Tag: Washington Post

More on Phony Defense Spending Cuts

On Saturday the Washington Post published a letter I wrote chastising their editorialists for inventing defense budget cuts:

The Aug. 12 editorial “Mr. Gates’s rough cuts” and David S. Broder’s Aug. 12 column, “Gates’s budget warning shot,” applauded the defense secretary for his plans to cut spending even though the plans will do no such thing. As Mr. Broder wrote, Mr. Gates proposed closing the U.S. Joint Forces Command and shedding contractors and generals in the Pentagon’s employ. But neither piece noted that these proposals are part of a plan to shift some Pentagon spending from administration to force structure – not to cut total spending.

The impetus for the cost-shifting plan is the White House’s reluctance to increase Pentagon spending by more than 1 percent above inflation for the next few years. Rapid growth in procurement and personnel spending makes that increase insufficient to cover the military’s programmatic costs.

Bloated administrative overhead is a good place to find funds for that end. But taxpayers gain nothing.

Mr. Gates has requested substantial increases in defense spending every year that he has been secretary. He opposes spending cuts, even after the wars end, even though the United States now spends more on defense than at any time during the Cold War, adjusting for inflation. He openly hopes that these proposals to heighten administrative efficiency deflect pressure to cut spending. By pretending that these changes do so, The Post helps shield Pentagon spending from scrutiny.

The point is straightforward: Stop confusing reforms explicitly intended to prevent spending cuts with real spending cuts.

The Post, however, repeated the error that my letter complained about in the title they gave it both online (“Will the defense cuts do what Robert Gates says they will?”) and in the actual newspaper (“Scrutinizing Mr. Gates’s Defense Budget Cuts”). The editor has yet to respond to my email noting the irony.

I wrote more on the media’s failure to portray these reforms accurately for the National Interest’s new Skeptics blog. (Chris Preble and I have already discussed this topic here.)

The Post’s editorial page typifies the fawning coverage that the Washington commentariat gives Gates.  He has a knack for getting even otherwise discerning analysts to portray him as a pragmatist/ realist/ conservative even as he asks Congress to increase a defense budget that is already larger than at any point during the Cold War and advocates endless nation-building warfare in Afghanistan. The keys to his success, I say, are (a) appearing moderate in contrast to the rest of the foreign policy elites in his party, which is easy, (b) skillful management that distracts people from his embrace of policies that are not realistic, pragmatic, or conservative, and (c) eloquently saying things that contradict his actions.

Fareed Zakaria’s latest column, for example, asserts that the only two conservatives in Washington are Gates and the portrait of Eisenhower hanging in his office. Like many, Zakaria is taken with Gates’ recent speech at the Eisenhower library, which praised Ike for restraining defense spending and avoiding intervention in Vietnam. It was such a good speech that you can almost forgive those that fail to note the irony of Gates’ sounding like someone proposing defense cuts and exiting Afghanistan.

Why Should Politicians and Bureaucrats Decide Whether Breast-Cancer Patients Can Take Avastin?

Today’s Washington Post contains an article titled, “FDA Considers Revoking Approval of Avastin for Advanced Breast Cancer.”  An excerpt:

The debate over Avastin, prescribed to about 17,500 women with breast cancer a year, has become entangled in the politically explosive struggle over medical spending and effectiveness that flared during the battle over health-care reform: How should the government balance protecting patients and controlling costs without restricting access to cutting-edge, and often costly, treatments?

A better question is: why should the government be the one to strike that balance?  Why shouldn’t some women be able to sign up for a health plan that covers Avastin, while others are free to make a different choice?

The Washington Post Misleads Readers about Medicare & Social Security Funding

Here’s a poor, unsuccessful letter I submitted to the editor of The Washington Post:

The Post’s economic reporters need to convey to readers that the Medicare and Social Security “trust funds” contain zero funds [“Medicare Funds to Last 12 Years Longer than Earlier Forecast, Report Says,” August 6].

This is not up for dispute.  When those programs’ revenues exceed outlays, Congress puts the excess in general revenues and spends it.  Congress marks the event by leaving an IOU to itself in these “trust funds.”  Those IOUs are not “funds,” any more than an IOU that you write to yourself is money.  These so-called “trust funds” therefore have no bearing on the (in)solvency of Medicare and Social Security.

Yet every year, the trustees for these programs claim that they do, making the Medicare and Social Security trustees reports an annual, ritualized lie that the U.S. government broadcasts to the American people.

Properly educating reporters, editors, and politicians about the Medicare and Social Security “trust funds” is a decades-long project.

The Social Security and Medicare ‘Trust Funds’ Are a … What’s the Word?

Yesterday’s New York Times editorialized:

It’s the time of year when the trustees of Medicare and Social Security release their annual reports on the programs’ financial health. And that means Americans are likely to be bathed in a fog of political rhetoric that makes it hard to sort out fact from fiction.

