearlstein made the same point about politicisation and back-and-forth regulation changes at the National Labor Relations Board. Ezra Klein added that the increased partisanship is evident in the courts too, with Democratic-appointed judges ruling the Affordable Care Act constitutional and Republican-appointed judges ruling the opposite, "which is not what most legal scholars and analysts predicted":

    Dahlia Lithwick went back to the initial coverage of the GOP's lawsuits. "It was an article of faith among court watchers that President Obama's health care reform plan would be upheld at the Supreme Court by a margin of 7-2 or 8-1," she concluded. Lee Epstein, a law professor at Northwestern University, told me the same thing. "Even my very, very conservative colleagues last year said that if the Court follows existing precedent, this is a no-brainer."...In other words, partisan polarization, which has long been evident on the Supreme Court, is spreading deeper into the court system.

    When people start talking about political systems in which politics overwhelms the constitutional order because the supposedly independent constitutional court is too weak to resist partisan interests, and makes rulings that are clearly driven by narrow power-politics concerns, I know you like me immediately think of one country: Thailand. Well, okay, you probably don't, and obviously the American constitutional order is very unlikely to collapse the way that Thailand's did under the pressure of conflicts between former premier Thaksin Shinawatra, elements of the military, the royal house, and the Bangkok elite who became the base of the "yellow-shirt" movement. The Thai constitution was just eight years old when the coup occurred, not 220-plus, and Thailand has long been known for the fluidity of its politics and its difficulty with grounding consistent, lasting institutions. But there is something recognisable about the yellow-shirt and later red-shirt movements, the ease with which they shrugged off procedural democracy, refused to acknowledge the legitimacy of an elected government, and proclaimed themselves the true voices of the people. Thailand gave us something new, in an age of colour revolutions: the spectre of two antagonistic colour revolutions happening at the same time, facing each other across of a gap of deliberate mutual incomprehension. As demonstrators in Wisconsin pick up the lessons of the tea-party movement, I find I keep thinking about Bangkok.

  • Economic morality

    The meaning of overpaid

    Feb 28th 2011, 14:34 by M.S.

    THE range of ways in which people can talk past each other probably exceeds the range of ways in which they can understand and engage with each other. Last week Megan McArdle (commenting on Jim Manzi) picked up on one of the ways in which people discussing the union controversy in Wisconsin might be talking past each other, and it's pretty interesting.

    You can argue, of course, that [the compressed income distribution typical of government wages] is an ideologically much more attractive income distribution.  Which highlights, I think, the core difference between the way people like Manzi and I look at this, and the way that progressives do.  I don't think of state employment as a way to create, in miniature, my ideal labor utopia.  I think of it as a way to procure services.  I define people as being "overpaid" not if they are paid more than someone with a similar level of education, but if they are paid more than I need to pay to attract adequate workers.

    I have defined people as being "overpaid" in this fashion, too, when I was looking to hire someone to fill a job. This is "overpaid" defined from an employer's point of view. But defining "overpaid" this way excludes the possibility that everyone in a labour category might be underpaid. It makes it impossible to say "teachers are underpaid, and people who broker complex derivatives are overpaid". Teachers, as a class, can't be underpaid, because the salaries they earn were ipso facto adequate to attract them to do the job. You're defining the issue of the social value of the work out of the question. For instance, in December, as Planet Money reported, economist Eric Hanushek published a paper for the NBER finding that:

    A teacher one standard deviation above the mean effectiveness annually generates marginal gains of over $400,000 in present value of student future earnings with a class size of 20 and proportionately higher with larger class sizes.

    From society's point of view, one might conclude that teachers are seriously underpaid. Or one might conclude that better-than-average teachers are seriously underpaid, and we need to institute merit-based pay and fire bad teachers. But looking at things from an employer's point of view, it's not clear there's really a problem here. The school system is effectively getting hundreds of thousands of dollars a year in free value from each teacher who's one standard deviation above the mean. Why change that? Meanwhile, there are a whole lot of respectable economists who believe that most of the financial industry produces no value whatsoever. And yet, if you tried to recruit a hedge-fund analyst at a public-school teacher's salary, you'd have great difficulty filling the position. Does this mean hedge-fund analysts aren't overpaid?

  • Pro-union populism

    Democrats need tea and parties, too

    Feb 26th 2011, 16:17 by W.W. | IOWA CITY

    EARLIER this week, I wrote a short post at my personal blog drawing a parallel between the American left's new-found, pro-union, placard-waving enthusiasm and the tea-party movement. Reading the comments, the comparison seems to have pleased no one. But I'm especially interested in the reaction from the left. The tea-party movement, you see, is an "astroturf" movement, financed by billionaire puppetmasters, fueled by hatred, agitating for rank injustice. The labour movement, on the other hand, is the real deal: a bottom-up coalition of working Americans courageously standing up against the thuggery of bought-and-paid-for Republicans and their shamelessly insatiable plutocrat bosses. 

    This zanily Manichean way of characterising the situation I think rather confirms my suspicion that the equivalence I drew is sound. Michelle Malkin, a zanily Manichean right-winger, is delighting in the chore of cataloguing the many scandalous rhetorical sins against propriety committed by the pro-union crowds in Madison. Ms Malkin's ridiculous point is that the pro-union rabble is guilty of the racism, sexism and homophobia of which the courageous tea-party movement has been falsely accused. My point is that when folks get angry, they get stupid, and stupidity knows no party or clique. Progressives should not meet this truism so defensively. I know we want to believe the best of our comrades. And I know that loudly congratulating one's team for its superior intellect and virtue is a critical part of keeping a bubble of enthusiasm aloft and rising. So we adults can speak in whispers, if we must. But it's a plain fact that the fuel-mixture of potent populism includes generous helpings of stupidity and self-regard. Democrats got flattened last fall by a fired-up, pie-eyed right. They should welcome an equivalent efflorescence of inchoate rage from the left. The naked, monkey-minded tribalism of an "engaged" political faction is not lovely to behold, but then smash-mouth politics is not brunch at the club. The big question is whether or not Governor Walker's gift will keep on giving. Can Democrats stay mad all way through 2012, or will the eye of the tiger be a bit heavy-lidded by then?

