In “The Union Future” Bobo has the gall to ask a question: Do the people who have marched over the Brown and Garner cases have the stamina to force change? In the comments “Claus Gehner” from Seattle and Munich had this to say: “This is really quite an amazing column. The title and first paragraph lead one to believe that Mr. Brooks, of all people, is intent on starting a serious conversation on how to address the horrific income and wealth inequality in the US, and the possible role of Labor Unions in that process. But then, very quickly, Mr. Brooks reverts to character and concentrates on lambasting public sector unions, one of the favorite targets of some of the more odious GOP Governors. The little snipe, almost as an aside, at the Teachers Unions is just a warm up. He then has the audacity to blame the Police Unions for the racial tensions, which are really the remnants pervasive racism in the US in general.” So it’s typical Bobo crap. Prof. Krugman, in “Putin’s Bubble Bursts,” says the global plunge in oil prices and the falling ruble have wreaked havoc on the Russian economy. It’s been quite a comedown for the strongman. Here’s Bobo:
Over the past decades, the case for enhancing union power has grown both stronger and weaker. On the one hand, as wages have stagnated while profits have soared, it does seem that there is something out of whack in the balance of power between labor and capital. Workers need some new way to collectively bargain for more money.
On the other hand, unions, and especially public-sector unions, have done a lot over the past decades to rigidify workplaces, especially government. Teachers’ unions have become the single biggest impediment to school reform. Police unions have become an impediment to police reform.
If you look at all the proposals that have been discussed since the cases of Michael Brown in Ferguson, Mo., and Eric Garner in New York, you find that somewhere or other around the country, police unions have opposed all of them:
GETTING RID OF BAD COPS A small percentage of cops commit most of the abuses. A study by WNYC News in New York found that, since 2009, 40 percent of the “resisting arrest” charges were filed by just 5 percent of New York Police Department officers. In other words, most officers rarely get in a confrontation that leads to that charge, but a few officers often get in violent confrontations.
But it’s very hard to remove the bad apples from the force. Trying to protect their members, unions have weakened accountability. The investigation process is softer on police than it would be on anyone else. In parts of the country, contract rules stipulate that officers get a 48-hour cooling-off period before having to respond to questions. They have access to the names and testimony of their accusers. They can be questioned only by one person at a time. They can’t be threatened with disciplinary action during questioning.
More seriously, cops who are punished can be reinstated through a secretive appeals process that favors job retention over public safety. In The Atlantic, Conor Friedersdorf has a riveting piece with egregious stories of cops who have returned to the force after clear incompetence. Hector Jimenez was an Oakland, Calif., cop who shot and killed an unarmed 20-year-old man in 2007. Seven months later, he killed another unarmed man, shooting him in the back three times while he ran away. The city paid damages. Jimenez was fired. But he appealed through his union and was reinstated with back pay.
CAMERAS There’s long been talk about equipping cops with wearable cameras. In Miami, Boston, and Wichita, Kan., city officials bandied about such plans, but the local unions moved to thwart them, arguing, in one case, that wearing cameras “will distract officers from their duties, and hamper their ability to act and react in dangerous situations.”
DEMILITARIZATION After riots in Ferguson, there was basically a national consensus that police don’t need mine-resistant, ambush-protected monster vehicles and military-style grenade launchers. But there’s support for the program in Washington among the defense industry and the unions. A union executive told Bloomberg News earlier this month that representatives from the Fraternal Order of Police reached out to “maybe 80 percent of senators and half the House” to defend the program. A representative of the International Union of Police Associations wrote in August after the shooting death of Brown, “I believe that law enforcement officers should have available to them any and all tools necessary to do their job and protect their community.”
STOP-AND-FRISK In New York, a court order mandated that there be federal oversight of the New York Police Department to monitor stop-and-frisk practices, a procedure that disproportionately affects minority men. The Patrolmen’s Benevolent Association moved to stall the ruling and questioned its impact. “We continue to have serious concerns about how these remedies will impact our members and the ability to do their jobs,” the president of the association said.
COMMUNITY RELATIONS In Philadelphia, a civilian oversight commission suggested that police officers apologize to citizens who complain of being mistreated. The local chief of the Fraternal Order of Police responded with a hysterical letter in March 2012 claiming that the commission was trying “to further weaken and demoralize the Philadelphia Police Department in a time of crisis with a significantly growing crime problem in this city. … Your group poses a direct threat to public safety in this city. A threat which should no longer be tolerated by our citizens or their government.”
