Archive for the ‘Brooks’ Category

Brooks, Cohen and Krugman

July 24, 2015

It’s too sweet for words.  Bobo is considering “The Minimum Wage Muddle.”  He babbles that mandates for better pay will certainly help some people, but hurt some, too.  The most terse comment came in the form of a question from “Ian MacFarlane” from Philadelphia:  “Could you, Mr, Brooks, live on the minimum wage?”  I’d pay good money to watch him try for a month…  In “Algeria’s Invisible Arab” Mr. Cohen says conflict is illuminated as the nameless murder victim of Camus’s “The Stranger” becomes a human being in a new novel.  In “The M.I.T. Crowd” Prof. Krugman says M.I.T.-trained economists have gained dominance in policy positions and policy discourse.  Here’s Bobo:

Once upon a time there was a near consensus among economists that raising the minimum wage was a bad idea. The market is really good at setting prices on things, whether it is apples or labor. If you raise the price on a worker, employers will hire fewer and you’ll end up hurting the people you meant to help.

Then in 1993 the economists David Card and Alan Krueger looked at fast-food restaurants in New Jersey and Pennsylvania and found that raising the minimum wage gave people more income without hurting employment. A series of studies in Britain buttressed these findings.

Today, raising the minimum wage is the central piece of the progressive economic agenda. President Obama and Hillary Clinton champion it. Cities and states across the country have been moving to raise minimum wages to as high as $15 an hour — including New York State just this week.

Some of my Democratic friends are arguing that forcing businesses to raise their minimum wage will not only help low-wage workers; it will actually boost profits, because companies will better retain workers. Some economists have reported that there is no longer any evidence that raising wages will cost jobs.

Unfortunately, that last claim is inaccurate. There are in fact many studies on each side of the issue. David Neumark of the University of California, Irvine and William Wascher of the Federal Reserve have done their own studies and point to dozens of others showing significant job losses.

Recently, Michael Wither and Jeffrey Clemens of the University of California, San Diego looked at data from the 2007 federal minimum-wage hike and found that it reduced the national employment-to-population ratio by 0.7 percentage points (which is actually a lot), and led to a six percentage point decrease in the likelihood that a low-wage worker would have a job.

Because low-wage workers get less work experience under a higher minimum-wage regime, they are less likely to transition to higher-wage jobs down the road. Wither and Clemens found that two years later, workers’ chances of making $1,500 a month was reduced by five percentage points.

Many economists have pointed out that as a poverty-fighting measure the minimum wage is horribly targeted. A 2010 study by Joseph Sabia and Richard Burkhauser found that only 11.3 percent of workers who would benefit from raising the wage to $9.50 an hour would come from poor households. An earlier study by Sabia found that single mothers’ employment dropped 6 percent for every 10 percent increase in the minimum wage.

A study by Thomas MaCurdy of Stanford built on the fact that there are as many individuals in high-income families making the minimum wage (teenagers) as in low-income families. MaCurdy found that the costs of raising the wage are passed on to consumers in the form of higher prices. Minimum-wage workers often work at places that disproportionately serve people down the income scale. So raising the minimum wage is like a regressive consumption tax paid for by the poor to subsidize the wages of workers who are often middle class.

What we have, in sum, is a very complicated situation. If we do raise the minimum wage a lot of people will clearly benefit and a lot of people will clearly be hurt. The most objective and broadest bits of evidence provoke ambivalence. One survey of economists by the University of Chicago found that 59 percent believed that a rise to $9 an hour would make it “noticeably harder” for poor people to find work. But a slight majority also thought the hike would be worthwhile for those in jobs. A study by the Congressional Budget Office found that a hike to $10.10 might lift 900,000 out of poverty but cost roughly 500,000 jobs.

My own guess is the economists will never be able to give us a dispositive answer about who is hurt or helped. Economists have their biases and reality is too granular. It depends on what region a worker is in, whether a particular job can be easily done by a machine, what the mind-set of his or her employer is.

The best reasonable guess is that a gradual hike in high-cost cities like Seattle or New York will probably not produce massive dislocation. But raising the wage to $15 in rural New York will cause large disruptions and job losses.

The key intellectual upshot is that, despite what some people want you to believe, the laws of economic gravity have not been suspended. You can’t impose costs on some without trade-offs for others. You can’t intervene in the market without unintended consequences. And here’s a haunting fact that seems to make sense: Raising the minimum wage will produce winners among job holders from all backgrounds, but it will disproportionately punish those with the lowest skills, who are least likely to be able to justify higher employment costs.

Which will surely be proved out as NYC raises the minimum wage for fast food workers…  As if Bobo gave a crap about such peons.  Here’s Mr. Cohen:

At the core of any conflict lies invisibility. The enemy cannot be seen, at least not if seeing betokens the start of understanding. The other is there, a menacing and ineffaceable presence, but is invisible in his or her human dimensions.

Demonization blocks any glimmer of shared humanity or sympathy. Only when the nameless foe becomes a man or a woman confronted with the puzzle of life does the path to understanding begin to open. No gun was turned to plowshare without some form, however tentative, of mutual recognition.

This question of invisibility is the starting point of Kamel Daoud’s remarkable first novel, “The Meursault Investigation.” His core idea is of startling ingenuity. Daoud, an Algerian journalist, takes Albert Camus’s classic novel, “The Stranger” — or more precisely the “majestically nonchalant” murder of an Arab at the heart of it — and turns that Arab into a human being rather than the voiceless, characterless, nameless object of a “philosophical crime” by a Frenchman called Meursault on an Algiers beach 20 years before the culmination of Algeria’s brutal war of independence.

By inverting the perspective, and turning the anonymous Arab into a young man named Musa Uld el-Assas rather than someone “replaceable by a thousand others of his kind, or by a crow, even,” Daoud shifts the focus from the absurdity of Meursault’s act in the giddying sunlight to the blindness of the colonial mind-set.

The issue is no longer Meursault’s devastating honesty about the human condition — he does not love, he does not pretend, he does not believe in God, he does not mourn his dead mother, he does not judge, he does not repress desire, he does not regret anything, he does not hide from life’s farce or shrink from death’s finality — but the blood he has spattered on the sand with five gunshots into young Musa.

Daoud’s device is to treat the fictional murder committed by Meursault in 1942 as a real event and create a narrator named Harun who is the younger brother of the dead Musa, a flailing chronicler of irreparable loss. Harun cannot get over how Musa has been blotted out: “My brother’s name was Musa. He had a name. But he’ll remain ‘the Arab’ forever.” He was “capable of parting the sea, and yet he died in insignificance.” Daoud writes that the French “watched us — us Arabs — in silence, as if we were nothing but stones or dead trees.”

Musa is invisible even in death. If he had been named, Harun reflects, perhaps their mother would have received a pension. Perhaps life would not have consisted of an unrequited attempt to find the body, locate the murderer, understand the crime — even avenge it somehow.

The Arabs are sullen. They wait. Harun’s reflection on the demise of French Algeria is devastating: “I didn’t even fight in the War of Liberation. I knew it was won in advance, from the moment when a member of my family was killed because somebody felt lethargic from too much sun.”

At the moment of liberation, or just after it, Harun kills a Frenchman, Joseph Larquais: “The Frenchman had been erased with the same meticulousness applied to the Arab on the beach twenty years earlier.” But this reciprocal murder, committed without conviction in the blinding night rather than the blinding heat, brings no real respite — from the fury Harun feels toward his relentless mother who wants him to be his lost brother, or from the quandary of the Algerian condition.

Independence will only bring disappointment. Algeria drifts toward the suffocating stranglehold of religion that Daoud, like Camus, deplores. Vineyards are uprooted because of Islam’s strictures. Harun laments that his one ephemeral love, Meriem, embodies a woman who has “disappeared in this country today: free, brash, disobedient, aware of their body as a gift, not as a sin or a shame.” His words recall Meursault’s dismissal of all the priest’s entreaties before his execution: “None of his certainties was worth one hair on the head of the woman I loved.”

Religion, for Daoud’s hero, is “public transportation I never use.” Who is God to give lessons? After all, “I alone pay the electric bills, I alone will be eaten by worms in the end. So get lost!”

Of course, an imam from a Salafist group has issued a fatwa for Daoud to be put to death. The author, in turn, has called the absence of alternatives to Islamism “the philosophical disaster of the Arab world.” Much more such honesty is needed.

Daoud’s novel has sometimes been portrayed as a rebuke to the pied-noir Frenchman Camus. But there is more that binds their protagonists than separates them — a shared loathing of hypocrisy, shallowness, simplification and falsification. Each, from his different perspective, renders the world visible — the only path to understanding for Arab and Jew, for American and Iranian, for all the world’s “strangers” unseen by each other.

Now here’s Prof. Krugman:

Goodbye, Chicago boys. Hello, M.I.T. gang.

If you don’t know what I’m talking about, the term “Chicago boys” was originally used to refer to Latin American economists, trained at the University of Chicago, who took radical free-market ideology back to their home countries. The influence of these economists was part of a broader phenomenon: The 1970s and 1980s were an era of ascendancy for laissez-faire economic ideas and the Chicago school, which promoted those ideas.

But that was a long time ago. Now a different school is in the ascendant, and deservedly so.

It’s actually surprising how little media attention has been given to the dominance of M.I.T.-trained economists in policy positions and policy discourse. But it’s quite remarkable. Ben Bernanke has an M.I.T. Ph.D.; so do Mario Draghi, the president of the European Central Bank, and Olivier Blanchard, the enormously influential chief economist of the International Monetary Fund. Mr. Blanchard is retiring, but his replacement, Maurice Obstfeld, is another M.I.T. guy — and another student of Stanley Fischer, who taught at M.I.T. for many years and is now the Fed’s vice chairman.