    My guess is that a labour-movement victory in Wisconsin will kill union-busting ambitions elsewhere. While this will keep the Democratic Party's cash cow fat and happy, an early win will make it harder to keep the vivifying sense of existential threat alive. A series of losses to Republican governors could create a mounting tide of righteous grievance sufficient to push Democrats over the top in 2012, but leave them badly undermined in the longer term.

  • Environmental regulation

    The irony of the tragedy of the commons

    Feb 24th 2011, 22:58 by M.S.

    THE American Economic Review just turned 100. It turns out that the original issue in 1911 featured an article by Professor Katharine Coman of Wellesley College entitled  “Some Unsettled Problems of Irrigation”, and in the anniversary issue, Robert Stavins (via Mark Thoma) cleverly decides to retrace what's happened since then with economic theory on "commons problems". Basically, he writes, Pigou and Coase and those who followed them have done yeoman work that's led to the institutionalisation of tools like cap-and-trade allowances for fishing permits and pollution permits, which are superior to command-and-control rules both from an environmental and economic perspective:

    First, economic theory—by focusing on market failures linked with incomplete systems of property rights—has made major contributions to our understanding of commons problems and the development of prudent public policies. Second, as our understanding of the commons has become more complex, the design of economic policy instruments has become more sophisticated, enabling policy makers to address problems that are characterized by uncertainty, spatial and temporal heterogeneity, and long duration. Third, government policies that have not accounted for economic responses have been excessively costly, often ineffective, and sometimes counterproductive.

    For example, he writes, the 1990 law establishing tradable permits to bring down sulfur dioxide emissions rather than using command-and-control regulations saves the economy $1 billion a year. And with what he calls the "ultimate problem of the commons", greenhouse gases, "there is widespread agreement among economists (and a diverse set of other policy analysts) that economy-wide carbon pricing will be an essential ingredient of any policy that can achieve meaningful reductions of CO2 emissions cost effectively, at least in the United States and other industrialized countries (Gilbert E. Metcalf 2009; Louis Kaplow 2010). The ubiquitous nature of energy generation and use and the diversity of CO2 sources in a modern economy mean that conventional technology and performance standards would be infeasible and—in any event—excessively costly (Newell and Stavins 2003)."

    The problem with this picture is passed along by Dave Roberts at Grist. The public, according to a new poll, does want to cut CO2—and smog, and mercury. But they want to do it through EPA regulation, ie command-and-control, not tradeable permits or Pigovian taxes.

    I've never seen a behavioural economics study on this, but I'm sure somebody's done it, because it seems pretty widespread: people generally prefer rules telling them something is not allowed, rather than charges making them pay for it, even if the latter are clearly more efficient at maximising social value. Mr Stavins does recognise this, observing that in terms of political appeal, aversion to the word "taxes" is probably one reason why cap-and-trade systems for carbon emission permits have already been instituted in Europe; but he also notes that "now that cap and trade has been demonized—in US politics, at least—as 'cap and tax,' this difference has surely diminished."

    The darkly ironic side of all this, of course, is that administrative command-and-control solutions like detailed EPA emissions rules are definitely more expensive than cap-and-trade or carbon taxes would be. If anything, when the public votes for EPA regulation rather than cap-and-trade, that's when it's imposing a tax on itself. Fifty years after Coase and 90 after Pigou, the economists are pretty sure they've finally got the solution for fixing commons problems without diminishing social value, only to have the public reject it because they think that's the tax. If the tragedy of the commons is "Romeo and Juliet", the rejection of Coasian cap-and-trade solutions to commons problems is "Blood Simple": a hilariously bitter demonstration of the human capacity for selfish stupidity that ends with the only guy who's figured it all out getting shot through a door by the wrong person for the wrong reasons.

  • The war in Afghanistan

    Going the Manchurian candidate one better

    Feb 24th 2011, 17:04 by M.S.

    JUST when I thought it had gone full circle, it went another full circle. It was crazy enough when, as Jane Mayer and others have documented, the CIA took the manuals developed by military trainers for hardening soldiers against the kinds of torture and psychological-manipulation techniques that had been used on Americans by North Korean and North Vietnamese interrogators, reverse-engineered those techniques, and started using them on captives at Bhagram, Abu Ghraib and Guantanamo. Then, when John McCain, who had himself been subjected to those torture and psychological-manipulation techniques in a Vietnamese prison camp, went ahead and endorsed their use by CIA interrogators, I thought the irony could go no deeper.

    Never underestimate the American military! Rolling Stone's Michael Hastings scores another coup:

    The U.S. Army illegally ordered a team of soldiers specializing in "psychological operations" to manipulate visiting American senators into providing more troops and funding for the war, Rolling Stone has learned – and when an officer tried to stop the operation, he was railroaded by military investigators.

    The orders came from the command of Lt. Gen. William Caldwell, a three-star general in charge of training Afghan troops – the linchpin of U.S. strategy in the war. Over a four-month period last year, a military cell devoted to what is known as "information operations" at Camp Eggers in Kabul was repeatedly pressured to target visiting senators and other VIPs who met with Caldwell. When the unit resisted the order, arguing that it violated U.S. laws prohibiting the use of propaganda against American citizens, it was subjected to a campaign of retaliation.

    Among the senators subjected to psy-ops manipulation by his own army: John McCain. I can't think of a funny closing line that could possibly top the straight-up Hollywood madness of this, so I'll just have to go with Mr Hastings's own serious observation, which is that the use of psy-ops techniques on American legislators shows the army is pretty desperate to convince people the war in Afghanistan is going swimmingly. Briefly, before the psy-ops guys get to my brain and zap my memory and logic cells, it isn't.

  • The power of free association

    Libertarian unionism

    Feb 23rd 2011, 22:34 by W.W. | IOWA CITY

    I'VE repeatedly argued that private- and public-sector unions operate in different institutional settings, raise fundamentally different moral and political questions, and that it is altogether reasonable to support private-sector unions while rejecting public-sector unions on account of the nature of their differences. A common response I've heard from the left is that I'm slyly seeking to sow discord by disingenuously arguing that the larger union movement is not in fact one, but is instead a coalition of fundamentally distinct organisations of unequal moral standing. A common response I've heard from the right is basically the same: "you don't really support private-sector unionism, do you"? 

