Tag: New York Times

Randal O’Toole Takes on Smart Growth in the NYT

The New York Times has a long profile today of Cato’s Randal O’Toole, scourge of urban planners.

But O’Toole doesn’t fit the portrait of a corporate advocate. On visits to Capitol Hill, he blends in as a middle-aged, middle-height man in a dark suit – but his beard gives him away, its shaggy twists seemingly fitting for a forest dweller. He wears a string tie that most Americans would only recognize on Colonel Sanders. His lapel doesn’t carry the standard-issue flag pin but a bronze bust of his dog, Chip. The Belgian tervuren won it in a dog show.

O’Toole routinely hikes and bikes dozens of miles, and he proudly announces that he has never driven a car to work. Far from living on a luxurious Virginia manor, he left his last Oregon town when it added a third stoplight.

Now, from his home computer in Camp Sherman, Ore., population 300, O’Toole rails against smart-growth policies as money sponges that never calm traffic, fill seats on trains, or help the environment.

The story ends with Randal on his way to a conference in Las Vegas, which I also attended. There in the 80-degree early morning heat, he biked 50 miles each morning, on a folding bicycle that he could fit into a suitcase – and still got back to the hotel in time to fix my Powerpoint before my speech. He’s a Renaissance man.

My Morning Tabloid

Why is a U.S. senator’s extramarital affair on the front page of The Washington Post this morning?

Don’t get me wrong, I like a juicy sex scandal as well as the next guy. And I’m amused at my friend and former colleague Radley Balko’s Facebook comment (or was it a tweet? who can keep up with the new media?) that ”sadly, growing public acceptance for gay marriage has given yet another conservative politician no choice but to cheat on his wife.”   But this affair fit Bill Kristol’s definition of good Republican behavior:  “Republicans have old-fashioned extramarital affairs with other adults.” No prostitution, no underage interns, no public toilets.

So why is it front-page news?

Meanwhile, you know what’s not on the front page, today or any day so far? President Obama’s firing of the AmeriCorps inspector general, in apparent violation of a law that Senator Obama voted for, perhaps in retaliation for the IG’s investigation of Sacramento mayor Kevin Johnson, an Obama supporter. It’s an interesting story. As a Wall Street Journal lead editorial explained:

In April 2008 the Corporation [for National and Community Service] asked Mr. Walpin to investigate reports of irregularities at St. HOPE, a California nonprofit run by former NBA star and Obama supporter Kevin Johnson. St. HOPE had received an $850,000 AmeriCorps grant, which was supposed to go for three purposes: tutoring for Sacramento-area students; the redevelopment of several buildings; and theater and art programs.

Mr. Walpin’s investigators discovered that the money had been used instead to pad staff salaries, meddle politically in a school-board election, and have AmeriCorps members perform personal services for Mr. Johnson, including washing his car.

Other papers have been on the story, notably the Washington Examiner. But as even The Washington Post’s ombudsman notes, not a word in the Post (until a small story on page A19 today, featuring the Obama administration’s spin on the issue). The Post is, however, ahead of The New York Times, which has apparently not run a word on the story, even online, though it did have room for the senatorial affair. 

And I have to wonder: If George W. Bush had fired an inspector general who had alleged fraud by a key Bush supporter, would the Post and the Times have covered the story?

Just Say No to Public Option Health Care

In today’s New York Times, Paul Krugman writes about the necessity of a public option in health care. Why is a public plan such a bad idea? I explain in my post over at The Corner:

A public plan, regardless of how it was structured or administered, would have an inherent advantage in the marketplace over private insurance companies because it would ultimately be subsidized by American taxpayers. It would also have an advantage since its enormous market presence would allow it to impose much lower reimbursement rates on doctors and hospitals, similar to current reimbursement practice under Medicare and Medicaid. It is estimated that privately insured patients presently pay $89 billion annually in additional insurance costs because of cost-shifting from government programs. Assuming the new public option would have similar reimbursement policies, it would result in additional cost-shifting as much as $36.4 billion annually. This would force insurers to raise their premiums, making them even less competitive with the taxpayer-subsidized public plan.