These are just the most prominent examples. M.I.T.-trained economists, especially Ph.D.s from the 1970s, play an outsized role at policy institutions and in policy discussion across the Western world. And yes, I’m part of the same gang.

So what distinguishes M.I.T. economics, and why does it matter? To answer that question, you need to go back to the 1970s, when all the people I’ve just named went to graduate school.

At the time, the big issue was the combination of high unemployment with high inflation. The coming of stagflation was a big win for Milton Friedman, who had predicted exactly that outcome if the government tried to keep unemployment too low for too long; it was widely seen, rightly or (mostly) wrongly, as proof that markets get it right and the government should just stay out of the way.

Or to put it another way, many economists responded to stagflation by turning their backs on Keynesian economics and its call for government action to fight recessions.

At M.I.T., however, Keynes never went away. To be sure, stagflation showed that there were limits to what policy can do. But students continued to learn about the imperfections of markets and the role that monetary and fiscal policy can play in boosting a depressed economy.

And the M.I.T. students of the 1970s enlarged on those insights in their later work. Mr. Blanchard, for example, showed how small deviations from perfect rationality can have large economic consequences; Mr. Obstfeld showed that currency markets can sometimes experience self-fulfilling panic.

This open-minded, pragmatic approach was overwhelmingly vindicated after crisis struck in 2008. Chicago-school types warned incessantly that responding to the crisis by printing money and running deficits would lead to 70s-type stagflation, with soaring inflation and interest rates. But M.I.T. types predicted, correctly, that inflation and interest rates would stay low in a depressed economy, and that attempts to slash deficits too soon would deepen the slump.

The truth, although nobody will believe it, is that the economic analysis some of us learned at M.I.T. way back when has worked very, very well for the past seven years.

But has the intellectual success of M.I.T. economics led to comparable policy success? Unfortunately, the answer is no.

True, there have been some important monetary successes. The Fed, led by Mr. Bernanke, ignored right-wing pressure and threats — Rick Perry, as governor of Texas, went so far as to accuse him of treason — and pursued an aggressively expansionary policy that helped limit the damage from the financial crisis. In Europe, Mr. Draghi’s activism has been crucial to calming financial markets, probably saving the euro from collapse.

On other fronts, however, the M.I.T. gang’s good advice has been ignored. The I.M.F.’s research department, under Mr. Blanchard’s leadership, has done authoritative work on the effects of fiscal policy, demonstrating beyond any reasonable doubt that slashing spending in a depressed economy is a terrible mistake, and that attempts to reduce high levels of debt via austerity are self-defeating. But European politicians have slashed spending and demanded crippling austerity from debtors anyway.

Meanwhile, in the United States, Republicans have responded to the utter failure of free-market orthodoxy and the remarkably successful predictions of much-hated Keynesians by digging in even deeper, determined to learn nothing from experience.

In other words, being right isn’t necessarily enough to change the world. But it’s still better to be right than to be wrong, and M.I.T.-style economics, with its pragmatic openness to evidence, has been very right indeed.

Solo Bobo

July 21, 2015

In “Dustin Yellin’s Modern Community-Building” Bobo gurgles that a New York artist draws together artists, physicists and others into a uniquely modern collective of creativity.  Bobo neglects to mention a few facts, so we’ll call on the comment from “Ellen” in Williamsburg:  “He is very connected and from an extremely wealthy family.  He picked up that warehouse for almost $4 million dollars… cash, like any drop-out could, if only they had the gumption…”  She supplied a link to this story, which Bobo neglected to cite.  Here he is:

When Dustin Yellin was 17 he dropped out of high school. The school was filled with jocks and cheerleaders and he clearly didn’t fit in. Plus he wasn’t intellectually engaged.

He hitchhiked around New Zealand and returned to Colorado. He became an apprentice to an eccentric physicist who believed he could get free energy from space and who performed experiments on Yellin involving crystals, baths of saline solution and hallucinogenic drugs.

When he was 18 Yellin hatched a plan. He would go to New York, become a successful artist and create a place where painters, scientists, writers, billionaires and other cool people could gather to try to change the world. Yellin turns 40 this week, and that’s more or less what he’s done.

Yellin is a successful artist with a staff of 23 and a studio in Red Hook, Brooklyn. Four years ago he threw the vast bulk of his money (and more) into buying a large brick warehouse that was built as the Pioneer Iron Works in 1866. The building now hosts, well, a little bit of everything.

Artists from as far away as France, Israel and South Korea work there in residencies averaging three or four months. There are also a magazine, a radio station, a recording studio, a film editing room and spaces for scientists working on everything from nanotechnology, astrophysics and virtual-reality software to 3-D printing. The building has a cathedral-like exhibition space, a bookstore, classrooms for adults and neighborhood school kids, and lecture programs featuring Nobel Prize-winning physicists and other notables.

Yellin calls it a “museum of process.” You can walk through the structure and see different kinds of people doing their art, or just hanging out. The first time I went, a few months ago, a band was playing, hundreds of intimidatingly hip young people — part model, part geek — were talking, looking at sculpture or playing with their kids in the lush gardens off to the side. It was like a modern version of Andy Warhol’s Factory, with microbrews, web designers, quantum mechanics and consilience.

Yellin did this outside the system. He came to New York, completely ignorant of the canon of art history. The city was his education. He’d meet someone at a bar who’d recommend Dostoyevsky’s “The Idiot.” Elsewhere he picked up Joseph Cornell and Hieronymus Bosch, who are influential in his work.

Yellin started experimenting with layers of resin and found he could draw in three dimensions. Worried that the resin was too toxic, he switched to glass. He takes up to 50 sheets of glass, up to six feet high, and stacks them together. Between the sheets he inserts hundreds of little pictures, drawings and images clipped out of magazines, art books and the like — Inca masks, soldiers, pictures of old machines.

The effect is a colorful, complex, three-dimensional landscape of the unconscious, what the critic Kenneth Goldsmith called a “pop-up utopia.” The works are instantly beautiful and absorbingly complicated.

Most fascinating about Yellin is his style of community-building. He’s a product of the highly distracted Internet age. During the day he bounces between his studio and the Pioneer Works Center next door, multitasking among sculptures, planning a lecture series or helping edit the magazine. He says he’s a problematic boyfriend because he’s there till midnight. His studio is a physical manifestation of his mental thrill-seeking and pluralistic attention — there are literally thousands of little images of everything under the sun. “I don’t worry about inspiration as much as system overload,” he says.

And yet he has brought everything into some sort of cohesion. His sculptures often have the coherent shape of the human figure, but viewers can examine a different part of the figure and then move in any direction to create their own sequence of meanings.

Pioneer Works is a social sculpture that works the same way. It is a cohesive physical community but informal and pluralistic. It is not siloed along disciplinary lines like a university. On the contrary, artists, scientists and writers are jammed together, encouraged to borrow one another’s methodologies in pursuit of a project that is both individual and common — finding the hidden order of things.

Yellin’s community seeks to be an interdisciplinary Jane Jacobs ballet: hundreds of bodies in different fields going about their own business interminglingly. I wouldn’t want it to replace the university (the danger of dilettantism is real), but the creative pyrotechnics are inspiring.

The only question is whether Yellin will be able to enjoy what he’s built. He’s created a new institution and brought his life to a coherent point — hard things to do in a scattered era. But he can’t sit still long enough to have patient conversations with the geniuses he’s gathered. He’s racing off to the next thrill, a creator too restless to fully savor his living creation.

Brooks and Krugman

July 17, 2015

Oh, sweet, sweet Baby Jesus on a pogo stick…  Bobo has extruded a turd entitled “Listening to Ta-Nehisi Coates While White” in which he gurgles that a new memoir provides a mind-altering account of the black male experience in America.  Two short comments are in order.  The first is from “Robert Eller,” who said this is “David Brooks’ Declaration of Incompetence and Irrelevance: This Week’s Edition.”  “Karen Garcia” from New Paltz, NY had this to say:  “Brooks praises Ta-Nehisi Coates with such faint damns that your head ends up clanging with his cognitive dissonance.”  The mind boggles that he had the stones to even consider writing this thing…  Prof. Krugman, in “Liberals and Wages,” tells us that workers’ pay can be raised without costing jobs.  Here, FSM help us, is Bobo:

Dear Ta-Nehisi Coates,

The last year has been an education for white people. There has been a depth, power and richness to the African-American conversation about Ferguson, Baltimore, Charleston and the other killings that has been humbling and instructive.

Your new book, “Between the World and Me,” is a great and searing contribution to this public education. It is a mind-altering account of the black male experience. Every conscientious American should read it.

There is a pervasive physicality to your memoir — the elemental vulnerability of living in a black body in America. Outside African-American nightclubs, you write, “black people controlled nothing, least of all the fate of their bodies, which could be commandeered by the police; which could be erased by the guns, which were so profligate; which could be raped, beaten, jailed.”

Written as a letter to your son, you talk about the effects of pervasive fear. “When I was your age the only people I knew were black and all of them were powerfully, adamantly, dangerously afraid.”

But the disturbing challenge of your book is your rejection of the American dream. My ancestors chose to come here. For them, America was the antidote to the crushing restrictiveness of European life, to the pogroms. For them, the American dream was an uplifting spiritual creed that offered dignity, the chance to rise.