    Well, I do. Sort of. It's complicated because American labour law is complicated. 

    The right of workers to band together to improve their bargaining position relative to employers is a straightforward implication of freedom of association, and the sort of voluntary association that results is the beating heart of the classical liberal vision of civil society. I unreservedly endorse what I'll call the "unionism of free association". My difficulty in coming out wholeheartedly for private-sector unions as they now exist is that they are, by and large, creatures of objectionable statutes which have badly warped the labour-capital power dynamic that would exist under the unionism of free association.

    Progressives and libertarians generally part ways on the justifiability of legislation that boosts the bargaining power of unions. Progressives generally think, not implausibly, that government has already put a thumb on the scale in favour of employers through the legal definition of the character and powers of the corporation, such that it is manifestly unjust for government to fail to put an equalising thumb on the scale in favour of unions. For now I only want to say that I think there is indeed a plausible case for government stepping in to help strengthen workers' bargaining power when inequalities in such power (often created by law and legislation) lead to a systemically unfair division of the gains from productive cooperation. I don't think the same plausible case applies to public-sector unions for reasons I've recited ad nauseam.  

    So, do circumstances merit a further statutory boost for private-sector unions? I don't know. Rather than become mired in largely intractable metaphysical disputes over fairness of the division of the cooperative surplus, which we would need to do in order to determine whether government should do more to augment union power, I believe it would be much more productive to focus on the ways in which the prevailing legal regime clearly handicaps labour relative to the power unions would have under conditions of free association. I heartily agree with Kevin Carson, a left-libertarian theorist and activist, when he argues that:

    [T]he room for change lies mainly, not with adding further economic intervention to aid labor at the expense of capital, but rather with eliminating those policies which currently benefit capital at the expense of labor. The question is not what new laws would strengthen the bargaining power of labor, but which existing ones weaken it. ...

    The most obvious forms of state intervention that hobble labor are legislation like:

    1) The provisions of Taft-Hartley which criminalize sympathy and boycott strikes;

    2) The Railway Labor Relations Act and the “cooling off” provisions of Taft-Hartley, which enable the government to prevent a strike from spreading to common carriers and thus becoming a general strike; and

    3) “Right-to-Work” (sic) laws, which restrict the freedom of contract by forbidding employers to enter into union shop contracts with a bargaining agent.

    Further, we should examine the extent to which even ostensibly pro-labor laws, like the Wagner Act, have served in practice to weaken the bargaining power of labor. Before Wagner, what is today regarded as the conventional strike—an announced walkout associated with a formal ultimatum—was only one tactic among many used by unions.

    Mr Carson then goes on to enumerate some of those now-rare tactics, which, taken together, add up to a compelling case that a return to the unionism of free association would improve the bargaining position of labour relative to the status quo.  

    It is in this light that I wish to join the Washington Examiner's Tim Carney in congratulating Mitch Daniels for his opposition to the "right-to-work" legislation proposed by Indiana Republicans. Presidential, indeed. 

  • Protectionism

    Barriers to trade back in the day

    Feb 23rd 2011, 21:31 by M.S.

    MATTHEW YGLESIAS cites Alan Taylor's "American Colonies: The Settling of North America" on how French-Iroquois warfare tacitly served both groups by erecting a protectionist barrier between northern Indians in Quebec and the Dutch colony at Fort Orange (now Albany)...

    Because the northern Indians possessed better furs, they would, in the event of peace, become the preferred clients and customers of the Dutch, to the detriment of the Iroquois. As inferior suppliers of furs, the Iroquois had a perverse common interest with the French, an inferior source of manufactured goods. They both tacitly worked to keep apart the best suppliers of furs (the northern Indians) and of manufactures (the Dutch).

    ...and quips: "And today France is a rich country thanks to all the good middle-class jobs this Iroquois protectionism helped save."

    From the NRC Handelsblad, "Ignoring History in the Westerschelde Debate":

    The fall of Antwerp in 1585 and the Dutch blockade of the Scheldt [pictured above] were a pivotal moment for the separation of North and South, of the Republic and the Spanish Netherlands. Antwerp was cut off from the sea; Amsterdam took over Antwerp's dominant position. After the 1648 Peace of Münster the Dutch Republic managed to perpetuate the Scheldt blockade. It wasn't until the Treaty of London of 1839, in which the great powers agreed to the independence of Belgium, that the reopening of the Scheldt river was finally guaranteed.

    Is Amsterdam a rich city today thanks to all the good middle-class jobs this Dutch protectionism helped save? In part, yeah, to the extent that any modern economic circumstances can be traced to things that happened centuries ago. The Dutch blockaded Antwerp for over 200 years, from 1585 until the Netherlands became the Napoleon-aligned Batavian Republic in 1795. That may not be the primary reason why the Dutch manufactures available at Fort Orange were so cheap, but it's not unrelated, and it's certainly a major reason why Amsterdam was a thriving world commercial centre in the mid-1600s while Antwerp became a declining provincial town. If the French had wanted to justify protectionist behaviour in North America by arguing that the Dutch did it too, they would have been right.

    This isn't to say that it's a good idea to ratchet up levels of protectionism when, as now, overall barriers to trade are low and declining. But when everyone's doing it, it's probably true that the people who do it more effectively are benefiting from it.

  • Mitch Daniels

    A quick thought on Mitch Daniels

    Feb 23rd 2011, 19:24 by C.H. | CHICAGO

    MITCH DANIELS seems to be doing everything he can to ensure that he loses a Republican presidential primary. Last year he called for a truce on social issues, so that leaders could focus on more pressing matters. Conservatives are still having conniptions about this. Now he is chiding Hoosier Republicans for pushing a right-to-work bill, saying that the fight may derail other, more urgent legislative priorities. Such efforts will be fodder for conservative opponents in a primary. They also suggest that Mr Daniels would be a rather good president.

    (Photo credit: AFP)

  • Unions

    Teaching quality and bargaining

    Feb 23rd 2011, 17:15 by M.S.

    SCOTT LEMIEUX passes along a pretty useful point to keep in mind, courtesy of his friend Ken Sherrill.

