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Javier E

President Obama's Interview With Jeffrey Goldberg on Syria and Foreign Policy - The Atlantic - 0 views

  • The president believes that Churchillian rhetoric and, more to the point, Churchillian habits of thought, helped bring his predecessor, George W. Bush, to ruinous war in Iraq.
  • Obama entered the White House bent on getting out of Iraq and Afghanistan; he was not seeking new dragons to slay. And he was particularly mindful of promising victory in conflicts he believed to be unwinnable. “If you were to say, for instance, that we’re going to rid Afghanistan of the Taliban and build a prosperous democracy instead, the president is aware that someone, seven years later, is going to hold you to that promise,” Ben Rhodes, Obama’s deputy national-security adviser, and his foreign-policy amanuensis, told me not long ago.
  • Power is a partisan of the doctrine known as “responsibility to protect,” which holds that sovereignty should not be considered inviolate when a country is slaughtering its own citizens. She lobbied him to endorse this doctrine in the speech he delivered when he accepted the Nobel Peace Prize in 2009, but he declined. Obama generally does not believe a president should place American soldiers at great risk in order to prevent humanitarian disasters, unless those disasters pose a direct security threat to the United States.
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  • Obama’s resistance to direct intervention only grew. After several months of deliberation, he authorized the CIA to train and fund Syrian rebels, but he also shared the outlook of his former defense secretary, Robert Gates, who had routinely asked in meetings, “Shouldn’t we finish up the two wars we have before we look for another?”
  • In his first term, he came to believe that only a handful of threats in the Middle East conceivably warranted direct U.S. military intervention. These included the threat posed by al‑Qaeda; threats to the continued existence of Israel (“It would be a moral failing for me as president of the United States” not to defend Israel, he once told me); and, not unrelated to Israel’s security, the threat posed by a nuclear-armed Iran.
  • Bush and Scowcroft removed Saddam Hussein’s army from Kuwait in 1991, and they deftly managed the disintegration of the Soviet Union; Scowcroft also, on Bush’s behalf, toasted the leaders of China shortly after the slaughter in Tiananmen Square.
  • As Obama was writing his campaign manifesto, The Audacity of Hope, in 2006, Susan Rice, then an informal adviser, felt it necessary to remind him to include at least one line of praise for the foreign policy of President Bill Clinton, to partially balance the praise he showered on Bush and Scowcroft.
  • “When you have a professional army,” he once told me, “that is well armed and sponsored by two large states”—Iran and Russia—“who have huge stakes in this, and they are fighting against a farmer, a carpenter, an engineer who started out as protesters and suddenly now see themselves in the midst of a civil conflict …” He paused. “The notion that we could have—in a clean way that didn’t commit U.S. military forces—changed the equation on the ground there was never true.”
  • The message Obama telegraphed in speeches and interviews was clear: He would not end up like the second President Bush—a president who became tragically overextended in the Middle East, whose decisions filled the wards of Walter Reed with grievously wounded soldiers, who was helpless to stop the obliteration of his reputation, even when he recalibrated his policies in his second term. Obama would say privately that the first task of an American president in the post-Bush international arena was “Don’t do stupid shit.”
  • Hillary Clinton, when she was Obama’s secretary of state, argued for an early and assertive response to Assad’s violence. In 2014, after she left office, Clinton told me that “the failure to help build up a credible fighting force of the people who were the originators of the protests against Assad … left a big vacuum, which the jihadists have now filled.” When The Atlantic published this statement, and also published Clinton’s assessment that “great nations need organizing principles, and ‘Don’t do stupid stuff’ is not an organizing principle,” Obama became “rip-shit angry,” according to one of his senior advisers. The president did not understand how “Don’t do stupid shit” could be considered a controversial slogan.
  • The Iraq invasion, Obama believed, should have taught Democratic interventionists like Clinton, who had voted for its authorization, the dangers of doing stupid shit. (Clinton quickly apologized to Obama for her comments,
  • Obama, unlike liberal interventionists, is an admirer of the foreign-policy realism of President George H. W. Bush and, in particular, of Bush’s national-security adviser, Brent Scowcroft (“I love that guy,” Obama once told me).
  • The danger to the United States posed by the Assad regime did not rise to the level of these challenges.
  • Obama generally believes that the Washington foreign-policy establishment, which he secretly disdains, makes a fetish of “credibility”—particularly the sort of credibility purchased with force. The preservation of credibility, he says, led to Vietnam. Within the White House, Obama would argue that “dropping bombs on someone to prove that you’re willing to drop bombs on someone is just about the worst reason to use force.”
  • American national-security credibility, as it is conventionally understood in the Pentagon, the State Department, and the cluster of think tanks headquartered within walking distance of the White House, is an intangible yet potent force—one that, when properly nurtured, keeps America’s friends feeling secure and keeps the international order stable.
  • All week, White House officials had publicly built the case that Assad had committed a crime against humanity. Kerry’s speech would mark the culmination of this campaign.
  • But the president had grown queasy. In the days after the gassing of Ghouta, Obama would later tell me, he found himself recoiling from the idea of an attack unsanctioned by international law or by Congress. The American people seemed unenthusiastic about a Syria intervention; so too did one of the few foreign leaders Obama respects, Angela Merkel, the German chancellor. She told him that her country would not participate in a Syria campaign. And in a stunning development, on Thursday, August 29, the British Parliament denied David Cameron its blessing for an attack. John Kerry later told me that when he heard that, “internally, I went, Oops.”
  • Obama was also unsettled by a surprise visit early in the week from James Clapper, his director of national intelligence, who interrupted the President’s Daily Brief, the threat report Obama receives each morning from Clapper’s analysts, to make clear that the intelligence on Syria’s use of sarin gas, while robust, was not a “slam dunk.” He chose the term carefully. Clapper, the chief of an intelligence community traumatized by its failures in the run-up to the Iraq War, was not going to overpromise, in the manner of the onetime CIA director George Tenet, who famously guaranteed George W. Bush a “slam dunk” in Iraq.
  • While the Pentagon and the White House’s national-security apparatuses were still moving toward war (John Kerry told me he was expecting a strike the day after his speech), the president had come to believe that he was walking into a trap—one laid both by allies and by adversaries, and by conventional expectations of what an American president is supposed to do.
  • Late on Friday afternoon, Obama determined that he was simply not prepared to authorize a strike. He asked McDonough, his chief of staff, to take a walk with him on the South Lawn of the White House. Obama did not choose McDonough randomly: He is the Obama aide most averse to U.S. military intervention, and someone who, in the words of one of his colleagues, “thinks in terms of traps.” Obama, ordinarily a preternaturally confident man, was looking for validation, and trying to devise ways to explain his change of heart, both to his own aides and to the public
  • The third, and most important, factor, he told me, was “our assessment that while we could inflict some damage on Assad, we could not, through a missile strike, eliminate the chemical weapons themselves, and what I would then face was the prospect of Assad having survived the strike and claiming he had successfully defied the United States, that the United States had acted unlawfully in the absence of a UN mandate, and that that would have potentially strengthened his hand rather than weakened it.
  • Others had difficulty fathoming how the president could reverse himself the day before a planned strike. Obama, however, was completely calm. “If you’ve been around him, you know when he’s ambivalent about something, when it’s a 51–49 decision,” Ben Rhodes told me. “But he was completely at ease.”
  • Obama also shared with McDonough a long-standing resentment: He was tired of watching Washington unthinkingly drift toward war in Muslim countries. Four years earlier, the president believed, the Pentagon had “jammed” him on a troop surge for Afghanistan. Now, on Syria, he was beginning to feel jammed again.
  • The fourth factor, he said, was of deeper philosophical importance. “This falls in the category of something that I had been brooding on for some time,” he said. “I had come into office with the strong belief that the scope of executive power in national-security issues is very broad, but not limitless.”
  • Obama’s decision caused tremors across Washington as well. John McCain and Lindsey Graham, the two leading Republican hawks in the Senate, had met with Obama in the White House earlier in the week and had been promised an attack. They were angered by the about-face. Damage was done even inside the administration. Neither Chuck Hagel, then the secretary of defense, nor John Kerry was in the Oval Office when the president informed his team of his thinking. Kerry would not learn about the change until later that evening. “I just got fucked over,” he told a friend shortly after talking to the president that night. (When I asked Kerry recently about that tumultuous night, he said, “I didn’t stop to analyze it. I figured the president had a reason to make a decision and, honestly, I understood his notion.”)
  • The president asked Congress to authorize the use of force—the irrepressible Kerry served as chief lobbyist—and it quickly became apparent in the White House that Congress had little interest in a strike. When I spoke with Biden recently about the red-line decision, he made special note of this fact. “It matters to have Congress with you, in terms of your ability to sustain what you set out to do,” he said. Obama “didn’t go to Congress to get himself off the hook. He had his doubts at that point, but he knew that if he was going to do anything, he better damn well have the public with him, or it would be a very short ride.” Congress’s clear ambivalence convinced Biden that Obama was correct to fear the slippery slope. “What happens when we get a plane shot down? Do we not go in and rescue?,” Biden asked. “You need the support of the American people.”
  • At the G20 summit in St. Petersburg, which was held the week after the Syria reversal, Obama pulled Putin aside, he recalled to me, and told the Russian president “that if he forced Assad to get rid of the chemical weapons, that that would eliminate the need for us taking a military strike.” Within weeks, Kerry, working with his Russian counterpart, Sergey Lavrov, would engineer the removal of most of Syria’s chemical-weapons arsenal—a program whose existence Assad until then had refused to even acknowledge.
  • The arrangement won the president praise from, of all people, Benjamin Netanyahu, the Israeli prime minister, with whom he has had a consistently contentious relationship. The removal of Syria’s chemical-weapons stockpiles represented “the one ray of light in a very dark region,” Netanyahu told me not long after the deal was announced.
  • John Kerry today expresses no patience for those who argue, as he himself once did, that Obama should have bombed Assad-regime sites in order to buttress America’s deterrent capability. “You’d still have the weapons there, and you’d probably be fighting isil” for control of the weapons, he said, referring to the Islamic State, the terror group also known as isis. “It just doesn’t make sense. But I can’t deny to you that this notion about the red line being crossed and [Obama’s] not doing anything gained a life of its own.”
  • today that decision is a source of deep satisfaction for him.
  • “I’m very proud of this moment,” he told me. “The overwhelming weight of conventional wisdom and the machinery of our national-security apparatus had gone fairly far. The perception was that my credibility was at stake, that America’s credibility was at stake. And so for me to press the pause button at that moment, I knew, would cost me politically. And the fact that I was able to pull back from the immediate pressures and think through in my own mind what was in America’s interest, not only with respect to Syria but also with respect to our democracy, was as tough a decision as I’ve made—and I believe ultimately it was the right decision to make.”
  • By 2013, Obama’s resentments were well developed. He resented military leaders who believed they could fix any problem if the commander in chief would simply give them what they wanted, and he resented the foreign-policy think-tank complex. A widely held sentiment inside the White House is that many of the most prominent foreign-policy think tanks in Washington are doing the bidding of their Arab and pro-Israel funders. I’ve heard one administration official refer to Massachusetts Avenue, the home of many of these think tanks, as “Arab-occupied territory.”
  • over the past few months, I’ve spent several hours talking with him about the broadest themes of his “long game” foreign policy, including the themes he is most eager to discuss—namely, the ones that have nothing to do with the Middle East.
  • I have come to believe that, in Obama’s mind, August 30, 2013, was his liberation day, the day he defied not only the foreign-policy establishment and its cruise-missile playbook, but also the demands of America’s frustrating, high-maintenance allies in the Middle East—countries, he complains privately to friends and advisers, that seek to exploit American “muscle” for their own narrow and sectarian ends.
  • “Where am I controversial? When it comes to the use of military power,” he said. “That is the source of the controversy. There’s a playbook in Washington that presidents are supposed to follow. It’s a playbook that comes out of the foreign-policy establishment. And the playbook prescribes responses to different events, and these responses tend to be militarized responses. Where America is directly threatened, the playbook works. But the playbook can also be a trap that can lead to bad decisions. In the midst of an international challenge like Syria, you get judged harshly if you don’t follow the playbook, even if there are good reasons why it does not apply.”
  • For some foreign-policy experts, even within his own administration, Obama’s about-face on enforcing the red line was a dispiriting moment in which he displayed irresolution and naïveté, and did lasting damage to America’s standing in the world. “Once the commander in chief draws that red line,” Leon Panetta, who served as CIA director and then as secretary of defense in Obama’s first term, told me recently, “then I think the credibility of the commander in chief and this nation is at stake if he doesn’t enforce it.” Right after Obama’s reversal, Hillary Clinton said privately, “If you say you’re going to strike, you have to strike. There’s no choice.”
  • Obama’s defenders, however, argue that he did no damage to U.S. credibility, citing Assad’s subsequent agreement to have his chemical weapons removed. “The threat of force was credible enough for them to give up their chemical weapons,” Tim Kaine, a Democratic senator from Virginia, told me. “We threatened military action and they responded. That’s deterrent credibility.”
  • History may record August 30, 2013, as the day Obama prevented the U.S. from entering yet another disastrous Muslim civil war, and the day he removed the threat of a chemical attack on Israel, Turkey, or Jordan. Or it could be remembered as the day he let the Middle East slip from America’s grasp, into the hands of Russia, Iran, and isis
  • spoke with obama about foreign policy when he was a U.S. senator, in 2006. At the time, I was familiar mainly with the text of a speech he had delivered four years earlier, at a Chicago antiwar rally. It was an unusual speech for an antiwar rally in that it was not antiwar; Obama, who was then an Illinois state senator, argued only against one specific and, at the time, still theoretical, war. “I suffer no illusions about Saddam Hussein,” he said. “He is a brutal man. A ruthless man … But I also know that Saddam poses no imminent and direct threat to the United States or to his neighbors.” He added, “I know that an invasion of Iraq without a clear rationale and without strong international support will only fan the flames of the Middle East, and encourage the worst, rather than best, impulses of the Arab world, and strengthen the recruitment arm of al-Qaeda.”
  • This speech had made me curious about its author. I wanted to learn how an Illinois state senator, a part-time law professor who spent his days traveling between Chicago and Springfield, had come to a more prescient understanding of the coming quagmire than the most experienced foreign-policy thinkers of his party, including such figures as Hillary Clinton, Joe Biden, and John Kerry, not to mention, of course, most Republicans and many foreign-policy analysts and writers, including me.
