Can We Talk About Trade? Probably Not.

When I teach policy analysis, certain barriers to sound analysis tend to recur. At least three of those barriers are pertinent to the current debate about America’s trade policies.

  • Americans tend to be inappropriately “bipolar.” Too many partisans, Left and Right, approach complex policy issues with a “bright line” ideology–doing X is either good or bad. Period. Their world is divided between good guys and “evil-doers,” (to use Bush the Second’s terminology) and there is no middle ground.
  • Although there are certainly some policies that are simply wrong, in most cases, the proper approach to analysis is to ask “how,” not “whether.” That’s because, in most cases, the devil really is in the details; otherwise good policies can fail because they are not properly developed or implemented, and otherwise problematic approaches can be rescued by careful development and thoughtful application.
  • In today’s America, increasing numbers of policy domains are complicated and highly technical. Even well-informed citizens are unable to make independent judgments about the best approach to such matters–examples include telecommunications, arms control, tax policies and multiple other areas. We are increasingly dependent upon experts in the field to assess proposed laws and regulations–and we are increasingly suspicious of the bona fides of those experts.

These challenges to sound policy analysis are front and center in the arguments about trade agreements like the TPP.

On the Left, we have a number of activists who believe that trade agreements inevitably cost American jobs, no matter what their content. This is demonstrably false. Outsourcing and poorly drafted agreements certainly undermine both domestic employment and compensation, but trade also generates jobs and economic growth. According to the U.S.Department of Commerce, in 2008 the United States exported nearly $1.7 trillion in goods and services, exports that supported more than 10 million full- and part-time jobs and accounted for 12.7 percent of gross domestic product (GDP). (If I find more recent data, I’ll update this post.)

On the Right, we have proponents who support any and all “free trade” proposals, no matter whether the agreements safeguard workers or the environment, and no matter how unbalanced the agreement, because “all trade is good.”

I haven’t followed all of the pronouncements, pro and con, about TPP, but in those I have heard, not one person on either side has identified provisions of that proposed agreement with which he or she agreed or disagreed. It was all or nothing–good or bad.

International trade is complicated, and the negative consequences that partisans cite aren’t necessarily the result of trade itself: the Economic Policy Institute, a progressive think-tank, attributes a significant amount of manufacturing job loss to currency manipulation. EPI says that “Global currency manipulation is one of the most important causes of growing U.S. trade deficits, and of unemployment and slow economic growth in the United States and Europe.”

Like technology, trade both displaces workers and creates new kinds of employment.

My point is not to weigh in on the merits of the TPP. Like most Americans, I simply do not know enough–about the terms of the proposed agreement, about the likely cost-benefit ratio, about the context within which the agreement would be implemented–to come to a reasoned conclusion. Like most Americans, I must rely upon the evaluations of people whose expertise and knowledge I trust.

Which brings me to what I have come to identify as one of the most serious problems America faces: a public in which skepticism, cynicism, and a pervasive lack of trust is rampant. We don’t trust the media (or more accurately, we trust only the media sources that confirm our pre-existing biases), we don’t trust government (the result of thirty-plus years of anti-government rhetoric), we don’t trust members of that “other” political party, and increasingly, we don’t trust each other. We sure as hell don’t trust the experts–those elitists!

It’s hard to make policy in that sort of environment.

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Can This Be True?

The Democratic National Committee’s server was hacked last week, and embarrassing (although not very surprising) emails publicly released. The obvious intent was to create division right before the Democratic Convention, and to feed suspicions about Hillary Clinton’s nomination.

Voters and pundits can draw their own conclusions about the contents of the emails. The more intriguing–and troubling–question involves the source of the mischief. A number of media outlets have noted that the FBI’s investigation is focused upon Russia and Vladimir Putin.

My first reaction to the suggestion that Putin might be interfering with America’s election was a very pronounced eye roll. (I’m not much for conspiracy theories. In a different context, that sounds like the sort of wild accusation Trump would come up with.)

And yet..the FBI says the hackers were Russian, and this article by Anne Applebaum in the Salt Lake Tribune does give one pause.

The secret plot to control America, launched from abroad, is an old theme in American pop culture. “The Manchurian Candidate,” a film made in 1962, imagined a Chinese scheme to engineer a coup d’etat. Aficionados of paranoid thrillers may also recall “Lucky Bastard,” a 1998 Charles McCarry novel, which featured a U.S. president controlled by a Soviet case officer who happens to be his wife.

But now it is 2016, truth is stranger than fiction, and we finally have a presidential candidate, Donald Trump, with direct and indirect links to a foreign dictator, Vladimir Putin, whose policies he promotes. And yet it is not secret, it is not a plot, there is no conspiracy. No one has been hypnotized or recruited by foreign intelligence. Just as Marine Le Pen, leader of the French National Front, openly accepts Russian money, the Trump campaign advertises its Russian links and pays no real political price.

