Politics

Manhattan Institute: New Volume on Income Inequality

by

A brand new volume of essays on income inequality was recently published by the Manhattan Institute and is available for free online. Economist Diana Furchtgott-Roth introduces the volume with the following:

Claims of ever-increasing shares of wealth going to top earners are a perennial complaint. This year, partly due to the publication of Thomas Piketty’s Capital in the Twenty-First Century, discussions of inequality are preoccupying policymakers and political pundits.

Today Economics21.org is releasing Income Inequality in America: Fact and Fiction, a series of essays from leading experts on different aspects of measuring inequality. For Winston Churchill, inequality was an unavoidable part of economic life in capitalist societies. “The main vice of capitalism,” said the British Prime Minister, whose youngest daughter, Lady Mary Soames, died last weekend at the age of 91, “is the uneven distribution of prosperity. The main vice of socialism is the even distribution of misery.”

In conclusion, she states, “Empirical analysis shows that many commonly accepted ideas about income inequality are false or overstated. If policy recommendations are to be effective, they must be informed by an accurate picture of the current situation. Income Inequality in America: Fact and Fiction offers the empirical tools for such an analysis.”

Check it out.

“Tank Man” After 25 Years

by

Chris Henrichsen at Approaching Justice posted this fantastic video from Amnesty International. Twenty-five years ago today, the still unknown “Tank Man” took his stand.

Just because China wants to forget doesn’t mean we should.

The Real Story Behind the Prisoner Exchange

by
2014-06-03 Bergdahl Parents Press Conference
Bergdahl’s parents at a White House press conference.

As I understand it, the news cycle has gone something like this:

  1. Five detainees from Guantanamo were traded for the only American POW in Afghanistan, Bowe Robert Bergdahl.
  2. Republicans cry foul, making a variety of allegations about why the exchange was a bad idea, or at least not something to celebrate without reservation.
  3. Democrats mock Republicans for being willing to criticize everything they do, even when it’s the return of a POW.
  4. News stories from mainstream outlets start to validate some (but not all) of what Republicans were complaining about.

Let me give you two examples. The first comes from The Daily Beast and the headline says it all: We Lost Soldiers in the Hunt for Bergdahl, a Guy Who Walked Off in the Dead of Night. According to the story, Bergdahl deserted his post of his own volition (bad enough), which led to a vast manhunt that resulted in American soldiers dying while looking for him (worse) and culminated in strict orders that the American soldiers not speak of the incident at all (worse still). The article, written by one of the soldiers who was out risking his life and jeopardizing the greater counterinsurgency operations looking for Bergdahl, concludes by saying:

And Bergdahl, all I can say is this: Welcome back. I’m glad it’s over. There was a spot reserved for you on the return flight, but we had to leave without you, man. You’re probably going to have to find your own way home.

It’s a really poignant, fair, eye-opening piece. Read it. And then there’s this piece, published by conservative Mormon and Islamic scholar Daniel Peterson about some of the conservative complaints that are decidedly less reasonable. Peterson shoots down the theory that Bergdahl’s father “sanctified the White House for Islam” when he said, upon entering that building, “Bi ism Allah al-rahman al-rahim whih” meaning (in Arabic): “in the name of Allah the most gracious and most merciful.” Sounds ominous (if you have no idea what you’re talking about), but Peterson explains that the phrase “is routinely used at the beginning of formal statements and speeches in Islamic societies.” Bergdahl’s next words, apparently in Pashto instead of Arabic, were “I am your father.” Why speak Arabic and Pashto to a returning American POW? Because he spent the last 5 years speaking only Arabic and Pashto and is having trouble adjusting back to English, that’s why. 

In short: this is another one of those stories where everyone who is convinced that the other side is ripe for ridicule ends up looking rather ridiculous themselves. Whether it’s Mother Jones embarrassing itself by attributing the (entirely factual) notion that Bergdahl was  a deserter to “a few fringe types” (thus making The Daily Beast, USA Today, etc. all out to be right-wing nutjobs) or conservatives with zero comprehension of Arabic language or culture concocting weird fantasies about the White House being baptized into Islam[ref]I know that’s not a thing. That’s the point.[/ref], people ought to settle down and just do a little bit of digging. And maybe a little bit of waiting.