    Only 5 states do not have collective bargaining for educators and have deemed it illegal. Those states and their ranking on ACT/SAT scores are as follows:

    South Carolina – 50th
    North Carolina – 49th
    Georgia – 48th
    Texas – 47th
    Virginia – 44th

    If you are wondering, Wisconsin, with its collective bargaining for teachers, is ranked 2nd in the country.

    As Mr Lemieux says, this doesn't show that collective bargaining makes school systems better. But it makes it pretty hard to argue the converse.

    On a broader note, I think this is illustrative of the need for people who are interested in better outcomes for national social challenges to stop arguing that their opponents are illegitimate and should be annihilated. In the particular case of unions, it's pretty clear from all the research that the existence of unions in a workplace can either increase or decrease productivity, depending on how unions and management interact. Conservatives who want to argue that unions destroy productivity almost inevitably use the example of the American auto industry and the UAW, which is an interesting example because American car manufacturers were defeated on quality and price by car manufacturers from two countries with extremely high rates of unionisation, Germany and Japan. When GM staged a last-ditch effort in the 1980s to learn how to make cars the Japanese way, they sent management and union teams to work with Toyota to see how to arrange collaborative union-management relationships.

    There are clearly some serious problems facing American governance, and public-sector unions are going to have to make adjustments to solve those problems, whether it means pension restructuring or allowing the firing of incompetent teachers. But those kinds of reforms will be unachievable if unions correctly understand that their opponents, including Scott Walker and the modern Republican Party, are not in fact interested in collaborating with them on solutions, and are instead trying to destroy their existence as institutions.

  • Chicago Mayor Rahm Emanuel

    Rahm Emanuel wins

    Feb 23rd 2011, 14:45 by C.H. | CHICAGO

    NEW eras tend to be declared too easily. Chicago’s election of Rahm Emanuel on February 22nd, though, was a turning point. True, the mayoral race did have an air of familiarity, if only because it honoured the city’s penchant for the bizarre. Mr Emanuel was almost disqualified by a legal fight over the meaning of the word “reside”. Carol Moseley Braun, a black contender, called a lesser opponent a crack addict. A blizzard prompted candidates to battle over their shovelling skills. On Twitter, an impostor posing as Mr Emanuel won 36,000 followers with tweets composed almost entirely of expletives.

    Nevertheless, the election really did mark the end of an age. Richard Daley senior ruled Chicago from 1955 to 1976; his son has reigned over the city since 1989. Now a new powerbroker will take charge with no Daley in the offing. Mr Emanuel clobbered his opponents by winning 55% of the vote, well above the level needed to avoid a run-off. Mr Emanuel’s effect on the city, of course, has yet to be determined. But the election itself proved just how much Chicago has changed.

    The mayoral race was unlike any in recent memory, and not simply because Mr Daley was absent. Chicago’s rules of racial politics have become tangled. Mr Emanuel, a Jewish former congressman and aide to Barack Obama, was one of four main candidates. The Latino community, in a sign of growing prominence, produced not one but two credible contenders: Gery Chico, once Mr Daley’s chief of staff, and Miguel Del Valle, the city clerk. After much debate the black community rallied behind Ms Braun, a former senator. “The early assumption,” says Juan Rangel, a Latino leader and supporter of Mr Emanuel, “was that the election would be all about race.” But it wasn’t. Mr Chico’s most vocal backers were union members. Ms Braun tried and failed to incite class warfare. Mr Emanuel won in part because of his success in wards with high concentrations of black voters.

    Meanwhile the notorious Chicago machine is not what it was. Mr Daley’s machine was different than that of his father; his power base included Latinos and executives at global firms, for example. But in recent years the machine had grown rusty too. Federal investigations disrupted Chicago’s convenient system of rewarding political workers with city jobs and promotions. Mr Daley’s underlings were convicted in 2006 and 2009, but the boss himself was not implicated. The old patronage armies, says Dick Simpson of the University of Illinois at Chicago, have shrivelled.

    Mr Emanuel is hardly an outsider to Chicago’s political establishment—he courted community leaders such as Mr Rangel aggressively. But his tactics were less old Chicago than new Washington. He followed the requirements of any modern campaign: raise cash and deliver a clear message. By January Mr Emanuel had raised $11.8m, compared with $2.4m for Mr Chico. In the old days a patronage army might have fanned out across an important neighbourhood. Mr Emanuel’s money let him accost voters through their television sets. He also campaigned diligently, visiting more than 100 train stops to greet befuddled commuters. He stuck to his message (strong schools, safe streets, stable finances) and kept his famous temper in check.

    Winning the election, however, was the easy part. Mr Emanuel is more accustomed to being an aide than the chief. But on May 16th Mr Emanuel will become the executive of America’s third biggest city. A fiscal mess awaits him. Mr Daley closed recent budget gaps by using cash from asset sales; Mr Emanuel could not repeat this trick even if he wanted to. A brawl with local unions, who opposed him in the election, seems certain. He may also struggle with the city council. These challenges are formidable. Mr Emanuel’s temper, so controlled in the campaign, is sure to erupt. But if Mr Emanuel can survive the next few years, he may be the mayor for 20 more.

  • Democracy diseased

    Public-sector unions and fiscal exploitation

    Feb 22nd 2011, 22:32 by W.W. | IOWA CITY

    EZRA KLEIN attempts to blur the distinction between public- and private-sector unions. Indeed, the title of his post, "You can't separate public and private unions", suggests that there is no distinction. But of course there is. The difference is profound, and goes to the very heart of liberal political theory.

    As Max Weber taught, the state is an institution distinguished by its claim to a "monopoly on the legitimate use of violence". The principal task of political philosophy is to give an account of the conditions under which it is morally legitimate or justified for an exclusive group of people to get things done by threatening and applying coercion to the rest of the inhabitants of a certain territory. On the dominant liberal account, several things need to be true before some small subset of a population can be justified in pushing the rest of us around. First, it needs to solve a problem to which there is no voluntary or non-coercive solution. According to the standard story, only the artful application of credible threats of violence can deliver certain "public goods" without which we would all be worse off. This is, by and large, what the state is for. Of course, any state powerful enough to deliver the public goods and protect our rights is powerful enough to violate them. We each have ample reason to reject the authority of any state that does not rely on the oversight and authorisation of those of us at the business end of police batons. The government of the state must take a form that minimises the chances of the abuse of state violence. According to both liberal theory and history, some form of representative democracy seems to be the ticket.