Your ancestors came in chains. In your book the dream of the comfortable suburban life is a “fairy tale.” For you, slavery is the original American sin, from which there is no redemption. America is Egypt without the possibility of the Exodus. African-American men are caught in a crushing logic, determined by the past, from which there is no escape.

You write to your son, “Here is what I would like for you to know: In America, it is traditional to destroy the black body — it is heritage.” The innocent world of the dream is actually built on the broken bodies of those kept down below.

If there were no black bodies to oppress, the affluent Dreamers “would have to determine how to build their suburbs on something other than human bones, how to angle their jails toward something other than a human stockyard, how to erect a democracy independent of cannibalism.”

Your definition of “white” is complicated. But you write “ ‘White America’ is a syndicate arrayed to protect its exclusive power to dominate and control our bodies. Sometimes this power is direct (lynching), and sometimes it is insidious (redlining).” In what is bound to be the most quoted passage from the book, you write that you watched the smoldering towers of 9/11 with a cold heart. At the time you felt the police and firefighters who died “were menaces of nature; they were the fire, the comet, the storm, which could — with no justification — shatter my body.”

You obviously do not mean that literally today (sometimes in your phrasing you seem determined to be misunderstood). You are illustrating the perspective born of the rage “that burned in me then, animates me now, and will likely leave me on fire for the rest of my days.”

I read this all like a slap and a revelation. I suppose the first obligation is to sit with it, to make sure the testimony is respected and sinks in. But I have to ask, Am I displaying my privilege if I disagree? Is my job just to respect your experience and accept your conclusions? Does a white person have standing to respond?

If I do have standing, I find the causation between the legacy of lynching and some guy’s decision to commit a crime inadequate to the complexity of most individual choices.

I think you distort American history. This country, like each person in it, is a mixture of glory and shame. There’s a Lincoln for every Jefferson Davis and a Harlem Children’s Zone for every K.K.K. — and usually vastly more than one. Violence is embedded in America, but it is not close to the totality of America.

In your anger at the tone of innocence some people adopt to describe the American dream, you reject the dream itself as flimflam. But a dream sullied is not a lie. The American dream of equal opportunity, social mobility and ever more perfect democracy cherishes the future more than the past. It abandons old wrongs and transcends old sins for the sake of a better tomorrow.

This dream is a secular faith that has unified people across every known divide. It has unleashed ennobling energies and mobilized heroic social reform movements. By dissolving the dream under the acid of an excessive realism, you trap generations in the past and destroy the guiding star that points to a better future.

Maybe you will find my reactions irksome. Maybe the right white response is just silence for a change. In any case, you’ve filled my ears unforgettably.

Bobo should really just sit down and STFU.  Forever.  Now here’s Prof. Krugman:

Hillary Clinton gave her first big economic speech on Monday, and progressives were by and large gratified. For Mrs. Clinton’s core message was that the federal government can and should use its influence to push for higher wages.

Conservatives, however — at least those who could stop chanting “Benghazi! Benghazi! Benghazi!” long enough to pay attention — seemed bemused. They believe that Ronald Reagan proved that government is the problem, not the solution. So wasn’t Mrs. Clinton just reviving defunct “paleoliberalism”? And don’t we know that government intervention in markets produces terrible side effects?

No, she wasn’t, and no, we don’t. In fact, Mrs. Clinton’s speech reflected major changes, deeply grounded in evidence, in our understanding of what determines wages. And a key implication of that new understanding is that public policy can do a lot to help workers without bringing down the wrath of the invisible hand.

Many economists used to think of the labor market as being pretty much like the market for anything else, with the prices of different kinds of labor — that is, wage rates — fully determined by supply and demand. So if wages for many workers have stagnated or declined, it must be because demand for their services is falling.

In particular, the conventional wisdom attributed rising inequality to technological change, which was raising the demand for highly educated workers while devaluing blue-collar work. And there was nothing much policy could do to change the trend, other than aiding low-wage workers via subsidies like the earned-income tax credit.

You still see commentators who haven’t kept up invoking this story as if it were obviously true. But the case for “skill-biased technological change” as the main driver of wage stagnation has largely fallen apart. Most notably, high levels of education have offered no guarantee of rising incomes — for example, wages of recent college graduates, adjusted for inflation, have been flat for 15 years.

Meanwhile, our understanding of wage determination has been transformed by an intellectual revolution — that’s not too strong a word — brought on by a series of remarkable studies of what happens when governments change the minimum wage.

More than two decades ago the economists David Card and Alan Krueger realized that when an individual state raises its minimum wage rate, it in effect performs an experiment on the labor market. Better still, it’s an experiment that offers a natural control group: neighboring states that don’t raise their minimum wages. Mr. Card and Mr. Krueger applied their insight by looking at what happened to the fast-food sector — which is where the effects of the minimum wage should be most pronounced — after New Jersey hiked its minimum wage but Pennsylvania did not.

Until the Card-Krueger study, most economists, myself included, assumed that raising the minimum wage would have a clear negative effect on employment. But they found, if anything, a positive effect. Their result has since been confirmed using data from many episodes. There’s just no evidence that raising the minimum wage costs jobs, at least when the starting point is as low as it is in modern America.

How can this be? There are several answers, but the most important is probably that the market for labor isn’t like the market for, say, wheat, because workers are people. And because they’re people, there are important benefits, even to the employer, from paying them more: better morale, lower turnover, increased productivity. These benefits largely offset the direct effect of higher labor costs, so that raising the minimum wage needn’t cost jobs after all.

The direct takeaway from this intellectual revolution is, of course, that we should raise minimum wages. But there are broader implications, too: Once you take what we’ve learned from minimum-wage studies seriously, you realize that they’re not relevant just to the lowest-paid workers.

For employers always face a trade-off between low-wage and higher-wage strategies — between, say, the traditional Walmart model of paying as little as possible and accepting high turnover and low morale, and the Costco model of higher pay and benefits leading to a more stable work force. And there’s every reason to believe that public policy can, in a variety of ways — including making it easier for workers to organize — encourage more firms to choose the good-wage strategy.

So there was a lot more behind Hillary’s speech than I suspect most commentators realized. And for those trying to play gotcha by pointing out that some of what she said differed from ideas that prevailed when her husband was president, well, many liberals have changed their views in response to new evidence. It’s an interesting experience; conservatives should try it some time.

Not going to happen.  They’re the mole people and are incapable of learning.

Brooks and Nocera

July 14, 2015

In “The New Old Liberalism” Bobo babbles that Hillary Clinton’s speech was economically naive but politically masterful.  In the comments “Yankee Frankee” from NY, NY had this to say:  “Brooks, it appears, is congenitally incapable of seeing the waste, corruption and disastrous effects of the past 40 years while we allowed banks and corporations free reign to run amok over the economic needs of the citizenry.”  Mr. Nocera is playing the role of Gunga Din again.  You’d think that the water he totes would get heavy…  In “Shale Gas and Climate Change” he says that what the fracking debate needs is a dose of pragmatism.  Shut up, that’s why.  Here’s Bobo:

Well, Hillary Clinton hasn’t gone crazy. At a time when some in her party are drifting toward Bernie Sanders/Occupy Wall Street-style rhetoric, Clinton delivered her first major economic address of the campaign. It was solidly liberal — very solidly — but in tone and substance it was well within the general election mainstream. If any Republicans were hoping that Clinton would make herself unelectable by wandering into the class warfare fever swamps, they can forget about it.

The main narrative of the Sanders camp is that the economic game is rigged against ordinary people. The top 1 percent controls the fundamental economic conditions. Major transformation is required. There’s not much individuals can do given the structure of economic power.

Clinton did some Wall Street bashing in this speech, but it was either meaningless, bland (punish criminals) or broadly sensible (end the carried interest deduction). The main underlying assumption behind her speech was that individuals can rise and succeed if they are given the right helping hands from government.

This speech revealed a woman who does not have her heart in class conflict. The most passionate parts of her speech involved classic liberal efforts to give people a boost: early childhood education, family and medical leave, tax credits for job training, affordable child care programs.

She carefully avoided the more radical policy ideas embraced by the left, such as a blanket tax on the rich. She dodged the trade issue. She endorsed a minimum wage hike but didn’t commit, as many progressives do, to a $15an-hour rate.

This speech was more Children’s Defense Fund than Thomas Piketty. It was the sort of speech you give if you spend more time listening to voters, especially female ones, than studying the quintiles in the income distribution charts.

Stylistically, Clinton still sounds as if she is talking down to her audiences. But there was a wonky authenticity to this speech, which would not have been there if she had tried to sound like a pitchfork marauder. She has echoes of Hubert Humphrey or George McGovern in her voice, or a more liberal Michael Dukakis.

She’s way to the left of where her husband was and to the left of where Barack Obama was in 2008 or 2012. But she’s responded to the reality of growing inequality with a revived paleoliberalism, not with the edgier, angry economic policy you find among Bernie Sanders and the cutting-edge left. She is best viewed, as the progressive commentator Matt Yglesias put it in a Vox essay, as a new paleoliberal.

This neopaleoliberalism is built less on going after Wall Street and the rich and more on a tremendous faith in government to manage the economy more intelligently than the private sector. It’s less a negative assault on the elites and more an optimistic faith in the power of planning. The private sector is not evil or power hungry, just kind of dumb.

