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Yglesias

Confidence in Democracy

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Daniel Deudney and G. John Ikenberry have an important article in Foreign Affairs pushing back against the notion, put forward by Robert Kagan and other neocons, that the world is heading into some inevitable phase of conflict between democracies and an “authoritarian bloc.” One strand of the argument in the piece that I think is especially important is that democracies should be confident in our system of government. We ought to understand that democracy will tend to succeed, and that it will tend to spread precisely because it’s successful. There’s no need to organize our foreign policy around the specific goal of trying to force other countries to become democracies, and relatedly no need to try to conceive of international politics as a titanic ideological struggle. But this isn’t because democracy isn’t value, it’s because democracy is valuable. A point that, as I’ve said before with regard to the Bush administration’s rejection of the rule of law, has important applications in the domestic security context as well. One excerpt I liked that highlights that aspect of things:

Third, autocratic hierarchies have to contend with limitations on their performance because of weak accountability and insufficient flows of information. Their top-down, closed structure chokes off information from outside sources and distorts it, due to the imperatives of political control. Closed political systems are prone to policy mistakes arising from bad information. The historical record of tyrannies, despotisms, and dictatorships bears this out. Contemporary autocratic capitalist regimes show much greater capacities than their precapitalist predecessors, but they are still intrinsically impeded by censorship and the absence of open debate on policy alternatives. The SARS outbreak in China in 2003 vividly illustrated both the presence of closed decision-making and its severe consequences for public welfare and political legitimacy. Even faced with something as apolitical as the emergence of a dangerous new disease, Chinese officialdom’s routine penchant for secrecy and unquestioned decision-making turned what should have been a manageable problem into an international public health crisis.

Rather than trying to get democracies to band together to contain autocracy, democracies ought to be confident that our model will succeed and spread over time and seek instead to cooperate with as broad a range of states as possible on issues of common interest:

The resilience of autocracies calls not for abandoning or retreating from liberal internationalism but rather for refining and strengthening it. If liberal democratic states react to revived autocracies solely with policies of containment, arms competition, and exclusive bloc building, as neoconservatives advise, the result is likely to be a strengthening and encouragement of illiberal tendencies in these countries. In contrast, cooperatively tackling common global problems — such as climate change, energy security, and disease — will increase the stakes that autocratic regimes have in the liberal order. Western states must also find ways to accommodate rising states — whether autocratic or democratic — and integrate them into the governance of international institutions. Given the powerful logic that connects modernization and liberalization, autocratic regimes face strong incentives to liberalize. The more accommodating and appealing the liberal path is, the more quickly and easily the world’s current illiberal powers will choose the path of political reform.

This is one important reason to say no to “Global NATO” and other efforts to construct a worldwide democratic military alliance. Instead, they sensibly remark that “proposals such as a ‘concert of democracies’ should be configured to deepen cooperation among democratic states and reinforce global institutions rather than to confront nondemocratic states.” I think this is just right — democracies have certain values in common and its sensible for us to try to work together, but it would be a huge mistake to try to turn this into the main organizing principle of international relations, in which a new democracy club faces off against its foes.

Last, they make the important point that Americans should perhaps be a bit more open-minded about what constitutes a democracy:

At the same time, Americans should always acknowledge that there will be variation in the preferred liberal democratic model and that the United States is not always the best or the fullest embodiment of liberal democracy. In particular, the tendency to equate Western liberal democracy with the Reagan-era antigovernment ideology and the minimalist “Washington consensus” version of state regulation does injustice to the protean character of the liberal model and the often important ways in which appropriately crafted state interventions are essential for its success. The Western liberal model has flourished because of its capacity to creatively mutate in the face of new problems and challenges — and its next adaptations to problems such as the current financial meltdown may well produce a new balance between the state and the private sector. As the world becomes increasingly liberal and democratic, there are growing opportunities for even the most successful liberal states — such as the United States — to learn from their partners.

