Archives: 03/2011

Thinking Through Merger Review

Randy May of the Free State Foundation has a characteristically good post about the AT&T/T-Mobile merger entitled: “The AT&T and T-Mobile Merger: Thinking Things Through.” Among other smart ideas, Randy highlights the competitive game-playing that goes on in the merger review arena:

When considering competitive and market impacts for purposes of merger reviews, observe the extent to which various competitors, often many competitors, mount vigorous campaigns designed to convince the antitrust authorities and the regulators that if the merger is approved there will be an absence of competition. Note the incongruity.

There’s level-headed thinking aplenty in this post from a long-time Federal Communications Commission and telecom-industry watcher. Check it out.

Burke v. Pelosi

Lindsey Burke of the Heritage Foundation has a good post today dissecting Rep. Nancy Pelosi’s recent press release on DC school vouchers.

If anything, Burke goes a little easy on Rep. Pelosi, comparing the maximum value of the vouchers  ($7,500) with the published figure for DC public school spending ($17,600). As it happens, the public school spending figures published by the Department of Education (and the Bureau of the Census) are always badly out of date. That means they don’t take into account the continuing trends of rising overall spending and falling enrollment in DC public schools (let alone inflation). When you break down the DC K-12 education budget for the 2008-2009 school year, as I did in this Excel spreadsheet, it comes out to just over $28,000 per pupil. It’s almost certainly higher today.

What’s more, the average voucher amount is closer to $7,000, so DC schools are underperforming the private voucher schools while spending four times as much per pupil.

Despite this, Rep. Pelosi, President Obama, Education Secretary Arne Duncan, and over 90% of Democrats in the House and Senate oppose the DC voucher program. It’s almost as if politicians care more about special interests and ideology than they do about kids and reality.

Why Trading with China is Good for Us

Back in February, more than 100 House members introduced a bill that would make it easier to slap duties on imports from China. I explain why picking a trade fight with China would be a bad idea all around in an article just published in the print edition of National Review magazine.

Titled “Deal with the Dragon: Trade with the Chinese is good for us, them, and the world,” the article explains why our burgeoning trade with the Middle Kingdom is benefiting Americans as consumers, especially low- and middle-income families that spend a higher share on the everyday consumer items we import from China.

We also benefit as producers—China is now the no. 3 market for U.S. exports and by far the fastest growing major market. Chinese investment in Treasury bills keeps interest rates down in the face of massive federal borrowing, preventing our own private domestic investment from being crowded out.

The article also argues that, “As the Chinese middle class expands, it becomes not only a bigger market for U.S. goods and services, but also more fertile soil for political and civil freedoms.”

You can read the full article at the link above. Better yet, pick up the April 4 print edition of the magazine, the one with Gov. Rick Perry on the cover. My article begins on p. 20. (It might be a holdover from my newspaper days, but I still get an extra kick out of seeing an article printed in a real publication.)

P.S. For a fuller treatment of our trade relations with China, you can check out my 2009 Cato book, Mad about Trade: Why Main Street America Should Embrace Globalization. China takes center stage in several places in the book, which—did I mention?—was just named a runner-up finalist for the Atlas Foundation’s 22nd Annual Sir Antony Fisher International Memorial Award for the best think-tank book of 2009-10.

False Statements, Free Speech, and Sniper Fire

Congress has made it a crime for persons to falsely claim, verbally or in writing, that they earned military medals.  Some federal courts have declared that law, the Stolen Valor Act, unconstitutional because it violates free speech.  Judge Alex Kozinski warns of the danger of having prosecutors decide which tall tales warrant eye rolls, disgust, or jail time.  Here’s an excerpt from the Kozinski opinion:

Saints may always tell the truth, but for mortals living means lying. We lie to protect our privacy (“No, I don’t live around here”); to avoid hurt feelings (“Friday is my study night”); to make others feel better (“Gee you’ve gotten skinny”); to avoid recriminations (“I only lost $10 at poker”); to prevent grief (“The doc says you’re getting better”); to main- tain domestic tranquility (“She’s just a friend”); to avoid social stigma (“I just haven’t met the right woman”); for career advancement (“I’m sooo lucky to have a smart boss like you”); to avoid being lonely (“I love opera”); to eliminate a rival (“He has a boyfriend”); to achieve an objective (“But I love you so much”); to defeat an objective (“I’m allergic to latex”); to make an exit (“It’s not you, it’s me”); to delay the inevitable (“The check is in the mail”); to communicate dis- pleasure (“There’s nothing wrong”); to get someone off your back (“I’ll call you about lunch”); to escape a nudnik (“My mother’s on the other line”); to namedrop (“We go way back”); to set up a surprise party (“I need help moving the piano”); to buy time (“I’m on my way”); to keep up appear- ances (“We’re not talking divorce”); to avoid taking out the trash (“My back hurts”); to duck an obligation (“I’ve got a headache”); to maintain a public image (“I go to church every Sunday”); to make a point (“Ich bin ein Berliner”); to save face (“I had too much to drink”); to humor (“Correct as usual, King Friday”); to avoid embarrassment (“That wasn’t me”); to curry favor (“I’ve read all your books”); to get a clerkship (“You’re the greatest living jurist”); to save a dollar (“I gave at the office”); or to maintain innocence (“There are eight tiny reindeer on the rooftop”).