With the public option squeezing private insurers from the sides, and expanded eligibility for Medicare and Medicaid pushing from the top and bottom, it is unlikely that any significant private insurance market could continue to exist. America would be firmly on the road to a single-payer health care system with all the dangers that presents.

Why Should We Pity These People?

A couple of weeks ago, I ripped apart a factually anemic but all-too-typical USA Today article decrying the plight of student debtors. Today, the grand journalistic tradition of anecdote-and-pity laden reporting on student debt continues with offerings from Business Week and The New York Times.

In an article about tight times for student loan forgiveness programs, The Old Gray Lady sticks with the journalistic tried-and-true by leading with an extreme anecdote that readers, presumably, are supposed to see as illustrating typical suffering:

When a Kentucky agency cut back its program to forgive student loans for schoolteachers, Travis B. Gay knew he and his wife, Stephanie — both special-education teachers — were in trouble.

“We’d gotten married in June and bought a house, pretty much planned our whole life,” said Mr. Gay, 26. Together, they had about $100,000 in student loans that they expected the program to help them repay over five years.

Then, he said, “we get a letter in the mail saying that our forgiveness this year was next to nothing.”

Now they are weighing whether to sell their three-bedroom house in Lawrenceburg, Ky., some 20 miles west of Lexington. Otherwise, Mr. Gay said, “it’s going to be very difficult for us to do our student loan payments, house payments and just eat.”

Please, Mr. Gay (and Mr. Glater, the author of this heart-string puller)! You, and presumably your wife, are only in your mid-twenties, have what appears to be a very nice home according to the picture accompanying the article, and yet have the nerve to assert that taxpayers should eat your student loans lest you not eat at all!

Excuse me if I don’t start singing “We Are the World.”

This is simple greed – you know, the stuff for which the media regularly excoriates “big business” – but readers are expected to see it as suffering because it involves recent college grads. Oh, and grads who have gone into teaching, according to Glater “a high-value but often low-paying” field. That the Gays have felt wealthy enough to buy a house despite holding much greater than normal student debt – and the fact that on an hourly basis teachers get paid on par with comparable professionals – doesn’t present any impediment to the reporter repeating the baseless underpaid teacher myth. It’s all just part of the standard narratives.

Business Week’s piece isn’t much better than the Times’, though at least reporter John Tozzi had the decency not to start off with an emotionally manipulative anecdote of supposed human suffering. His third paragraph, however, centers around “analysis” from the student-centric Project on Student Debt, and he rolls out the ol’ Tale of Woe right after:

“It’s just so frustrating,” says Susan D. Strayer, director of talent acquisition for Ritz-Carlton in Washington. “They tell you to be self-made. They tell you get yourself a good education and you can get yourself into a pretty big hole.” Strayer, 33, has $90,000 in student loan debt from her bachelor’s at Virginia Tech and a master’s from George Washington University. She also has an MBA from Vanderbilt University, which she earned on a full scholarship—but skipped two years of earnings to acquire. Strayer says her monthly loan payments of $600 barely budge the principal on her debt. She doesn’t regret her educational decisions, although she says the debt load has made her put off plans to pursue a consulting side business full-time.

So Ms. Strayer chose one of the most expensive schools in the country —George Washington — for a Master’s (in what we do not know); we have no information about why she chose to finance her education through loans (she and her parents bought new cars, clothes, and stereos instead of saving for college, perhaps?); but we are supposed to feel it is a terrible thing that at 33 she hasn’t been able to start a full-time consulting business. Why is that, exactly?

Thankfully, though he frontloads anecdotes and pity parties, Tozzi ends his piece with a clear, if far too rare, voice of reason:

“It’s easy for me to say, ‘Oh, I have all this student loan debt,’ but I chose to take it and I have to deal with the consequences of that choice,” [24-year-old] Patricia Hudak says. “So many people in my generation think of everything as a short-term investment with immediate return.”