    While the liberal-democratic state has proven better than the known alternatives, it creates a number of serious problems on the way to solving others. Among the greatest of these problems is maintaining a system of public finance that does not stray outside the bounds of liberal legitimacy. The power to tax and spend is necessary for the performance of the democratic state's legitimate functions, but it is also a ready tool of exploitation and distributive injustice. An ideally legitimate state does nothing people can do better on voluntary terms, and it takes no more from people in taxes than is necessary to finance necessary public goods. But this is a moral target we never hit because the strategic logic of redistributive democracy reliably errs in the direction of expansion of services, deficit spending, and the abuse of taxpayers and other not-very-organised constituencies at the hands of highly-organised special interests. If we are concerned to minimise exploitation—if we care about the extent to which state violence is public-spirited and not merely criminal—we must go out of our way to acknowledge and guard against the abuses of fiscal democracy.

    It is in the context of these concerns that we must consider the function of public-sector unions. If they do anything at all, it is to protect their members' claims on future government revenue from democratic discretion—to limit the power of the elected representatives of the democratic public to set the terms on which union-members will receive transfers from taxpayers. That these transfers come to workers in the form of compensation for services rendered the government seems to confuse a lot people. This is, I think, why people on both sides of the debate are distracted by the question of whether government workers are or are not "overpaid". To my mind, the real question is whether government workers should be granted special legal powers that (a) are unavailable to other groups whose welfare also turns on transfers from the treasury, or on the size of compulsory transfers from their bank accounts to the treasury, and (b) limit democratic sovereignty over the distribution of the burdens and benefits of the system of public finance.

    I would argue on liberal grounds that justice demands limits on democratic sovereignty over budgetary matters precisely to avoid the exploitative redistribution that otherwise occurs. That's why I support constitutionalising nondiscrimination requirements on fiscal policy, among other reforms. My principled objection to public-sector unions is that their powers limit democratic sovereignty over taxation and public spending in a way that advantages some citizens at the expence of others—in a way that makes fiscal exploitation more, not less likely. Should they have grievances about their cut of the public budget, non-unionised government employees have recourse to the exact same democratic institutions as do other groups of citizens, which is as it should be. If we cannot trust democratic bodies to treat government workers fairly, then we cannot trust democratic bodies generally.

    Anyway, whether or not you agree with me, this particular set of political issues simply does not arise in discussions of private-sector unions. The problem of bargaining over shares of the surplus from voluntary exchange between workers, capitalists, and consumers is a different problem. It's easy to separate private- and public-sector unions once you know how! Indeed, it's not only possible but reasonable to support private-sector unions as a safeguard against economic exploitation and oppose public-sector unions as an instrument of political exploitation. That would not be the possible, much less reasonable, were Mr Klein correct about the inseparability of the two kinds of unions.

  • Unionism

    Now that's a really good question

    Feb 22nd 2011, 19:03 by M.S.

    MY COLLEAGUE asks an excellent question: if stronger private-sector unions aren't in the cards in America, then what? What other force do progressives think might play the role unions played in the postwar era, providing greater negotiating power for the working and middle class, so that they can try to claw back some of the 52% of all US GDP growth from 1993-2008 captured by the top 1% of the income scale and organise politically for concerns like universal health insurance? (Or, my pet beef, more vacation time. Why on Earth do Americans settle for two weeks' vacation time per year? Have we no unemployed people? Have we no robots? Isn't the whole point of advancement in technology and efficiency to give us more leisure time? Ever notice what words make up the phrase "labour-saving devices"? Okay, I'm done.)

    Kevin Drum poses precisely the same question in his new article in Mother Jones:

    Unions, for better or worse, are history. Even union leaders don't believe they'll ever regain the power of their glory days. If private-sector union density increased from 7 percent to 10 percent, that would be considered a huge victory. But it wouldn't be anywhere near enough to restore the power of the working and middle classes.

    And yet: The heart and soul of liberalism is economic egalitarianism. Without it, Wall Street will continue to extract ever vaster sums from the American economy, the middle class will continue to stagnate, and the left will continue to lack the powerful political and cultural energy necessary for a sustained period of liberal reform. For this to change, America needs a countervailing power as big, crude, and uncompromising as organized labor used to be.

    But what?

    Mr Drum doesn't have an answer, and at the moment, I'm pessimistic. I don't see a realistic alternative organisation that can enlist and mobilise manpower in the interest of middle-class and poor people's pocketbook concerns. A number of alternative models were created in the 1970s, including Ralph Nader's PIRGs and the poor people's participatory-democracy organisations that eventually became ACORN. They were never more than marginal players in power politics, and ACORN was ultimately destroyed essentially with a flick of the organised right's thumb. Organisations like the Campaign for Community Change sweat blood and tears to try to make poor people's voices heard in government, but the evidence is that government just doesn't listen to poor people. Progressive mass organisations formed along other identity-based or single-issue lines, such as the National Organisation for Women or the Sierra Club, are inevitably going to be dominated by well-off people with leisure time; even those folks are hampered by the fact that people in America have less and less leisure time (see above). Most important, there's really no way in the long term for organisations that depend on voluntary donations to take on organisations that have dedicated funding streams based on real profits. The Sierra Club will never be able to match the mission intensity or the funding consistency of the National Association of Manufacturers.

  • Oil royalties

    Giving away government money accidentally on purpose

    Feb 22nd 2011, 17:01 by M.S.

    IN THE first three quarters of 2010, Chevron earned $13.73 billion in profits. A substantial portion of those profits came from oil drilled in the Gulf of Mexico. Other profits came from oil drilled on private land. If Chevron drills oil on private land, it has to pay royalties to the owners of the land for the right to drill there. Normally, when Chevron drills oil on public land, it would pay royalties to the government, ie the taxpayer. But when Chevron drills oil on certain deepwater wells in the Gulf of Mexico, it doesn't have to pay royalties to anyone. That's because back in 1996, Congress decided it would be a good idea to encourage deepwater drilling by offering royalty-free leases in certain areas that wouldn't be otherwise commercially interesting.