As far as I can tell the reason that conservatives were ahead of the main stream media on this story is partially paranoia but also because conservatives are much, much more tied in to the US military and therefore knew early that something was up. I knew because I follow Michael Yon, and he issued an early warning on this story, saying:

Mixed Reaction on Bergdahl release from Taliban
Be careful with this. He needs to be welcomed home, given a full physical and time with his family, and then charges against Bergdahl should be considered.
A piece of information you likely never will see in the news: Taliban and al Qaeda shared joint custody of Bergdahl. He converted to a hardcore strain of Islam, according to reliable sources.

Yon linked to an Army Times piece citing “mixed” reaction from the military community. (He added information in further updates like this one and this one.) So the military community, which is no fan of Obama, was out early with suspicion about holding a press conference for the return of someone who had, by his own derelection of duty, ensured that other Americans never made it home. Now the Pentagon will review claims US soldiers killed during search for Bergdahl. Looks like there was at least some fire to go with all this smoke.

 

BYU: Bastion of Liberalism

by

Damon Linker has an interesting article in The Week relaying his teaching experience at Brigham Young University:

The combination of crusading moral indignation and hypersensitive self-protectiveness has the potential to stamp out genuine liberalism at some schools, transforming them into institutions devoted to insulating students from provocation and free thinking rather than to exposing them to it.

…In my experience, liberalism in the classical sense often thrives where many scholars and academics would least expect to find it — in institutions of higher learning that are unlikely to get swept up in the illiberal currents currently washing over so many of the nation’s campuses. I’m talking about schools with deep, serious religious commitments.

I happened to spend two years in the late 1990s teaching at one of these schools — Brigham Young University, wholly owned and run by the Church of Jesus Christ of Latter-day Saints — and it was a clarifying experience.

Check out the full article for his admittedly surprising (even to this active Mormon) experience.

The Inequality Illusion?

by

Economists Wojciech Kopczuk and Allison Schrager have a Foreign Affairs article with the eye-catching title “The Inequality Illusion.” The two argue that “imposing a tax on wealth is a terrible way to promote equality. It actually benefits the super wealthy the most.” They continue:

What is not widely understood is that the growth in income inequality [in the U.S.] has been driven almost entirely by earned income, that is, what people are paid for their work rather than what they earn on their investments. 

Wealth inequality refers to the stock of people’s assets. It represents the accumulation of saved income and returns on investments over the years. Some wealth inequality is inevitable, even desirable, because wealth represents a lifetime of saving and not just luck or opportunity. Extreme income inequality can beget extreme wealth inequality because people with a lot of income, if they save, can amass large fortunes and pass them on to their children. But over time, such wealth can also dissipate as people leave it to multiple children, get married and divorced, develop expensive lifestyles, contribute to charities, or make poor investment decisions. Whereas income inequality has clearly worsened, the recent evidence about wealth inequality is much less convincing.

After reviewing a number of sources, they declare, “Taken together, then, the economic evidence points to increased earnings inequality but to a much more benign picture of changes in wealth inequality. Increasing inequality has been driven by income earners not necessarily by the entrenched wealth holders.”