  • This was the moment the president believes he finally broke with what he calls, derisively, the “Washington playbook.”
  • “isis is not an existential threat to the United States,” he told me in one of these conversations. “Climate change is a potential existential threat to the entire world if we don’t do something about it.” Obama explained that climate change worries him in particular because “it is a political problem perfectly designed to repel government intervention. It involves every single country, and it is a comparatively slow-moving emergency, so there is always something seemingly more urgent on the agenda.”
  • At the moment, of course, the most urgent of the “seemingly more urgent” issues is Syria. But at any given moment, Obama’s entire presidency could be upended by North Korean aggression, or an assault by Russia on a member of nato, or an isis-planned attack on U.S. soil. Few presidents have faced such diverse tests on the international stage as Obama has, and the challenge for him, as for all presidents, has been to distinguish the merely urgent from the truly important, and to focus on the important.
  • My goal in our recent conversations was to see the world through Obama’s eyes, and to understand what he believes America’s role in the world should be. This article is informed by our recent series of conversations, which took place in the Oval Office; over lunch in his dining room; aboard Air Force One; and in Kuala Lumpur during his most recent visit to Asia, in November. It is also informed by my previous interviews with him and by his speeches and prolific public ruminations, as well as by conversations with his top foreign-policy and national-security advisers, foreign leaders and their ambassadors in Washington, friends of the president and others who have spoken with him about his policies and decisions, and his adversaries and critics.
  • Over the course of our conversations, I came to see Obama as a president who has grown steadily more fatalistic about the constraints on America’s ability to direct global events, even as he has, late in his presidency, accumulated a set of potentially historic foreign-policy achievements—controversial, provisional achievements, to be sure, but achievements nonetheless: the opening to Cuba, the Paris climate-change accord, the Trans-Pacific Partnership trade agreement, and, of course, the Iran nuclear deal.
  • These he accomplished despite his growing sense that larger forces—the riptide of tribal feeling in a world that should have already shed its atavism; the resilience of small men who rule large countries in ways contrary to their own best interests; the persistence of fear as a governing human emotion—frequently conspire against the best of America’s intentions. But he also has come to learn, he told me, that very little is accomplished in international affairs without U.S. leadership.
  • Obama talked me through this apparent contradiction. “I want a president who has the sense that you can’t fix everything,” he said. But on the other hand, “if we don’t set the agenda, it doesn’t happen.” He explained what he meant. “The fact is, there is not a summit I’ve attended since I’ve been president where we are not setting the agenda, where we are not responsible for the key results,” he said. “That’s true whether you’re talking about nuclear security, whether you’re talking about saving the world financial system, whether you’re talking about climate.”
  • One day, over lunch in the Oval Office dining room, I asked the president how he thought his foreign policy might be understood by historians. He started by describing for me a four-box grid representing the main schools of American foreign-policy thought. One box he called isolationism, which he dismissed out of hand. “The world is ever-shrinking,” he said. “Withdrawal is untenable.” The other boxes he labeled realism, liberal interventionism, and internationalism. “I suppose you could call me a realist in believing we can’t, at any given moment, relieve all the world’s misery,” he said. “We have to choose where we can make a real impact.” He also noted that he was quite obviously an internationalist, devoted as he is to strengthening multilateral organizations and international norms.
  • If a crisis, or a humanitarian catastrophe, does not meet his stringent standard for what constitutes a direct national-security threat, Obama said, he doesn’t believe that he should be forced into silence. He is not so much the realist, he suggested, that he won’t pass judgment on other leaders.
  • Though he has so far ruled out the use of direct American power to depose Assad, he was not wrong, he argued, to call on Assad to go. “Oftentimes when you get critics of our Syria policy, one of the things that they’ll point out is ‘You called for Assad to go, but you didn’t force him to go. You did not invade.’ And the notion is that if you weren’t going to overthrow the regime, you shouldn’t have said anything. That’s a weird argument to me, the notion that if we use our moral authority to say ‘This is a brutal regime, and this is not how a leader should treat his people,’ once you do that, you are obliged to invade the country and install a government you prefer.”
  • “I am very much the internationalist,” Obama said in a later conversation. “And I am also an idealist insofar as I believe that we should be promoting values, like democracy and human rights and norms and values
  • “Having said that,” he continued, “I also believe that the world is a tough, complicated, messy, mean place, and full of hardship and tragedy. And in order to advance both our security interests and those ideals and values that we care about, we’ve got to be hardheaded at the same time as we’re bighearted, and pick and choose our spots, and recognize that there are going to be times where the best that we can do is to shine a spotlight on something that’s terrible, but not believe that we can automatically solve it. There are going to be times where our security interests conflict with our concerns about human rights. There are going to be times where we can do something about innocent people being killed, but there are going to be times where we can’t.”
  • If Obama ever questioned whether America really is the world’s one indispensable nation, he no longer does so. But he is the rare president who seems at times to resent indispensability, rather than embrace it.
  • “Free riders aggravate me,” he told me. Recently, Obama warned that Great Britain would no longer be able to claim a “special relationship” with the United States if it did not commit to spending at least 2 percent of its GDP on defense. “You have to pay your fair share,” Obama told David Cameron, who subsequently met the 2 percent threshold.
  • Part of his mission as president, Obama explained, is to spur other countries to take action for themselves, rather than wait for the U.S. to lead. The defense of the liberal international order against jihadist terror, Russian adventurism, and Chinese bullying depends in part, he believes, on the willingness of other nations to share the burden with the U.S
  • This is why the controversy surrounding the assertion—made by an anonymous administration official to The New Yorker during the Libya crisis of 2011—that his policy consisted of “leading from behind” perturbed him. “We don’t have to always be the ones who are up front,” he told me. “Sometimes we’re going to get what we want precisely because we are sharing in the agenda.
  • The president also seems to believe that sharing leadership with other countries is a way to check America’s more unruly impulses. “One of the reasons I am so focused on taking action multilaterally where our direct interests are not at stake is that multilateralism regulates hubris,”
  • He consistently invokes what he understands to be America’s past failures overseas as a means of checking American self-righteousness. “We have history,” he said. “We have history in Iran, we have history in Indonesia and Central America. So we have to be mindful of our history when we start talking about intervening, and understand the source of other people’s suspicions.”
  • In his efforts to off-load some of America’s foreign-policy responsibilities to its allies, Obama appears to be a classic retrenchment president in the manner of Dwight D. Eisenhower and Richard Nixon. Retrenchment, in this context, is defined as “pulling back, spending less, cutting risk, and shifting burdens to allies
  • One difference between Eisenhower and Nixon, on the one hand, and Obama, on the other, Sestanovich said, is that Obama “appears to have had a personal, ideological commitment to the idea that foreign policy had consumed too much of the nation’s attention and resources.”
  • But once he decides that a particular challenge represents a direct national-security threat, he has shown a willingness to act unilaterally. This is one of the larger ironies of the Obama presidency: He has relentlessly questioned the efficacy of force, but he has also become the most successful terrorist-hunter in the history of the presidency, one who will hand to his successor a set of tools an accomplished assassin would envy
  • “He applies different standards to direct threats to the U.S.,” Ben Rhodes says. “For instance, despite his misgivings about Syria, he has not had a second thought about drones.” Some critics argue he should have had a few second thoughts about what they see as the overuse of drones. But John Brennan, Obama’s CIA director, told me recently that he and the president “have similar views. One of them is that sometimes you have to take a life to save even more lives. We have a similar view of just-war theory. The president requires near-certainty of no collateral damage. But if he believes it is necessary to act, he doesn’t hesitate.”
  • Those who speak with Obama about jihadist thought say that he possesses a no-illusions understanding of the forces that drive apocalyptic violence among radical Muslims, but he has been careful about articulating that publicly, out of concern that he will exacerbate anti-Muslim xenophobia
  • He has a tragic realist’s understanding of sin, cowardice, and corruption, and a Hobbesian appreciation of how fear shapes human behavior. And yet he consistently, and with apparent sincerity, professes optimism that the world is bending toward justice. He is, in a way, a Hobbesian optimist.
  • The contradictions do not end there. Though he has a reputation for prudence, he has also been eager to question some of the long-standing assumptions undergirding traditional U.S. foreign-policy thinking. To a remarkable degree, he is willing to question why America’s enemies are its enemies, or why some of its friends are its friends.
  • It is assumed, at least among his critics, that Obama sought the Iran deal because he has a vision of a historic American-Persian rapprochement. But his desire for the nuclear agreement was born of pessimism as much as it was of optimism. “The Iran deal was never primarily about trying to open a new era of relations between the U.S. and Iran,” Susan Rice told me. “It was far more pragmatic and minimalist. The aim was very simply to make a dangerous country substantially less dangerous. No one had any expectation that Iran would be a more benign actor.”
  • once mentioned to obama a scene from The Godfather: Part III, in which Michael Corleone complains angrily about his failure to escape the grasp of organized crime. I told Obama that the Middle East is to his presidency what the Mob is to Corleone, and I started to quote the Al Pacino line: “Just when I thought I was out—”“It pulls you back in,” Obama said, completing the thought
  • When I asked Obama recently what he had hoped to accomplish with his Cairo reset speech, he said that he had been trying—unsuccessfully, he acknowledged—to persuade Muslims to more closely examine the roots of their unhappiness.“My argument was this: Let’s all stop pretending that the cause of the Middle East’s problems is Israel,” he told me. “We want to work to help achieve statehood and dignity for the Palestinians, but I was hoping that my speech could trigger a discussion, could create space for Muslims to address the real problems they are confronting—problems of governance, and the fact that some currents of Islam have not gone through a reformation that would help people adapt their religious doctrines to modernity. My thought was, I would communicate that the U.S. is not standing in the way of this progress, that we would help, in whatever way possible, to advance the goals of a practical, successful Arab agenda that provided a better life for ordinary people.”
  • But over the next three years, as the Arab Spring gave up its early promise, and brutality and dysfunction overwhelmed the Middle East, the president grew disillusioned. Some of his deepest disappointments concern Middle Eastern leaders themselves. Benjamin Netanyahu is in his own category: Obama has long believed that Netanyahu could bring about a two-state solution that would protect Israel’s status as a Jewish-majority democracy, but is too fearful and politically paralyzed to do so
  • Obama has also not had much patience for Netanyahu and other Middle Eastern leaders who question his understanding of the region. In one of Netanyahu’s meetings with the president, the Israeli prime minister launched into something of a lecture about the dangers of the brutal region in which he lives, and Obama felt that Netanyahu was behaving in a condescending fashion, and was also avoiding the subject at hand: peace negotiations. Finally, the president interrupted the prime minister: “Bibi, you have to understand something,” he said. “I’m the African American son of a single mother, and I live here, in this house. I live in the White House. I managed to get elected president of the United States. You think I don’t understand what you’re talking about, but I do.”
  • Other leaders also frustrate him immensely. Early on, Obama saw Recep Tayyip Erdoğan, the president of Turkey, as the sort of moderate Muslim leader who would bridge the divide between East and West—but Obama now considers him a failure and an authoritarian, one who refuses to use his enormous army to bring stability to Syria
  • In recent days, the president has taken to joking privately, “All I need in the Middle East is a few smart autocrats.” Obama has always had a fondness for pragmatic, emotionally contained technocrats, telling aides, “If only everyone could be like the Scandinavians, this would all be easy.”
  • The unraveling of the Arab Spring darkened the president’s view of what the U.S. could achieve in the Middle East, and made him realize how much the chaos there was distracting from other priorities. “The president recognized during the course of the Arab Spring that the Middle East was consuming us,”
  • But what sealed Obama’s fatalistic view was the failure of his administration’s intervention in Libya, in 2011
  • Obama says today of the intervention, “It didn’t work.” The U.S., he believes, planned the Libya operation carefully—and yet the country is still a disaster.
  • “So we actually executed this plan as well as I could have expected: We got a UN mandate, we built a coalition, it cost us $1 billion—which, when it comes to military operations, is very cheap. We averted large-scale civilian casualties, we prevented what almost surely would have been a prolonged and bloody civil conflict. And despite all that, Libya is a mess.”
  • Mess is the president’s diplomatic term; privately, he calls Libya a “shit show,” in part because it’s subsequently become an isis haven—one that he has already targeted with air strikes. It became a shit show, Obama believes, for reasons that had less to do with American incompetence than with the passivity of America’s allies and with the obdurate power of tribalism.
  • Of France, he said, “Sarkozy wanted to trumpet the flights he was taking in the air campaign, despite the fact that we had wiped out all the air defenses and essentially set up the entire infrastructure” for the intervention. This sort of bragging was fine, Obama said, because it allowed the U.S. to “purchase France’s involvement in a way that made it less expensive for us and less risky for us.” In other words, giving France extra credit in exchange for less risk and cost to the United States was a useful trade-off—except that “from the perspective of a lot of the folks in the foreign-policy establishment, well, that was terrible. If we’re going to do something, obviously we’ve got to be up front, and nobody else is sharing in the spotlight.”
  • Obama also blamed internal Libyan dynamics. “The degree of tribal division in Libya was greater than our analysts had expected. And our ability to have any kind of structure there that we could interact with and start training and start providing resources broke down very quickly.”
  • Libya proved to him that the Middle East was best avoided. “There is no way we should commit to governing the Middle East and North Africa,” he recently told a former colleague from the Senate. “That would be a basic, fundamental mistake.”
  • Obama did not come into office preoccupied by the Middle East. He is the first child of the Pacific to become president—born in Hawaii, raised there and, for four years, in Indonesia—and he is fixated on turning America’s attention to Asia
  • For Obama, Asia represents the future. Africa and Latin America, in his view, deserve far more U.S. attention than they receive. Europe, about which he is unromantic, is a source of global stability that requires, to his occasional annoyance, American hand-holding. And the Middle East is a region to be avoided—one that, thanks to America’s energy revolution, will soon be of negligible relevance to the U.S. economy.