Applebaum details Trump’s considerable business connections with Russia, and his efforts to attract Russian investment in his real estate projects. As she notes , Trump has also surrounded himself with “people whose deep links to the corrupt world of Russian business would normally disqualify them from U.S. politics.” She cites campaign operatives, among them Carter Page, a foreign policy aide who has long-standing connections to Russian companies and who supported the Russian invasion of Ukraine, and Trump’s campaign manager, Paul Manafort, who worked for several years in Ukraine for Viktor Yanukovych, the pro-Russian president ousted in 2014.

Although Applebaum doesn’t mention it, the LA Times reports that retired Army Lt. Gen. Michael Flynn,another close Trump advisor, flew to Moscow last year to attend a gala banquet celebrating Russia Today, the Kremlin’s propaganda channel, and was seated at the head table near Putin. Flynn is evidently a regular guest on Russia Today.

Russian state media is actively supporting Trump, and Applebaum says that whatever resources Putin is investing in Trump’s campaign, they are paying dividends.

For even if Trump never becomes president, his candidacy has already achieved two extremely important Russian foreign policy goals: to weaken the moral influence of the United States by undermining its reputation as a stable democracy, and to destroy its power by wrecking its relationships with its allies. Toward these ends, Trump has begun repeating arguments identical to those used on Russian state television. These range from doubts about the sovereignty of Ukraine — earlier this week, Trump’s campaign team helped alter the Republican party platform to remove support for Ukraine — to doubts about U.S. leadership of the democratic world. The United States has its own “mess” to worry about, Trump told the New York Times on Wednesday: It shouldn’t stand up for democracy abroad. In the same interview, he also cast doubt on the fundamental basis of transatlantic stability, NATO’s Article 5 guarantee: If Russia invades, he said, he’d have to think first before defending U.S. allies.

None of this, of course, is absolute proof that Putin and the Russians were behind the hack of the DNC. But it once again underlines the manifest dangers of Trump’s capture of the GOP–and the unthinkable consequences of a Trump Presidency.

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I Never Thought I’d Agree with the Federalist….

The Federalist Society is an organization composed of politically conservative lawyers; Supreme Court Justices Scalia, Thomas and Alito have been members, reflecting the legal orientation of the membership.

I have found myself disagreeing with the positions of the Society far more frequently than I have agreed, but I completely agree with a recent essay by Paul David Miller, titled “The Moral Collapse of the Republican Party,” published in its magazine, The Federalist.

Miller calls the party’s embrace of Trump “an obvious, avoidable, epic blunder.”

Embracing Trump, as almost all the party’s leaders have done, is a colossal, world-historical, vast mistake; an inexplicable failure of moral courage; and a repugnant act of institutional suicide. It is shocking to see such rampant self-destruction sweep through the ranks of a once-great party.

After providing a “roll call” of sorts, in which he identified political figures who have obediently endorsed Trump, Miller notes that most of the holdouts–Romney, the President Bushes–have ended their political careers and have nothing to lose.

By embracing Trump, the Republican Party embraces the man, the ideas, and his fate. Whatever legitimate grievances underlie Trump’s appeal—such as frustration with the pace of globalization, or with the culture of political correctness—have been tarnished by Trump’s overt hostility to basic norms of republican government. The party has given away all the high ground it had against the increasingly illiberal and autocratic progressive left by nominating the only person in America who embodies an equally clear disregard for equality under law.

If Trump loses—which he probably will—the Republican Party will lose with him, and it will deserve its loss. The down-ticket damage will be all of Trump’s doing, with the party’s open complicity, and much of the gains at the state and local level in recent years will be undone.

If Trump does lose, and if he takes a significant number of down-ticket Republicans with him, many Americans (including this one) will breathe a sigh of relief. But that outcome is by no means assured–and that’s what keeps me up at night.

It is worse if Trump wins (and I think he has a higher chance of winning than most polls say): a Trump victory vindicates Trumpism—already dangerously on the rise—and permanently transforms the Republican Party into the party of white grievance, nativism, and belligerent nationalism. America will no longer have a party of limited government and classical liberalism. Losing the presidency but recovering a party dedicated to the ideals of ordered liberty is far preferable…

[W]hat surprises me is that they want the Republican Party to win no matter what the party stands for, even if the party flirts with white supremacy and proto-fascism. I held out the hope—now, I see, hopelessly deluded and naïve—that politicians understood that there is a line you don’t cross; there comes a point at which principle really does come before party; that the good of the nation should come before partisanship; and that when your party starts to go off the deep end, you jump ship.

Many of us have done just that–we “jumped ship.” Some earlier, some later, depending upon when we saw the party becoming something very different from the responsible center-right party America still needs. We can only hope that–faced with the reality of Trumpism–many more follow. Before November.

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It Might Have Been Written Yesterday

An old friend recently pointed me to “A Tough Mind and a Tender Heart,” a sermon delivered by Martin Luther King many years ago that–as he noted–could have been written yesterday.

Evidently, there are aspects of the human condition that change slowly, if at all.