    Which is fine, if you believe in prolonging our addiction to fossil fuels; but that's another discussion. The main problem is that Congress obviously doesn't want to be handing out royalty-free drilling leases on sites that would be commercially attractive even at the going rate. That's just handing out taxpayer money to a few corporations for no good reason; among other things, it's not fair to other drillers who have to pay for their leases. And when the price of crude goes above a certain level, those tough-to-develop deepwater wells become commercially attractive even without the free leases. So Congress sensibly instructed the Minerals Management Service (MMS) to award these free leases only when the price of oil was at a level low enough that they wouldn't otherwise be profitable to exploit.

    Whoops! We all remember the MMS, right? So apparently, in 1998-99, the folks at the MMS were too busy flirting with each other, or accepting private-jet rides to college football games, or whatever, to notice that the price of oil had gotten pretty high and they shouldn't be handing out free leases anymore. As a result, 24 companies got free leases they shouldn't have gotten. And ever since, they've been making extra money that they really ought to be returning in the form of leases on public property to the American taxpayer. As of 2008, the bill came to $1.3 billion; this year, the losses will be $1.5 billion. Over the decades-long lifetime of the wells it'll add up to a lot more. According to the Government Accountability Office it'll come to $53 billion over the next 25 years. Last week, representative Ed Markey and a few other Democrats on the House Natural Resources Committee offered an amendment to the Republican budget bill to make those oil producers pay the standard amount in the future on the royalty-free leases they mistakenly received due to bureaucratic error. The amendment was voted down, 251-174.

    If the oil companies were required to pay the royalties going forward which they should have been paying in the first place, the enormous profits they're currently booking would be slightly smaller. Oil-company shareholders would be a tiny bit less wealthy. The federal deficit would be a bit smaller too. Average taxpayers would have to pay slightly less interest on the national debt, and more of their taxes would thus be devoted to productive uses like maintaining the roads on which to drive the cars that burn the oil that the oil companies produce. A pointless multibillion-dollar distortion caused by bureaucratic error would be removed from the economy, and taxpayers would be funding a little bit less corporate welfare. There is no rationale for continuing to oblige regular taxpayers to pick up the tab for these distortionary favours to major oil companies except that the oil companies want the money. For this Congress, that's plenty reason enough.

    Oh, one more thing. Some years back, Shell, BP, and two other oil companies that also mistakenly received royalty-free leases signed agreements with the federal government to voluntarily pay the normal lease on their wells from that date on. They probably did so less out of any concern for fairness to the American taxpayer than out of a desire to avoid the possibility that the government would try to retroactively recover leases for prior years. Nonetheless, voluntarily agreeing to pay the royalties going forward was the right thing to do. So, in the spirit of encouraging good behaviour: Shell and BP, good show. Chevron and the other guys, you need to go sit in the corner for a while and think about what behaviour this situation calls for.

    (Photo credit: AFP)

  • State budget problems

    The immediate crisis

    Feb 22nd 2011, 14:48 by C.H. | CHICAGO

    THE brouhaha around public workers in Wisconsin obscures a few things. First, states have big fiscal problems: pensions (in the long term) and structural deficits (oh, right about now). Health-care costs, not public workers, are the main driver of structural deficits. Second, most state pensions were faring reasonably well before the financial meltdown. As recently as 2008, pensions were 84% funded, according to the Centre for Retirement Research at Boston College. (Eighty percent is usually deemed an acceptable level.) Mismanagement has meant that some states, such as my adopted home of Illinois, are in dire trouble soon. Joshua Rauh of Northwestern expects the pension funds in Illinois will run out by 2018. However other states have more time to prepare for doom. Ohio’s pension funds are due to run dry in 2030, assuming an 8% annual return. Wisconsin’s won’t run out until 2038.

    Benefits for public workers are a problem, no doubt, but I wonder whether the fight over bargaining rules is eclipsing an immediate crisis. The deadlock in Wisconsin may be replicated elsewhere. A bill in Ohio, to abolish collective bargaining for state employees, is just as aggressive as that in Wisconsin. Protesters descended on Indianapolis yesterday to oppose a few anti-union bills, including one that limits collective bargaining for teachers. Perhaps the attention on bargaining rules is a negotiating tactic—"agree to make concessions or you won’t be able to bargain at all." But the fight may become a dangerous distraction.

  • Progressive pipe dreams

    If not unions, what?

    Feb 21st 2011, 20:38 by W.W. | IOWA CITY

    MATTHEW YGLESIAS draws some insightful general lessons about unionism in America from his father's experience as a member and officer of the Writer's Guild of America. He concludes:

    I think the classic postwar American dynamic of an economy with a large minority of the workforce unionized is fundamentally unstable. In the long-run the two equilibria are toward a non-union economy or else toward the Nordic model where virtually everyone is in a union. In the latter case, I think the unions become organizations of a more political character than anything else. In theory, Swedish labor unions could use their dominant labor market position to increase workers’ compensation by making Swedish firms less profitable than non-Swedish ones, but that would be bad for everyone. What you get instead is a kind of Mirror Universe version of the Chamber of Commerce, a politically powerful institution interested in maximizing the income growth of the median Swede rather than the median Swedish CEO.

    I think this is a plausible broad-strokes picture. But what are we to infer from it? Left-leaning commentators pine constantly for the all-but-universal unionisation equilibrium, yet this seems no more likely to come to pass than the libertarian night-watchman state. There is no path from here to there. Both are pipe dreams.

    Speaking of dreaming, one senses that progressive pulses have quickened lately due to the pro-union throng in Madison, as if success in persuading Wisconsin's duly elected democratic body to reverse course would somehow lead to some sort of cascade that ends in a revitalisation of unions as a political and economic force. But victory in salvaging for Wisconsin's state employees a package of legal-cum-political advantages over those with competing claims to state revenue seems to me to have approximately nothing to do with the prospects of private-sector unionism. And, of course, the sine qua non of the Wisconsin staredown is the unprecedented unpopularity of government-employee unions. Whatever the outcome in Madison, the fact that the whole thing is plausibly good politics for Governor Scott Walker bodes ill for those who dream of Sweden.