  • Advisers recall that Obama would cite a pivotal moment in The Dark Knight, the 2008 Batman movie, to help explain not only how he understood the role of isis, but how he understood the larger ecosystem in which it grew. “There’s a scene in the beginning in which the gang leaders of Gotham are meeting,” the president would say. “These are men who had the city divided up. They were thugs, but there was a kind of order. Everyone had his turf. And then the Joker comes in and lights the whole city on fire. isil is the Joker. It has the capacity to set the whole region on fire. That’s why we have to fight it.”
  • The rise of the Islamic State deepened Obama’s conviction that the Middle East could not be fixed—not on his watch, and not for a generation to come.
  • The traveling White House press corps was unrelenting: “Isn’t it time for your strategy to change?” one reporter asked. This was followed by “Could I ask you to address your critics who say that your reluctance to enter another Middle East war, and your preference of diplomacy over using the military, makes the United States weaker and emboldens our enemies?” And then came this imperishable question, from a CNN reporter: “If you’ll forgive the language—why can’t we take out these bastards?” Which was followed by “Do you think you really understand this enemy well enough to defeat them and to protect the homeland?”
  • This rhetoric appeared to frustrate Obama immensely. “When I hear folks say that, well, maybe we should just admit the Christians but not the Muslims; when I hear political leaders suggesting that there would be a religious test for which person who’s fleeing from a war-torn country is admitted,” Obama told the assembled reporters, “that’s not American. That’s not who we are. We don’t have religious tests to our compassion.”
  • he has never believed that terrorism poses a threat to America commensurate with the fear it generates. Even during the period in 2014 when isis was executing its American captives in Syria, his emotions were in check. Valerie Jarrett, Obama’s closest adviser, told him people were worried that the group would soon take its beheading campaign to the U.S. “They’re not coming here to chop our heads off,” he reassured her.
  • Obama frequently reminds his staff that terrorism takes far fewer lives in America than handguns, car accidents, and falls in bathtubs do
  • Several years ago, he expressed to me his admiration for Israelis’ “resilience” in the face of constant terrorism, and it is clear that he would like to see resilience replace panic in American society. Nevertheless, his advisers are fighting a constant rearguard action to keep Obama from placing terrorism in what he considers its “proper” perspective, out of concern that he will seem insensitive to the fears of the American people.
  • When I noted to Kerry that the president’s rhetoric doesn’t match his, he said, “President Obama sees all of this, but he doesn’t gin it up into this kind of—he thinks we are on track. He has escalated his efforts. But he’s not trying to create hysteria … I think the president is always inclined to try to keep things on an appropriate equilibrium. I respect that.”
  • Obama modulates his discussion of terrorism for several reasons: He is, by nature, Spockian. And he believes that a misplaced word, or a frightened look, or an ill-considered hyperbolic claim, could tip the country into panic. The sort of panic he worries about most is the type that would manifest itself in anti-Muslim xenophobia or in a challenge to American openness and to the constitutional order.
  • The president also gets frustrated that terrorism keeps swamping his larger agenda, particularly as it relates to rebalancing America’s global priorities. For years, the “pivot to Asia” has been a paramount priority of his. America’s economic future lies in Asia, he believes, and the challenge posed by China’s rise requires constant attention. From his earliest days in office, Obama has been focused on rebuilding the sometimes-threadbare ties between the U.S. and its Asian treaty partners, and he is perpetually on the hunt for opportunities to draw other Asian nations into the U.S. orbit. His dramatic opening to Burma was one such opportunity; Vietnam and the entire constellation of Southeast Asian countries fearful of Chinese domination presented others.
  • Obama believes, Carter said, that Asia “is the part of the world of greatest consequence to the American future, and that no president can take his eye off of this.” He added, “He consistently asks, even in the midst of everything else that’s going on, ‘Where are we in the Asia-Pacific rebalance? Where are we in terms of resources?’ He’s been extremely consistent about that, even in times of Middle East tension.”
  • “Right now, I don’t think that anybody can be feeling good about the situation in the Middle East,” he said. “You have countries that are failing to provide prosperity and opportunity for their people. You’ve got a violent, extremist ideology, or ideologies, that are turbocharged through social media. You’ve got countries that have very few civic traditions, so that as autocratic regimes start fraying, the only organizing principles are sectarian.”
  • He went on, “Contrast that with Southeast Asia, which still has huge problems—enormous poverty, corruption—but is filled with striving, ambitious, energetic people who are every single day scratching and clawing to build businesses and get education and find jobs and build infrastructure. The contrast is pretty stark.”
  • In Asia, as well as in Latin America and Africa, Obama says, he sees young people yearning for self-improvement, modernity, education, and material wealth.“They are not thinking about how to kill Americans,” he says. “What they’re thinking about is How do I get a better education? How do I create something of value?”
  • He then made an observation that I came to realize was representative of his bleakest, most visceral understanding of the Middle East today—not the sort of understanding that a White House still oriented around themes of hope and change might choose to advertise. “If we’re not talking to them,” he said, referring to young Asians and Africans and Latin Americans, “because the only thing we’re doing is figuring out how to destroy or cordon off or control the malicious, nihilistic, violent parts of humanity, then we’re missing the boat.
  • He does resist refracting radical Islam through the “clash of civilizations” prism popularized by the late political scientist Samuel Huntington. But this is because, he and his advisers argue, he does not want to enlarge the ranks of the enemy. “The goal is not to force a Huntington template onto this conflict,” said John Brennan, the CIA director.
  • “It is very clear what I mean,” he told me, “which is that there is a violent, radical, fanatical, nihilistic interpretation of Islam by a faction—a tiny faction—within the Muslim community that is our enemy, and that has to be defeated.”
  • “There is also the need for Islam as a whole to challenge that interpretation of Islam, to isolate it, and to undergo a vigorous discussion within their community about how Islam works as part of a peaceful, modern society,” he said. But he added, “I do not persuade peaceful, tolerant Muslims to engage in that debate if I’m not sensitive to their concern that they are being tagged with a broad brush.”
  • In private encounters with other world leaders, Obama has argued that there will be no comprehensive solution to Islamist terrorism until Islam reconciles itself to modernity and undergoes some of the reforms that have changed Christianity.
  • , Obama described how he has watched Indonesia gradually move from a relaxed, syncretistic Islam to a more fundamentalist, unforgiving interpretation; large numbers of Indonesian women, he observed, have now adopted the hijab, the Muslim head covering.
  • Why, Turnbull asked, was this happening?Because, Obama answered, the Saudis and other Gulf Arabs have funneled money, and large numbers of imams and teachers, into the country. In the 1990s, the Saudis heavily funded Wahhabist madrassas, seminaries that teach the fundamentalist version of Islam favored by the Saudi ruling family, Obama told Turnbull. Today, Islam in Indonesia is much more Arab in orientation than it was when he lived there, he said.
  • “Aren’t the Saudis your friends?,” Turnbull asked.Obama smiled. “It’s complicated,” he said.
  • But he went on to say that the Saudis need to “share” the Middle East with their Iranian foes. “The competition between the Saudis and the Iranians—which has helped to feed proxy wars and chaos in Syria and Iraq and Yemen—requires us to say to our friends as well as to the Iranians that they need to find an effective way to share the neighborhood and institute some sort of cold peace,”
  • “An approach that said to our friends ‘You are right, Iran is the source of all problems, and we will support you in dealing with Iran’ would essentially mean that as these sectarian conflicts continue to rage and our Gulf partners, our traditional friends, do not have the ability to put out the flames on their own or decisively win on their own, and would mean that we have to start coming in and using our military power to settle scores. And that would be in the interest neither of the United States nor of the Middle East.”
  • One of the most destructive forces in the Middle East, Obama believes, is tribalism—a force no president can neutralize. Tribalism, made manifest in the reversion to sect, creed, clan, and village by the desperate citizens of failing states, is the source of much of the Muslim Middle East’s problems, and it is another source of his fatalism. Obama has deep respect for the destructive resilience of tribalism—part of his memoir, Dreams From My Father, concerns the way in which tribalism in post-colonial Kenya helped ruin his father’s life—which goes some distance in explaining why he is so fastidious about avoiding entanglements in tribal conflicts.
  • “It is literally in my DNA to be suspicious of tribalism,” he told me. “I understand the tribal impulse, and acknowledge the power of tribal division. I’ve been navigating tribal divisions my whole life. In the end, it’s the source of a lot of destructive acts.”
  • “Look, I am not of the view that human beings are inherently evil,” he said. “I believe that there’s more good than bad in humanity. And if you look at the trajectory of history, I am optimistic.
  • “I believe that overall, humanity has become less violent, more tolerant, healthier, better fed, more empathetic, more able to manage difference. But it’s hugely uneven. And what has been clear throughout the 20th and 21st centuries is that the progress we make in social order and taming our baser impulses and steadying our fears can be reversed very quickly. Social order starts breaking down if people are under profound stress. Then the default position is tribe—us/them, a hostility toward the unfamiliar or the unknown.”
  • He continued, “Right now, across the globe, you’re seeing places that are undergoing severe stress because of globalization, because of the collision of cultures brought about by the Internet and social media, because of scarcities—some of which will be attributable to climate change over the next several decades—because of population growth. And in those places, the Middle East being Exhibit A, the default position for a lot of folks is to organize tightly in the tribe and to push back or strike out against those who are different.
  • “A group like isil is the distillation of every worst impulse along these lines. The notion that we are a small group that defines ourselves primarily by the degree to which we can kill others who are not like us, and attempting to impose a rigid orthodoxy that produces nothing, that celebrates nothing, that really is contrary to every bit of human progress—it indicates the degree to which that kind of mentality can still take root and gain adherents in the 21st century.”
  • “We have to determine the best tools to roll back those kinds of attitudes,” he said. “There are going to be times where either because it’s not a direct threat to us or because we just don’t have the tools in our toolkit to have a huge impact that, tragically, we have to refrain from jumping in with both feet.”
  • I asked Obama whether he would have sent the Marines to Rwanda in 1994 to stop the genocide as it was happening, had he been president at the time. “Given the speed with which the killing took place, and how long it takes to crank up the machinery of the U.S. government, I understand why we did not act fast enough,” he said. “Now, we should learn from tha
  • I actually think that Rwanda is an interesting test case because it’s possible—not guaranteed, but it’s possible—that this was a situation where the quick application of force might have been enough.
  • “Ironically, it’s probably easier to make an argument that a relatively small force inserted quickly with international support would have resulted in averting genocide [more successfully in Rwanda] than in Syria right now, where the degree to which the various groups are armed and hardened fighters and are supported by a whole host of external actors with a lot of resources requires a much larger commitment of forces.”
  • The Turkey press conference, I told him, “was a moment for you as a politician to say, ‘Yeah, I hate the bastards too, and by the way, I am taking out the bastards.’ ” The easy thing to do would have been to reassure Americans in visceral terms that he will kill the people who want to kill them. Does he fear a knee-jerk reaction in the direction of another Middle East invasion? Or is he just inalterably Spockian?
  • “Every president has strengths and weaknesses,” he answered. “And there is no doubt that there are times where I have not been attentive enough to feelings and emotions and politics in communicating what we’re doing and how we’re doing it.”
  • But for America to be successful in leading the world, he continued, “I believe that we have to avoid being simplistic. I think we have to build resilience and make sure that our political debates are grounded in reality. It’s not that I don’t appreciate the value of theater in political communications; it’s that the habits we—the media, politicians—have gotten into, and how we talk about these issues, are so detached so often from what we need to be doing that for me to satisfy the cable news hype-fest would lead to us making worse and worse decisions over time.”
  • “During the couple of months in which everybody was sure Ebola was going to destroy the Earth and there was 24/7 coverage of Ebola, if I had fed the panic or in any way strayed from ‘Here are the facts, here’s what needs to be done, here’s how we’re handling it, the likelihood of you getting Ebola is very slim, and here’s what we need to do both domestically and overseas to stamp out this epidemic,’ ” then “maybe people would have said ‘Obama is taking this as seriously as he needs to be.’ ” But feeding the panic by overreacting could have shut down travel to and from three African countries that were already cripplingly poor, in ways that might have destroyed their economies—which would likely have meant, among other things, a recurrence of Ebola. He added, “It would have also meant that we might have wasted a huge amount of resources in our public-health systems that need to be devoted to flu vaccinations and other things that actually kill people” in large numbers in America
  • “I have friends who have kids in Paris right now,” he said. “And you and I and a whole bunch of people who are writing about what happened in Paris have strolled along the same streets where people were gunned down. And it’s right to feel fearful. And it’s important for us not to ever get complacent. There’s a difference between resilience and complacency.” He went on to describe another difference—between making considered decisions and making rash, emotional ones. “What it means, actually, is that you care so much that you want to get it right and you’re not going to indulge in either impetuous or, in some cases, manufactured responses that make good sound bites but don’t produce results. The stakes are too high to play those games.”
  • The other meeting took place two months later, in the Oval Office, between Obama and the general secretary of the Vietnamese Communist Party, Nguyen Phu Trong. This meeting took place only because John Kerry had pushed the White House to violate protocol, since the general secretary was not a head of state. But the goals trumped decorum: Obama wanted to lobby the Vietnamese on the Trans-Pacific Partnership—his negotiators soon extracted a promise from the Vietnamese that they would legalize independent labor unions—and he wanted to deepen cooperation on strategic issues. Administration officials have repeatedly hinted to me that Vietnam may one day soon host a permanent U.S. military presence, to check the ambitions of the country it now fears most, China. The U.S. Navy’s return to Cam Ranh Bay would count as one of the more improbable developments in recent American history. “We just moved the Vietnamese Communist Party to recognize labor rights in a way that we could never do by bullying them or scaring them,” Obama told me, calling this a key victory in his campaign to replace stick-waving with diplomatic persuasion.
  • I noted that the 200 or so young Southeast Asians in the room earlier that day—including citizens of Communist-ruled countries—seemed to love America. “They do,” Obama said. “In Vietnam right now, America polls at 80 percent.”
  • The resurgent popularity of America throughout Southeast Asia means that “we can do really big, important stuff—which, by the way, then has ramifications across the board,” he said, “because when Malaysia joins the anti-isil campaign, that helps us leverage resources and credibility in our fight against terrorism. When we have strong relations with Indonesia, that helps us when we are going to Paris and trying to negotiate a climate treaty, where the temptation of a Russia or some of these other countries may be to skew the deal in a way that is unhelpful.