New Democrats like her husband believed in using market mechanisms to increase economic security. As a neopaleoliberal, Hillary Clinton used her kickoff economic address to embrace the idea that government can write rules to govern how much companies pay their workers. Government can direct investors toward more sensible long-term investments. Government can refashion the way companies distribute equity in their companies. Government can determine how companies should structure and manage themselves. “We’ll ensure that no firm is too complex to manage and oversee,” Clinton declared. One pictures squads of Federal Simplicity Enforcers roaming through the corridors of Midtown Manhattan telling C.E.O.s when their outfits are too mind-boggling.

In each case, in this view, government is more competent at steering companies toward their own best interests than the companies are themselves. Clinton’s constant refrain in this speech was that these federal interventions would increase growth and productivity, not limit them in the name of fairness.

Personally I find this faith epistemologically naïve. Clinton seems to have no awareness that many of the programs she endorsed have been tried and did not work. The Obama administration spent mightily on green energy jobs programs and they did not work to significantly increase employment. Empowerment zones, which she endorsed, have mostly failed to help low-income neighborhoods. Clinton displayed no awareness that most federal requirements involve difficult trade-offs. According to the Congressional Budget Office, raising the minimum wage to even $10.10 an hour would increase pay for millions of workers, but would cost roughly 500,000 jobs.

Clinton’s unchastened faith in the power of government planning is not shared by most voters. And she has no plausible chance of getting any of this through a divided Congress. But this agenda does pull off a neat trick. It will excite the progressive base without automatically alienating the rest of the country. Substantively she’s offered at least a coherent response to today’s economic conditions. Politically, she’s cleared the first hurdle in this campaign.

Now here’s Gunga Din:

Every columnist has his or her “go to” sources, people we rely on for their deep understanding of a particular subject, and a mode of thinking about that subject we find persuasive. For me, one such person is Michael Levi, a senior fellow for energy and the environment at the Council on Foreign Relations.

Levi believes in the power of facts. Though sensitive to the importance of dealing with climate change, he doesn’t indulge in the hyperbole that you sometimes hear from environmentalists. And while he appreciates the economic import of fracking and shale gas, he isn’t afraid to call out the industry on its problems. Early in the fracking boom, he went to Pennsylvania to observe what drilling for shale gas was doing to communities — and came away believing that “it was going to stir up much more local controversy than many were assuming.” Which is exactly what happened.

For the latest issue of Democracy, a quarterly magazine focused on progressive ideas, Levi has written an article titled “Fracking and the Climate Debate,” which he described to me the other day as a kind of summing up of his views about the role of cheap natural gas and fracking in the fight against climate change.

There are many people, of course, who believe that natural gas shouldn’t have any role at all in the climate change fight; while it may emit half the carbon dioxide of coal, it is still a fossil fuel that will keep us from going all-in on renewable energy. And the methane that can leak from fracked wells is a potent greenhouse gas that can negate natural gas’s advantage over coal.

There are others who see natural gas as a panacea. They believe that so long as we keep increasing production of inexpensive natural gas — mooting the need to build more coal-fired power plants, and even making it possible to shut some down — then we will be doing more than enough to control carbon emissions. In his article, Levi says, in effect: You’re both wrong.

After recounting a little history — was it really only a half dozen years ago that environmentalists like Robert F. Kennedy Jr. were promoting natural gas as a “step towards saving our planet”? — Levi delves into the three rationales behind their abrupt change of heart. One is the disruption that fracking imposes on communities. The second is the methane problem. The third is the “rapid progress” being made by renewable energy, which many environmentalists believe makes further reliance on natural gas unnecessary.

Levi believes that appropriate rules by both state and federal governments can mitigate the first two problems. Indeed, he believes that the industry needs to be better regulated for its own sake; otherwise, people will continue to fear the worst. As for renewables, the hard truth is that if the country were to move away from natural gas, the big winner would be coal, not solar or wind.

But that doesn’t mean that those who cling to the “free-market fundamentalist dream that a thriving shale gas industry will make climate policy unnecessary” have got it right. On the contrary, writes Levi, “merely making natural gas more abundant may do little, if anything, to curb carbon dioxide emissions.” How can this be? The answer is that, although cheap natural gas is helpful in that it “shoves aside coal,” it also boosts economic growth (which means more emissions), and “gives an edge to industries that are heavy energy users and big emitters.” These two conflicting forces effectively cancel each other out.

The best way to maximize the good that shale gas can do, concludes Levi, is to make it a key component of an overall energy policy that is bent on driving down carbon emissions. The government could promote policies to move the country away from coal, “which accounts for three-quarters of carbon dioxide produced in U.S. electricity generation.”

And while he doesn’t say so explicitly, he does seem to see shale gas as a potential bridge to renewables: If the government enacted policies that “reward emission cuts” no matter what technology achieves that goal, then coal users would gravitate to natural gas, while natural gas users might well move toward renewables. Government would also have to encourage policies that “drive down the cost of zero-based emissions.”

My own belief is that shale gas has been a blessing for all kinds of reasons: It has given us a degree of energy security that we haven’t seen in many decades, and has been a key source of economic growth. And, no matter how much environmentalists gnash their teeth, it is here to stay. That’s why the responsible approach is not to wish it away, but to exploit its benefits while straightforwardly addressing its problems. Ideologues will never get that done. That’s why Michael Levi’s realism — and his pragmatism — are so critical to hear.

Let’s all get together and finance Mr. Nocera’s move to an area where they’re fracking.  Maybe he’ll enjoy having his tap water catch fire…

Brooks and Nocera

July 7, 2015

In “The Courage of Small Things” Bobo informs us that a Rwandan genocide survivor’s story reminds us that simple narratives of good and evil, tribulation and triumph rarely capture the way life really is.  In the comments “Paul” from Nevada had this to say:  “Once again I do not get his point. A great story, but one with an unresolved ending. Guess we get Disney moment on Oprah. Flip to Springer for the unhappy endings. Interesting how Brooks always finds the ones who went to Yale. Guess the stories of just being a survivor don’t make the grade.”  Mr. Nocera has a question in “The Good Jobs Strategy:”  Can companies offer both low prices and good jobs? He says a management professor finds they can.  Here’s Bobo:

I thought I knew the basic life story of my friend Clemantine Wamariya. She was born in Rwanda 27 years ago. When she was 6 — though she didn’t understand it — the genocide began and her world started shrinking. Her father stopped going to work after dark. Her family ate dinner with the lights off.

To escape the mass murder, Clemantine and her older sister, Claire, were moved from house to house. One night they were told to crawl through a sweet potato field and then walk away — not toward anything, just away.

They crossed the Akanyaru River (Clemantine thought the dead bodies floating in it were just sleeping) and into Burundi. Living off fruit, all her toenails fell out. She spent the rest of her young girlhood in refugee camps in eight African nations.

Claire kept them on the move, in search of a normal life. Clemantine wrote her name in the dust at various stops, praying somehow a family member would see it. One day, they barely survived a six-hour boat ride across Lake Tanganyika fleeing into Tanzania. Their struggles in the camps, for water and much else, were almost perfectly designed to give a sense that life is arbitrary.

In 2000, Claire got them refugee status in the United States through the International Organization for Migration. Claire went to work as a hotel maid in Chicago. A few years later, Clemantine was one of 50 winners of Oprah Winfrey’s high school essay contest.

In the middle of the 2006 show celebrating the winners, Oprah brought Clemantine and Claire on stage. Oprah asked when was the last time the girls had seen their parents. It had been 12 years. Then Oprah gave them a surprise: “Your family is here!” Her parents, brother and sister had been found in Africa, and now walked onstage. They all fell into one another’s arms. Clemantine’s knees gave out, but her mother held her up.

Clemantine’s story, as I knew it then, has a comforting arc: separation, perseverance, reunion and joy. It’s the kind of clean, inspiring story that many of us tell, in less dramatic form, about our own lives — with clearly marked moments of struggle and overcoming.

But Clemantine and Elizabeth Weil just wrote a more detailed version of her story for the online magazine Matter, and the reality is not so neat. For one thing, Clemantine never really reconciled with her family. After the “Oprah” taping they returned to Claire’s apartment. “My father kept smiling, like someone he mistrusted was taking pictures of him. Claire remained catatonic; I thought she’d finally gone crazy, for real. I sat on Claire’s couch, looking at my strange new siblings, the ones that had replaced me and Claire. I fell asleep crying.” The rest of the family flew back home to Africa the following Monday.

At every stop along the way, the pat narrative of Clemantine’s life is complexified by the gritty, mottled nature of human relationships. The refugee worker who married Claire and fathered her children turned out to be more a burden than a savior. The sisters’ psyches were not unscathed. “Claire made a hard, subconscious calculus: She could survive, and maybe enable me to survive, too, but only if she cast off emotional responsibility, only if she refused to take on how anything or anybody felt.”

Clemantine struggled to reconcile her old life with this one. A teacher she had at the Hotchkiss School gave a class a thought experiment: You’re a ferry captain on a sinking boat. Do you toss overboard the old passenger or the young one? Clemantine lost it: “Do you want to know what that’s really like? This is an abstract question to you?”

At Yale, she couldn’t understand her own behavior. “Why did I drink only tea, never cold water? Why did I cringe when the sun turned red?”

Clemantine is now an amazing young woman. Her superb and artful essay reminded me that while the genocide was horrific, the constant mystery of life is how loved ones get along with one another.

We work hard to cram our lives into legible narratives. But we live in the fog of reality. Whether you have survived a trauma or not, the psyche is still a dark forest of scars and tender spots. Each relationship is intricacy piled upon intricacy, fertile ground for misunderstanding and mistreatment.