    Which brings me to my question for progressives. Supposing that Mr Walker and not the SEIU is the vanguard of history—supposing that America is headed toward the stable non-union equilibrium—what is the next-best scenario from a progressive perspective? What is the answer if resurgent unionism is not? Is there one? I hear plenty of progressive rhetoric to the effect that only a rehabilitated union movement can save America from plutocracy and middle-class stagnation, but my sense is that this is a lot like conservative rhetoric to the effect that only a return to constitutional principles will save America from sclerotic socialist decline. Do progressives, like their conservative counterparts, really believe their own hype?

    (Photo credit: AFP)

  • Wisconsin

    The value of bolting

    Feb 21st 2011, 18:48 by E.G.| AUSTIN

    THE stalemate in Wisconsin has persisted partly because a group of Democratic senators have left Madison for Rockford, Illinois, where they apparently remain, laying low. Political theatre? Gross obstructionism? Regardless of where you stand on the budget bill, there's something to admire in that the Democrats cared enough to bolt. Something similar happened in Texas in 2003, when Republicans in the state legislature were pushing a redistricting plan that would have heavily favoured Republicans:

    "In most cases, breaking a quorum has resulted in a temporary victory but a longer-term defeat," said Steve Bickerstaff, a University of Texas adjunct law professor and author of "Lines in the Sand," about an incident in which more than 50 Texas Democratic legislators fled temporarily to Oklahoma, New Mexico and even Mexico in 2003.

    As Mr Bickerstaff suggests, the Republicans eventually got their plan through. And on the one hand, bolting is clearly a stunt: if one party has a huge majority in the legislature, they didn't get it by magic, and the appropriate thing for the minority party to do is to try to win back seats in the next election. The long-term value of the bolting, however, was as a visible and credible form of protest. It commanded attention, and it involves some real risk and inconvenience to legislators—the risks of annoying their constituents and of bobbling their legislative agenda for the week, and the inconvenience of physically removing themselves from the state. While the effort failed, the drama of the moment persisted. Even now, years on, it's often cited as an example of Texas Democrats being overrun by the Republican hegemon. It may, in fact, have been the biggest stand Texas Democrats took on anything in that entire decade. As for Wisconsin, the impasse seems to have softened the Republicans a bit; Dale Schultz, a moderate Republican senator, has offered a compromise proposal. Will it work? Maybe, maybe not. But insofar as part of the reason we have legislatures is to give people a mediated space to air their grievances, the uproar in Wisconsin has had that benefit for the state.

  • Birthers

    They want a do over

    Feb 21st 2011, 17:07 by M.S.

    LAST week on Bill O'Reilly's show Karl Rove made a pseudo-laudable call for Republicans to distance themselves from birthers who believe, contrary to all evidence and the normal process of human day-to-day reasoning, that Barack Obama was born outside the United States. Of course Mr Rove didn't call for Republicans to do this because birtherism is wrong, paranoid, and tinged with nativist xenophobia and racial prejudice; he thinks they should do it in order to avoid Democratic "traps". Anyway, the subject of the discussion was the recent Public Policy Polling poll showing that 51% of likely Republican primary voters firmly believe that Mr Obama was born outside the United States. (Another 21% aren't sure.) That's up from 44% in August 2009. Here's the exchange:

    ROVE: Republicans had better be clear about this.We had a problem in the 1950s with the John Birch Society, and it took Bill Buckley standing up as a strong conservative and taking them on.

    Within our party, we've got to be very careful about allowing these people who are the birthers and the 9/11-deniers to get too high a profile and say too much without setting the record straight.

    O'REILLY: What percentage of Republican voters—5%, 10%?

    ROVE: I don't know, but whatever it is, it ought to be less, because we need the leaders of our party to say "Look, stop falling into the trap of the White House and focus on the real issues."

    To believe that only 5% or 10% of Republican voters are birthers, you have to believe that the PPP poll is wildly off-base. Put it this way: say only 30% of GOP primary voters were birthers. And say GOP primary voters are just 10% of the electorate, like they were in 2008 (even though they were depressed that year and will be fired up in 2012, which should mean they'll constitute more of the electorate). That's 3% of the electorate. Now, as of mid-2010, the percentage of the electorate that self-identifies as "Republican" or "lean Republican" was 40%. So you're already at 7.5% of Republican voters, and you're assuming no Republicans at all believe that Mr Obama was born outside the United States, except for the ones who vote in primaries. Basically, what you have to think, and what Messrs O'Reilly and Rove do in fact think, is that the PPP poll is just somehow off by a huge factor; Mr Rove offhandedly says "look, this is a terrible poll," as if that claim needs no substantiation.

    Predictably, Messrs O'Reilly and Rove's efforts to dismiss the results of the PPP poll were strongly denounced over the weekend, though not by angry political scientists defending the integrity of their profession.

    Whether you agree or not, the people who are pushing the eligibility issue are on our side.  It is certainly counter-productive to deride them like liberals do. Recently a whole stream of Republicans have come out, at the prompting of the drive by media, to reassure us that Obama is a citizen and oh, yes, he is a Christian too...

    The RINOs turn their noses up at the people who want the answers, which, incidentally is 60% of Republican voters. They turn their noses up at the Tea Party movement.  

    Thus the inimitable prose stylings of Tea Party Nation. And, because it's just too good not to pass it on:

    Yet, they do not take a moment to consider why this is important. If Barack Obama is proved to be ineligible to be President, everything he has done is wiped out.  Obamacare is gone.  The START treaty is gone.  The liberal lunatics Obama has appointed to the Federal Judiciary, including the two he has put on the Supreme Court are gone.

    ...What are the chances of success?  Who knows? Why do football teams run the flea flicker play?   It does not work all of the time, but when it does, the results are spectacular.  Why should conservatives all hope this works out?  Because this wipes out almost everything the Obama regime has done.  We get a do over.

    We get a do over. Ay yay yay. You know, when I refer to this stuff in blog posts, people reliably tell me I shouldn't be paying attention to this kind of junk; it's nut-picking. I wish I could agree. This stuff is what's driving the American political conversation. This stuff is why, more likely than not, that PPP poll is accurate.