  • Obama then cited America’s increased influence in Latin America—increased, he said, in part by his removal of a region-wide stumbling block when he reestablished ties with Cuba—as proof that his deliberate, nonthreatening, diplomacy-centered approach to foreign relations is working. The alba movement, a group of Latin American governments oriented around anti-Americanism, has significantly weakened during his time as president. “When I came into office, at the first Summit of the Americas that I attended, Hugo Chávez”—the late anti-American Venezuelan dictator—“was still the dominant figure in the conversation,” he said. “We made a very strategic decision early on, which was, rather than blow him up as this 10-foot giant adversary, to right-size the problem and say, ‘We don’t like what’s going on in Venezuela, but it’s not a threat to the United States.’
  • Obama said that to achieve this rebalancing, the U.S. had to absorb the diatribes and insults of superannuated Castro manqués. “When I saw Chávez, I shook his hand and he handed me a Marxist critique of the U.S.–Latin America relationship,” Obama recalled. “And I had to sit there and listen to Ortega”—Daniel Ortega, the radical leftist president of Nicaragua—“make an hour-long rant against the United States. But us being there, not taking all that stuff seriously—because it really wasn’t a threat to us”—helped neutralize the region’s anti-Americanism.
  • “The truth is, actually, Putin, in all of our meetings, is scrupulously polite, very frank. Our meetings are very businesslike. He never keeps me waiting two hours like he does a bunch of these other folks.” Obama said that Putin believes his relationship with the U.S. is more important than Americans tend to think. “He’s constantly interested in being seen as our peer and as working with us, because he’s not completely stupid. He understands that Russia’s overall position in the world is significantly diminished. And the fact that he invades Crimea or is trying to prop up Assad doesn’t suddenly make him a player.
  • “The argument is made,” I said, “that Vladimir Putin watched you in Syria and thought, He’s too logical, he’s too rational, he’s too into retrenchment. I’m going to push him a little bit further in Ukraine.”
  • “Look, this theory is so easily disposed of that I’m always puzzled by how people make the argument. I don’t think anybody thought that George W. Bush was overly rational or cautious in his use of military force. And as I recall, because apparently nobody in this town does, Putin went into Georgia on Bush’s watch, right smack dab in the middle of us having over 100,000 troops deployed in Iraq.” Obama was referring to Putin’s 2008 invasion of Georgia, a former Soviet republic, which was undertaken for many of the same reasons Putin later invaded Ukraine—to keep an ex–Soviet republic in Russia’s sphere of influence.
  • “Putin acted in Ukraine in response to a client state that was about to slip out of his grasp. And he improvised in a way to hang on to his control there,” he said. “He’s done the exact same thing in Syria, at enormous cost to the well-being of his own country. And the notion that somehow Russia is in a stronger position now, in Syria or in Ukraine, than they were before they invaded Ukraine or before he had to deploy military forces to Syria is to fundamentally misunderstand the nature of power in foreign affairs or in the world generally. Real power means you can get what you want without having to exert violence. Russia was much more powerful when Ukraine looked like an independent country but was a kleptocracy that he could pull the strings on.”
  • Obama’s theory here is simple: Ukraine is a core Russian interest but not an American one, so Russia will always be able to maintain escalatory dominance there.“The fact is that Ukraine, which is a non-nato country, is going to be vulnerable to military domination by Russia no matter what we do,” he said.
  • “I think that the best argument you can make on the side of those who are critics of my foreign policy is that the president doesn’t exploit ambiguity enough. He doesn’t maybe react in ways that might cause people to think, Wow, this guy might be a little crazy.”“The ‘crazy Nixon’ approach,” I said: Confuse and frighten your enemies by making them think you’re capable of committing irrational acts.
  • “But let’s examine the Nixon theory,” he said. “So we dropped more ordnance on Cambodia and Laos than on Europe in World War II, and yet, ultimately, Nixon withdrew, Kissinger went to Paris, and all we left behind was chaos, slaughter, and authoritarian governments
  • “There is no evidence in modern American foreign policy that that’s how people respond. People respond based on what their imperatives are, and if it’s really important to somebody, and it’s not that important to us, they know that, and we know that,” he said. “There are ways to deter, but it requires you to be very clear ahead of time about what is worth going to war for and what is not.
  • Now, if there is somebody in this town that would claim that we would consider going to war with Russia over Crimea and eastern Ukraine, they should speak up and be very clear about it. The idea that talking tough or engaging in some military action that is tangential to that particular area is somehow going to influence the decision making of Russia or China is contrary to all the evidence we have seen over the last 50 years.”
  • “If you think about, let’s say, the Iran hostage crisis, there is a narrative that has been promoted today by some of the Republican candidates that the day Reagan was elected, because he looked tough, the Iranians decided, ‘We better turn over these hostages,’ ” he said. “In fact what had happened was that there was a long negotiation with the Iranians and because they so disliked Carter—even though the negotiations had been completed—they held those hostages until the day Reagan got elected
  • When you think of the military actions that Reagan took, you have Grenada—which is hard to argue helped our ability to shape world events, although it was good politics for him back home. You have the Iran-Contra affair, in which we supported right-wing paramilitaries and did nothing to enhance our image in Central America, and it wasn’t successful at all.” He reminded me that Reagan’s great foe, Daniel Ortega, is today the unrepentant president of Nicaragua.
  • Obama also cited Reagan’s decision to almost immediately pull U.S. forces from Lebanon after 241 servicemen were killed in a Hezbollah attack in 1983. “Apparently all these things really helped us gain credibility with the Russians and the Chinese,” because “that’s the narrative that is told,” he said sarcastically.
  • “Now, I actually think that Ronald Reagan had a great success in foreign policy, which was to recognize the opportunity that Gorbachev presented and to engage in extensive diplomacy—which was roundly criticized by some of the same people who now use Ronald Reagan to promote the notion that we should go around bombing people.”
  • “As I survey the next 20 years, climate change worries me profoundly because of the effects that it has on all the other problems that we face,” he said. “If you start seeing more severe drought; more significant famine; more displacement from the Indian subcontinent and coastal regions in Africa and Asia; the continuing problems of scarcity, refugees, poverty, disease—this makes every other problem we’ve got worse. That’s above and beyond just the existential issues of a planet that starts getting into a bad feedback loop.”
  • Terrorism, he said, is also a long-term problem “when combined with the problem of failed states.”
  • What country does he consider the greatest challenge to America in the coming decades? “In terms of traditional great-state relations, I do believe that the relationship between the United States and China is going to be the most critical,” he said. “If we get that right and China continues on a peaceful rise, then we have a partner that is growing in capability and sharing with us the burdens and responsibilities of maintaining an international order. If China fails; if it is not able to maintain a trajectory that satisfies its population and has to resort to nationalism as an organizing principle; if it feels so overwhelmed that it never takes on the responsibilities of a country its size in maintaining the international order; if it views the world only in terms of regional spheres of influence—then not only do we see the potential for conflict with China, but we will find ourselves having more difficulty dealing with these other challenges that are going to come.”
  • I’ve been very explicit in saying that we have more to fear from a weakened, threatened China than a successful, rising China,” Obama said. “I think we have to be firm where China’s actions are undermining international interests, and if you look at how we’ve operated in the South China Sea, we have been able to mobilize most of Asia to isolate China in ways that have surprised China, frankly, and have very much served our interest in strengthening our alliances.”
  • A weak, flailing Russia constitutes a threat as well, though not quite a top-tier threat. “Unlike China, they have demographic problems, economic structural problems, that would require not only vision but a generation to overcome,” Obama said. “The path that Putin is taking is not going to help them overcome those challenges. But in that environment, the temptation to project military force to show greatness is strong, and that’s what Putin’s inclination is. So I don’t underestimate the dangers there.”
  • “You know, the notion that diplomacy and technocrats and bureaucrats somehow are helping to keep America safe and secure, most people think, Eh, that’s nonsense. But it’s true. And by the way, it’s the element of American power that the rest of the world appreciates unambiguously
  • When we deploy troops, there’s always a sense on the part of other countries that, even where necessary, sovereignty is being violated.”
  • Administration officials have told me that Vice President Biden, too, has become frustrated with Kerry’s demands for action. He has said privately to the secretary of state, “John, remember Vietnam? Remember how that started?” At a National Security Council meeting held at the Pentagon in December, Obama announced that no one except the secretary of defense should bring him proposals for military action. Pentagon officials understood Obama’s announcement to be a brushback pitch directed at Kerry.
  • Obama’s caution on Syria has vexed those in the administration who have seen opportunities, at different moments over the past four years, to tilt the battlefield against Assad. Some thought that Putin’s decision to fight on behalf of Assad would prompt Obama to intensify American efforts to help anti-regime rebels. But Obama, at least as of this writing, would not be moved, in part because he believed that it was not his business to stop Russia from making what he thought was a terrible mistake. “They are overextended. They’re bleeding,” he told me. “And their economy has contracted for three years in a row, drastically.
  • Obama’s strategy was occasionally referred to as the “Tom Sawyer approach.” Obama’s view was that if Putin wanted to expend his regime’s resources by painting the fence in Syria, the U.S. should let him.
  • By late winter, though, when it appeared that Russia was making advances in its campaign to solidify Assad’s rule, the White House began discussing ways to deepen support for the rebels, though the president’s ambivalence about more-extensive engagement remained. In conversations I had with National Security Council officials over the past couple of months, I sensed a foreboding that an event—another San Bernardino–style attack, for instance—would compel the United States to take new and direct action in Syria. For Obama, this would be a nightmare.
  • If there had been no Iraq, no Afghanistan, and no Libya, Obama told me, he might be more apt to take risks in Syria. “A president does not make decisions in a vacuum. He does not have a blank slate. Any president who was thoughtful, I believe, would recognize that after over a decade of war, with obligations that are still to this day requiring great amounts of resources and attention in Afghanistan, with the experience of Iraq, with the strains that it’s placed on our military—any thoughtful president would hesitate about making a renewed commitment in the exact same region of the world with some of the exact same dynamics and the same probability of an unsatisfactory outcome.”
  • What has struck me is that, even as his secretary of state warns about a dire, Syria-fueled European apocalypse, Obama has not recategorized the country’s civil war as a top-tier security threat.
  • This critique frustrates the president. “Nobody remembers bin Laden anymore,” he says. “Nobody talks about me ordering 30,000 more troops into Afghanistan.” The red-line crisis, he said, “is the point of the inverted pyramid upon which all other theories rest.
  • “Was it a bluff?” I told him that few people now believe he actually would have attacked Iran to keep it from getting a nuclear weapon.“That’s interesting,” he said, noncommittally.I started to talk: “Do you—”He interrupted. “I actually would have,” he said, meaning that he would have struck Iran’s nuclear facilities. “If I saw them break out.”
  • “You were right to believe it,” the president said. And then he made his key point. “This was in the category of an American interest.”
  • I was reminded then of something Derek Chollet, a former National Security Council official, told me: “Obama is a gambler, not a bluffer.”
  • The president has placed some huge bets. Last May, as he was trying to move the Iran nuclear deal through Congress, I told him that the agreement was making me nervous. His response was telling. “Look, 20 years from now, I’m still going to be around, God willing. If Iran has a nuclear weapon, it’s my name on this,” he said. “I think it’s fair to say that in addition to our profound national-security interests, I have a personal interest in locking this down.”
  • In the matter of the Syrian regime and its Iranian and Russian sponsors, Obama has bet, and seems prepared to continue betting, that the price of direct U.S. action would be higher than the price of inaction. And he is sanguine enough to live with the perilous ambiguities of his decisions
  • Though in his Nobel Peace Prize speech in 2009, Obama said, “Inaction tears at our conscience and can lead to more costly intervention later,” today the opinions of humanitarian interventionists do not seem to move him, at least not publicly
  • As he comes to the end of his presidency, Obama believes he has done his country a large favor by keeping it out of the maelstrom—and he believes, I suspect, that historians will one day judge him wise for having done so
  • Inside the West Wing, officials say that Obama, as a president who inherited a financial crisis and two active wars from his predecessor, is keen to leave “a clean barn” to whoever succeeds him. This is why the fight against isis, a group he considers to be a direct, though not existential, threat to the U.S., is his most urgent priority for the remainder of his presidency; killing the so-called caliph of the Islamic State, Abu Bakr al-Baghdadi, is one of the top goals of the American national-security apparatus in Obama’s last year.
  • This is what is so controversial about the president’s approach, and what will be controversial for years to come—the standard he has used to define what, exactly, constitutes a direct threat.
  • Obama has come to a number of dovetailing conclusions about the world, and about America’s role in it. The first is that the Middle East is no longer terribly important to American interests. The second is that even if the Middle East were surpassingly important, there would still be little an American president could do to make it a better place. The third is that the innate American desire to fix the sorts of problems that manifest themselves most drastically in the Middle East inevitably leads to warfare, to the deaths of U.S. soldiers, and to the eventual hemorrhaging of U.S. credibility and power. The fourth is that the world cannot afford to see the diminishment of U.S. power. Just as the leaders of several American allies have found Obama’s leadership inadequate to the tasks before him, he himself has found world leadership wanting: global partners who often lack the vision and the will to spend political capital in pursuit of broad, progressive goals, and adversaries who are not, in his mind, as rational as he is. Obama believes that history has sides, and that America’s adversaries—and some of its putative allies—have situated themselves on the wrong one, a place where tribalism, fundamentalism, sectarianism, and militarism still flourish. What they don’t understand is that history is bending in his direction.
  • “The central argument is that by keeping America from immersing itself in the crises of the Middle East, the foreign-policy establishment believes that the president is precipitating our decline,” Ben Rhodes told me. “But the president himself takes the opposite view, which is that overextension in the Middle East will ultimately harm our economy, harm our ability to look for other opportunities and to deal with other challenges, and, most important, endanger the lives of American service members for reasons that are not in the direct American national-security interest.
  • George W. Bush was also a gambler, not a bluffer. He will be remembered harshly for the things he did in the Middle East. Barack Obama is gambling that he will be judged well for the things he didn’t do.
Javier E

