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Politics

Santorum excuses Graham’s anti-Muslim comments, calls them ‘reasonable.’

Today, the Pentagon rescinded its invitation to evangelist Franklin Graham to speak at the upcoming National Day of Prayer, saying that his past comments calling Islam a “wicked and evil religion” were “not appropriate.” Unsurprisingly, conservatives were outraged by the decision, accusing the military of being overly politically correct. On Fox News this afternoon, former Republican Sen. Rick Santorum defended Graham, saying his remarks were “eminently forgivable” because they were made in the “heat of an attack on this country”:

SANTORUM: What Franklin Graham has done, is he made a statement in the heat of an attack on this county by people who were Jihadists, and it was a reasonable statement at the time. And I think Franklin Graham has done everything over the last ten years to show that this is a man who cares about humanity and cares about preaching the word of God, and that is love and peace and forgiveness, and the Army should practice at least the forgiveness part of it. [...]

The fact that he made a statement in the heat of an attack on this country, is something that is eminently forgivable. And, if applied just to the people that were attacking this country, is true. That was an evil act, by people who, if you focus on Jihadists, are in fact evil. So this is the Army trying to be politically correct.

Watch it:

While Graham did initially make his “evil” Islam remark shortly after 9/11, he continues to stand by the hateful claim. In a recent interview with the Washington Post, Graham said, “I never backed down from that. I never retracted from that.” He also reiterated that he finds the religion’s treatment of women to be “evil.” Moreover, Santorum is trying to whitewash Graham’s comments by suggesting they referred only to the “act” of terror, or only to “Jihadists.” In fact, Graham clearly called the entire religion “wicked and evil.”

Yglesias

Endgame

Gonna hit the city:

— Bates Medal winner Esther Duflo makes the case for taxing banks.

— Hoping to see Metro fall into further disrepair? If so, Maryland Governor Martin O’Malley’s got your back.

Frum on Manzi.

— An effort to estimate how over-large the financial sector is suggests 1 percent of GDP is the answer.

— Ambinder: “Can anyone deny that the most trenchant and effective criticism of President Obama today comes not from the right but from the left?”

Because rock and roll should terrify parents, lets offer Kesha’s “Tik Tok”

Politics

Huckabee: New Law Will Open Arizona Up To A ‘Lawsuit Bonanza’

A few hours after President Obama called Arizona’s radical immigration bill an “irresponsible” and “misguided” measure that “threatens basic notions of fairness,” Gov. Jan Brewer (R-AZ) signed SB-1070 into law. Brewer claimed that her decision was made with Arizona’s best interest in mind and stated earlier this week that she would “do what I believe is the right thing so that everyone is treated fairly.” On Fox News, as Brewer signed the bill, former Gov. Mike Huckabee (R-AK) validated racial profiling concerns related to the implementation of the newly signed law and told host Neil Cavuto that it is going to open the state of Arizona up to a “plethora of lawsuits” that will prove “very, very costly”:

Here’s the dilemma: it’s going to open Arizona up to a plethora of lawsuits. You’ll have so many lawsuits that it will be very very costly to the state of Arizona. And here’s the real challenge. [...] This is a federal problem, the feds ought to be fixing this, they ought to be standing guard at the border, they ought to be enforcing the federal laws. When you have a state that is having to jump in and take on federal laws they don’t have the money resources for this, they don’t have the personnel for this, and the legal quandary they’re going to be in is going to be substantial. [...] It’s going to be one lawsuit bonanza.

Watch it:

Later in the interview, Huckabee added that “Hispanic Americans have the right to be unhappy about the fact that they might be pulled over.” “If I were being pulled over because I looked a certain way, I would be highly offended,” stated Huckabee. He also remarked that the “federal government has to do something to stop the hemorrhaging of illegal immigration over the border.”