Again, spot-on. The whole piece is recommended. I think there will be some important tensions around this sort of line of argument in progressive foreign policy going forward. I cast my lot firmly with Deudney & Ikenberry and Nina Hachigian & (deputy chief of staff-designate) Mona Sutphen who are trying to push this cooperative, self-confident vision rather than the confrontationalist alternative.

Politics

AEI Scholar: ‘Bush’s Legacy May End Up Better Than You Think’

bush4ea.jpg Not only are Bush administration officials rushing out to rewrite President Bush’s legacy as a strong, capable leader, his conservative allies are beginning to jump to his defense as well. Kevin Hassett, director of economic policy studies at the American Enterprise Institute (AEI) — one of Bush’s favorite think tanks — has a column today for Bloomberg News in which he writes that the “argument for his [Bush's] eventual vindication is stronger than many might expect.” Hassett specifically points to Bush’s record on terrorism:

On the home front, to virtually everyone’s surprise, we’ve avoided a terrorist attack since Sept. 11. [...]

So it is hard to argue that Bush’s policies were a failure. The unpopular war may have trashed his party, but it didn’t have the same effect on the country.

Hassett acknowledges that Bush’s “accomplishments were few” on the economic front, but he says that this fact absolves Bush of any responsibility in the economic crisis:

The insignificance of Bush’s economic policy, though, might work to his advantage. We are in the midst of the worst recession of our generation, yet it is hard to attribute this crisis to anything that Bush actively did. If his large deficits produced skyrocketing interest rates that crushed the economy, then the argument that Bush caused the mess we’re in might hold water. If he was the one who deregulated the financial sector, then we could justifiably blame him for our predicament.

Similarly, Bush’s Counselor Ed Gillespie wrote a piece for RealClearPolitics yesterday titled, “Myths & Facts About the Real Bush Record.” Gillespie also tried to absolve Bush of any blame for the economic crisis, saying that “the President and his Administration have responded to aggressively” to “the current economic challenges.” But Bush’s inaction on the economy is precisely what helped throw the country into recession. Bush “ignored remarkably prescient warnings” about the collapse of the financial system and eliminated key financial checks and regulations.

As the New York Times reported recently, as early as 2006, Bush and his top advisers “dismissed warnings from people inside and outside the White House that housing prices were inflated and that a foreclosure crisis was looming. And when the economy deteriorated, Mr. Bush and his team misdiagnosed the reasons and scope of the downturn.”

In the last line of Gillespie’s piece, he writes, “And one last fact: Our homeland has not suffered another terrorist attack since September 11, 2001. That, too, is part of the real Bush record.” Matt Yglesias takes issue with Gillespie’s comment:

This is like saying that except for the Great Depression, Herbert Hoover had a good economic record. … Nine or so months later by far the largest terrorist attack on American soil was perpetrated. That’s a fantastically enormous failing. If you only look at Bush’s final seven years, you’ll see that he was as good as every other president at preventing terrorist attacks. And if you include his entire presidency, you’ll see that he was by far the worst.

Despite Hassett and Gillespie’s revisionist efforts, Americans may unfortunately find that Bush’s legacy is even worse than they think.

Climate Progress

Clean Coal Smoke: ACCCE Releases Long List Of Coal Tech Projects They’re Not Supporting

Our guest bloggers are Daniel J. Weiss and Alexandra Kougentakis, a Senior Fellow and the Director of Climate Strategy and a Fellows Assistant at the Center For American Progress Action Fund.

Yesterday, the Center for American Progress released “Clean Coal Smoke Screen,” which documented that the coal and utility companies that belong to the American Coalition for Clean Coal Electricity (ACCCE) have invested only a paltry percentage of their profits to develop technologies to reduce global warming. ACCCE attempted to push back by releasing a list of research efforts to capture coal’s global warming emissions:

The American Coalition for Clean Coal Electricity (ACCCE) today released a list of more than 80 carbon capture and storage demonstration and research projects, predominantly underway in the U.S., proving again that the coal-based electricity sector is moving aggressively towards bringing advanced clean coal technologies to the marketplace domestically and abroad.