Given the recent controversy over errors in Thomas Piketty’s data (errors that may or may not undermine his argument),[ref]The FT analysis is likely the most famous (update: Financial Times has a follow-up post), but others have found some major errors as well. For example, former chief economist for the U.S. Department of Labor Diana Furchtgott-Roth has pointed out Piketty’s errors in the history of the U.S. minimum wage. Economist Randall Holcombe has written on the “fundamental problems with the way [Piketty] depicts capital.” Inequality expert Scott Winship has two articles in Forbes that are also quite critical of Piketty. Economist Robert Murphy disputes Piketty’s tax history. In response to a recent Spectator article contrasting Deirdre McCloskey and Piketty, GMU economist Don Boudreaux writes, “[I]ndispensable to our modern prosperity is not only the innovative creation of capital but also the continual destruction of capital that such successful innovation entails…What is destroyed is not only some jobs (e.g., t.v. repairman) and the value of some consumer goods (e.g., crutches for polio victims) and services (e.g., postal delivery), but also the value of capital. Capitalism’s nature is not, contrary to Piketty’s claim, to forever protect and augment existing capital.  Central to capitalism’s nature is what McCloskey calls “market-tested innovation.”  And this innovation inevitably destroys the value of older, less-productive capital that is in competition with with it – in competition with the new capital, the new goods, the new production and consumption processes, and the new knowledge that innovative entrepreneurs create.” Update: A brand new paper out of Yale disputes Piketty’s “second law of capitalism.”[/ref] the above article is quite timely.

Check it out.

Mike Rowe On Political Partisanship

by

2014-05-26 Mike Rowe

Mike Rowe is best known as the host of the Discovery Channel series Dirty Jobs, but I’ve noticed he’s been writing about politics more and more these days, and I like what he has to say. Here’s a story he shared, along with the photo above, on Facebook recently.[ref]I checked, and the photo is actually from July 2013. So I heard about it recently, but it’s an old story. Still good, though.[/ref]

[Bob Reidel: “Mike – Saw you hangin with Bill Maher. I had no idea you were a liberal. Really blew me away. Love everything you do but now that I know who you really are, I won’t be tuning in to watch anything your involved with.”]

Well, hi there, Bob. How’s it going? Since your comment is not the only one of its kind, I thought I’d take a moment to address it.

Bill Maher is opinionated, polarizing and controversial. I get it. So is Bill O’Reilly, which is probably why I heard the same comments after I did his show. (“How could you Mike? How could you?”)

Truth is, every time I go on Fox, my liberal friends squeal. And every time I show up on MSNBC, my conservative pals whine. Not because they disagree with my position – everyone agrees that closing the skills gap is something that needs to happen. No, these days, people get bent simply if I appear on shows they don’t like, or sit too close to people they don’t care for.

What’s up with that? Is our country so divided that my mere proximity to the “other side” prompts otherwise sensible adults to scoop up their marbles and go home?

Back in 2008, I wrote an open letter to President Obama, offering to help him promote those 3 million “shovel-ready” jobs he promised to create during his campaign. (I suspected they might be a tough sell, given our country’s current relationship with the shovel.) Within hours, hundreds of conservatives accused me of “engaging with a socialist,” and threatened to stop watching Dirty Jobs with Mike Rowe if I didn’t come to my senses.

When I made the same offer to Mitt Romney (who actually responded), thousands of liberals chastised me for “engaging with a greedy capitalist,” and threatened to stop watching Dirty Jobs if I didn’t take it back.

You may ask, “But what did these people think about the issue at hand?” Who knows? They were too busy being outraged by my proximity to the devil. (Poor Ed Shultz at MSNBC nearly burst into tears. “You were on the wrong stage, Mike! The wrong stage!! With the wrong candidate!!!”)

Oy.

Here’s the thing, Bob – Profoundly Disconnected (http://profoundlydisconnected.com/) is not a PR campaign for Mike Rowe. It’s a PR campaign for skilled labor and alternative education. PR campaigns need … that’s right, PR, and if I limit my appearances to those shows that I personally watch, hosted only by those personalities with whom I personally agree, I might as well start a church and preach to the choir.

Point is, I didn’t go on Real Time to endorse BM, and I didn’t go on The Factor to endorse BO. I went on because millions of people watch those shows. I approached our liberal president for the same reason. Likewise, his conservative opponent. And I showed up on Sesame Street with the same agenda that I took to Congress.

Closing the skills gap is bigger than you or me or any particular venue, and Real Time gave me an opportunity to reach 5 million people. I’m grateful for that, and I’ll do it again if they want me back.