The American Civil Liberties Union (ACLU) of Arizona has issued warnings that echo the litigation concerns expressed by Huckabee. To begin with, SB-1070 will likely be deemed unconstitutional for allowing the state to regulate immigration — a power which the constitution assigns to the federal government. In the meantime, the new law stipulates that Arizona residents can sue local police if they believe they are not enforcing SB-1070. If SB-1070 ends up exacerbating racial profiling, as many have predicted is likely, it will also open local police agencies up to a slew of lawsuits related to potential civil rights abuses.

While relatively moderate on immigration during his tenure as governor, Huckabee’s damning remarks come as a surprise considering his immigration platform veered far to the right during his presidential campaign in 2008. While fighting for the Republican nomination, Huckabee specifically signed an anti-immigrant group’sNo-Amnesty Pledge” which made clear that he opposed allowing undocumented immigrants to remain in the U.S. and would not support a path back to the US once they were deported. Throughout his campaign, Huckabee sparred in a tit-for-tat debate with Gov. Mitt Romney over who was toughest on immigration. Nonetheless, action star and Huckabee confidante Chuck Norris did suggest that “Mike would go” for an earned path to legalization for undocumented immigrants.

Yglesias

Esther Duflo Wins John Bates Clark Medal

Esther Duflo - Pop!Tech 2009 - 001

MIT’s Esther Duflo has won this year’s John Bates Clark Medal, the most prestigious award around for young economists. I don’t believe this is the main focus of her research, but I think her 2008 paper “Powerful Women: Does Exposure Reduce Bias?” (PDF) is interesting and accessible:

We exploit random assignment of gender quotas across Indian village councils to investi- gate whether having a female chief councillor affects public opinion towards female leaders. Villagers who have never been required to have a female leader prefer male leaders and per- ceive hypothetical female leaders as less effective than their male counterparts, when stated performance is identical. Exposure to a female leader does not alter villagers’ taste pref- erence for male leaders. However, it weakens stereotypes about gender roles in the public and domestic spheres and eliminates the negative bias in how female leaders’ effectiveness is perceived among male villagers. Female villagers exhibit less prior bias, but are also less likely to know about or participate in local politics; as a result, their attitudes are largely unaffected. Consistent with our experimental findings, villagers rate their women leaders as less effective when exposed to them for the first, but not second, time. These changes in attitude are electorally meaningful: after 10 years of the quota policy, women are more likely to stand for and win free seats in villages that have been continuously required to have a female chief councillor.

Co-authors on the paper are Lori Beaman, Raghabendra Chattopadhyay, Rohini Pande
and Petia Topalova.

Politics

After Saying That Big Banks Should Be Made ‘Smaller,’ Cornyn Votes Against Breaking Them Up

cor1 Last week, the Huffington Post’s Ryan Grim and Sam Stein interviewed several Republican senators about their views on making megabanks that threaten the economy smaller. The bloggers concluded that “Republican senators are beginning to embrace” breaking big banks up, with a number of the legislators endorsing the idea reducing the maximum size of banks.

One senator they talked to was Sen. John Cornyn (R-TX). Cornyn told the Huffington Post that he views Democratic plans as a “perpetual bailout” and prefers making banks “smaller in order to avoid” the problems we saw during the financial crisis:

Last week, Sen. John Cornyn (R-Texas) and Minority Leader Mitch McConnell (R-Ky.) met with 25 top Wall Street executives in New York City to hear their concerns regarding reform. Both say they oppose the Democratic plan as a perpetual bailout. “By creating a fund, that’s an invitation to Congress to spend that money just as we have in the highway trust fund and the surplus in Social Security,” Cornyn said.

HuffPost asked Cornyn what his alternative solution to the Democratic plan would be. “I think we need to look at the concentration of banking in just a handful of entities that threaten our economy if they go under,” Cornyn said. “They need to be smaller in order to avoid that problem and I would support efforts to move in that direction.”

Yesterday, Cornyn got a chance to put his money where his mouth is. The Senate Budget Committee held a vote on Sen. Bernie Sanders’ (I-VT) amendment to the financial regulatory reform bill that would’ve broken up some of the nation’s largest financial instutitions that are considered “too big too fail.” Cornyn voted against the amendment, joining all of his Republican colleagues on the committee except for Sen. Jim Bunning (R-KY). Democratic Sens. Warner (VA), Nelson (NE), Conrad (ND), and Begich (AK) also voted no, causing it to fail 10-12.

Cornyn’s vote against the Sanders amendment isn’t the only time the senator has demonstrated that his public rhetoric against Wall Street is less than genuine. Two weeks ago, the senator traveled alongside Senate Minority Leader Mitch McConnell (R-TX) to New York City to attend a private fundraiser with two dozen hedge fund managers and other corporate elites to enlist “Wall Street’s help” in funding Republican campaigns in the fall and defeating any tough financial regulatory reform legislation.

Sens. Sherrod Brown (D-OH) and Ted Kaufman (D-DE) plan to introduce an amendment to the final financial regulatory bill next week that would limit the size of the largest banks. The amendment “would limit large banks by capping at 10 percent the share of the U.S. total insured deposits it can hold, and restrict limits on leverage.”

Security

‘Get Real’ About The UK’s Nuclear Trident

2010-General-Election-lea-001One of the hot issues in yesterday’s UK Prime Minister’s debate is over whether to replace Britain’s Trident nuclear missile system. The fault lines on this issue have oddly unified Prime Minister Gordon Brown and Conservative leader David Cameron. Both support spending more than $100 billion on this project in order to fully replace the existing Trident program thereby ensuring its existence for the next half century. Upstart Nick Clegg of the Liberal Democrats on the other hand, has called for its cancellation, arguing that such a program is both inconsistent with President Obama’s calls to work toward eliminating nuclear weapons and is a colossal waste of money that could be better spent on equipping British ground forces – that are suffering severe equipment shortages after a decade of fighting two wars.

In the debate, Cameron and Brown ferociously attacked Clegg on this issue in yesterday’s debate, as Brown even described his foreign policy approach as “anti-Americanism.” Brown derided:

I say to you, Nick, get real, get real. Because Iran, you are saying, might be able to have a nuclear weapon, and you wouldn’t take action against them, but you’re saying we’ve got to give up our Trident submarines and our nuclear weapon now. Get real about the danger.

But Clegg’s position on the trident is anything but “naïve” and “anti-American.” On the contrary, calls to end the Trident program reflect a much more astute understanding both of the role of nuclear weapons and of Britain’s place in the 21st century.

The notion that the UK needs nuclear weapons because of the dangers of Iran demonstrates an outdated world view that sees Britain as isolated and sees security issues in a vacuum. The fact is that the UK is in NATO – which means under Article 5 an attack on one NATO member is an attack on all. This means that an attack on the UK is an attack on the US and therefore the US nuclear deterrent is effectively a UK nuclear deterrent as well. If the UK’s nukes just magically disappeared there would be no practical change in its ability to deter a nuclear attack.

The debate over the Trident is therefore at its heart is not about questions of security but about nuclear weapons as a sign of global prestige and clout. The fact is that the role of nuclear weapons has significantly declined following the end of the Cold War, since, as Colin Powell noted, nuclear weapons are militarily “useless.” Clegg is therefore right when he states in defense of eliminating the Trident that “the world is changing, when we’re facing new threats.”

But a Britain that is willing to spend more than $100 billion dollars on a nuclear weapons program that has little real military utility, is not just swimming against the global tide, but is sending an incredibly regressive signal to the world over the importance of these weapons. Countries embedded in the international community that could go nuclear, such as Brazil or South Africa (which gave up its weapons), have chosen not too, because lacking any strong security rationale, these countries have calculated that nuclear weapons actually would diminish – not grow – their international standing. Building a new Trident therefore sends a signal that being international prestige is still tied to the possession of nuclear weapons.