Finally, someone I can truly feel sorry for! Why? Because with journalists cheering it on, Ms. Hudak is exactly the kind of person that our political system will punish, making her pay not only for her own choices, but those of the Gays, Ms. Strayer, and countless other student debtors who really do think that everything, and everybody, should give them an immediate — and huge — payoff.

How Does It Feel to Be at the Table Now?

On Monday, the Obama administration held a well-publicized love-fest with lobbyists for the health care industry.  It turns out that rather than a “game-changer,” the event was a fraud.  And the industry got burned.

At the time, President Obama called it a “a watershed event in the long and elusive quest for health care reform”:

Over the next 10 years — from 2010 to 2019 — [these industry lobbyists] are pledging to cut the rate of growth of national health care spending by 1.5 percentage points each year — an amount that’s equal to over $2 trillion.

By an amazing coincidence, $2 trillion is just enough to pay for Obama’s proposed government takeover of the health care sector.

Yet The New York Times reports that isn’t the magnitude of spending reductions the lobbyists thought they were supporting:

Hospitals and insurance companies said Thursday that President Obama had substantially overstated their promise earlier this week to reduce the growth of health spending… [C]onfusion swirled in Washington as the companies’ trade associations raced to tamp down angst among members around the country.

Health care leaders who attended the meeting…say they agreed to slow health spending in a more gradual way and did not pledge specific year-by-year cuts…

My initial reaction to Monday’s fairly transparent media stunt was: “I smell a rat.  Lobbyists never advocate less revenue for their members.  Ever.” The lobbyists are proving me right, albeit slowly.  (Take your time, guys.  I don’t mind.)

The Obama administration seems a little less clear on that rule.  Again, The New York Times:

Nancy-Ann DeParle, director of the White House Office of Health Reform, said “the president misspoke” on Monday and again on Wednesday when he described the industry’s commitment in similar terms. After providing that account, Ms. DeParle called back about an hour later on Thursday and said: “I don’t think the president misspoke. His remarks correctly and accurately described the industry’s commitment.”

How did the industry find itself in this position? Politico reports:

The group of six organizations with a major stake in health care…had been working in secret for several weeks on a savings plan.

But they learned late last week that the White House wanted to go public with the coalition. One health care insider said: “It came together more quickly than it should have.” A health-care lobbyist said the participants weren’t prepared to go live with the news over the weekend, when the news of a deal, including the $2 trillion savings claim, was announced by White House officials to reporters.

Gosh, it’s almost like the White House strong-armed the lobbyists in order to create a false sense of agreement and momentum.  Pay no attention to that discord behind the curtain!

At the time, I also hypothesized that this “agreement” was a clever ploy by all parties to pressure a recalcitrant Congressional Budget Office to assume that the Democrat’s reforms would produce budgetary savings.  “Otherwise, health care reform is in jeopardy,” says Senate Finance Committee chairman Max Baucus (D-MT).  Turns out there was no agreement, and the industry was just being used.

American Hospital Association president Richard Umbdenstock was more right than he knew when he told that group’s 230 members:

There has been a tremendous amount of confusion and frankly a lot of political spin.

Merriam-Webster lists “to engage in spin control (as in politics)” as its seventh definition of the word “spin.”  Its second definition is “to form a thread by extruding a viscous rapidly hardening fluid — used especially of a spider or insect.” Which reminds me…

CORRECTION: My initial reaction to Monday’s media stunt – “I smell a rat” – was transcribed incorrectly.  It should have read, “I smell arachnid.”

(HT: Joe Guarino for the pointers.)

Obama Taking on ‘Tax Havens’

Jeff Zeleny at the New York Times Caucus Blog reports, “President Obama will present a set of proposals on Monday aimed at changing international tax policy, calling for the elimination of benefits for companies and wealthy individuals that harbor their cash in offshore accounts.”