In fact, this list did not prove that ACCCE members are “moving aggressively” in carbon capture and storage research. A quick review of the list found that most of these research projects are undertaken by the Department of Energy in cooperation with non-ACCCE entities. The projects on the ACCCE list fall into the following categories (projects before 2001 are not included here):

– 18 with ACCCE members in a joint CCS-related project

– 18 are joint National Energy Technology Lab and regional Carbon Sequestration and Leadership partnership projects

– 13 are joint DOE-university projects

– 12 projects are joint projects between DOE and non-profit or non-ACCCE for-profit partners

– 8 projects are joint DOE-U.S. energy lab projects

– 10 are foreign projects

– 6 are joint projects by the DOE or National Energy Technology Labs and regional Carbon Sequestration and Leadership partnerships; while the partnerships in this group include ACCCE members, these particular projects did not include ACCCE members as primary sponsors

– 1 with an ACCCE member partner in a non-CCS project

– 1 project is funded by the DOE only

– 2 are private projects by non-ACCCE members

Only 18 out of 89 projects on ACCCE’s list are CCS-related projects involving investment from ACCCE members. Sixteen of the 18 were recognized in the Center for American Progress analysis, which relied on information provided by ACCCE members. Two additional recently announced projects that were not on the ACCCE list were accounted for by the Center for American Progress as well. All the ACCCE list proves is that the federal government has undertaken many CCS projects with little monetary involvement from the “coal-based electricity sector.”

Our study found that ACCCE companies made 17 times as much money in 2007 alone as their total multi-year investment in CCS research –- a fact not refuted by ACCCE’s press release. Despite this miniscule investment in carbon capture and storage, we fully expect ACCCE and its member companies to continue to urge Congress to delay and weaken greenhouse gas reduction proposals, and to use taxpayer dollars to fund the research the coal industry should be doing themselves. Hopefully, Congress will not be fooled by the clean coal smoke.

Climate Progress

Climate Progress Person(s) of the Year

bush-dumb.jpgUntil the election, this long-beloved annual traditional of Climate Progress was a lock for one person — last year’s winner. After all, like Time magazine, our Person of the Year is awarded to the person or group whofor better or for worse … has done the most to influence the events of the yearin the climate arena.

Now the judges are split. On the one hand, no person on the entire planet, heck no semi-sentient lifeform in the entire solar system, has week-after-week worked so tirelessly, given 110% evey day, to high-impact misleadership on the issue of the century than George W. Bush.

Indeed, even after the election, when you think he is not just a lame duck, but a duck in need of a hip replacement, electroshock therapy, and CPR, his EPA administrator undoes perhaps the only recent glimmer of hope to come out of the one tiny enlightened corner of the entire executive branch that Darth Dick Cheney had apparently not cowered into conscienceless, self-destructive, obedience — when the EPA Environmental Appeals Board voted to stop new coal plants cold. But as the NYT reported Friday, “Officials weighing federal applications by utilities to build new coal-fired power plants cannot consider their greenhouse gas output, the head of the Environmental Protection Agency ruled late Thursday.”

Of course not. Sure the Supreme Court ruled against the Bush Administration, decided carbon dioxide was a pollutant, and ordered EPA to start regulating it under the Clean Air Act. But they didn’t reckon on George Bush ruling against them.

On the other hand, Bush and Cheney never counted on the American people ruling against them. And now the country will be lead by the greenest, most scientifically informed, radical pragmatists in the history of the Republic:

Read more

Politics

Maryland Water Main Break Highlights Need For Infrastructure Spending In Federal Stimulus

A water main break in Maryland this morning trapped a dozen commuters in their cars and sent rescuers scrambling to pull motorists from frigid floodwaters. “I thought it might be a minor leak, then suddenly I stepped outside and, ‘My God!’” said one witness. “It looked literally like the Potomac River.” “Your first inclination is that’s crazy. That could never happen,” Fire Capt. Frank Doyle said. “You never expect to see something like this.”