This debate then is intimately tied to Britain’s broader apprehension over its global self image and its loss of its past hegemonic global status. In essence, nukes for the UK are like hair plugs – they have nothing to do with ones health, but everything to do with ones self image. However, a UK that confidently reduced its nuclear arsenal would alternatively send a strong signal to the world about the decreased importance of nuclear weapons and would in fact catapult the UK into a global leader on this issue. Far from losing credibility by passing on Trident, the UK’s international credibility and moral authority would be enhanced.

Finally, investing in a new Trident does nothing to bolster the “special relationship.” The fact is that Britain’s global importance and its military significance to the United States has nothing to do with its possession of nuclear weapons, but everything to do with its possession of a highly capable conventional armed forces that can fight alongside American troops.

There is a huge opportunity cost in having a cash-strapped UK investing billions on its nuclear forces, instead of spending on items that are actually relevant to its security and to the transatlantic alliance, such as equipment for its ground forces, helicopters, and fighter jets. David Cameron suggested in the debate that choosing between funding the two is a false “trade-off.” Well, it is only a false choice if Cameron is going to find that money for defense elsewhere, which he isn’t. If the US was in charge in the UK defense budget, the Trident would be cut in a heart beat.

Yglesias

“Sophisticated Investors”

150px-goldman_sachssvg

One piece of commentary I’ve heard around the Goldman fraud suit is that somehow Goldman can’t be guilty because the folks they allegedly ripped off were “sophisticated investors.” I’m not a lawyer, but like Tim Fernholz I can’t make heads or tails of what kind of legal doctrine this is supposed to be. Suppose I get shot and killed in New Orleans—is the shooter allowed to argue in court that as a sophisticated consumer of FBI crime data I should have known better than to walk around the city that had 63.6 killings per 100,000 residents in 2008?

Or consider another angle. One thing I’ve heard from low-income unbanked people is that they don’t want a bank account because they don’t trust the bank with their money. By contrast I, as a sophisticated investor, understand that there’s deposit insurance and a variety of other legal protections that ensure I’ll get my money back. A bank can’t break the law, steal my money, and then say because I was “sophisticated” it’s okay to lie to me. Sophisticated people are familiar with the law and rely on it when making decisions.

Security

Senate Budget Committee Proposes Slashing State And Foreign Aid Budgets While Increasing Pentagon Funding

Hillary Clinton and Robert Gates In his 2010 State of the Union address, President Obama called for a “non-security” discretionary spending freeze to help bring down the deficit. He proposed exempting “security-related budgets for the Pentagon, foreign aid, the Veterans Administration and homeland security,” as well as Medicare, Medicaid, and Social Security.

On a party-line vote of 12 to 10 yesterday, the Senate Budget Committee approved “a $3.7 trillion budget blueprint” that goes further than Obama’s plan by “slicing $9.5 billion from discretionary spending in fiscal year 2011.” Under the Senate Budget Committee blueprint, approximately half of the savings would come from dramatic cuts to the budgets of the State Department and other international aid programs. Nevertheless, the committee decided to actually increase the Defense Department’s funding:

The 2011 federal spending plan approved by the committee Thursday on a 12-10 vote provides $573.8 billion for the Defense Department, which includes $133 billion for contingency operations. The amount makes the Defense Department one of the few federal agencies to see a budget increase; the non-war funding part of the defense budget would represent a 3.5 percent increase over 2010 funding.

Both Secretary of State Hillary Clinton and Defense Department Secretary Robert Gates supported full funding for Obama’s foreign affairs budget request. In her letter to Budget Committee Chairman Kent Conrad (D-ND) on April 20, Clinton argued that international aid is actually more “cost-effective” than military spending:

Our investments in development and diplomacy are smart, cost-effective, and squarely in the best interests of American taxpayers and our national security. They are relatively small compared to the cost of active military engagement, and they can end up delivering impactful savings. In Iraq, for example, our $2.6 billion request for State and USAID will allow the Defense Department budget to decrease by about $16 billion — a powerful illustration of the return on civilian investments.