Trade and Tribulation - The New York Times - 0 views

  • if protectionism really is becoming an important political force, how should reasonable people — economists and others — respond?
  • To make sense of the debate over trade, there are three things you need to know.
  • The first is that we have gotten to where we are — a largely free-trade world — through a generations-long process of international diplomacy, going all the way back to F.D.R. This process combines a series of quid pro quos — I’ll open my markets if you open yours — with rules to prevent backsliding.
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  • what the models of international trade used by real experts say is that, in general, agreements that lead to more trade neither create nor destroy jobs; that they usually make countries more efficient and richer, but that the numbers aren’t huge; and that they can easily produce losers as well as winners
  • In principle the overall gains mean that the winners could compensate the losers, so that everyone gains. In practice, especially given the scorched-earth obstructionism of the G.O.P., that’s not going to happen.
  • Why, then, did we ever pursue these agreements? A large part of the answer is foreign policy: Global trade agreements from the 1940s to the 1980s were used to bind democratic nations together during the Cold War, Nafta was used to reward and encourage Mexican reformers, and so on.
  • And anyone ragging on about those past deals, like Mr. Trump or Mr. Sanders, should be asked what, exactly, he proposes doing now. Are they saying that we should rip up America’s international agreements? Have they thought about what that would do to our credibility and standing in the world?
  • The most a progressive can responsibly call for, I’d argue, is a standstill on further deals, or at least a presumption that proposed deals are guilty unless proved innocent.
  • The larger point in this election season is, however, that politicians should be honest and realistic about trade, rather than taking cheap shots. Striking poses is easy; figuring out what we can and should do is a lot harder. But you know, that’s a would-be president’s job
Javier E

Peak Intel: How So-Called Strategic Intelligence Actually Makes Us Dumber - Eric Garland - International - The Atlantic - 0 views

  • the culture of intelligence has been in free-fall since the financial crisis of 2008. While people may be pretending to follow intelligence, impostors in both the analyst and executive camps actually follow shallow, fake processes that justify their existing decisions and past investments.
  • three trends are making this harder
  • the explosion of cheap capital from Wall Street has led major industries to consolidate. Where a sector such as pharmaceuticals or telecommunications (and, of course, banking) might have had dozens of big players a couple of decades ago, now it has closer to five. When I began in the intelligence industry 15 years ago, I did projects for Compaq, Amoco, Wyeth Pharmaceuticals, and Cingular -- all of which have since been rolled into the conglomerates of Hewlett Packard, British Petroleum, Pfizer, and AT&T. There are fewer firms for an intelligence analyst to track, and their behavior has to be understood on totally different terms than when this discipline was created.
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  • One cannot predict the future of a marketplace by trend analysis alone, because oligopolies do not compete the same way as do firms in free markets. 
  • industry consolidations have created gigantic bureaucracies. Hierarchical organizations have a very different logic than smaller firms. In less consolidated industries, success and failure are largely the result of the decisions you make, so intelligence about the reality of the marketplace is critical. Life is different in gigantic organizations, where success and failure are almost impossible to attribute to individual decisions.
  • In large, slow-moving bureaucracies, conventional thinking and risk avoidance become paramount
  • , the world's economy is today driven more by policy makers than at any time in recent history. At the behest of government officials, banks have been shielded from the consequences of their market decisions, and in many cases exempt from prosecution for their potential law-breaking. Nation-state policy-makers pick the winners in industries
  • How can you use classical competitive analysis to examine the future of markets when the relationships between firms and government agencies are so incestuous and the choices of consumers so severely limited by industrial consolidation?
  • Companies still need guidance, but if rational analysis is nearly impossible, is it any wonder that executives are asking for less of it? What they are asking for is something, well, less productive.
  • executives today do not do well when their analysts confront them with challenging, though often relatively benign, predictions. Confusion, anger, and psychological transference are common responses to unwelcome analysis.
Javier E

The Facebook Illusion - Douthat-NYTimes.com - 0 views

  • Mark Zuckerberg’s social networking site has always struck me as one of the most noxious, dependent for its success on the darker aspects of online life: the zeal for constant self-fashioning and self-promotion, the pursuit of virtual forms of “community” and “friendship” that bear only a passing resemblance to the genuine article, and the relentless diminution of the private sphere in the quest for advertising dollars.
  • the problem is not that Facebook doesn’t make money. It’s that it doesn’t make that much money, and doesn’t have an obvious way to make that much more of it, because (like so many online concerns) it hasn’t figured out how to effectively monetize its million upon millions of users.
  • This “huge reach, limited profitability” problem is characteristic of the digital economy as a whole
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  • the Internet is a wonder when it comes to generating “cheap fun.” But because “so many of its products are free,” and because so much of a typical Web company’s work is “performed more or less automatically by the software and the servers,” the online world is rather less impressive when it comes to generating job growth.
  • the more purely digital a company’s product, the fewer jobs it tends to create and the fewer dollars it can earn per user
  • From the lowbrow to the highbrow, LOLcats to Wikipedia, vast amounts of Internet content are created by people with no expectation of remuneration. The “new economy,” in this sense, isn’t always even a commercial economy at all. Instead, as Slate’s Matthew Yglesias has suggested, it’s a kind of hobbyist’s paradise, one that’s subsidized by surpluses from the old economy it was supposed to gradually replace.
  • Despite nearly two decades of dot-com enthusiasm, the information sector is still quite small relative to other sectors of the economy; it currently has one of the nation’s higher unemployment rates; and it’s one of the few sectors where unemployment has actually risen over the last year.
  • None of this makes the Internet any less revolutionary. But it’s created a cultural revolution more than an economic one.
Javier E

This Is Your Brain on Bargains: JC Penney and the Curse of Discounts - The Atlantic - 0 views

  • "Consumers don't know what anything should cost," William Poundstone writes in Priceless: The Myth of Fair Value. "They walk the supermarket aisles in a half-conscious daze, judging prices from cues, helpful and otherwise." The rational customer is a myth. We're more likely to pay more attention to objects on our right. More likely to gravitate to the number 9. More likely to buy cheap indulgences at the check-out. What's wrong with us?
  • It's not that we're idiots so much as we're lazy. Choosing anything is hard work, and our brains don't like to work that hard. As a result, we are attracted to simple answers to our difficult questions. This is the foundation of most biases, and it's true for shopping. Which of these similar shirts gives me the best value? That's a ridiculously hard question. What shirt will I get the best deal on? That's easy: It's the one that says "25% OFF", probably. Discounts make shopping simple -- not just on our wallets, but also on our brains.
  • It's no wonder bargains can become addictions. They give us a sense of accomplishment. They make us feel smart and frugal. For experiential shoppers, they punctuate the shopping landscape like road signs. For time-oriented shoppers, they save time.
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  • There are two kinds of shoppers, says Brett Gordon, a professor at Columbia Business School. There's the bargain-hunter and the clock-watcher. If the first walks into a store without a bargain, she leaves. But the second customer isn't looking for markdowns. She's looking at her watch. She just wants what she wants, and fast, coupons or no.
Javier E

Brooks Brothers Bolshevism: Wall Street Discovers Income Inequality | The New Republic - 0 views

  • Michael Cembalest, the chief investment officer of JPMorgan Chase, wrote in July of this year (in a clients-only newsletter obtained by Washington Post columnist Harold Meyerson) that “profit margins have reached levels not seen in decades,” and “reductions in wages and benefits explain the majority of the net improvement.” (Cembalest printed the latter quote in boldfaced lettering.) “US labor compensation,” he explained, “is now at a 50-year low relative to both company sales and US GDP.”
  • Citigroup analysts see the American postindustrial economy’s abandonment of fair play as an interesting fact to consider in formulating future investment strategies
  • “The upper classes of this country raped this country” is one of the more polite things that Morgan Stanley money manager Steve Eisman has to say on the eve of the 2008 sub-prime fiasco.
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  • Once upon a time, Alpert explains, American capitalists paid American laborers with something called a “salary.” Henry Ford famously boosted his workers’ pay to $5 a day so they could buy the Model Ts they were assembling. The better part of a century passed, and, by the early aughts, globalization had created a world oversupply of free-market labor—a hiring hall now housing about 2.6 billion recruits from emerging nations, together with roughly 550 million in the developed world. It no longer made financial sense to pay American workers high wages when you could pay Chinese workers low wages to do the same work.
  • On the other hand, if American workers lost their spending power, who would keep the U.S. economy afloat? The rise of cheap credit provided the answer. American labor effectively got paid in a different currency: debt. Instead of Model Ts, the latter-day working class bought overpriced houses and all sorts of other stuff it couldn’t afford. The beauty for the capitalists was that, when laborers got paid with debt, they had to pay it back with interest. Alpert calls it “middle-class serfdom.”
  • Alpert doesn’t believe there was a capitalist conspiracy; his point is that had there been a conspiracy, the outcome wouldn’t look much different. During the past half-century, Alpert explains, there were two large debt bubbles. The first one, during the late ’80s, saw real median incomes increase along with debt. Not a lot (inflation-adjusted median income hasn’t seen much growth since the early ’70s), but enough to ease the pain when the bubble burst in 1987. When plotted in a graph, the ’80s debt bubble looks like a big hill (debt) on top of a little hill (income). The second bubble, during the aughts, was a different story altogether. It occurred while real incomes went down. The aughts’ debt bubble looks like a big hill on top of a big valley. This time, there’s nothing to ease the pain.
  • our current economic troubles resulted from people buying with debt what they could no longer buy with wages;
  • Warren Buffett to point out recently that, far from simplification, what the income tax really needs is the complication of two new tax brackets above $1 million and $10 million to keep up with growing income concentration at the top. “We now have a Gini index similar to the Philippines and Mexico,” a Proctor & Gamble vice president told The Wall Street Journal earlier this month, referring to a measure of income distribution
Javier E

Amazon same-day delivery: How the e-commerce giant will destroy local retail. - Slate Magazine - 0 views

  • Amazon’s tax capitulation is part of a major shift in the company’s operations. Amazon’s grand strategy has been to set up distribution centers in faraway, low-cost states and then ship stuff to people in more populous, high-cost states. When I order stuff from Amazon, for instance, it gets shipped to California from one of the company’s massive warehouses in Kentucky or Nevada.
  • now Amazon has a new game. Now that it has agreed to collect sales taxes, the company can legally set up warehouses right inside some of the largest metropolitan areas in the nation. Why would it want to do that? Because Amazon’s new goal is to get stuff to you immediately—as soon as a few hours after you hit Buy
  • Same-day delivery has long been the holy grail of Internet retailers, something that dozens of startups have tried and failed to accomplish. (Remember Kozmo.com?) But Amazon is investing billions to make next-day delivery standard, and same-day delivery an option for lots of customers. If it can pull that off, the company will permanently alter how we shop. To put it more bluntly: Physical retailers will be hosed.
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  • In Seattle, New York, and the United Kingdom, the firm has set up automated “lockers” in drug stores and convenience stores. If you order something from Amazon and you work near one of these lockers, the company will offer to drop off your item there. On your way home from work, you can just stop by Rite Aid, punch in a security code, and get your stuff.
  • I’m a frequent Amazon shopper, and over the last few months I’ve noticed a significant improvement in its shipping times. As a subscriber to Amazon’s Prime subscription service, I’m used to getting two-day shipping on most items for free. But on about a third of my purchases, my package arrives after just one day for no extra charge. Sometimes the service is so speedy it seems almost magical. One Friday afternoon last month, I ordered three smoke alarms, and I debated paying extra for shipping so that I could install them over the weekend. The $9 per item that Amazon charges for Saturday delivery seemed too steep, though, so I went with standard two-day service. The next morning, the delivery guy arrived with my smoke detectors. I’d gotten next-day Saturday service for free
  • I suspect that, over the next few years, next-day service will become its default shipping method on most of its items. Meanwhile it will offer same-day service as a cheap upgrade. For $5 extra, you can have that laptop waiting for you when you get home from work. Wouldn’t you take that deal?
  • Order something in the morning and get it later in the day, without doing anything else. Why would you ever shop anywhere else?
Javier E