But in fact, “officials have warned for years that the system is in need of repairs, saying many pipes are decades old and worn down by ground water and acidic soil. In 2007, the system reported a record 2,129 pipe breaks, which generally result in cut-offs in service and road flooding.”

In Feb. 2008, the Washington Suburban Sanitary Commission decided against imposing a new fee on water rates that would have funded the replacement of aging pipes. The Commission was concerned it would be unfair to low-income customers. The Commission’s now-retired General Manager, Andrew Brunhart, warned at the time:

Brunhart, a retired Navy engineer, told commissioners that, absent the infrastructure fee, he would recommend dropping the words “entrusted,” “reliable” and “clean” from the WSSC mission statement.

“In my view, the public will no longer be able to trust the system that delivers water to residents,” he said.

This incident underscores the vital need for including infrastructure funding in the upcoming economic stimulus bill. Maryland, like so many other states, is facing a budget crunch to deal with its much-needed repairs. Gov. Martin O’Malley has been urging President-elect Obama to make an early investment in infrastructure. “Not only would an infusion of funds help keep people employed and create new jobs,” O’Malley said, “it would allow us to deliver infrastructure improvements that will last beyond the immediate economic crisis and benefit generations to come.”

In an interview with Washington DC’s CBS affiliate WUSA9, Montgomery Country council member Roger Berliner stressed the point, saying the state is suffering an “epidemic” of infrastructure breakdowns. “We simply don’t have the money to take care of it,” he said. “We need help from the federal government.” Watch it:

While President Bush has stubbornly refused to address the need for immediate infrastructure investments, President-elect Obama has expressed his strong desire to make it a priority.

Yglesias

More on What Might Have Been

I promised more thoughts on this subject, and I think Tim Lee’s post on The Innovator’s Dilemma is a good starting point and also reveals that my thoughts were less original than I’d believed. But the basic problem confronting a newspaper manager in 1998 or so would have been the fact that his firm was probably way too successful for there to have been a serious option of throwing chunks of the business model out the window and doing things in a whole different way in order to position it for long-term success as a digital media brand. Even if you’d had the foresight to see that doing this would make sense, you’d never be able to sell the other stakeholders on it.

Big, successful institutions have a lot to lose and have a ton of stakeholders and fixed investments in this and that. Even if you can see around corners and recognize that everything’s going to change soon, it’s just very difficult, in practice, to change things up so things that look foolish in retrospect could easily have been all-but-inevitable at the time the decisions were made.

Politics

Obama appoints Cassandra Butts as Deputy White House Counsel.

Today, President-elect Obama announced several key additions to his White House staff, including our former colleague Cassandra Butts, who will be Deputy White House Counsel with a Focus on Domestic Policy and Ethics. Since their days at Harvard Law School, Cassandra has been a close friend and adviser to Obama. She currently serves as the transition team’s general counsel and previously, while at CAP, she filled the role of Senior Vice President for Domestic Policy. We wish Cassandra the best of luck.

Economy

Bush Administration Has Plenty Of Time To Slash Corporate Taxes, No Time To Audit Corporations

bush-boosting-economy-2.jpgAccording to IRS enforcement data released Monday, “audits of large corporations fell for the third straight year” in 2008. The IRS audited just 15.3 percent of returns of corporations with assets of $10 million or more, which is “the lowest audit coverage level since 2003 and down from a 20% coverage rate in 2005.”

IRS Deputy Commissioner Linda Stiff said 2008 was “a very challenging year,” since enforcement staff levels declined 2 percent and “some enforcement staff were re-directed to help field calls from taxpayers related to tax rebates that Congress ordered as part of economic stimulus legislation.” While this may be true, the turn away from corporate audits comes on the heels of reports that Bush’s IRS is expending a lot of effort to cut corporate taxes.

As Time’s Stephen Gandel found, in 2008 the IRS has been “unusually aggressive in doing what it can to lower corporate taxes, going above and beyond what has been allowed in the past.” The IRS this year has issued 113 notices — breaking the record of 111 set in 2006 — “many of which will lower the taxes companies will pay this year and in the future.”

Furthermore, Dean Zerbe, national managing director of the public accounting firm alliantgroup LP, said that the IRS — in a “disturbing” trend — is simply shifting its focus away from large corporations and onto “small and medium-sized firms“:

Audits of small and mid-sized firms don’t produce as much tax revenue, and about one-third of the time produce no change in taxes assessed, according to Mr. Zerbe. “They spend a lot of time doing root canals on people who are basically compliant,” he said.

The amount that the IRS collected from audits fell by about $3 billion this year. And while Goldman Sachs paid a 1 percent effective tax rate in 2008, the IRS thought its time would be better spent auditing the little guy and finding more ways to lower corporate taxes.

Media

Incentives

Dean Baker on applying economics to economists:

The honchos in the profession (Paul Krugman excepted) said everything was fine. Agreeing with the honchos will never get you in trouble. You will never lose your job or even miss a promotion because you made the same mistake as all the leading lights in the profession.

On the other hand, if you go against the honchos and end up being wrong, well you should be prepared to be sent to oblivion. You are obviously a raving lunatic who has no business being taken seriously as an economist. Even when you end being right against the honchos you can’t count on any great reward, since the honchos so control the profession and the media that “nobody could have seen” will be repeated at least frequently as the fact that some people did see.

Anyhow, what would an economist expect to happen in a situation in which option one carries no risks and reasonable expected rewards and option two carries enormous risks and only moderately higher expected rewards? In short, the incentives in the economics profession, just as in finance, strongly encourage a lack of original thinking.

In some ways I think this is a little misleading since most economists just don’t do any public commentary on issues of interest at all. But I think it’s important to look at political punditry in this light. Being a pure monger of the conventional wisdom is a bad idea since you’ll never get attention. But bucking the CW is problematic — if you dissent from the pack and are vindicated, you get no reward; if you follow the pack and get things wrong, you get no punishment; but if you break with the pack and you’re wrong, you at least risk being sent into oblivion. One trick is to come up with “contrarian” opinions that basically serve the interests or egos of the sort of people who are powerful in the media industry. The market for things about how the minimum wage is bad for poor people or affirmative action is bad for black people or teachers unions are bad for poor black people is always robust. Another popular gambit is proposing high-minded that you know perfectly well won’t happen. If there was some chance that agitating for an invasion of Myanmar might lead to an invasion of Myanmar, you’d have to think through the consequences. But since it won’t, just calling for it and maybe throwing something in where you call the U.N. “feckless” is a solid move.

Some of these kind of notions may even be correct on the merits. But it’s important to understand how little the merits of ideas have to do with the reward-structure embedded in voicing them. And, obviously, it would be naive to think that the blogging world doesn’t have its own parallel structure of incentives. But one of the strengths of the blogosphere’s emergence has been that its incentive logic is in tension with other incentive logics at play in the mediasphere, thus opening up some space for some different kinds of ideas and conversations.

Politics

White House: Expect more pardons from Bush.

In today’s White House press briefing, a reporter noted to spokesman Tony Fratto that the “administration has indicated that the president is unlikely, at the last minute, to issue a batch of pardons.” Fratto, however, quickly took issue with that statement, saying, “I don’t think we’ve indicated that.” He then hinted that there will be more pardons coming soon:

FRATTO: We do expect additional — additional clemency requests. The president has been considering them. And, hopefully, soon we’ll have something for you on that.

I can’t tell you that — when exactly the next one will come — the next batch will come and whether there will be more after that. I think the president has maintained his authority to do that until — until his last day as president, so we’re not going to — I don’t think we’ll take that away from him. But I think we should have something soon on clemency petitions.

Watch it:

Some possible pardons to watch for: Ted Stevens, Donald Rumsfeld, Scooter Libby, and everyone who has participated in the administration’s torture and wiretapping programs.

Transcript: Read more

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