And we don’t just talk the talk, we walk the walk, as reflected by the popularity of plastic surgery, elevator shoes, wood veneer paneling, cubic zirconia, toupees, artificial turf and cross-dressing. Last year, Americans spent $40 billion on cosmetics—an industry devoted almost entirely to helping people deceive each other about their appearance. It doesn’t matter whether we think that such lies are despicable or cause more harm than good. An important aspect of personal autonomy is the right to shape one’s public and private persona by choosing when to tell the truth about oneself, when to conceal and when to deceive. Of course, lies are often disbelieved or discovered, and that too is part of the pull and tug of social intercourse. But it’s critical to leave such interactions in private hands, so that we can make choices about who we are. How can you develop a reputation as a straight shooter if lying is not an option?

The entire ruling can be found here (pdf).  Jonathan Turley debates Eugene Volokh on the constitutional issue here.

Legal issue aside, we can of course draw our own conclusions about the character of any person caught lying about military medals or military service.   I also recall Hillary Clinton’s claim, during her presidential campaign, that she received sniper fire while traveling to Bosnia.  When confronted by news organizations with evidence to the contrary, Clinton confessed her “mistake.”   Her false statement did not fall within the ambit of the federal law, but we can draw our own conclusions about whether Clinton is a straight-shooter.

(h/t Turley blog)

The Legitimacy of the Libyan War

President Obama’s speech last evening offers a chance to assess the implications of the war in Libya.

President Obama is not the first president to order attacks on another nation without the authorization of Congress.  This case, however, seems different. Prior to the intervention, the President’s national security advisors had determined that the nation had no vital interest at stake in the Libyan civil war. Secretary of Defense Robert Gates has repeated that conclusion after the intervention began. For his part, President Obama emphasized in last night’s speech and before, that the war would preclude a “humanitarian catastrophe.” Why did that rationale win out over the realism of his advisors?

President Obama tends to see our nation and the world as divided between oppressors (victimizers) and the oppressed (victims).  In this view, politics should help the oppressed and do justice (i.e. harm) to the oppressor.  In Libya, this outlook provides a clear division between a oppressor (Qaddafi and his loyalists) and his victims (the rebels). Morality thus demands war against the oppressor on behalf of his victims.

But there is a problem with America acting alone. Many people in the Middle East and elsewhere see the United States not as a vindicator of the oppressed but rather as a oppressor.  Truth be told, more than few Americans share that view.

Those who share this view believe that the United States cannot act unilaterally to help the victims in Libya. This would be true even if Congress authorizes the war as required under Article I of the United States Constitution.  The authorization to go to war must come from someone else other than an American political official or institution.

Hence, President Obama sought international authorization for the war in Libya. True, he sought that authority for pragmatic reasons. A coalition meant shared burdens and (Obama believes) a quick way out of Libya. But the authorizations by the U.N. Security Council and earlier by the Arab League also could be seen as giving legitimacy to the enterprise. Those authorizations meant the United States could go to Libya as a true protector of the oppressed.

If you doubt any of this, examine closely what the President has said about the war. In his speech, the rebels become victims at the mercy of an oppressor. Congress gets a fleeting mention related to consultation about, rather than authorization of, war. True legitimacy for the war comes from a “U.N. mandate and international support.” In his letter to Congress announcing the war, the first sentence reads “at my direction, U.S. military forces commenced operations to assist an international effort authorized by the United Nations (U.N.) Security Council and undertaken with the support of European allies and Arab partners, to prevent a humanitarian catastrophe…” Here again the legitimacy for the war comes the United Nations, the European allies, and the Arab League. Congress has neither power to deny the president nor legitimacy to bestow on his work.

There is much to say about these reasons for war. Some people might see in Libya a civil war between two armed gangs. Lacking the frame of oppressor and victims, they will be less willing than the President to assume that the people in the territory called Libya wear either black or white hats. We may learn to our cost that our new allies are victims now and oppressors later.  If we take the President seriously, we will be obligated to make war against them, too.

We have now taken on a default obligation to help every victim and to punish every oppressor throughout the world. We have two constraints on fulfilling that obligation. The first, mentioned by the president, is costs. Eventually the financial markets may limit our efforts on behalf of victims. Second, and more important legally, a president must seek authorization for war from the United Nations, the European union, the Arab League or….well, anyone except the United States Congress.

It is not just that this president, like others before him, ignored Article I of the Constitution. Nor is this president the first to shun moral complexity in favor of a Manichean outlook. President Obama is the first, however, to assert that his broad powers to initiate war should be limited primarily by people who are outside the American social compact.  On this account, sotto voce, the Constitution is not just ignored. It is irrelevant.

Prof. Krugman: Ace of the Ad Hominem Smear

Prof. Paul Krugman’s New York Times column of March 27th, “American Thought Police,” made this startling assertion: “the hard right — which these days is more or less synonymous with the Republican Party — has a modus operandi when it comes to scholars expressing views it dislikes: never mind the substance, go for the smear.”  What would Dr. Freud say?  Well, after careful study of Prof. Krugman’s works and one trip to the couch, Dr. Freud diagnosed the patient and proclaimed, “projection bias.”  Yes, the ace of the ad hominem smear is simply projecting his own attributes and habits of mind and deed to others.

Tuesday Links

  • Shifting America’s focus away from individual liberty is waging war on the future, not winning it.
  • U.N. “authorization” is the Emperor’s new fig leaf for war with Libya.
  • Why are we fighting Mexico’s drug war?
  • David Boaz remembers Geraldine Ferraro, who helped advance the war against gender discrimination in politics.
  • Chris Preble eulogizes the Weinberger/Powell doctrine against the backdrop of the Libyan war: