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No Iraq Recession

resupply.jpg

There’s a bunch of progressive groups experimenting with some interesting “Iraq recession” messaging which sounds promising to me, but as Paul Krugman explains doesn’t fit the facts particularly well:

The fact is that war is, in general, expansionary for the economy, at least in the short run. World War II, remember, ended the Great Depression. The $10 billion or so we’re spending each month in Iraq mainly goes to US-produced goods and services, which means that the war is actually supporting demand. Yes, there would be infinitely better ways to spend the money. But at a time when a shortfall of demand is the problem, the Iraq war nonetheless acts as a sort of WPA, supporting employment directly and indirectly.

Krugman mentions the war’s impact on the price of oil as one potential caveat. I would also add that the war’s been going on long enough at this point that we’re feeling some of the long-term consequences of war-related spending along with the short-term ones. Americans are probably somewhat poorer on average than we would be had the war never been fought. But the war’s not responsible for the economic slowdown — in the short-term it’s helping to prop the economy up. Indeed, the DC area in particular (though also, I would note, Arizona — though obviously Saint John’s hawkish views reflect pure straight talky principle and owe nothing to the large number of defense contractors he represents) has seen a lot of defense-fueled growth.

Bush Issues Signing Statement On Defense Act, Waiving Ban On Permanent Bases In Iraq

bushsi.jpg President Bush yesterday signed the 2008 National Defense Authorization Act after initially rejecting Congress’s first version because it would have allegedly opened the Iraqi government to “expensive lawsuits.”

Even though he forced Congress to change its original bill, Bush’s signature yesterday came with a little-noticed signing statement, claiming that provisions in the law “could inhibit the President’s ability to carry out his constitutional obligations.” CQ reports on the provisions Bush plans to disregard:

One such provision sets up a commission to probe contracting fraud in Iraq and Afghanistan. Another expands protections for whistleblowers who work for government contractors. A third requires that U.S. intelligence agencies promptly respond to congressional requests for documents. And a fourth bars funding for permanent bases in Iraq and for any action that exercises U.S. control over Iraq’s oil money.

In his “Memorandum of Justification” for the waiver, Bush cited his Nov. 26 “Declaration of Principles for a Long-Term Relationship of Cooperation and Friendship” between Iraq and the United States. This agreement has been aggressively opposed by both Republicans and Democrats in Congress as not only unprecedented, but also potentially unconstitutional because it was enacted without the agreement of the legislation branch.

Today on CNN, Rep. Bill Delahunt (D-MA) voiced concern that this declaration may indefinitely commit U.S. troops to fighting Iraq’s civil wars:

Involved in those declaration of principles, there is an implicit potential for the United States military forces, years from now, being involved in a full-blown civil war in Iraq. And I don’t believe that’s where the American people want us and I don’t think that’s in the best interest of our national security.

Earlier this month, Rep. Rosa DeLauro (D-CT) introduced legislation requiring the Bush administration “to consult with Congress before moving forward with any agreement that could lead to long term security arrangements and other major economic and political commitments.”

Throughout his presidency, Bush has issued more than 151 signing statements challenging 1149 provisions of laws.

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Yglesias

False Populism

Here’s a random note from last night. Bush, talking about a free trade pact with Colombia, said “If we fail to pass this agreement, we will embolden the purveyors of false populism in our hemisphere.” The purveyors of false populism are, I guess, Hugo Chavez and other murky conspirators. But why is it false populism? Chavez is a real populist. Maybe you think he’s a populist peddling fake solutions to Latin America’s problems, but he’s certainly not a secret pro-business neoliberal.

Meanwhile, what about failing to ratify the Colombia trade deal will embolden false populism? This seems like a bizarre context in which to start applying fight them in Tikrit so we don’t need to fight them in Tuscon logic.

Yglesias

Ah, Liberty

Roger Pilon, Cato’s chair in constitution studies, is apparently one of that breed of libertarians who believes strongly in unlimited government surveillance powers plus retroactive immunity for lawbreaking telecom firms. Fortunately, we’ve also got this other breed of libertarianism around. Still, it’s a bit hard to take Cato’s claims to be sincerely serving a doctrine of small government when its people stake out this kind of position.

Yglesias

But The Talk is So Straight

Here’s a bit on Saint John of Arizona flip-flopping on the Law of the Sea Treaty:

It’s no surprise, really, as he’s flip-flopped on a ton of stuff, though none of that seems to have penetrated into the narrative about him.

UPDATE: More here.

Yglesias

Suharto Dead

Indonesian dictator Suharto is one of those people who I’d vaguely assumed was already dead until I read a story about his demise. I’m not sure I have much to say about Suharto beyond the obvious — bad man, killed lots of people, etc. — but John Quiggin has an interesting post making the case that since his departure from power “Indonesia has been remarkably successful in dealing with what was, in many respects, a poisonous legacy from the Suharto era.”

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