When she was a young girl, Clemantine displayed the large courage to endure genocide. In this essay she displays the courage of small things: the courage to live with feelings wide open even after trauma; the maturity to accept unanswerable ambiguity; the tenacity to seek coherence after arbitrary cruelty; the ability to create tenacious bonds that have some give to them, to allow for the mistakes others make; the unwillingness to settle for the simple, fake story; and the capacity to look at life in all its ugly complexity.

Now here’s Mr. Nocera:

At the Aspen Ideas Festival — an annual summer gabfest that presents all sorts of interesting ideas, from the improbable to the important — one of the big themes this year was jobs. How will America close the skills gap? Where will the good middle-class jobs of the future come from? I heard pleas for infrastructure spending as a job strategy, and creating jobs by unleashing our energy resources. There were speakers who believed that innovation would bring good jobs, and speakers who feared that some of those innovations — in robotics, for instance — would destroy good jobs.

And then there was Zeynep Ton.

A 40-year-old adjunct associate professor at the Sloan School of Management at M.I.T., Ton brought one of the most radical, and yet one of the most sensible, ideas to Aspen this year. Her big idea is that companies that provide employees a decent living, which includes not just pay but also a sense of purpose and empowerment at work, can be every bit as profitable as companies that strive to keep their labor costs low by paying the minimum wage with no benefits. Maybe even more profitable. Getting there requires companies to adopt what Ton calls “human-centered operations strategies,” which she acknowledges is “neither quick nor easy.” But it’s worth it, she says, both for the companies and for the country. Surely, she’s right.

As Ton explained to me last week in Aspen — and as she has written in a book she published last year titled “The Good Jobs Strategy” — her thesis comes out of research she did early in her academic career on supply chain management in the retail industry, focused especially on inventory management. What she and her fellow researchers discovered is that while most companies were very good at getting products from, say, China to their stores, it was a different story once the merchandise arrived. Sometimes a product stayed in the back room instead of making it to a shelf where a customer could buy it. Or it was in the wrong place. Special in-store promotions weren’t being executed a surprisingly high percentage of the time. She saw this pattern in company after company.

As she took a closer look, Ton says, she realized that the problem was that these companies viewed their employees “as a cost that they tried to minimize.” Workers were not just poorly paid, but poorly trained. They often didn’t know their schedule until the last moment. Morale was low and turnover was high. Customer service was largely nonexistent.

Yet when she asked executives at these companies why they put up with this pattern, she was told that the only way they could guarantee low prices was to operate with employees who were paid as little as possible, because labor was such a big part of their overhead. The problems that resulted were an unavoidable by-product of a low-price business model.

Unconvinced that this was the only approach, Ton decided to search for retail companies — the same kind of companies that needed low prices to succeed — that did things differently. Sure enough, she found some.

The two companies she talks about most frequently in this regard are a Spanish grocery chain called Mercadona and QuikTrip, a Tulsa, Okla.-based chain of convenience store/gas stations that competes with the likes of the 7-Eleven chain.

What first struck her about Mercadona is that the annual turnover was an almost unheard-of 4 percent. Why do employees stay? “They get decent salaries, four weeks of training that costs the company $5,000, stable schedules … and the opportunity to thrive in front of their customers every day,” Ton said in a speech she forwarded to me. The grocery business is low margin, where every penny counts. If Mercadona couldn’t keep prices low with this strategy, it would have abandoned it long ago.

QuikTrip, an $11 billion company with 722 stores, is a prime example of what Ton means by “human-centered operations strategies.” Paying employees middle-class wages allows the company to get the most out of them. Employees are cross-trained so they can do different jobs. They can solve problems by themselves. They make merchandising decisions for their own stores. The ultimate result of the higher wages QuikTrip pays is that costs everywhere else in the operation go down. At QuikTrip, says Ton, products don’t remain in the back room, and in-store promotions always take place, as they’re supposed to.

Ton’s interest in the good jobs strategy is more than academic now; she has become a proselytizer, trying to spread the word that every company would be better served by this approach. “The assumed trade-off between low prices and good jobs is a fallacy,” she says. As we worry about where middle-class jobs are going to come from, Ton’s is a message that needs to be heard not just in Aspen but all across America.

Solo Bobo

June 30, 2015

I defy you to get through Bobo’s offering today without, as the kidz say, LOL.  In “The Next Culture War” he actually seems to believe that social conservatives are poised to heal broken pieces of society: and that they should do so rather than continuing to fight battles that are already over.  My cats are laughing…  In the comments “Bartleby T. Scrivener” from New York, NY points out the oh-so-obvious:  “Social conservatives are well-equipped to repair a society rendered atomized, unforgiving and inhospitable? Aren’t they the ones responsible for making our society atomized, unforgiving, and inhospitable?”  Here’s Bobo.  Put your coffee down, your keyboard doesn’t need it.

Christianity is in decline in the United States. The share of Americans who describe themselves as Christians and attend church is dropping. Evangelical voters make up a smaller share of the electorate. Members of the millennial generation are detaching themselves from religious institutions in droves.

Christianity’s gravest setbacks are in the realm of values. American culture is shifting away from orthodox Christian positions on homosexuality, premarital sex, contraception, out-of-wedlock childbearing, divorce and a range of other social issues. More and more Christians feel estranged from mainstream culture. They fear they will soon be treated as social pariahs, the moral equivalent of segregationists because of their adherence to scriptural teaching on gay marriage. They fear their colleges will be decertified, their religious institutions will lose their tax-exempt status, their religious liberty will come under greater assault.

The Supreme Court’s gay marriage decision landed like some sort of culminating body blow onto this beleaguered climate. Rod Dreher, author of the truly outstanding book “How Dante Can Save Your Life,” wrote an essay in Time in which he argued that it was time for Christians to strategically retreat into their own communities, where they could keep “the light of faith burning through the surrounding cultural darkness.”

He continued: “We have to accept that we really are living in a culturally post-Christian nation. The fundamental norms Christians have long been able to depend on no longer exist.”

Most Christian commentary has opted for another strategy: fight on. Several contributors to a symposium in the journal First Things about the court’s Obergefell decision last week called the ruling the Roe v. Wade of marriage. It must be resisted and resisted again. Robert P. George, probably the most brilliant social conservative theorist in the country, argued that just as Lincoln persistently rejected the Dred Scott decision, so “we must reject and resist an egregious act of judicial usurpation.”

These conservatives are enmeshed in a decades-long culture war that has been fought over issues arising from the sexual revolution. Most of the conservative commentators I’ve read over the past few days are resolved to keep fighting that war.

I am to the left of the people I have been describing on almost all of these social issues. But I hope they regard me as a friend and admirer. And from that vantage point, I would just ask them to consider a change in course.

Consider putting aside, in the current climate, the culture war oriented around the sexual revolution.

Put aside a culture war that has alienated large parts of three generations from any consideration of religion or belief. Put aside an effort that has been a communications disaster, reducing a rich, complex and beautiful faith into a public obsession with sex. Put aside a culture war that, at least over the near term, you are destined to lose.

Consider a different culture war, one just as central to your faith and far more powerful in its persuasive witness.

We live in a society plagued by formlessness and radical flux, in which bonds, social structures and commitments are strained and frayed. Millions of kids live in stressed and fluid living arrangements. Many communities have suffered a loss of social capital. Many young people grow up in a sexual and social environment rendered barbaric because there are no common norms. Many adults hunger for meaning and goodness, but lack a spiritual vocabulary to think things through.

Social conservatives could be the people who help reweave the sinews of society. They already subscribe to a faith built on selfless love. They can serve as examples of commitment. They are equipped with a vocabulary to distinguish right from wrong, what dignifies and what demeans. They already, but in private, tithe to the poor and nurture the lonely.

The defining face of social conservatism could be this: Those are the people who go into underprivileged areas and form organizations to help nurture stable families. Those are the people who build community institutions in places where they are sparse. Those are the people who can help us think about how economic joblessness and spiritual poverty reinforce each other. Those are the people who converse with us about the transcendent in everyday life.

This culture war is more Albert Schweitzer and Dorothy Day than Jerry Falwell and Franklin Graham; more Salvation Army than Moral Majority. It’s doing purposefully in public what social conservatives already do in private.

I don’t expect social conservatives to change their positions on sex, and of course fights about the definition of marriage are meant as efforts to reweave society. But the sexual revolution will not be undone anytime soon. The more practical struggle is to repair a society rendered atomized, unforgiving and inhospitable. Social conservatives are well equipped to repair this fabric, and to serve as messengers of love, dignity, commitment, communion and grace.

As an aside, I wonder why Bobo, who is Jewish, is so terribly worried about the state of Christianity.  Except, of course, that the Talibangelicals are his brothers and sisters in spirit…

Brooks and Krugman

June 26, 2015

Bobo is pondering “The Robert E. Lee Problem.”  He’s thought and thought and thought and came up with a question.  He says the debate over flying the Confederate flag prompts another question over Southern heritage: Should we honor the Confederate general?  Well, Bobo, if you’re all for honoring traitors…  In the comments “zb” from BC had this to say:  “The real question is not about Lee but about you and the rest of the Republican Party and rightwing. What are we to do with people who through all their adult life have been willing to pander and perpetuate the symbols and reality of slavery, bigotry, and hate for the sake of power. Removing symbols of hate means nothing if you are not prepared to renounce the practices of hate itself.”  Prof. Krugman says “Hooray for Obamacare,” and that the reality of Obamacare is that it’s a tremendous success, which was conservatives’ big fear.  Here’s Bobo:

The debate about the Charleston Bible study shooting has morphed into a debate about the Confederate battle flag and other symbols of the Confederacy. This is not a trivial sideshow. Racism is not just a personal prejudice and an evolutionary byproduct. It resurfaces year after year because it’s been woven by historical events into the fabric of American culture.

That culture is transmitted through the generations by the things we honor or don’t honor, by the symbols and names we celebrate and don’t celebrate. If we want to reduce racism we have to elevate the symbols that signify the struggle against racism and devalue the symbols that signify its acceptance.

Lowering the Confederate flag from public properties is thus an easy call. There are plenty of ways to celebrate Southern heritage and Southern life without choosing one so enmeshed in the fight to preserve slavery.

The harder call concerns Robert E. Lee. Should schools and other facilities be named after the great Confederate general, or should his name be removed and replaced?

The case for Lee begins with his personal character. It is almost impossible to imagine a finer and more considerate gentleman.

As a general and public figure, he was a man of impeccable honesty, integrity and kindness. As a soldier, he displayed courage from the beginning of his career straight through to the end. Despite his blunders at Gettysburg and elsewhere he was by many accounts the most effective general in the Civil War and maybe in American history. One biographer, Michael Korda, writes, “His generosity of spirit, undiminished by ideological or political differences, and even by the divisive, bloody Civil War, shines through in every letter he writes, and in every conversation of his that was reported or remembered.”

As a family man, he was surprisingly relaxed and affectionate. We think of him as a man of marble, but he loved having his kids jump into bed with him and tickle his feet. With his wife’s loving cooperation, he could write witty and even saucy letters to other women. He was devout in his faith, a gifted watercolorist, a lover of animals and a charming conversationalist.

In theory, he opposed slavery, once calling it “a moral and political evil in any country.” He opposed Southern secession, calling it “silly” and a rash revolutionary act. Moreover we shouldn’t be overly guilty of the sin of “presentism,” judging historical figures by contemporary standards.

The case against Lee begins with the fact that he betrayed his oath to serve the United States. He didn’t need to do it. The late historian Elizabeth Brown Pryor demonstrated that 40 percent of Virginia officers decided to remain with the Union forces, including members of Lee’s family.

As the historian Allen Guelzo emailed me, “He withdrew from the Army and took up arms in a rebellion against the United States.” He could have at least sat out the war. But, Guelzo continues, “he raised his hand against the flag and government he had sworn to defend. This more than fulfills the constitutional definition of treason.”

More germane, while Lee may have opposed slavery in theory he did nothing to eliminate or reduce it in practice. On the contrary, if he’d been successful in the central task of his life, he would have preserved and prolonged it.

Like Lincoln he did not believe African-Americans were yet capable of equality. Unlike Lincoln he accepted the bondage of other human beings with bland complaisance. His wife inherited 196 slaves from her father. Her father’s will (somewhat impractically) said they were to be freed, but Lee didn’t free them.

Lee didn’t enjoy owning slaves, but he was considered a hard taskmaster and he did sell some, breaking up families. Moreover, he supported the institution of slavery as a pillar of Confederate life. He defended the right of Southerners to take their slaves to the Western territories. He fundamentally believed the existence of slavery was, at least for a time, God’s will.

Every generation has a duty to root out the stubborn weed of prejudice from the culture. We do that, in part, through expressions of admiration and disdain. Given our history, it seems right to aggressively go the extra mile to show that prejudice is simply unacceptable, no matter how fine a person might otherwise be.

My own view is that we should preserve most Confederate memorials out of respect for the common soldiers. We should keep Lee’s name on institutions that reflect postwar service, like Washington and Lee University, where he was president. But we should remove Lee’s name from most schools, roads and other institutions, where the name could be seen as acceptance of what he did and stood for during the war.

This is not about rewriting history. It’s about shaping the culture going forward.

Now here’s Prof. Krugman:

Was I on the edge of my seat, waiting for the Supreme Court decision on Obamacare subsidies? No — I was pacing the room, too nervous to sit, worried that the court would use one sloppily worded sentence to deprive millions of health insurance, condemn tens of thousands to financial ruin, and send thousands to premature death.

It didn’t. And that means that the big distractions — the teething problems of the website, the objectively ludicrous but nonetheless menacing attempts at legal sabotage — are behind us, and we can focus on the reality of health reform. The Affordable Care Act is now in its second year of full operation; how’s it doing?

The answer is, better than even many supporters realize.

Start with the act’s most basic purpose, to cover the previously uninsured. Opponents of the law insisted that it would actually reduce coverage; in reality, around 15 million Americans have gained insurance.

But isn’t that a very partial success, with millions still uncovered? Well, many of those still uninsured are in that position because their state governments have refused to let the federal government enroll them in Medicaid.

Beyond that, you need to realize that the law was never intended or expected to cover everyone. Undocumented immigrants aren’t eligible, and any system that doesn’t enroll people automatically will see some of the population fall through the cracks. Massachusetts has had guaranteed health coverage for almost a decade, but 5 percent of its nonelderly adult population remains uninsured.

Suppose we use 5 percent uninsured as a benchmark. How much progress have we made toward getting there? In states that have implemented the act in full and expanded Medicaid, data from the Urban Institute show the uninsured falling from more than 16 percent to just 7.5 percent — that is, in year two we’re already around 80 percent of the way there. Most of the way with the A.C.A.!

But how good is that coverage? Cheaper plans under the law do have relatively large deductibles and impose significant out-of-pocket costs. Still, the plans are vastly better than no coverage at all, or the bare-bones plans that the act made illegal. The newly insured have seen a sharp drop inhealth-related financial distress, and report a high degree of satisfactionwith their coverage.

What about costs? In 2013 there were dire warnings about a looming “rate shock”; instead, premiums came in well below expectations. In 2014 the usual suspects declared that huge premium increases were looming for 2015; the actual rise was just 2 percent. There was another flurry of scare stories about rate hikes earlier this year, but as more information comes in it looks as if premium increases for 2016 will be bigger than for this year but still modest by historical standards — which means that premiums remain much lower than expected.

And there has also been a sharp slowdown in the growth of overall health spending, which is probably due in part to the cost-control measures, largely aimed at Medicare, that were also an important part of health reform.

What about economic side effects? One of the many, many Republican votes against Obamacare involved passing something called the Repealing the Job-Killing Health Care Law Act, and opponents have consistently warned that helping Americans afford health care would lead to economic doom. But there’s no job-killing in the data: The U.S. economy has added more than 240,000 jobs a month on average since Obamacare went into effect, its biggest gains since the 1990s.

Finally, what about claims that health reform would cause the budget deficit to explode? In reality, the deficit has continued to decline, and the Congressional Budget Office recently reaffirmed its conclusion that repealing Obamacare would increase, not reduce, the deficit.

Put all these things together, and what you have is a portrait of policy triumph — a law that, despite everything its opponents have done to undermine it, is achieving its goals, costing less than expected, and making the lives of millions of Americans better and more secure.

Now, you might wonder why a law that works so well and does so much good is the object of so much political venom — venom that is, by the way, on full display in Justice Antonin Scalia’s dissenting opinion, with its rants against “interpretive jiggery-pokery.” But what conservatives have always feared about health reform is the possibility that it might succeed, and in so doing remind voters that sometimes government action can improve ordinary Americans’ lives.

That’s why the right went all out to destroy the Clinton health plan in 1993, and tried to do the same to the Affordable Care Act. But Obamacare has survived, it’s here, and it’s working. The great conservative nightmare has come true. And it’s a beautiful thing.

Bobo, solo

June 23, 2015

Bobo’s decided to take on the Pope.  Who is, by the way, a scientist.  Something Bobo most certainly is not.  In “Fracking and the Franciscans” he babbles that Pope Francis’ new encyclical contains beautiful ideas that would make for terrible environmental and economic policy.  Since the word “Franciscan” is never mentioned in his column one must assume he thinks the Pope is a Franciscan because of the name he chose.  Wrong, Bobo, wrong again.  He’s a Jesuit.  As Charles Pierce at Esquire repeatedly reminds us, don’t fck with the Jesuits…  Here’s Bobo:

Pope Francis is one of the world’s most inspiring figures. There are passages in his new encyclical on the environment that beautifully place human beings within the seamless garment of life. And yet over all the encyclical is surprisingly disappointing.

Legitimate warnings about the perils of global warming morph into 1970s-style doom-mongering about technological civilization. There are too many overdrawn statements like “The earth, our home, is beginning to look more and more like an immense pile of filth.”

Hardest to accept, though, is the moral premise implied throughout the encyclical: that the only legitimate human relationships are based on compassion, harmony and love, and that arrangements based on self-interest and competition are inherently destructive.

The pope has a section on work in the encyclical. The section’s heroes are St. Francis of Assisi and monks — emblems of selfless love who seek to return, the pope says, to a state of “original innocence.”

He is relentlessly negative, on the other hand, when describing institutions in which people compete for political power or economic gain. At one point he links self-interest with violence. He comes out against technological advances that will improve productivity by replacing human work. He specifically condemns market-based mechanisms to solve environmental problems, even though these cap-and-trade programs are up and running in places like California.

Moral realists, including Catholic ones, should be able to worship and emulate a God of perfect love and still appreciate systems, like democracy and capitalism, that harness self-interest. But Francis doesn’t seem to have practical strategies for a fallen world. He neglects the obvious truth that the qualities that do harm can often, when carefully directed, do enormous good. Within marriage, lust can lead to childbearing. Within a regulated market, greed can lead to entrepreneurship and economic innovation. Within a constitution, the desire for fame can lead to political greatness.