Here’s the bottom line…

The Times then proceeded to bathe its readers in fog:

According to the reports, the date of insolvency for Medicare’s hospital fund was pushed back, from 2017 to 2029, because of cost-saving measures in health reform. As for Social Security, without any changes, it will be able to pay full benefits until 2037 and partial benefits after that, the same estimate as in last year’s report, despite temporary setbacks from the recession…

A lot of attention will be paid to the finding in the Social Security report that payouts will exceed revenues in 2010 and 2011…That doesn’t endanger benefits, because any shortfall can be covered by the trust fund.

No.  It.  Can’t.  Because there are no funds in the Social Security “trust fund.”  There are no funds in the Medicare “trust fund.”  As Fortune magazine’s senior editor-at-large Allan Sloan explains in today’s Washington Post, those “trust funds” contain nothing but “funny money.”

In a 2006 blog post titled, “Sometimes, Governments Lie,” I offered the following proposition:

If the government knows that there are no assets in the Social Security and Medicare “trust funds,” and yet projects the interest earned on those non-assets and the date on which those non-assets will be exhausted, then the government is lying.

That still seems correct to me: the whole idea of the Social Security and Medicare “trust funds” is a lie.  An institutionalized, ritualized lie that the U.S. government tells the American people. Perpetuated by both political parties, and others with an interest in hiding the reality of these programs’ unfunded liabilities from voters.  One that many journalists uncritically repeat.

Imports Viewed Skeptically at the Washington Post

What explains the chronically misleading depictions and interpretations of international trade in the Washington Post?  Is it economic illiteracy? Intellectual indifference? Institutional bias? What?

The opening paragraph in Neil Irwin’s story (online, July 30, 2010, 9:13 am) reads:

The pace of economic growth slowed this spring, according to new government data, as Americans remained reluctant to consume and imports soared.

And a few paragraphs later:

The biggest drain on growth was imports, which rose 28.8 percent, compared with only a 10.3 percent gain in exports.

On July 14, one day after the Commerce Department’s monthly trade figures were released, revealing a slight increase in the trade deficit, the opening paragraph in the Washington Post story under the heading “Rising Imports Offset Export Gains” read:

America’s resurgent appetite for imports may undermine the Obama administration’s efforts to rekindle job growth, with a rise in overseas purchases by American businesses and households undercutting the benefits of increased U.S. sales abroad.

I have posted about this problem again and again and again and again and again (just this year), but apparently to no avail. The simplistic scoreboard interpretation of trade (where exports are considered “our” team’s points and imports “their” team’s) combined with a zeal for inciting fears about economic collapse seems to remain the formula of choice at the WaPo.

As I wrote yesterday:

U.S. producers account for over half of the value of U.S. imports, which means there is great potential to increase their competitiveness by improving their access to imports.  It also explains the strong correlation between imports and exports, between imports and GDP, and between imports and job growth — facts that too many politicians wish to expunge from the record. 

Along with politicians at the end of the last sentence, I should have included a certain newspaper.

Compare and Contrast

Fourth Amendment:

“The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.”

Supreme Court (Katz v. U.S.):

“[S]earches conducted outside the judicial process, without prior approval by judge or magistrate, are per se unreasonable under the Fourth Amendment—subject only to a few specifically established and well delineated exceptions.”

Washington Post:

“The Obama administration is seeking to make it easier for the FBI to compel companies to turn over records of an individual’s Internet activity without a court order if agents deem the information relevant to a terrorism or intelligence investigation.”

Party Control Lives on in China

Andrew Higgins of the Washington Post reviews a new book on the continuing power of the Communist Party in sort-of-capitalist China:

McGregor points out that ‘Lenin, who designed the prototype used to run communist countries around the world, would recognize the [Chinese] model immediately.’ Case in point: the Central Organization Department, the party’s vast and opaque human resources agency. It has no public phone number, and there is no sign on the huge building it occupies near Tiananmen Square. Guardian of the party’s personnel files, the department handles key personnel decisions not only in the government bureaucracy but also in business, media, the judiciary and even academia. Its deliberations are all secret. If such a body existed in the United States, McGregor writes, it ‘would oversee the appointment of the entire US cabinet, state governors and their deputies, the mayors of major cities, the heads of all federal regulatory agencies, the chief executives of GE, Exxon-Mobil, Wal-Mart and about fifty of the remaining largest US companies, the justices of the Supreme Court, the editors of the New York Times, the Wall Street Journal and the Washington Post, the bosses of the TV networks and cable stations, the presidents of Yale and Harvard and other big universities, and the heads of think-tanks like the Brookings Institution and the Heritage Foundation.’

But not the Cato Institute, you betcha!