We get mad at racism, but most government outrages have structural roots. The left doesn’t want to go after police unions because they’re unions. The right doesn’t want to because they represent law and order. Politicians of all stripes shy away because they are powerful.
Now we have a test case to see if the people who march about the Garner case have the stamina to force change. Legitimate union advocacy has become extreme because it has gone unchecked. Most cops do hard jobs well, but right now there’s a crisis of accountability.
Now here’s Prof. Krugman:
If you’re the type who finds macho posturing impressive, Vladimir Putin is your kind of guy. Sure enough, many American conservatives seem to have an embarrassing crush on the swaggering strongman. “That is what you call a leader,” enthused Rudy Giuliani, the former New York mayor, after Mr. Putin invaded Ukraine without debate or deliberation.
But Mr. Putin never had the resources to back his swagger. Russia has an economy roughly the same size as Brazil’s. And, as we’re now seeing, it’s highly vulnerable to financial crisis — a vulnerability that has a lot to do with the nature of the Putin regime.
For those who haven’t been keeping track: The ruble has been sliding gradually since August, when Mr. Putin openly committed Russian troops to the conflict in Ukraine. A few weeks ago, however, the slide turned into a plunge. Extreme measures, including a huge rise in interest rates and pressure on private companies to stop holding dollars, have done no more than stabilize the ruble far below its previous level. And all indications are that the Russian economy is heading for a nasty recession.
The proximate cause of Russia’s difficulties is, of course, the global plunge in oil prices, which, in turn, reflects factors — growing production from shale, weakening demand from China and other economies — that have nothing to do with Mr. Putin. And this was bound to inflict serious damage on an economy that, as I said, doesn’t have much besides oil that the rest of the world wants; the sanctions imposed on Russia over the Ukraine conflict have added to the damage.
But Russia’s difficulties are disproportionate to the size of the shock: While oil has indeed plunged, the ruble has plunged even more, and the damage to the Russian economy reaches far beyond the oil sector. Why?
Actually, it’s not a puzzle — and this is, in fact, a movie currency-crisis aficionados like yours truly have seen many times before: Argentina 2002, Indonesia 1998, Mexico 1995, Chile 1982, the list goes on. The kind of crisis Russia now faces is what you get when bad things happen to an economy made vulnerable by large-scale borrowing from abroad — specifically, large-scale borrowing by the private sector, with the debts denominated in foreign currency, not the currency of the debtor country.
In that situation, an adverse shock like a fall in exports can start a vicious downward spiral. When the nation’s currency falls, the balance sheets of local businesses — which have assets in rubles (or pesos or rupiah) but debts in dollars or euros — implode. This, in turn, inflicts severe damage on the domestic economy, undermining confidence and depressing the currency even more. And Russia fits the standard playbook.
Except for one thing. Usually, the way a country ends up with a lot of foreign debt is by running trade deficits, using borrowed funds to pay for imports. But Russia hasn’t run trade deficits. On the contrary, it has consistently run large trade surpluses, thanks to high oil prices. So why did it borrow so much money, and where did the money go?
Well, you can answer the second question by walking around Mayfair in London, or (to a lesser extent) Manhattan’s Upper East Side, especially in the evening, and observing the long rows of luxury residences with no lights on — residences owned, as the line goes, by Chinese princelings, Middle Eastern sheikhs, and Russian oligarchs. Basically, Russia’s elite has been accumulating assets outside the country — luxury real estate is only the most visible example — and the flip side of that accumulation has been rising debt at home.
Where does the elite get that kind of money? The answer, of course, is that Putin’s Russia is an extreme version of crony capitalism, indeed, a kleptocracy in which loyalists get to skim off vast sums for their personal use. It all looked sustainable as long as oil prices stayed high. But now the bubble has burst, and the very corruption that sustained the Putin regime has left Russia in dire straits.
How does it end? The standard response of a country in Russia’s situation is an International Monetary Fund program that includes emergency loans and forbearance from creditors in return for reform. Obviously that’s not going to happen here, and Russia will try to muddle through on its own, among other things with rules to prevent capital from fleeing the country — a classic case of locking the barn door after the oligarch is gone.
It’s quite a comedown for Mr. Putin. And his swaggering strongman act helped set the stage for the disaster. A more open, accountable regime — one that wouldn’t have impressed Mr. Giuliani so much — would have been less corrupt, would probably have run up less debt, and would have been better placed to ride out falling oil prices. Macho posturing, it turns out, makes for bad economies.