The Death of the Fringe Suburb - NYTimes.com - 0 views

  • In the late 1990s, high-end outer suburbs contained most of the expensive housing in the United States, as measured by price per square foot,
  • Today, the most expensive housing is in the high-density, pedestrian-friendly neighborhoods of the center city and inner suburbs.
  • The millennials are just now beginning to emerge from the nest — at least those who can afford to live on their own. This coming-of-age cohort also favors urban downtowns and suburban town centers — for lifestyle reasons and the convenience of not having to own cars.
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  • Many boomers are now empty nesters and approaching retirement. Generally this means that they will downsize their housing in the near future. Boomers want to live in a walkable urban downtown, a suburban town center or a small town
  • Many drivable-fringe house prices are now below replacement value, meaning the land under the house has no value and the sticks and bricks are worth less than they would cost to replace. This means there is no financial incentive to maintain the house; the next dollar invested will not be recouped upon resale. Many of these houses will be converted to rentals, which are rarely as well maintained as owner-occupied housing. Add the fact that the houses were built with cheap materials and methods to begin with, and you see why many fringe suburbs are turning into slums, with abandoned housing and rising crime.
  • The good news is that there is great pent-up demand for walkable, centrally located neighborhoods
  • The cities and inner-ring suburbs that will be the foundation of the recovery require significant investment at a time of government retrenchment. Bus and light-rail systems, bike lanes and pedestrian improvements — what traffic engineers dismissively call “alternative transportation” — are vital.
Javier E

Come On, China, Buy Our Stuff! - NYTimes.com - 0 views

  • In 2000, the United States forged its current economic relationship with China by permanently granting it most-favored-nation trade status and, eventually, helping the country enter the World Trade Organization. The unspoken deal, though, went something like this: China could make a lot of cheap goods, which would benefit U.S. consumers, even if it cost the country countless low-end manufacturing jobs. And rather than, say, fight for an extra bit of market share in Chicago, American multinationals could offset any losses because of competition by entering a country with more than a billion people — including the fastest-growing middle class in history — just about to buy their first refrigerators, TVs and cars. It was as if the United States added a magical 51st state, one that was bigger and grew faster than all the others. We would all be better off.
  • European companies have done much better than American ones because they’ve had to practice selling across borders and cultures for decades.
  • China’s households save more than a quarter of their money, while Americans save less than 4 percent.
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  • a successful professional in Shanghai knows that she will have to bear any future health care or retirement costs for herself and, because of the one-child policy, for her parents and grandparents too.
  • Every month, the United States buys around $35 billion in goods and services from China and sells around $11 billion back. That, of course, leaves a $24 billion trade deficit.
  • Every month, the United States is demanding a lot of renminbi and China is demanding few U.S. dollars. The natural result should be for the dollar to get weaker as the renminbi gets stronger.
  • China’s government prevents that adjustment by artificially increasing the demand for dollars, spending much of that $24 billion surplus on U.S. Treasury bonds. This sounds boring, but it effectively makes all Chinese exports somewhere around 25 percent cheaper and all U.S. imports to China, effectively, about 25 percent more expensive
  • all that easy money from China helped make the housing bubble much bigger and last longer, which created a far bigger crisis when the bubble finally burst.
  • The currency intervention also functions as a massive inequality-creation machine. U.S.-based behemoths, which own or use many of those exporting Chinese factories, benefit, as do their shareholders. And because more than 90 percent of U. S. stocks are owned by the wealthiest 20 percent, the spoils are disproportionately concentrated at the top. Meanwhile, lower wages, lost jobs and crippled manufacturing employment fall on the less wealthy.
  • The economists that I spoke to estimated that China’s currency policy has cost the U.S. between 200,000 and 3 million jobs
  • it may seem odd that China’s currency policy isn’t the beginning and end of every single political stump speech. After all, it’s probably the one thing that, if changed, could instantly bring both jobs and more equality to this country. I can’t think of any other economic agenda that would receive the support of unions and big business, free traders and protectionists, Wall Street Occupiers and Tea Partiers.
Javier E

The Bad History Behind 'You Didn't Build That' - Bloomberg - 0 views

  • “Bourgeois Dignity” is both the title of a recent book by the economic historian Deirdre N. McCloskey and, she argues, the attitude that accounts for the biggest story in economic history: the explosion of growth that took northern Europeans and eventually the world from living on about $3 a day, give or take a dollar or two (in today’s bu
  • ing power), to the current global average of $30 -- and much higher in developed nations
  • That change, she argues, is way too big to be explained by normal economic behavior, however rational, disciplined or efficient
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  • the usual stories of utility maximization and optimal pricing “can’t explain the rise in the whole world’s (absolute) advantage from $3 to $30 a day, not to speak of $137 a day.”
  • McCloskey’s explanation is that people changed the way they thought, wrote and spoke about economic activity. “In the eighteenth and nineteenth centuries,” she writes, “a great shift occurred in what Alexis de Tocqueville called ‘habits of the mind’ -- or more exactly, habits of the lip. People stopped sneering at market innovativeness and other bourgeois virtues.” As attitudes changed, so did behavior, leading to more than two centuries of constant innovation and rising living standards.
  • Most of “Bourgeois Dignity” is devoted to knocking down alternative explanations for the sudden and enormous escalation in living standards. In particular, McCloskey draws on the last half-century of economic-history scholarship to debunk what most people outside the field assume was the critical ingredient: savings and wealth accumulation. We might call this explanation “capital-ism.” Whether derived from Karl Marx, Max Weber, Karl Polyani, or, in a more-recent incarnation, Fernand Braudel, she argues, the emphasis on capital simply gets the facts wrong. It is empirically false.
  • savings rate of at least 12 percent, compared with no more than 10 percent to 20 percent in modern industrial economies. And, contrary to Weber’s story about a new Protestant Ethic, savings rates were roughly the same in Catholic and Protestant countries or, for that matter, in China.
  • Besides, as economic historians discovered in the 1960s, the economic takeoff didn’t actually require large amounts of capital. Early cotton mills, for instance, were relatively cheap to set up. “The source of the industrial investment required was short-term loans from merchants for inventories and longer- term loans from relative
  • What was different, she maintains, is how people thought about new ideas. Creative destruction became not only accepted but also encouraged, as did individual enterprise. “What
  • ade us rich,” she writes, “was a new rhetoric that was favorable to unbounded innovation, imaginatio
  • ness, persuasion, originality, with individual rewards often paid in a coin of honor or thankfuln
  • McCloskey’s book is not only a useful survey of how scholars answer the biggest question in economics: What causes growth? It is also a timely reminder that prosperity depends on more than effort or resources or infrastructure or good laws. Attitudes matter, too. You don’t build a wealthy society by deriding bourgeois enterprise -- or the people who take pride in it.
Javier E

The Poor Lives of Rich People - Entertainment - The Atlantic Wire - 1 views

  • Bloomberg's Max Abelson recently interviewed a bunch of Wall Street folks who got smaller bonuses this year, and as their comments indicate, more money either really does mean more problems, or it means that a wealthy person's sense of reality is just that much further off.
Javier E

The Dwindling Power of a College Degree - NYTimes.com - 0 views

  • a college degree is no longer the guarantor of a middle-class existence. Until the early 1970s, less than 11 percent of the adult population graduated from college, and most of them could get a decent job. Today nearly a third have college degrees, and a higher percentage of them graduated from nonelite schools. A bachelor’s degree on its own no longer conveys intelligence and capability. To get a good job, you have to have some special skill — charm, by the way, counts — that employers value. But there’s also a pretty good chance that by some point in the next few years, your boss will find that some new technology or some worker overseas can replace you.
  • The actual rules have also changed notably since the 1970s. Back then, there were all sorts of stabilizers that pushed working-class wages up and kept rich people’s wages lower. The minimum wage, at its pre-1970s peak, was almost 50 percent higher than it is now (inflation adjusted, naturally). Unions were stronger and had more government support. The United States taxed the rich much higher relative to the working class. (The top bracket was taxed at 70 percent in 1978; now it’s 35 percent.) It’s hard to imagine, but regulations largely limited the profitability of banks and kept bankers’ financial compensation low.
  • Though it’s no guarantee, a B.A. or some kind of technical training is at least a prerequisite for a decent salary. It’s hard to see any great future for high-school dropouts or high-school graduates with no technical skills. They most often get jobs that require little judgment and minimal training, like stocking shelves, cooking burgers and cleaning offices. Employers generally see these unskilled workers as commodities — one is as good as any other — and thus each worker has very little bargaining power, especially now that unions are weaker. There are about 40 million of these low-skilled people in our work force. They’re vying for jobs that are likely to earn near the minimum wage with few or no benefits, and they have a high chance of being laid off many times in a career.
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  • The new rules, combined with the other major changes, have effectively removed both the floor and the ceiling. It’s easier for some to make a lot more money and for others to fall much further behind. That has meant a huge increase in inequality. The top 1 percent of families now makes 26 times the average of the other 99 percent (the ratio was 11 to 1 in 1979). The top 0.1 percent makes 130 times the bottom 99 (up from a 38-to-1 ratio 40 years ago). And the inequality is not just between classes. The average wages of the average American have stayed largely flat for decades, but those averages hide a lot of volatility, as more people find themselves at the extremes of wealth or poverty. A successful plumber who has mastered all the new water-flow sensor technology and pipe-fitting innovations (and is probably in a union) can make more than $100,000 a year, while other plumbers, who just know the basics, could make less than $20,000.
  • The increasingly vicious battle between left and right is, at the most basic level, a dispute over how to respond to these new rules. Republicans largely claim that the new rules will make the country richer and, in the long run, will be beneficial to everyone willing to put in the hard work. Few Democrats call for a return to record high taxes and trade barriers — after all, the free flow of cheap goods has helped many, particularly the poor. But many do want a return to the spirit of the old rules, when the government sought to make life more equal, more stable and, for some, less rewarding.
Brian Zittlau