As CAP Senior Fellow Lawrence J. Korb has advocated, the Defense Department should not be exempted from this spending freeze. Freezing “the base defense budget at its current level of about $532 billion would not hinder the Pentagon’s ability to conduct the wars in Afghanistan and Iraq.” Approximately $20 billion in savings could come from, among other measures, cutting missile defense while maintaining funding for its continued research and development, cutting FY 2011 F-35 purchases to twenty, and canceling the Zumwalt-class DDG-1000 at two ships.

The Department of Veterans Affairs also saw a 7.4 percent boost in the Senate Budget Committee’s proposal. The Obama administration requested the increases for both budgets. As the Navy Times notes, this blueprint is “just the first step in the long congressional budget process. The House Budget Committee has not started writing its version of the budget blueprint.”

Alyssa

Gifted Tongues

Max is reading The Savage Detectives and liking it, which means that I should probably give in and put it on the list.  He notes, however:

 This is the first translated novel I’ve read since Sister Pelagia and the Black Monk, which is not to say that I have a distaste for translated fiction in general.  I read a ton of translated fiction under ordinary circumstances, but last year I decided I would make more of an effort to read Americans writing English.  This has paid huge style dividends – there’s no better place to learn a language than at the feet of the masters, and the language spoken, and prose written, in America is different than that spoken and written in England and throughout the international world.

Immersing myself in Faulkner, Hemmingway, Steinbeck (oh, Steinbeck!) has been a joy, and excellent for my writing, but it’s fascinating to return to worlds where the main characters do not speak English at home, and where a different set of giants tower over the literary landscape.  

I think Bolano has one of the better translators I’ve seen.  Another person who’s been very well-served by their translator is Arturo Perez-Reverte, who despite initially refusing to have his books translated into a language other than French, relented,  and ended up working, at least on some of his projects, with Sonia Soto, who is just a G.  The Club Dumas, one of her jobs with him, is a gorgeous piece of English prose.  

Health

Maine Judge Says Insurers Are Not Entitled To Profits, Backs State’s Effort To Control Growth Of Premiums

Antthem2Back in October, Anthem Blue Cross and Blue Shield of Maine, the state’s largest private insurer, sued the state after Maine’s Superintendent of Insurance denied Anthem a rate increase that would have required Maine residents to pay an “additional $12 million in annual premiums for the same level of benefits.” Under Anthem’s proposed increases, the average policyholder would have had to spend “more than $13,000 in premium and deductibles, prior to becoming eligible to receive any health benefits under the policy.”

After reviewing Anthem’s annual rate increases for policies sold within the individual health insurance market, Maine rejected the company’s proposed rate increase of 18.9%, but allowed the company to “break-even” in its individual market division and increase “rates by just 10.9%.” According to court documents obtained by the Wonk Room, Anthem, a subsidiary of Wellpoint Inc., argued that beyond simply ‘breaking-even’, the government must guarantee the company a 3% profit.

On Wednesday, the Maine Superior Court affirmed the decision by state regulators to cut the increase, ruling that Maine law does not “expressly entitle insurers to a mandated profit margin“:

The judge also said it was not improper for the superintendent to consider the state of the economy and profits from Anthem’s other lines of insurance in making her decision on the proposed increase.

Insurance Superintendent Mila Kofman called the decision “good news for Maine consumers.’’ Attorney General Janet Mills said Anthem “cannot impose high rate increases on the backs of individual policyholders to maximize its corporate profits.’’

“In the past three years alone, Anthem turned over $200 million in dividends to its parent company Wellpoint, one of the largest health insurers in the country,’’ Mills said.

This ruling establishes a positive precedent for future lawsuits (which are almost inevitable given the new health care law’s rate review procedures) and the case in Massachusetts, where insurers are suing the state for using its rate review authority to reject “235 of 274 increases proposed by Massachusetts health insurers for small businesses and individuals.”

Currently, more than thirty states have the authority to regulate premiums in the individual or small group markets and Sen. Dianne Feinstein (D-CA) has proposed legislation to allow the federal government to review and reject insurance premium increases in states that don’t already have this authority. The industry is obviously resisting the effort.

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