King’s opening thesis is that we need to synthesize our opposing characteristics:

Jesus recognized the need for blending opposites…..  And he gave them a formula for action, “Be ye therefore wise as serpents, and harmless as doves.” It is pretty difficult to imagine a single person having, simultaneously, the characteristics of the serpent and the dove, but this is what Jesus expects. We must combine the toughness of the serpent and the softness of the dove, a tough mind and a tender heart.

King described that “tough mind” as one characterized by incisive thinking, realistic appraisal, and decisive judgment, one having the ability to sift the true from the false.

Who doubts that this toughness of mind is one of man’s greatest needs? Rarely do we find men who willingly engage in hard, solid thinking. There is an almost universal quest for easy answers and half-baked solutions. Nothing pains some people more than having to think.

Soft-mindedness, on the other hand, can be seen in the effectiveness of manipulative advertising, responsiveness to slogans, and unquestioning acceptance of facts provided by the media.

Our minds are constantly being invaded by legions of half-truths, prejudices, and false facts. One of the great needs of mankind is to be lifted above the morass of false propaganda.

And this was written before the advent of the internet and the explosion of propaganda outlets that the web has fostered.

After watching much of the just-concluded GOP convention in Cleveland, these two passages particularly struck me:

The soft-minded man always fears change. He feels security in the status quo, and he has an almost morbid fear of the new. For him, the greatest pain is the pain of a new idea. An elderly segregationist in the South is reported to have said, “I have come to see now that desegregation is inevitable. But I pray God that it will not take place until after I die.” The soft-minded person always wants to freeze the moment and hold life in the gripping yoke of sameness….

There may be a conflict between soft-minded religionists and tough-minded scientists, but not between science and religion. Their respective worlds are different and their methods are dissimilar. Science investigates; religion interprets. Science gives man knowledge that is power; religion gives man wisdom that is control. Science deals mainly with facts; religion deals mainly with values. The two are not rivals. They are complementary. Science keeps religion from sinking into the valley of crippling irrationalism and paralyzing obscurantism. Religion prevents science from falling into the marsh of obsolete materialism and moral nihilism.

When King turned his attention to hard and soft-heartedness, his reflections were equally pertinent to today. He was especially critical of hardhearted people who lack genuine compassion and engage in a “crass utilitarianism that values other people mainly according to their usefulness to him.”

At the end of his sermon, King calls on us to avoid both the complacency and do-nothingness of the soft-minded and the violence and bitterness of the hardhearted.

The sermon was written in 1959. It is as if he foresaw 2016.

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Pay to Play

Economic inequality—the gap between rich and poor—should concern policymakers for many reasons: humanitarian concern for the everyday challenges faced by the working poor; the cost of social supports needed to fill the gap between what people earn and what they need in order to live; and the substantial drag on the economy from weak demand (when people lack discretionary income, they cannot buy many goods and services). And of course, social scientists have long recognized that unequal societies are unstable societies.

Those concerns are widely acknowledged. Less recognized is the harm done to democratic systems when large numbers of Americans live in or on the edge of poverty. Those people lack what political scientists call voice.

Democratic theory begins with the concept of membership, the right–and duty– of (competent adult) members of a society to participate equally in the citizenship responsibilities of the nation.

The most prominent responsibility, of course, is voting, and even before the current Republican efforts to make voting much more difficult for poor and minority citizens, turnout in poorer precincts was low. There are any number of reasons why people preoccupied with making it through the week—paying rent and putting food on the table—have little time or energy left for civic duties. In many states, including my own Indiana, polling places are inconvenient and they close early, making it very difficult for people who work long hours, or who may not have ready access to transportation, to cast a ballot.

If participation at the polls is skewed toward more affluent Americans, giving the comfortable more voice, other mechanisms to influence public policy are even more unevenly distributed.

Poor Americans do not send lobbyists to the halls of Congress or to their local statehouses. They rarely write letters to the editor (assuming that quaint effort to enter the public conversation still matters). When legislators hold hearings on issues that will affect middle class families and the working poor, they are unlikely to face citizens from those constituencies who have come to testify.

Poor citizens are also highly unlikely to make political contributions. (For that matter, according to Open Secrets, only a tiny proportion of the public—fewer than 1%–makes political contributions of $200 or more.)

Even the most conscientious policymakers can only act upon information they receive, and even when there is no quid pro quo, it is human nature to at least listen to people who have contributed to your campaign or your political party.

The result of disproportionate participation and information asymmetry is disproportionate legislative attention to the concerns and desires of those who can and do participate.

It isn’t just legislative inaction. Poor neighborhoods notoriously receive less attention from municipal agencies; streets in such neighborhoods are the last to be plowed or paved, parks and other public amenities are more likely to be neglected, since more empowered residents know how to make their needs known, and have the time and wherewithal to communicate with local government.

Lack of voice translates into a marginalized civic status– poor Americans lack the means to influence the system, or to change policies that operate to keep them marginalized.

In a variety of ways, they are second-class citizens–holders of “class B” memberships in the American polity. It’s something we need to fix, but the remedy is by no means obvious.

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