The Secret History of Guns - Adam Winkler - The Atlantic - 0 views

  • Yet we’ve also always had gun control. The Founding Fathers instituted gun laws so intrusive that, were they running for office today, the NRA would not endorse them. While they did not care to completely disarm the citizenry, the founding generation denied gun ownership to many people: not only slaves and free blacks, but law-abiding white men who refused to swear loyalty to the Revolution.
  • For those men who were allowed to own guns, the Founders had their own version of the “individual mandate” that has proved so controversial in President Obama’s health-care-reform law: they required the purchase of guns. A 1792 federal law mandated every eligible man to purchase a military-style gun and ammunition for his service in the citizen militia. Such men had to report for frequent musters—where their guns would be inspected and, yes, registered on public rolls.
  • Malcolm X and the Panthers described their right to use guns in self-defense in constitutional terms. “Article number two of the constitutional amendments,” Malcolm X argued, “provides you and me the right to own a rifle or a shotgun.” Guns became central to the Panthers’ identity, as they taught their early recruits that “the gun is the only thing that will free us—gain us our liberation.”
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  • Martin Luther King Jr. applied for a permit to carry a concealed firearm in 1956, after his house was bombed. His application was denied, but from then on, armed supporters guarded his home. One adviser, Glenn Smiley, described the King home as “an arsenal.”
  • Republicans in California eagerly supported increased gun control. Governor Reagan told reporters that afternoon that he saw “no reason why on the street today a citizen should be carrying loaded weapons.” He called guns a “ridiculous way to solve problems that have to be solved among people of good will.” In a later press conference, Reagan said he didn’t “know of any sportsman who leaves his home with a gun to go out into the field to hunt or for target shooting who carries that gun loaded.” The Mulford Act, he said, “would work no hardship on the honest citizen.”
  • the Gun Control Act of 1968 amended and enlarged it. Together, these laws greatly expanded the federal licensing system for gun dealers and clarified which people—including anyone previously convicted of a felony, the mentally ill, illegal-drug users, and minors—were not allowed to own firearms. More controversially, the laws restricted importation of “Saturday Night Specials”—the small, cheap, poor-quality handguns so named by Detroit police for their association with urban crime, which spiked on weekends. Because these inexpensive pistols were popular in minority communities, one critic said the new federal gun legislation “was passed not to control guns but to control blacks.”
  • Indisputably, for much of American history, gun-control measures, like many other laws, were used to oppress African Americans.
  • One prosecutor in the impeachment trial, Representative John Bingham of Ohio, thought that the only way to protect the freedmen’s rights was to amend the Constitution. Southern attempts to deny blacks equal rights, he said, were turning the Constitution—“a sublime and beautiful scripture—into a horrid charter of wrong.”
  • Whether or not the Founding Fathers thought the Second Amendment was primarily about state militias, the men behind the Fourteenth Amendment—America’s most sacred and significant civil-rights law—clearly believed that the right of individuals to have guns for self-defense was an essential element of citizenship.
  • As the Yale law professor Akhil Reed Amar has observed, “Between 1775 and 1866 the poster boy of arms morphed from the Concord minuteman to the Carolina freedman.”
  • The Fourteenth Amendment illustrates a common dynamic in America’s gun culture: extremism stirs a strong reaction. The aggressive Southern effort to disarm the freedmen prompted a constitutional amendment to better protect their rights. A hundred years later, the Black Panthers’ brazen insistence on the right to bear arms led whites, including conservative Republicans, to support new gun control. Then the pendulum swung back. The gun-control laws of the late 1960s, designed to restrict the use of guns by urban black leftist radicals, fueled the rise of the present-day gun-rights movement—one that, in an ironic reversal, is predominantly white, rural, and politically conservative.
  • In the 1920s and ’30s, the NRA was at the forefront of legislative efforts to enact gun control. The organization’s president at the time was Karl T. Frederick, a Princeton- and Harvard-educated lawyer known as “the best shot in America”
  • Frederick’s model law had three basic elements. The first required that no one carry a concealed handgun in public without a permit from the local police. A permit would be granted only to a “suitable” person with a “proper reason for carrying” a firearm. Second, the law required gun dealers to report to law enforcement every sale of a handgun, in essence creating a registry of small arms. Finally, the law imposed a two-day waiting period on handgun sales.
  • The NRA today condemns every one of these provisions as a burdensome and ineffective infringement on the right to bear arms. Frederick, however, said in 1934 that he did “not believe in the general promiscuous toting of guns. I think it should be sharply restricted and only under licenses.” The NRA’s executive vice president at the time, Milton A. Reckord, told a congressional committee that his organization was “absolutely favorable to reasonable legislation.”
  • In the 1960s, the NRA once again supported the push for new federal gun laws. After the assassination of President John F. Kennedy in 1963 by Lee Harvey Oswald, who had bought his gun through a mail-order ad in the NRA’s American Rifleman magazine, Franklin Orth, then the NRA’s executive vice president, testified in favor of banning mail-order rifle sales. “We do not think that any sane American, who calls himself an American, can object to placing into this bill the instrument which killed the president of the United States.”
  • In May 1977, Carter and his allies staged a coup at the annual membership meeting. Elected the new executive vice president, Carter would transform the NRA into a lobbying powerhouse committed to a more aggressive view of what the Second Amendment promises to citizens.
  • Wayne LaPierre, the current executive vice president, warned members in 1995 that anyone who wears a badge has “the government’s go-ahead to harass, intimidate, even murder law-abiding citizens.”
  • In 2008, in a landmark ruling, the U.S. Supreme Court declared that the government cannot ever completely disarm the citizenry. In District of Columbia v. Heller, the Supreme Court clearly held, for the first time, that the Second Amendment guarantees an individual’s right to possess a gun. In an opinion by Justice Antonin Scalia, the Court declared unconstitutional several provisions of the District’s unusually strict gun-control law, including its ban on handguns and its prohibition of the use of long guns for self-defense. Indeed, under D.C.’s law, you could own a shotgun, but you could not use it to defend yourself against a rapist climbing through your bedroom window.
  • True, the Founders imposed gun control, but they had no laws resembling Scalia’s list of Second Amendment exceptions. They had no laws banning guns in sensitive places, or laws prohibiting the mentally ill from possessing guns, or laws requiring commercial gun dealers to be licensed. Such restrictions are products of the 20th century. Justice Scalia, in other words, embraced a living Constitution. In this, Heller is a fine reflection of the ironies and contradictions—and the selective use of the past—that run throughout America’s long history with guns.
Javier E

The future of jobs: The onrushing wave | The Economist - 0 views

  • drudgery may soon enough give way to frank unemployment. There is already a long-term trend towards lower levels of employment in some rich countries. The proportion of American adults participating in the labour force recently hit its lowest level since 1978
  • In a recent speech that was modelled in part on Keynes’s “Possibilities”, Larry Summers, a former American treasury secretary, looked at employment trends among American men between 25 and 54. In the 1960s only one in 20 of those men was not working. According to Mr Summers’s extrapolations, in ten years the number could be one in seven.
  • A 2013 paper by Carl Benedikt Frey and Michael Osborne, of the University of Oxford, argued that jobs are at high risk of being automated in 47% of the occupational categories into which work is customarily sorted. That includes accountancy, legal work, technical writing and a lot of other white-collar occupations.
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  • The impacts of technological change take their time appearing. They also vary hugely from industry to industry. Although in many simple economic models technology pairs neatly with capital and labour to produce output, in practice technological changes do not affect all workers the same way. Some find that their skills are complementary to new technologies. Others find themselves out of work.
  • The case for a highly disruptive period of economic growth is made by Erik Brynjolfsson and Andrew McAfee, professors at MIT, in “The Second Machine Age”, a book to be published later this month. Like the first great era of industrialisation, they argue, it should deliver enormous benefits—but not without a period of disorienting and uncomfortable change
  • Their argument rests on an underappreciated aspect of the exponential growth in chip processing speed, memory capacity and other computer metrics: that the amount of progress computers will make in the next few years is always equal to the progress they have made since the very beginning. Mr Brynjolfsson and Mr McAfee reckon that the main bottleneck on innovation is the time it takes society to sort through the many combinations and permutations of new technologies and business models.
  • A startling progression of inventions seems to bear their thesis out. Ten years ago technologically minded economists pointed to driving cars in traffic as the sort of human accomplishment that computers were highly unlikely to master. Now Google cars are rolling round California driver-free
  • Even after computers beat grandmasters at chess (once thought highly unlikely), nobody thought they could take on people at free-form games played in natural language. Then Watson, a pattern-recognising supercomputer developed by IBM, bested the best human competitors in America’s popular and syntactically tricksy general-knowledge quiz show “Jeopardy!” Versions of Watson are being marketed to firms
  • Text-mining programs will displace professional jobs in legal services. Biopsies will be analysed more efficiently by image-processing software than lab technicians. Accountants may follow travel agents and tellers into the unemployment line as tax software improves. Machines are already turning basic sports results and financial data into good-enough news stories.
  • A taxi driver will be a rarity in many places by the 2030s or 2040s. That sounds like bad news for journalists who rely on that most reliable source of local knowledge and prejudice—but will there be many journalists left to care? Will there be airline pilots? Or traffic cops? Or soldiers?
  • Tyler Cowen, an economist at George Mason University and a much-read blogger, writes in his most recent book, “Average is Over”, that rich economies seem to be bifurcating into a small group of workers with skills highly complementary with machine intelligence, for whom he has high hopes, and the rest, for whom not so much.
  • the second machine age will make such trial and error easier. It will be shockingly easy to launch a startup, bring a new product to market and sell to billions of global consumers (see article). Those who create or invest in blockbuster ideas may earn unprecedented returns as a result.
  • Thomas Piketty, an economist at the Paris School of Economics, argues along similar lines that America may be pioneering a hyper-unequal economic model in which a top 1% of capital-owners and “supermanagers” grab a growing share of national income and accumulate an increasing concentration of national wealth
  • The rise of the middle-class—a 20th-century innovation—was a hugely important political and social development across the world. The squeezing out of that class could generate a more antagonistic, unstable and potentially dangerous politics.
  • The current doldrum in wages may, like that of the early industrial era, be a temporary matter, with the good times about to roll (see chart 3). These jobs may look distinctly different from those they replace. Just as past mechanisation freed, or forced, workers into jobs requiring more cognitive dexterity, leaps in machine intelligence could create space for people to specialise in more emotive occupations, as yet unsuited to machines: a world of artists and therapists, love counsellors and yoga instructors.
  • though growth in areas of the economy that are not easily automated provides jobs, it does not necessarily help real wages. Mr Summers points out that prices of things-made-of-widgets have fallen remarkably in past decades; America’s Bureau of Labour Statistics reckons that today you could get the equivalent of an early 1980s television for a twentieth of its then price,
  • owever, prices of things not made of widgets, most notably college education and health care, have shot up
  • As innovation continues, automation may bring down costs in some of those stubborn areas as well, though those dominated by scarcity—such as houses in desirable places—are likely to resist the trend, as may those where the state keeps market forces at bay. But if innovation does make health care or higher education cheaper, it will probably be at the cost of more jobs, and give rise to yet more concentration of income.
  • Adaptation to past waves of progress rested on political and policy responses. The most obvious are the massive improvements in educational attainment brought on first by the institution of universal secondary education and then by the rise of university attendance. Policies aimed at similar gains would now seem to be in order. But as Mr Cowen has pointed out, the gains of the 19th and 20th centuries will be hard to duplicate.
  • Boosting the skills and earning power of the children of 19th-century farmers and labourers took little more than offering schools where they could learn to read, write and do algebra. Pushing a large proportion of college graduates to complete graduate work successfully will be harder and more expensive. Perhaps cheap and innovative online education will indeed make new attainment possible. But as Mr Cowen notes, such programmes may tend to deliver big gains only for the most conscientious students.
  • Everyone should be able to benefit from productivity gains—in that, Keynes was united with his successors. His worry about technological unemployment was mainly a worry about a “temporary phase of maladjustment” as society and the economy adjusted to ever greater levels of productivity
  • However, society may find itself sorely tested if, as seems possible, growth and innovation deliver handsome gains to the skilled, while the rest cling to dwindling employment opportunities at stagnant wages.
Javier E

» The End of Higher Education's Golden Age Clay Shirky - 0 views

  • The biggest threat those of us working in colleges and universities face isn’t video lectures or online tests. It’s the fact that we live in institutions perfectly adapted to an environment that no longer exists.
  • Decades of rising revenue meant we could simultaneously become the research arm of government and industry, the training ground for a rapidly professionalizing workforce, and the preservers of the liberal arts tradition. Even better, we could do all of this while increasing faculty ranks and reducing the time senior professors spent in the classroom. This was the Golden Age of American academia.
  • Rising costs and falling subsidies have driven average tuition up over 1000% since the 1970s.
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  • For 30 wonderful years, we had been unusually flush, and we got used to it, re-designing our institutions to assume unending increases in subsidized demand. This did not happen. The year it started not happening was 1975. Every year since, we tweaked our finances, hiking tuition a bit, taking in a few more students, making large lectures a little larger, hiring a few more adjuncts.
  • Over the decades, though, we’ve behaved like an embezzler who starts by taking only what he means to replace, but ends up extracting so much that embezzlement becomes the system. There is no longer enough income to support a full-time faculty and provide students a reasonably priced education of acceptable quality at most colleges or universities in this country.
  • Of the twenty million or so students in the US, only about one in ten lives on a campus. The remaining eighteen million—the ones who don’t have the grades for Swarthmore, or tens of thousands of dollars in free cash flow, or four years free of adult responsibility—are relying on education after high school not as a voyage of self-discovery but as a way to acquire training and a certificate of hireability.
  • Though the landscape of higher education in the U.S., spread across forty-six hundred institutions, hosts considerable variation, a few commonalities emerge: the bulk of students today are in their mid-20s or older, enrolled at a community or commuter school, and working towards a degree they will take too long to complete. One in three won’t complete, ever. Of the rest, two in three will leave in debt. The median member of this new student majority is just keeping her head above water financially. The bottom quintile is drowning.
  • One obvious way to improve life for the new student majority is to raise the quality of the education without raising the price. This is clearly the ideal, whose principal obstacle is not conceptual but practical: no one knows how. The value of our core product—the Bachelor’s degree—has fallen in every year since 2000, while tuition continues to increase faster than inflation.
  • The metaphor my colleagues often use invokes religion. In Wannabe U, the author describes the process of trying to turn UConn into a nationally competitive school as the faculty being ‘dechurched’. In this metaphor, we are a separate estate of society that has putative access to its resources, as well as the right to reject democratic oversight, managerial imperatives, and market discipline. We answer to no one but ourselves.
  • When the economic support from the Golden Age began to crack, we tenured faculty couldn’t be forced to share much of the pain. Our jobs were secure, so rather than forgo raises or return to our old teaching loads, we either allowed or encouraged those short-term fixes—rising tuition, larger student bodies, huge introductory lectures.
  • All that was minor, though, compared to our willingness to rely on contingent hires, including our own graduate students, ideal cheap labor. The proportion of part-time and non-tenure track teachers went from less than half of total faculty, before 1975, to over two-thirds now
  • In the same period, the proportion of jobs that might someday lead to tenure collapsed, from one in five to one in ten. The result is the bifurcation we have today: People who have tenure can’t lose it. People who don’t mostly can’t get it.
  • If we can’t keep raising costs for students (we can’t) and if no one is coming to save us (they aren’t), then the only remaining way to help these students is to make a cheaper version of higher education for the new student majority.
  • The number of high-school graduates underserved or unserved by higher education today dwarfs the number of people for whom that system works well. The reason to bet on the spread of large-scale low-cost education isn’t the increased supply of new technologies. It’s the massive demand for education, which our existing institutions are increasingly unable to handle. That demand will go somewhere.
  • why is not part of the answer a secondary education certification scheme that is serious and ideally nation-wide. The British GCSE/A-levels is something that seems to work. Herding the cats that would be necessary to implement something like that is, I grant, a monstrous task, but perhaps no more difficult than revising the university system. As things stand now, the lack of standards in most high schools means wasted opportunities of academic development for a very large part of our reasonably gifted teenage population. A revised university system would still leave in place the distinctly inadequate high school system we have now.
  • The other way to help these students would be to dramatically reduce the price or time required to get an education of acceptable quality (and for acceptable read “enabling the student to get a better job”, their commonest goal.) This is a worse option in every respect except one, which is that it may be possible.
  • The metaphor I have come to prefer (influenced especially by Richard Rorty) is that we in the academy are workers, and our work is to make people smarter — ourselves, our peers, our students, which is a goal that has to be constantly negotiated among various constituencies.
  • When the military rationale for both the GI Bill and the Soviet struggle ended, so did overall American interest in the kind of funding that drove the Golden Age. There is not now and has never been a broad commitment to higher education as a social good in this country
  • ow you can say — and many of my colleagues do — that this is all just a matter of getting state governments to take on different concerns or convictions, or getting a more nationalized educational system. That was the song my parents, both educators, sang, and the song I grew up singing. But the period when the states really drove funding up lasted just 15 years — 1960 to 1975 — and has been in decline for 40 years since.
  • I can — barely — imagine some states increasing some subsidies to some campuses at a rate faster than inflation. Some of the schools in California, Virginia, Massachusetts, and Michigan are candidates for this. I cannot, however, imagine my tenured colleagues tolerating the situation that makes higher education broadly affordable in social democracies, which would require us earning less while teaching more.
  • I am done, in other words, thinking of myself and my peers on faculty as blameless, and I am done imagining that 40 years of evidence from the behavior of democratically elected legislatures is some sort of readily reversible blip. I do not believe that the caste system that has established itself at elite institutions can be funded at the rate which we insist we need, and I do not believe that we will willingly see any of our own benefits reduced to help our junior colleagues or our students.
  • Students feel compelled to acquire credentialing as a means of improving their economic positions. Unfortunately, along the way, “professional” training has taken precedence over education. The two have become conflated in the public mind.
  • Today it is not only that the PhD:s are abundant but also that in many areas peak knowledge is short lived. You might be competent when you graduate but five years later that competence is of yesteryear and the ones with the newest knowledge kick you out just like you kicked someone else out five years ago. We need a base to stand on but then we need to go in and out of education during our whole lives to keep up with development. This puts a strain on each end everyone of us as individuals but it also calls for a whole new role for academia
  • Change the game and lower the transaction costs: Instead of treating students as backseat passengers in a higher educational vehicle that’s geared towards the transmission of self-contained content, i.e., content produced by professors for the self-serving purpose of publication–put steering wheels in the hands of students, take them out on road trips, negotiate real problems–and they will become self-educating
  • Note that having a college degree only retains value right now because there isn’t a better (more predictive, and trusted) credential to be had for people who are seeking jobs.
  • the online versions of education have reduced the college experience down to what’s easy to implement and easy to measure: receiving lectures, and activities of the quiz-and-test variety. It’s not clear that the value of the traditional old-school college experience (and it’s accompanying degree) were the result of those particular aspects of the experience. Granting degrees based only on coursework runs the risk of diluting the perceived value of the degree.
Javier E