You would never know from the encyclical that we are living through the greatest reduction in poverty in human history. A raw and rugged capitalism in Asia has led, ironically, to a great expansion of the middle class and great gains in human dignity.

You would never know that in many parts of the world, like the United States, the rivers and skies are getting cleaner. The race for riches, ironically, produces the wealth that can be used to clean the environment.

A few years ago, a team of researchers led by Daniel Esty of Yale looked at the environmental health of 150 countries. The nations with higher income per capita had better environmental ratings. As countries get richer they invest to tackle environmental problems that directly kill human beings (though they don’t necessarily tackle problems that despoil the natural commons).

You would never suspect, from this encyclical, that over the last decade, one of the most castigated industries has, ironically, produced some of the most important economic and environmental gains. I’m talking of course about fracking.

There was recently a vogue for polemical antifracking documentaries like “Gasland” that purport to show that fracking is causing flammable tap water and other horrors.

But a recent Environmental Protection Agency study found that there was no evidence that fracking was causing widespread harm to the nation’s water supply. On the contrary, there’s some evidence that fracking is a net environmental plus.

That’s because cheap natural gas from fracking displaces coal. A study by the Breakthrough Institute found coal-powered electricity declined to 37 percent from 50 percent of the generation mix between 2007 and 2012. Because natural gas has just half as much global-warming potential as coal, energy-related carbon emissions have declined more in the U.S. than in any other country over that time.

Fracking has also been an enormous boon to the nation’s wealth and the well-being of its people. In a new report called “America’s Unconventional Energy Opportunity,” Michael E. Porter, David S. Gee and Gregory J. Pope conclude that gas and oil resources extracted through fracking have already added more than $430 billion to annual gross domestic product and supported more than 2.7 million jobs that pay, on average, twice the median U.S. salary.

Pope Francis is a wonderful example of how to be a truly good person. But if we had followed his line of analysis, neither the Asian economic miracle nor the technology-based American energy revolution would have happened. There’d be no awareness that though industrialization can lead to catastrophic pollution in the short term (China), over the long haul both people and nature are better off with technological progress, growth and regulated affluence.

The innocence of the dove has to be accompanied by the wisdom of the serpent — the awareness that programs based on the purity of the heart backfire; the irony that the best social programs harvest the low but steady motivations of people as they actually are.

Well, since Mr. Nocera is off today I guess he left it up to Bobo to do the water carrying for Big Energy…

Brooks and Krugman

June 19, 2015

Bobo was too busy to do his own writing, so he presents us with “Hearts Broken Open.” In this second batch of personal takes on how some readers found purpose in life, raising children or confronting illness or death are major factors.  I still for the life of me cannot figure out why anyone would write to Bobo.  Prof. Krugman has a question in “Voodoo, Jeb! Style:”  Why did Jeb Bush claim to know the secrets to achieving growth that even economists don’t know?  Here’s Bobo:

Last month, I asked readers if they had discovered a purpose in life and, if so, how they had discovered it. A few thousand wrote essays. I was struck by how elemental life is. Most people found their purpose either through raising children or confronting illness or death.

Scott Addington writes, “As is often the case, my purpose became clearly evident after I had stopped looking for it. On October 11, 1995, my daughter was born. Beginning with that moment, there has never been the slightest doubt regarding the purpose and source of meaning in my life. Being a father is the most meaningful and rewarding pursuit a man could ever hope to experience.”

Not only in parenting, but also in teaching. The essays from teachers ring with special clarity and force. Many of them see clearly how their day-to-day activities are in line with their ultimate end. This has its downside after people leave teaching.

Carolyn from Michigan writes, “Before class, I sometimes would sit in the chair of a student who was having a lot of trouble and pray that I might be a blessing to him that day. Yes, for 37 years I was a teacher, the last 25 as a high school special education teacher. That was my purpose; that was my calling.

“But now I am retired, and I am adrift. What is my purpose now? I struggle with it every day. When I was teaching, I would bound out of bed at 6:15 every morning. Now I wake early, but stay under the covers, filled with a world’s worth of anxiety. It might have been better had I died while trying to teach students with learning disabilities the basics of geometry.”

Quite frequently purpose emerges from loss. Greg Sunter from Brisbane, Australia, writes: “Four years ago, my wife of 21 years passed away as the result of a brain tumor. Her passage from diagnosis to death was less than six months. As shocking as that time was, almost as shocking was the sense of personal growth and awakened understanding that has come from the experience for me through reflection and inner work — to a point that I feel almost guilty about how significant my own growth has been as a result of my wife’s death.

“In his book ‘A Hidden Wholeness,’ Parker Palmer writes about the two ways in which our hearts can be broken: the first imagining the heart as shattered and scattered; the second imagining the heart broken open into new capacity, holding more of both our own and the world’s suffering and joy, despair and hope. The image of the heart broken open has become the driving force of my life in the years since my wife’s death. It has become the purpose to my life.”

Some people’s lives organize around a certain role or calling. “My moniker could be ‘formidable advocate,’ ” writes Georgian Lussier. After her brother suffered a brain injury, she learned to help people work through the maze of the health care system. Now she helps older women find work.

But, for many people, the purpose of life is simply to live it fully. Many people don’t necessarily see their lives as pointing toward God or as defined by some mission statement. They seek to drink in life at full volume, to experience and help others richly.

Jae Brown was driving after smoking weed and drinking when he was pulled over. He confessed everything to the cop, who saw that Brown was in college and whispered, “Don’t let your friends get you in trouble you can’t get yourself out of,” and let him go. “My purpose in life,” Brown writes, “is to mentor, provide that whisper in someone’s ear that changes their life.”

The great struggle in essay after essay is to remain emotionally vital and intellectually alive.

Zachary Krowitz, 21, read the essays written in response to the column and concluded that “this desire for something that is surely true is present in all of us, and reflects an attempt to know what we really want. … Unfortunately, based both on the essays written in response to your column and common experience, such meaning is often lost as one travels through life, emotions become duller and less clear.”

Alayne Crossman, 42, is able to keep her emotion flowing at full pitch. “Without the love of my family I wouldn’t be who I am today. It means I cry during ‘Frozen,’ every single time. It means I cry when I listen to Van Morrison’s ‘Ancient Highway.’ I am ridiculously sentimental because I choose to remain open to this vast, messy thing we call life.”

For many people, the purpose of life is to have more life. That may not have defined people’s purpose in past eras, when it might have had more to do with the next life, or obedience to a creed. But many today seek to live with hearts wide open.

I almost feel sorry for him [not really…] because he really must be dreading having to address the 2016 Clown Car at some point.  Unless he’s decided that he’s above considering the hurley-burley of politics now…  Here’s Prof. Krugman:

On Monday Jeb Bush — or I guess that’s Jeb!, since he seems to have decided to replace his family name with a punctuation mark — finally made his campaign for the White House official, and gave us a first view of his policy goals. First, he says that if elected he would double America’s rate of economic growth to 4 percent. Second, he would make it possible for every American to lose as much weight as he or she wants, without any need for dieting or exercise.

O.K., he didn’t actually make that second promise. But he might as well have. It would have been just as realistic as promising 4 percent growth, and considerably less irresponsible.

I’ll get to Jeb!onomics in a minute, but first let me tell you about a dirty little secret of economics — namely, that we don’t know very much about how to raise the long-run rate of economic growth. Economists do know how to promote recovery from temporary slumps, even if politicians usually refuse to take their advice. But once the economy is near full employment, further growth depends on raising output per worker. And while there are things that might help make that happen, the truth is that nobody knows how to conjure up rapid productivity gains.

Why, then, would Mr. Bush imagine that he is privy to secrets that have evaded everyone else?

One answer, which is actually kind of funny, is that he believes that the growth in Florida’s economy during his time as governor offers a role model for the nation as a whole. Why is that funny? Because everyone except Mr. Bush knows that, during those years, Florida was booming thanks to the mother of all housing bubbles. When the bubble burst, the state plunged into a deep slump, much worse than that in the nation as a whole. Taking the boom and the slump together, Florida’s longer-term economic performance has, if anything, been slightly worse than the national average.

The key to Mr. Bush’s record of success, then, was good political timing: He managed to leave office before the unsustainable nature of the boom he now invokes became obvious.

But Mr. Bush’s economic promises reflect more than self-aggrandizement. They also reflect his party’s habit of boasting about its ability to deliver rapid economic growth, even though there’s no evidence at all to justify such boasts. It’s as if a bunch of relatively short men made a regular practice of swaggering around, telling everyone they see that they’re 6 feet 2 inches tall.

To be more specific, the next time you encounter some conservative going on about growth, you might want to bring up the following list of names and numbers: Bill Clinton, 3.7; Ronald Reagan, 3.4; Barack Obama, 2.1; George H.W. Bush, 2.0; George W. Bush, 1.6. Yes, that’s the last five presidents — and the average rate of growth of the U.S. economy during their time in office (so far, in Mr. Obama’s case). Obviously, the raw numbers don’t tell the whole story, but surely there’s nothing in that list to suggest that conservatives possess some kind of miracle cure for economic sluggishness. And, as many have pointed out, if Jeb! knows the secret to 4 percent growth, why didn’t he tell his father and brother?

