I Think I’ve Heard This Song Before…

Hell, I’ve sung this song!

There has been a steady exodus of former national GOP officials out of the party. Bruce Bartlett, Norman Ornstein, Lawrence Wilkerson… plus a host of far less prominent folks. And then there are the bewildered, reasonable Republicans who are still trying to work within the party for a return to its formerly responsible conservatism.

Now, it’s Ben Bernanke.

You will recall that Bernanke was chosen by the Republican White House to chair the Federal Reserve after  Alan Greenspan left. He had formerly headed up George W. Bush’s Council of Economic Advisors.

Bernanke has now published a book, “The Courage to Act,” detailing his experiences and defending the Fed’s performance during the Great Recession. In the book, Bernanke explained his growing disappointment with the GOP.

“I tried to listen carefully and accept thoughtful criticisms,” Bernanke wrote. “But it seemed to me that the crisis had helped to radicalize large parts of the Republican Party.”

 Though Bernanke isn’t ready to side with Democrats, he no longer associates with his former party. He “lost patience with Republicans’ susceptibility to the know-nothing-ism of the far right. I didn’t leave the Republican Party. I felt that the party left me.”
The break doesn’t come as too big of a surprise. During his tenure, Bernanke at times abandoned subtlety and pleaded with congressional Republicans – whose policies Bernanke saw as making the economy worse – to be more responsible. GOP lawmakers consistently refused.

Indeed, by 2013, when Republicans were trying to blame President Obama for the sluggish recovery, Bernanke said quite clearly that the biggest obstacle to stronger growth was the Republicans’ economic agenda.

When I “came out” as a Democrat in 2000, appalling many of my wonderful friends in the Marion County GOP, I was often asked why I’d left a party that I had belonged to for over 35 years.

My answer was identical to Bernanke’s: I didn’t leave; the party left me.

Today’s radical anti-woman, anti–immigrant, anti-science, pro-“God Guns & Guts” GOP is nothing like the party I joined and worked for so long ago.  It’s hard for people who weren’t around when Republicans were thoughtful adults and genuine conservatives to believe just how far the GOP has moved to the right, but here’s a chart with visual evidence of the extent of the radicalization…

The real question: will the inevitable defeat of its Presidential candidate (you can’t gerrymander the country) serve as a wake-up call and an incentive to move back toward reality? Or will the Grand Old Party break into its increasingly fractious factions?
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You Can’t Make This Stuff Up…

If Democrats were creating a caricature of a Republican extremist–a one-dimensional straw man to run against– it would look a lot like Mike Pence. Unfortunately, Indiana’s zealot Governor isn’t a fabrication by the opposition.

As the IBJ reported yesterday,

Gov. Mike Pence announced Monday that he will expand Indiana’s affiliation with a not-for-profit organization that counsels pregnant women against abortion and pushes abstinence as the only method of birth control.

Indiana Right to Life was reportedly gratified. A Google search confirmed the reason why–not only does “Real Alternatives” (the nonprofit in question) confine its “services” to “counseling” against abortion, it also provides “clients” with the horrifying “facts” about birth control. I found a handy little pamphlet explaining why Contraception Is Not the Answer, filled with misinformation and fear-producing “facts.” (Did you know that injectable contraceptives “drastically increase your risk of invasive breast cancer”? No, and neither do medical experts.)

A blogger in Michigan–where their anti-choice Governor has also contracted with Real Alternatives– detailed the organization’s dubious tactics, many of which were documented in an investigation conducted by a Philadelphia newspaper. The reporter visited a Real Alternative clinic, claiming to be pregnant; she was told that abortion would leave permanent psychological damage, that it often leads to depression, and could interfere with her ever having children– claims thoroughly debunked by reputable medical science.

Groups like Real Alternatives exist throughout the country, mostly funded by anti-abortion organizations like Heartbeat International and individual donations. Real Alternatives, though, is funded almost entirely by the state of Pennsylvania — financed, that is, by you, the taxpayer, and it has received tens of millions of dollars since 1997…

That money, City Paper has found, goes to pay for part of the $199,000 salary (including benefits) of the CEO of Real Alternatives, who has no medical experience. It also funds an army of hundreds of “counselors,” non-medically-qualified personnel whose job it is to dispense the organization’s (sometimes outright inaccurate) information — and who, despite lacking the credentials of nurse practitioners or psychologists, cost the state much more per hour for their services than either.