  • Wisconsin public unions

    Don't join the government to get rich

    Feb 21st 2011, 14:55 by M.S.

    ONE of the memes being thrown around over the past few years by advocates of reducing the power of public-sector unions has been the claim that public-sector workers are overpaid in comparison to their private-sector counterparts. I've always considered this an odd claim to hear, as I've been in the labour market for quite a long time and can't recall ever hearing anyone say they were going to work for a government bureaucracy because they wanted to make a lot of money. At crucial career-making junctures in life, people who want to get rich tend to enter corporate law rather than join the District Attorney's office, to work for internet companies rather than teach math in public high schools, and so forth.

    All of this is coming up now because Wisconsin has become the showdown state for the public-sector union controversy, and Scott Walker, the governor, is claiming he needs to destroy the state's public-sector unions' ability to negotiate in order to deal with its budget shortfall. State workers, he says, are paid too much. But the Economic Policy Institute tells us that, in Wisconsin, public-sector workers are not in fact paid more than their private-sector counterparts. They're paid less. You can only make it appear that public-sector workers earn more by ignoring the fact that "both nationally and within Wisconsin, public sector workers are significantly more educated than their private sector counterparts."

    Nationally, 54% of full-time state and local public sector workers hold at least a four-year college degree, compared with 35% of full-time private sector workers. In Wisconsin, the difference is even greater: 59% of full-time Wisconsin public sector workers hold at least a four-year college degree, compared with 30% of full-time private sector workers.

    ...Public employees receive substantially lower wages, but much better benefits than their private sector counterparts. Wisconsin state and local governments pay public employees 14.2% lower annual wages than comparable private sector employees. On an hourly basis, they earn 10.7% less in wages. College-educated employees earn on average 28% less in wages and 25% less in total compensation in the public sector than in the private sector.

    The EPI study does find there's a class of public-sector workers who earn a bit more than their private-sector counterparts: those without high-school degrees. In other words, district attorneys earn less than corporate lawyers, but janitors at the district attorney's office may earn more than janitors at a corporate law office—provided the government hasn't outsourced its facilities staff to the same private company the law office uses, which it may have, since governments have been targeting low-skilled workers for outsourcing precisely because that's how they can save money.

    For most people who work for the government, however, the expectation is that your year-to-year salary will be lower, but your benefits will be better, in particular your pension. It turns out, however, that state governments won't have the money to pay a lot of those pensions. They're likely to renege on their promises, and Republicans in Congress want to allow them to declare bankruptcy in order to do so. (Funnily enough, this may be the one area in which labour unions and Wall Street are in alliance: neither one wants states to be allowed to declare bankruptcy.) In other words, as Ezra Klein points out, the public-sector employees got rooked: they accepted lower pay in exchange for retirement benefits, and now the retirement benefits look unlikely to come through.

    Now, how can we explain the fact that public-sector employees are paid less than private-sector employees? After all, public-sector employees are heavily unionised, while private-sector employees aren't. Shouldn't those unions be winning public-sector employees better wages? Well, I don't really know; perhaps the fact that the government is a monopoly employer with staggering market power has something to do with it. But try considering how employees' wage negotiations with the government might look if there were no public-sector unions. In most lines of work, individuals' power to negotiate higher wages with large organisations is very limited. In government employment, individuals' power to negotiate higher wages is utterly non-existent. An individual teacher who bargains with a private school for a higher wage than her peers is going to have a tough negotiation on her hands; an individual teacher who tries to bargain with the City of Milwaukee for a higher wage than her peers is going to be laughed out of the superintendent's office. In his initial post on this subject, my colleague ventured that civil servants would constitute a powerful bloc able to protect their wages even without unions. I'm not really sure what this means. Through what mechanism are civil servants supposed to bargain for wage increases if they don't have unions? Who's supposed to do the bargaining?

  • Crowd-sourcing recovery

    Detroit, you have suffered an emotional shock. I will notify Kickstarter

    Feb 20th 2011, 1:46 by W.W. | IOWA CITY

    RoboCopMAYBE social-networking sites can't topple dictators, but they can put up the money for a statue of RoboCop in downtrodden Detroit.

    A little over a week ago, some guy from Massachusetts suggested via Twitter to Detroit's mayor that the city raise a monument to RoboCop, "a GREAT ambassador for Detroit." The cult-classic 1987 Peter Weller vehicle, you will recall, was set in a militarised, corporatist hellhole Detroit of the future. Detroit's Mayor, Dave Bing, politely brushed off the idea in a tweeted reply: "There are not any plans to erect a statue to RoboCop. Thank you for your suggestion." But the idea didn't then disappear for eternity into the unattended abyss of the municipal suggestion box. Once unleashed upon Twitter, savvy use of social media swiftly transformed an amusing suggestion into a concrete plan to put a RoboCop statue in the Motor City. A "Build a Statue of RoboCop in Detroit" Facebook page popped up, with a campaign on Kickstarter to "crowd-source" the funds to create the statue quick on its heels. Within days, the Kickstarter campaign shattered its $50,000 goal, and plans are afoot to situate a metal replica of the iconic half-man, half-death-machine constable in Detroit's Roosevelt Park, across from the picturesque decay of Michigan Central Station.

    It's easy to imagine why Detroit's powers-that-be might wish to distance themselves from a famous cinematic symbol of Detroit as a violent, crumbling dystopia. Indeed, a "crowd-sourced" $50,000 RoboCop statue may seem like a cruel practical joke played on the struggling city by heartless nerds. However, it's possible to imagine how the project may seem to some as a glimmer of hope. If Detroit's going to make a comeback, it will need a lot of this sort of bottom-up initiative and energy. If a cast-iron monument to RoboCop suggests resignation to Detroit's decline, it also suggests the playful will to keep Detroit alive as an object of imagination, and in imagination there is hope. Plus, tourists! That's all nice. But for now I suspect that here in the USA the coordinating functions of social sites such as Twitter, Facebook, and Kickstarter will be deployed more for the amusement of well-wired geeks than for initiatives that will actually help those suffering in hard-knock cities like Detroit.

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

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