As for Bill Maher off-camera, you’ll be pleased to know that the guy was a perfect gentleman. His staff is excellent, and his after-party included an open bar with a spread I’ve never seen in such a setting. Bill took the time to hang out with his guests and their friends after the show, chatting about this and that for over an hour, and taking pictures with anyone who wanted one. Trust me, that’s rare.

Yes, he’s outrageous, inflammatory, and to many, a jagged little pill. But he’s also gracious, generous, engaging, and taller than he appears on TV.

Which, frankly, surprised me.

The world could use a few more guys and gals like Mike Rowe.

Looking for Racism on the Right: A Case Study

by

2014-05-23 Townson U

There’s a story percolating through the right wing blogosphere right now about the victory of Townson U in a national debate contest “by repeating N-word and babbling nonsense.” The fact that the winning team consists of two black females is never mentioned explicitly[ref]By the right wing blog posts that I’ve read. It is mentioned by others reporting on the story.[/ref], but race is obviously a part of this story. The (unspoken) gist of it appears to be something like: black students who are not actually competent at debate got an award because of political correctness. To back that up, the blog posts feature transcripts and YouTube videos of the debate, like this one.

https://www.youtube.com/watch?v=FCx2uGBhvEc

That video contrasts the two young ladies in a news story, where they speak articulately and calmly, with clips of their emotional and quite frankly weird speech during the debate. It’s an ugly video because of what it implies instead of having the courage to say. The cuts are obviously designed to undermine what the young ladies say to the reporter with seemingly contradictory excerpts from their debate performance. For example, the reporter asks, “Once you know the topic, what’s next?” One of the women replies, “Well, you do a lot of research.” And then there’s an immediate cut to the debate right at the point where one of the speakers is stuttering heavily. Race is never mentioned, but the point is clear.

Now, I approached this story without any special inside info. I’ve never debated competitively, nor have I ever seen a competitive debate. But I decided to do the one thing that the conservative bloggers apparently decided to skip. Research.

I started with two hypotheses that might explain the apparent contradiction between assumptions about what a national championship debate team might sound like and the jarring YouTube footage. Either this was in some sense an “urban” form of debate or, more likely, the timing rules of competitive debate forced competitors to adopt really strange, unnatural speech patterns. It’s not hard at all for me to imagine, for example, that competitors are judged purely based on the content of their argument and not so much their delivery and/or that the expectations for content delivery are much different in a competitive setting.

I started with the first one because while it seemed less likely, it would be easy to check. Is the Cross Examination Debate Association a minority-focused group? No, it is not.Founded in 1971, it is “the largest intercollegiate policy debate association in the United States.”

So I went to my second hypothesis and decided the simplest thing to do would be to check on the winners from last year. If I got a video of some white competitors using roughly the same kind of speech, I’d kill two birds with one stone. Clearly, if last year’s competitors were white, there wouldn’t be some kind of obvious minority-preference and secondly, if this is how the teams from last year sounded then it would strongly indicate that what we’re hearing has nothing to do with race and is just the way competitive debate works. I searched YouTube and, on the first try, hit the jackpot. Here’s a video called: “More CEDA 2013 Debate Highlights.” A couple of things to note before you watch it:

  1. It features two teams consisting of three white women and one white man.
  2. It represents the “highlights,” so ostensibly this is what competitive debaters find impressive.
  3. It does, indeed, feature the exact same speech: very fast, slurred technical terms, rapid-fire breathing, and weird stuttering.

So let’s recap. In 2013, and probably in many years before that, white kids won a debate contest that, by its competitive nature, seems to require participants to speak in really, really weird ways. No one cared. In 2014, black women won the debate contest using the same tactics, but suddenly conservative writers noticed, [ref]Which isn’t, in and of itself, racist. They tend to keep an eye on political correctness and are often not wrong.[/ref] and they wrote off the bizarre-sounding speech as “unintelligible gibberish” without checking to see if that’s just how debates work.