According to Cosmopolitan magazine, which conducted a year-long investigation of the organization’s operations in Pennsylvania,

Real Alternatives’ contract with the state relies on debunked studies that imply abortion leads to breast cancer and clinical depression. Centers are not allowed to advocate for birth control, much less dispense it. The contract’s directives advise pregnancy-center staff to make an “assessment of the client’s spiritual needs” by asking questions like, “How does your faith impact the choices you make?” (One quarterly report from a center to Real Alternatives refers to clients with the aliases “Mary” and “Joseph.”)

The United Nations Population Fund estimates that one in three deaths related to pregnancy and childbirth could be avoided if all women had access to contraceptive services.

Whatever one’s position on abortion, the use of tax dollars to support “clinics” that offer no medical services— clinics that exist solely to lie to women in order to convince them to forego both abortion and contraception–is immoral.

Our fundamentalist Governor is understandably frantic to mend fences with his Religious Right constituency, after reality and Hoosier businesses forced him to sign the RFRA “fix.” In the echo chamber he inhabits, this contract probably seemed like a good way to do that.

In the rest of the state–even among Republicans– not so much.

John Gregg is looking better all the time.

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The Perils of “Balance”

I love Paul Krugman. Unlike most economists (apologies to certain of my academic colleagues), he writes clearly–as if he is actually interested in communicating, rather than impressing–and more often than not, he hits that proverbial nail squarely on the head.

Even for Krugman, though, “The Crazies and the Con Man” was exceptional. Krugman’s subject was the GOP effort to get Paul Ryan to accept the Speaker’s gavel. You really need to click through and read the entire column, but I’ll share a few of the gems:

What makes Mr. Ryan so special? The answer, basically, is that he’s the best con man they’ve got. His success in hoodwinking the news media and self-proclaimed centrists in general is the basis of his stature within his party. Unfortunately, at least from his point of view, it would be hard to sustain the con game from the speaker’s chair.

To understand Mr. Ryan’s role in our political-media ecosystem, you need to know two things. First, the modern Republican Party is a post-policy enterprise, which doesn’t do real solutions to real problems. Second, pundits and the news media really, really don’t want to face up to that awkward reality….

After offering several examples of the GOP’s lack of policy seriousness (where is that alternate health plan??), Krugman hones in on the real problem:

Most of the news media, and most pundits, still worship at the church of “balance.” They are committed to portraying the two big parties as equally reasonable. This creates a powerful demand for serious, honest Republicans who can be held up as proof that the party does too include reasonable people making useful proposals….

But Mr. Ryan has been very good at gaming the system, at producing glossy documents that look sophisticated if you don’t understand the issues…He is to fiscal policy what Carly Fiorina was to corporate management: brilliant at self-promotion, hopeless at actually doing the job. But his act has been good enough for media work.

Krugman attributes Ryan’s reluctance to take the Speaker position to a recognition that his  “con” wouldn’t survive the additional scrutiny.

Predictions aside, however, the Ryan phenomenon tells us a lot about what’s really happening in American politics. In brief, crazies have taken over the Republican Party, but the media don’t want to recognize this reality. The combination of these two facts has created an opportunity, indeed a need, for political con men. And Mr. Ryan has risen to the challenge.

I hate to sound like a broken record, but this analysis–like so many others–points to the  American media’s major contribution to the cluster-f**k that is our current national legislative branch. Until the media and those of us who depend upon it for essential information understand and appreciate the difference between balance and accuracy, we will continue to be disappointed by con men.

And wonder why our government doesn’t work anymore.

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The Age of Propaganda?

The Program on International Policy Attitudes is a respected source for international opinion research. In the wake of the 2010 U.S. elections, it conducted a survey of voters, first looking to see those voters’ perceptions of how much misinformation was “out there,” and second, to determine just how misinformed voters actually were.

Unsurprisingly,

The poll found strong evidence that voters were substantially misinformed on many of the key issues of the campaign. Such misinformation was correlated with how people voted and their exposure to various news sources.