Or consider the experience of Kansas, where Gov. Sam Brownback pushed through radical tax cuts that were supposed to drive rapid economic growth. “We’ll see how it works. We’ll have a real live experiment,” he declared. And the results of the experiment are now in: The promised boom never arrived, big deficits did, and, despite savage cuts to schools and other public services, Kansas eventually had to raise taxes again (with the pain concentrated on lower-income residents).

Why, then, all the boasting about growth? The short answer, surely, is that it’s mainly about finding ways to sell tax cuts for the wealthy. Such cuts are unpopular in and of themselves, and even more so if, like the Kansas tax cuts for businesses and the affluent, they must be paid for with higher taxes on working families and/or cuts in popular government programs. Yet low taxes on the rich are an overriding policy priority on the right — and promises of growth miracles let conservatives claim that everyone will benefit from trickle-down, and maybe even that tax cuts will pay for themselves.

There is, of course, a term for basing a national program on this kind of self-serving (and plutocrat-serving) wishful thinking. Way back in 1980, George H.W. Bush, running against Reagan for the presidential nomination, famously called it “voodoo economic policy.” And while Reaganolatry is now obligatory in the G.O.P., the truth is that he was right.

So what does it say about the state of the party that Mr. Bush’s son — often portrayed as the moderate, reasonable member of the family — has chosen to make himself a high priest of voodoo economics? Nothing good.

Brooks and Nocera

June 16, 2015

Bobo gives us a classic example of concern trolling in “The Democratic Tea Party.”  He gurgles that if  it stands, Democrats’ rejection of the Trans-Pacific Partnership will go down as a mistake with extensive and long-lasting repercussions.  In the comments “gemli” from Boston has this to say:  “When David Brooks comes riding in on a white horse to save the world it’s probably best to take a close look at the horse, because it’s usually of the Trojan variety.”  Mr. Nocera, in “How to Grade a Teacher,” says there are better ways to evaluate teachers than test scores alone.  Here’s Bobo:

Last week, the Congressional Democrats defeated the underpinnings of the Trans-Pacific Partnership trade agreement. Let’s count up the things these Democrats will have done if this policy stands.

Impoverish the world’s poor. There’s an argument over what trade agreements do to workers in the nation’s rich countries, but there is no question they have a positive impact on people in the poorer ones.

The North American Free Trade Agreement, for example, probably didn’t affect the American economy too much. But the Mexican economy has taken off. With more opportunities, Mexican workers feel less need to sneak into the U.S. As Fareed Zakaria has pointed out, a regime that was anti-American has turned into one that is pro-American.

In Asia, the American-led open trade era has created the greatest reduction in poverty in human history. The Pacific trade deal would lift the living standards of the poorest Asians, especially the 90 million people of Vietnam.

As Tyler Cowen, an economist at George Mason University, wrote in his Marginal Revolution blog: “Do you get that progressives? Poorest country = biggest gainer. Isn’t that what we are looking for?”

Damage the American economy. According to a survey by the University of Chicago’s Booth School of Business, 83 percent of the nation’s leading economists believe that trade deals have been good for most Americans. That’s not quite the level of consensus on man-made global warming, but it is close.

That’s because free trade is not a zero-sum game. The global poor benefit the most, but most people in rich countries benefit, too. As Jason Furman, the chairman of President Obama’s Council of Economic Advisors pointed out in a speech at the Brookings Institution, since World War II, reductions in U.S. tariffs have contributed an additional 7.3 percent to American incomes.

Trade treaties have led to significant growth in American manufacturing exports. According to Furman, export-intensive industries pay workers up to 18 percent more than nonexport-intensive ones. Rising imports also give American consumers access to a wider range of inexpensive products, leading to huge standard of living increases for those down the income scale.The authoritative study on the Pacific trade deal, by Peter Petri, Michael Plummer and Fan Zhai, suggests it would raise U.S. incomes by 0.4 percent per year by 2025.

Stifle future innovation. Democrats point out that some workers have been hurt by trade deals. And that’s true. Most manufacturing job losses have been caused by technological improvements.

But those manufacturing jobs aren’t coming back. The best way forward is to increase the number of high-quality jobs in the service sector. The Pacific trade deal would help. The treaty is not mostly about reducing tariffs on goods. That work has mostly been done. It’s mostly about establishing rules for a postindustrial global economy, rules having to do with intellectual property, investment, antitrust and environmental protection. Service-sector industries like these are where America is strongest, where the opportunities for innovation are the most exciting and where wages are already 20 percent higher than in manufacturing.

Imperil world peace. The Pacific region will either be organized by American rules or Chinese rules. By voting against the trade deal, Democrats went a long way toward guaranteeing that Chinese rules will dominate.

As various people have noted, the Democratic vote last week was a miniversion of the effort to destroy the League of Nations after World War I. It damaged an institution that might head off future conflict.

The arguments Democrats use against the deal are small and inadequate. Some Democrats are suspicious because it was negotiated in secret. (They seem to have no trouble with the Iranian nuclear treaty, which is also negotiated in secret.)

Others worry that the treaty would allow corporations to sue governments. But these procedures are already in place, and as research from the Center for Strategic and Internatioanl Studies has demonstrated, the concerns are vastly overblown. They mostly protect companies from authoritarian governments who seek to expropriate their property.

In reality, the opposition to the trade pact is part of a long tradition of populist reaction. When economic stress rises, there is a strong temptation to pull inward. The Republican Tea Partiers are suspicious of all global diplomatic arrangements. The Democrats’ version of the Tea Partiers are suspicious of all global economic arrangements.

It would be nice if Hillary Clinton emerged and defended the treaty, which she helped organize.

Rejecting the Trans-Pacific Partnership will hurt economies from the U.S. to Japan to Vietnam. It will send yet another signal that America can no longer be counted on as the world’s leading nation.

If Bobo’s for it, then thinking people must be against it.  Here’s Mr. Nocera:

This is the second column I’ve written about Deborah Loewenberg Ball, the dean of the University of Michigan School of Education. Ball believes the training that teachers get while they are in school needs to be drastically improved. Last year, I wrote about her effort to develop a professional training curriculum that would allow beginning teachers to be far better grounded in their craft than they are now.

Recently, I learned about another effort she has led, which I also think deserves wider attention. It tackles one of the most divisive topics in K-12 education: how to evaluate teachers so that the best can be rewarded and the worst fired.

In New York — a state where the issue has been especially contentious — Gov. Andrew Cuomo earlier this year pushed through legislation that calls for student test scores to count for as much as 50 percent of a teacher’s evaluation, up from the current 20 percent. The teachers’ unions were incensed, believing that test scores are a simplistic and unfair means of assessing teachers. So were many parents, who joined a boycott movement that resulted in an estimated 165,000 students opting out of this year’s standardized tests.

A teacher evaluation system “is only good if the teachers respect it and trust it,” says Vicki Phillips, a director of education for the Bill & Melinda Gates Foundation. Teachers are convinced that evaluation systems that overly rely on test scores are punitive, which the political rhetoric often underscores. For instance, Cuomo’s stated reason for changing the state’s teacher evaluation was that some 96 percent of teachers got top gradesunder the old process. He scoffed at those results as “baloney.” That’s hardly going to get teachers to buy into your new evaluation system.

Which brings me back to Michigan. In 2011, the State Legislature there changed the tenure law, making it easier to fire incompetent teachers. But it also set up the Michigan Council for Educator Effectiveness, which was charged with coming up with its first-ever statewide evaluation system. Ball was named chairwoman of the council. Two years later, it came back with its recommendations.

The first thing I noticed about the council’s recommendations is that they completely avoid the divisive political language that has alienated teachers. Instead of casting teacher evaluation as primarily being about getting rid of bad teachers, they put the emphasis on teacher improvement. An evaluation system that stresses improvement instead of punishment has a much better chance of being embraced by teachers.

Such an emphasis isn’t just good politics. It’s also an important way to help make schools better. “Very few teachers can’t improve,” Ball told me recently. And most teachers want to improve — but have no means of getting useful feedback. The council’s idea was that the evaluations could be used not just to rid the system of incompetent teachers — though it would certainly do that — but also to give all the other teachers critical feedback. It also envisions transforming professional development, which is now mostly a wasteland, into a mechanism to put that feedback into practice.

There are two fundamental pieces to the Michigan council’s plan. The first piece is teacher observation. In most schools, it’s the principal who observes the teacher, often haphazardly, and rates him or her based on personal biases, which may or may not be sound. Ball and her colleagues would instead rely on observers who have been trained in using certain tools that have been proved effective. These observations would be the basis for the teacher’s feedback — feedback meant to encourage and help, rather than threaten.

The second piece is what the council calls evaluating “student growth.” Here the point would be not to measure student achievement in absolute terms — Does Johnny read at a fourth-grade level? — but rather to measure whether Johnny had made a year’s worth of improvement from the level he was reading at when he was in the third grade. This would be a more accurate representation of the difference the teacher made, and would take into account the wide range of learning levels teachers often have to contend with.

Some of this growth evaluation would undoubtedly be done through tests. But not all of it, or even most of it. “You have to look at objectives for students for the year and see if they made progress,” says Ball. There are ways to do that that don’t require standardized testing.

I wish I could tell you that this story has a happy ending, but it doesn’t. Legislation that embodied the work of the council failed to pass the Michigan Legislature in the last session. More recently, the chairman of a related Senate committee, Phil Pavlov, has essentially tossed the council’s work aside in favor of “local control.”

That is Michigan’s loss. But perhaps other states and school districts can look at the work of the Michigan council and learn from it. In which case, it could still be America’s gain.


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