So: assumptions about folks being less intelligent and/or less capable of speaking standard English because they are black. Yup, that looks like racism to me.

Am I missing something here?

Marriage, Parenthood, and Public Policy

by

Ron Haskins of the Brooking Institution has an excellent piece in the Spring 2014 issue of National Affairs. He begins by reviewing the current state of marriage and the rising rate of single parenthood in the United States. Furthermore, he looks at the impact single parenthood has on children, including the increased risk of poverty.

He then looks at the four major policies used to combat this social problem:

  • Reducing non-marital births
  • Boosting marriage
  • Helping young men become more marriageable
  • Helping single mothers improve their and their children’s lives

Haskins provides a balanced overview of the empirical outcomes of these policies, both successes and failures. He concludes,

If we want to address the challenges of income inequality and immobility, we must address one of their main causes — non-marital births and single parenting. Maybe stable, married-couple families will never again be the dominant norm, but if so the children who are raised by such traditional families will continue to have yet another advantage over their peers who have minimal contact with their fathers, live in chaotic households, and are exposed to instability at home as their mothers change partners.

Our society and culture will no doubt continue to change, but our children will continue to pay the price for adult decisions about family composition. Public policies cannot ultimately solve this problem, but those that prove themselves capable of ameliorating some of the damage are surely worth pursuing.

Worth the read.

Havana: The Last Communist City

by

Journalist Michael Totten has a disturbing article in the Spring edition of City Journal on the effects of communism in Cuba’s Havana. Using the recent film Elysium to paint a picture of life in Havana, Totten documents how he lied to get into the country and what he witnesses. “Outside its small tourist sector,” he explains, “the rest of the city looks as though it suffered a catastrophe on the scale of Hurricane Katrina or the Indonesian tsunami.” While the goals of the Marxist leaders “were total equality and the abolition of money; the methods were total surveillance and political prisons. The state slogan, then and now, is “socialism or death.”” Furthermore, “Cuba has a maximum wage—$20 a month for almost every job in the country. (Professionals such as doctors and lawyers can make a whopping $10 extra a month.)” This maximum wage is defended by the government, which argues “that life’s necessities are either free or so deeply subsidized in Cuba that citizens don’t need very much money. (Che Guevara and his sophomoric hangers-on hoped to rid Cuba of money entirely, but couldn’t quite pull it off.) The free and subsidized goods and services, though, are as dismal as everything else on the island.” This includes their supposedly wonderful health care system that Michael Moore was raving about years back. This “free” health care requires patients “to bring their own medicine, their own bedsheets, and even their own iodine to the hospital. Most of these items are available only on the illegal black market, moreover, and must be paid for in hard currency—and sometimes they’re not available at all. Cuba has sent so many doctors abroad—especially to Venezuela, in exchange for oil—that the island is now facing a personnel shortage.”

There’s much more. Check it out.

Actual Crimean Election Results

by
Cartoon by Jack Ohman of the Sacramento Bee.
Cartoon by Jack Ohman of the Sacramento Bee.

The Democratic People’s Republic of Korea[ref]aka North Korea[/ref] holds elections. It’s democratic, don’t ya know! In the most recent elections, President Kim Jong-un’s party, the Democratic Front for the Reunification of the Fatherland[ref]Tyrants always have the best names and slogans[/ref] got 100% of the vote. Only slightly more credibly, 96.77% of Crimeans voted to secede from Ukraine and join Russia. It’s kind of a silly number on the one hand, and a disturbing one on the other. I mean, at this point Putin is actively making a mockery of any notion of due process.

So what were the actual votes like from the election? Ordinarily we’d just have to guess, but according to Forbes, the Russian Human Rights Council accidentally released the real results briefly on their website. Oops. It says that about half of the voters in Crimea elected to secede and join Russia, but also that only 30% of Crimeans voted (Russia claimed that turnout was 83%). So, that would mean that the vote for Crimea to secede from Ukraine and join Russia has the support of…. 15% of the population.

Power to the people!