The website links to the questionnaire and the results, which are well worth reading, but here are some of the most consequential inaccuracies:

  • Though the Congressional Budget Office (CBO) concluded that the stimulus legislation has saved or created 2.0-5.2 million jobs, only 8% of voters thought most economists who had studied it concluded that the stimulus legislation had created or saved several million jobs. Most (68%) believed that economists estimate that it only created or saved a few jobs and 20% even believed that it resulted in job losses.
  • Though the CBO concluded that the health reform law would reduce the budget deficit, 53% of voters thought most economists have concluded that health reform will increase the deficit.
  • Though the Department of Commerce says that the US economy began to recover from recession in the third quarter of 2009 and has continued to grow since then, only 44% of voters thought the economy is starting to recover, while 55% thought the economy is still getting worse.
  • Though the National Academy of Sciences has concluded that climate change is occurring, 45% of voters thought most scientists think climate change is not occurring (12%) or that scientists are evenly divided (33%).

Incredibly, 86% of respondents thought taxes had gone up since 2009, although they’d actually gone down. Such is the power of propaganda.

It shouldn’t come as a surprise to note the source of most of this misinformation. While there are certainly no truth-telling heros among cable news sources,

Those who watched Fox News almost daily were significantly more likely than those who never watched it to believe that most economists estimate the stimulus caused job losses (8 points more likely), most economists have estimated the health care law will worsen the deficit (31 points), the economy is getting worse (26 points), most scientists do not agree that climate change is occurring (30 points), the stimulus legislation did not include any tax cuts (14 points), their own income taxes have gone up (14 points), the auto bailout only occurred under Obama (13 points), when TARP came up for a vote most Republicans opposed it (12 points) and that it is not clear that Obama was born in the United States (31 points).

The effect was also not simply a function of partisan bias, as people who voted Democratic and watched Fox News were also more likely to have such misinformation than those who did not watch it–though by a lesser margin than those who voted Republican.

In a country with freedom of speech, the only way to counter propaganda is with credible information,  persistent rebuttals of intentional misinformation, and an unflagging effort to make people understand when the emperor is naked.

We all need to participate in that effort–debunking Fox, certainly, but also being sure we aren’t giving a pass to sources that may be telling us what we want to hear.

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Rent Seeking 101

In our highly polarized political environment, we sometimes overlook areas of agreement between otherwise warring portions of the political spectrum. A recent post at Political Animal pointed to one such area between libertarians and liberals: opposition to “rent seeking” aka “corporate welfare.”

Those of us who genuinely value markets and market economies understand that much of what passes for capitalism these days is anything but, and that the influence of the “haves” is routinely used to ensure that they “have” even more. Libertarians protective of true capitalism and market economics see this state of affairs as undermining the integrity of the economic system; liberals note that it exacerbates the widening gap between the 1% and everyone else.

They are both right. Per a lengthy paper by John Teles of Johns Hopkins, a few examples:

Car dealers, for instance, have a sizable presence in the top 1% of earners, have a major lobbying presence in almost every state capital, and have made contributions to almost every member of Congress. That should not be surprising, because regulations (again, often at the state level) protect car dealerships from competition by limiting direct sales, restricting the termination of franchises, limiting the entry of new dealers, and preventing manufacturers from offering preferential pricing to larger franchisees. Together, these rules, economists Francine Lafontaine and Fiona Scott Morton found in a 2010 study, “almost guarantee dealership profitability and survival,” while simultaneously driving up costs to consumers…..

A concentration of high incomes also characterizes the field of government contractors, such as private-prison managers, defense contractors, and for-profit colleges. All these industries are characterized by dependence on government as a nearly exclusive source of revenue, by extraordinary levels of lobbying, and by asymmetries of power between firms and their government counterparts.

Or consider the field of management consulting, which attracts an extraordinary percentage of Ivy League college graduates. As Christopher McKenna shows in his book, The World’s Newest Profession, the outsized incomes of consultants do not come from their ability to recommend innovative practices to firms. Instead, they come from the rent they extract from performing a legally mandated due-diligence ritual for firms or from performing tasks that could otherwise be done at lower cost by public employees. These are not, in short, meaningfully “private” firms at all, despite their high profitability.

You should really read the whole thing….

There is a compelling case to be made for properly operating market economies—“properly operating” meaning markets operating in economic areas where buyers and sellers have equal access to relevant information (a characteristic that would exclude health care and other goods and services involving inescapable asymmetries of information), and where the sorts of creativity, hard work and entrepreneurial prowess that improve life for everyone are incentivized and rewarded.

There is no case—compelling or otherwise—to be made for the rent-seeking that characterizes American economic activity in the 21st Century.

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