Cato scholars have long made arguments in defense of tax havens. In The Wall Street Journal, Senior Fellow Richard Rahn outlined the policy the federal government should be taking instead:

The correct policy for the United States to follow is to reduce its corporate tax rate to make it internationally competitive, and to move toward a tax system that does not punish savings and productive investment so severely. We know from the experiences of many countries that reducing tax rates and simplifying the tax code improve both tax compliance and economic growth. Tax protectionism should be rejected because it is at least as destructive to economic growth and job creation as are tariffs on goods and services.

Cato scholar Daniel J. Mitchell narrated a three part video series on the subject, presenting the economic and moral cases for tax havens, and a final video that punctured myths associated with the practice.  

Mitchell spoke on Capitol Hill last month about the role of tax havens and in Foreign Policy magazine, Mitchell explained why tax havens are a blessing.

The War in Afghanistan Is about to Turn Nastier

afghanistanWhile Iraq’s security situation has been improving–though the possibility of revived sectarian violence remains all too real–the conflict in Afghanistan has been worsening.  The challenge for allied (which means mostly American) forces is obvious, which is why the Obama Administration is sending more troops.

But the administration risks wrecking the entire enterprise by turning American forces into drug warriors.

Reports the New York Times:

American commanders are planning to cut off the Taliban’s main source of money, the country’s multimillion-dollar opium crop, by pouring thousands of troops into the three provinces that bankroll much of the group’s operations.

The plan to send 20,000 Marines and soldiers into Helmand, Kandahar and Zabul Provinces this summer promises weeks and perhaps months of heavy fighting, since American officers expect the Taliban to vigorously defend what makes up the economic engine for the insurgency. The additional troops, the centerpiece of President Obama’s effort to reverse the course of the seven-year war, will roughly double the number already in southern Afghanistan. The troops already fighting there are universally seen as overwhelmed. In many cases, the Americans will be pushing into areas where few or no troops have been before.

Through extortion and taxation, the Taliban are believed to reap as much as $300 million a year from Afghanistan’s opium trade, which now makes up 90 percent of the world’s total. That is enough, the Americans say, to sustain all of the Taliban’s military operations in southern Afghanistan for an entire year.

“Opium is their financial engine,” said Brig. Gen. John Nicholson, the deputy commander of NATO forces in southern Afghanistan. “That is why we think he will fight for these areas.”

The Americans say that their main goal this summer will be to provide security for the Afghan population, and thereby isolate the insurgents.

But because the opium is tilled in heavily populated areas, and because the Taliban are spread among the people, the Americans say they will have to break the group’s hold on poppy cultivation to be successful.

No one here thinks that is going to be easy.

Indeed.

The basic problem is that opium–and cannabis, of which Afghanistan is also the world’s largest producer–funds not only the Taliban, but also warlords who back the Karzai government and, most important, the Afghan people.  The common estimate is that drugs provide one-third of Afghanistan’s economic output and benefit a comparable proportion of the population.  Making war on opium inevitably means making war on the Afghan people.

As both Ted Galen Carpenter and I have been arguing, most recently in speeches to various World Affairs Councils, diverting military attention to the drug war risks the entire enterprise in Afghanistan.  Already some drug-running warlords have been refusing to give intelligence to allied commanders and are killing government anti-drug officials.  Broader popular sentiments also turn against the allies when they deprive farmers of their most remunerative livelihood.

Washington has no obvious long-term answer to the opium trade–only legalization/decriminalization would take the money out of illicit drug production, but American politicians refuse to admit the obvious.  In any case, the Obama administration should focus on the war against the Taliban and al-Qaeda.  Ultimately, we should emphasize a solution which safeguards America’s fundamental security objectives in Afghanistan, namely, which precludes any terrorist training camps and sanctuary for those who attack Americans.  Once we achieve these goals and bring American military personnel home, we can debate doing more about Afghanistan’s opium fields.