How Technology Wrecks the Middle Class - NYTimes.com - 0 views

  • the productivity of American workers — those lucky enough to have jobs — has risen smartly
  • the United States still has two million fewer jobs than before the downturn, the unemployment rate is stuck at levels not seen since the early 1990s and the proportion of adults who are working is four percentage points off its peak in 2000.
  • Do “smart machines” threaten us with “long-term misery,” as the economists Jeffrey D. Sachs and Laurence J. Kotlikoff prophesied earlier this year?
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  • Economists have historically rejected what we call the “lump of labor” fallacy: the supposition that an increase in labor productivity inevitably reduces employment because there is only a finite amount of work to do. While intuitively appealing, this idea is demonstrably false.
  • Labor-saving technological change necessarily displaces workers performing certain tasks — that’s where the gains in productivity come from — but over the long run, it generates new products and services that raise national income and increase the overall demand for labor.
  • The multi-trillionfold decline in the cost of computing since the 1970s has created enormous incentives for employers to substitute increasingly cheap and capable computers for expensive labor.
  • Computers excel at “routine” tasks: organizing, storing, retrieving and manipulating information, or executing exactly defined physical movements in production processes. These tasks are most pervasive in middle-skill jobs
  • Logically, computerization has reduced the demand for these jobs, but it has boosted demand for workers who perform “nonroutine” tasks that complement the automated activities
  • At one end are so-called abstract tasks that require problem-solving, intuition, persuasion and creativity.
  • On the other end are so-called manual tasks, which require situational adaptability, visual and language recognition, and in-person interaction.
  • Computerization has therefore fostered a polarization of employment, with job growth concentrated in both the highest- and lowest-paid occupations, while jobs in the middle have declined.
  • overall employment rates have largely been unaffected in states and cities undergoing this rapid polarization.
  • So computerization is not reducing the quantity of jobs, but rather degrading the quality of jobs for a significant subset of workers. Demand for highly educated workers who excel in abstract tasks is robust, but the middle of the labor market, where the routine task-intensive jobs lie, is sagging.
  • Spurred by growing demand for workers performing abstract job tasks, the payoff for college and professional degrees has soared; despite its formidable price tag, higher education has perhaps never been a better investment.
  • The good news, however, is that middle-education, middle-wage jobs are not slated to disappear completely. While many middle-skill jobs are susceptible to automation, others demand a mixture of tasks that take advantage of human flexibility
  • we predict that the middle-skill jobs that survive will combine routine technical tasks with abstract and manual tasks in which workers have a comparative advantage — interpersonal interaction, adaptability and problem-solving.
  • this category includes numerous jobs for people in the skilled trades and repair: plumbers; builders; electricians; heating, ventilation and air-conditioning installers; automotive technicians; customer-service representatives; and even clerical workers who are required to do more than type and file
  • Lawrence F. Katz, a labor economist at Harvard, memorably called those who fruitfully combine the foundational skills of a high school education with specific vocational skills the “new artisans.”
  • The outlook for workers who haven’t finished college is uncertain, but not devoid of hope. There will be job opportunities in middle-skill jobs, but not in the traditional blue-collar production and white-collar office jobs of the past
  • we expect to see growing employment among the ranks of the “new artisans”: licensed practical nurses and medical assistants; teachers, tutors and learning guides at all educational levels; kitchen designers, construction supervisors and skilled tradespeople of every variety; expert repair and support technicians; and the many people who offer personal training and assistance, like physical therapists, personal trainers, coaches and guides
Javier E

GOP's Long-Predicted Comeuppance Has Arrived | TPM Editors Blog - 0 views

  • TPM Editor’s Blog GOP’s Long-Predicted Comeuppance Has Arrived Share this story on Facebook Tweet !function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0];if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); Tweet this story Email this story to a friend Speaker of the House John Boehner, R-Ohio, and Rep. Cathy McMorris Rodgers, R-Wash., right, the Republican Conference Chair, arrive at the House of Representatives. (AP Photo/J. Scott Applewhite) Brian Beutler July 31, 2013, 5:55 PM 65028 Republicans have dealt with some embarrassing moments on the House floor over the past year, but none so revealing or damning as today’s snafu, when they yanked a bill to fund the Departments of Transportation and Housing and Urban Development. Even the recent farm bill fiasco wasn’t as significant an indictment of the GOP’s governing potential. It might look like a minor hiccup, or a symbolic error. But it spells doom for the party’s near-term budget strategy and underscores just how bogus the party’s broader agenda really is and has been for the last four years. In normal times, the House and Senate would each pass a budget, the differences between those budgets would be resolved, and appropriators in both chambers would have binding limits both on how much money to spend, and on which large executive agencies to spend it. But these aren’t normal times. Republicans have refused to negotiate away their budget differences with Democrats, and have instead instructed their appropriators to use the House GOP budget as a blueprint for funding the government beyond September. Like all recent GOP budgets, this year’s proposes lots of spending on defense and security, at the expense of all other programs. Specifically, it sets the total pool of discretionary dollars at sequestration levels, then funnels money from thinly stretched domestic departments (like Transportation and HUD) to the Pentagon and a few other agencies. But that’s all the budget says. It doesn’t say how to allocate the dollars, nor does it grapple in any way with the possibility that cutting domestic spending so profoundly might be unworkable. It’s an abstraction.
  • It turns out that when you draft bills enumerating all the specific cuts required to comply with the budget’s parameters, they don’t come anywhere close to having enough political support to pass. Even in the GOP House.
  • many close Congress watchers — and indeed many Congressional Democrats — have long suspected that their votes for Ryan’s budgets were a form of cheap talk. That Republicans would chicken out if it ever came time to fill in the blanks. Particularly the calls for deep but unspecified domestic discretionary spending cuts.
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  • “With this action, the House has declined to proceed on the implementation of the very budget it adopted three months ago,” said an angry appropriations chair Hal Rogers (R-KY). “Thus I believe that the House has made its choice: sequestration — and its unrealistic and ill-conceived discretionary cuts — must be brought to an end.”
  • It also suggests that the GOP’s preference for permanent sequestration-level spending, particularly relative to increasing taxes, is not politically viable. If they want to lift the defense cuts, they’re going to have to either return to budget negotiations with Democrats, or agree to rescind sequestration altogether.
Javier E

Who's Right on the Stock Market? - NYTimes.com - 0 views

  • In one corner is Robert Shiller, the Yale economist who argues that markets (and by implication, share prices) are often irrational and therefore beatable. He famously predicted the bubble in technology stocks in the late 1990s.
  • I get Mr. Fama’s theory, but the evidence points decidedly in the opposite direction. I have met many investors who have consistently outperformed the market.
  • As someone whose professional life centers on evaluating investment managers, I come down emphatically with Mr. Shiller.
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  • In the other corner is Eugene Fama, the father of the view that markets are efficient and that they are always processing all available information. Mr. Fama’s followers believe that investors who try to beat the averages will inevitably fail.
  • Sophisticated investors have learned that even when they are convinced that an overall market is expensive or cheap, markets can indeed be irrational and predicting the timing of the inevitable correction can be challenging.
  • markets can remain irrational longer than an investor can remain solvent.
Javier E

Parochial Progress - NYTimes.com - 0 views

  • The autocratic, pro-Western military government that took power in 1975 instigated limited economic liberalization. This enabled Bangladeshi entrepreneurs to take advantage of the Multifiber Arrangement, an international trade agreement on textiles and garments that placed export quotas on the emerging economies of East Asia in order to shield Western economies from competition. Very poor countries were exempt from the restrictions, and in the 1980s the new military elite of Bangladesh, hoping to capitalize on the cheap local labor, opened garment factories with the help of South Korean investors. Know-how soon spread, attracting more investment. Bangladesh is now the world’s second-largest exporter of apparel after China.
  • because Bangladesh’s banking sector and stock market are “not very much exposed to the world,” Muhith explained, the country has weathered global financial crises well, holding a G.D.P. growth rate at an average of 5 percent since 1990.
  • Globalization has arguably created a two-tier society in India: one worldly and plugged in, the other mired in medieval poverty. But it gave Bangladesh, which knew it was on the sidelines of modernity, a reason to develop the old-fashioned way: by industrializing to create low-level jobs for the masses
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  • The satellite towns that ring Dhaka — a maze of shoddy constructions and fetid streams — bring to mind William Blake’s dark Satanic mills, not equitable development. The leather industry has turned Hazaribagh, an area in Old Dhaka, into the fifth-most polluted place in the world, according to the environmental watchdog Blacksmith Institute. Yet industrialization is a proven step toward economic growth. According to the University of Cambridge economist Ha-Joon Chang, few if any countries have achieved first-world economic status without it.
  • says Amartya Sen, the economist and Nobel laureate: “In terms of many typical indicators of living standards, Bangladesh not only does better than India, it has a considerable lead over it.”
Javier E

Fake Meats, Finally, Taste Like Chicken - NYTimes.com - 0 views

  • “Frankly, we’ve never said we’re interested in food,” said Randy Komisar, a partner at Kleiner Perkins Caulfield Byers, a venture capital firm that has backed Google and Facebook — and Beyond Meat. “What we’re interested in is big problems needing solutions, because they represent big potential markets and strong opportunities for building great returns.”
  • Among the problems he listed that his firm’s investment in Beyond Meat are intended to address are land and water use, stress on global supply chains and the world’s growing population. “These are venture-scale problems with venture-scale returns,” Mr. Komisar said.
  • More than anything we’re trying to reverse what we see as a problem, which is cheap and convenient food that is always going to win in China, win in India and win with my father, but isn’t good for the body or animals or the environment.”
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  • “Much of the new growth in the segment is coming from younger consumers who seek foods that fit an overall lifestyle, be it for health reasons or personal ethics,” Mr. Loucks wrote. “They are not just seeking foods that mimic meat. Instead they specifically want vegetarian foods with distinctive flavors and visible, recognizable ingredients.”
  • “Not that long ago, electrical cars were considered nonperformers, and when Prius came out, a lot of people didn’t think there was a market for it,” said Yves Potvin, founder and chief executive of Gardein Protein International, which makes the Gardein line of meatless products. “Now people are willing to pay $70,000 for a Tesla, and more than one million Prius cars are sold each year.”
  • Mr. Brown is most proud of Beyond Meat’s “chicken breast” products, which are sold in strips that look like real chicken and can be pulled into shreds for chicken salad. “That was kind of the holy grail,” he said.
  • “It has to be just as good as, just as convenient as and maybe even cheaper than ground beef or chicken,” Mr. Brown said. “Our business is to create something better than meat; otherwise we are not going to move the needle.”
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