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Here’s a story you don’t see very often. Iraq’s highest court told the Iraqi Parliament last Monday that it had no right to strip one of its members of immunity so he could be prosecuted for an alleged crime: visiting Israel for a seminar on counterterrorism. The Iraqi justices said the Sunni lawmaker, Mithal al-Alusi, had committed no crime and told the Parliament to back off.
Porter wrote that the U.S. economy has historically benefited from several great assets: an unparalleled environment for entrepreneurialism, a tremendous infrastructure for scientific research, the world’s best universities, a strong commitment to competition and free markets, decentralized regional economies, and efficient capital markets.
But, Porter continued, these advantages are starting to erode. The U.S. has an inadequate rate of reinvestment in science and technology. America’s confidence in free markets is waning. Lack of regulatory oversight has undermined capital markets. Universities have not sufficiently increased graduation rates. American workers do not have a credible safety net. Regulations and litigation have inflated the cost of business. Most important, there is no long-term economic strategy to organize responses to these problems.
Obama enters office signaling that he will continue the policies of President Bush's late second term in Iraq and Afghanistan, and key architects of those policies, starting with Defense Secretary Robert Gates, will likely keep their jobs. That would leave Russia as the unexpected laboratory for Obama to shape his own foreign policy.
American prosperity relies on creative destruction—the failure of nonviable companies and their replacement by defter rivals. The government endeavors to protect the worker in periods of transition, writes David Brooks in the New York Times, but not the firms themselves. That’s why the auto-industry bailout is a bad idea: Extending the life of the Big Three means preserving their unworkable business models.
The financial bailout ensured that the system itself continued to function, Brooks writes, but “a federal cash infusion will not infuse wisdom into management” at GM, Chrysler and Ford. Charles Krauthammer, in the Washington Post, agrees, writing that the Detroit bailout underlines philosophical differences between Republicans and Democrats: “In this crisis, we agree to suspend the invisible hand of Adam Smith— but not in order to be crushed by the heavy hand of government.
Barack Obama has the kind of cocksure confidence that can only be achieved by not achieving anything else.
Anyone who has actually had to take responsibility for consequences by running any kind of enterprise-- whether economic or academic, or even just managing a sports team-- is likely at some point to be chastened by either the setbacks brought on by his own mistakes or by seeing his successes followed by negative consequences that he never anticipated.
The kind of self-righteous self-confidence that has become Obama's trademark is usually found in sophomores in Ivy League colleges-- very bright and articulate students, utterly untempered by experience in real world.
The signs of Barack Obama's self-centered immaturity are painfully obvious, though ignored by true believers who have poured their hopes into him, and by the media who just want the symbolism and the ideology that Obama represents.
The triumphal tour of world capitals and photo-op meetings with world leaders by someone who, after all, was still merely a candidate, is just one sign of this self-centered immaturity.
"This is our time!" he proclaimed. And "I will change the world." But ultimately this election is not about him, but about the fate of this nation, at a time of both domestic and international peril, with a major financial crisis still unresolved and a nuclear Iran looming on the horizon.
For someone who has actually accomplished nothing to blithely talk about taking away what has been earned by those who have accomplished something, and give it to whomever he chooses in the name of "spreading the wealth," is the kind of casual arrogance that has led to many economic catastrophes in many countries.
Imagine the reaction of the New York Times or the Washington Post had John McCain renounced his promise to participate in public campaign financing, proceeded instead to amass $600 million and outraise the publicly financed Barack Obama four-to-one, and begun airing special 30-minute unanswered infomercials during the last week of the campaign.
Kagan: Correct. And, in that respect, ever since the surge, the additional troops we sent, there have been great successes…
SPIEGEL: …which are undeniable, though not necessarily sustainable. And this results primarily from the fact that the US government is paying bribes to tens of thousands of Sunni fighters to turn their backs on al-Qaida and no longer attack US troops.
Kagan: The money is really not the main issue. The issue is the entire new US military strategy, which establishes security and dramatically improves the lives of people. The New York Times recently reported that the overwhelming majority of al-Qaida terrorists have abandoned Iraq as a safe haven and that they are joining their fellow insurgents in Afghanistan.
SPIEGEL: The terrorists are undoubtedly concentrated in Afghanistan and in the border region with Pakistan, and some are certainly going to those places from Iraq. But this is not an entirely new development. The war against terrorism should have been waged in Afghanistan rather than Iraq, as Obama has said.
Kagan: You cannot acknowledge our successes in Iraq because Europeans can never admit that Bush is doing something right.
SPIEGEL: An overwhelming majority of Europeans want to see Barack Obama become president…
Kagan: Yes, of the United States, although they would never elect someone like that in their own countries. But I understand the Europeans. I too believe that Obama would be an exciting choice, given America’s history. But also a risky one. He has no foreign policy experience compared with McCain, who has been to Europe dozens of times and is intimately familiar with world problems.
“You had the authority to prevent irresponsible lending practices that led to the subprime mortgage crisis. You were advised to do so by many others,” said Representative Henry A. Waxman of California, chairman of the committee. “Do you feel that your ideology pushed you to make decisions that you wish you had not made?”
Mr. Greenspan conceded: “Yes, I’ve found a flaw. I don’t know how significant or permanent it is. But I’ve been very distressed by that fact.”
McCain feels with his heart, but he thinks with his base. And when he picked Sarah Palin, he told the United States of America to go fuck itself. I used to think of my dilemma this way: Obama's conception of America is better than he is, McCain's conception of America is worse than he is. But McCain is looking more and more like his America, which is Bush's America: a country of capitalists and Christians. I do not know how to explain what has become of him. . .
Obama is a smart man. He is a decent man. He is an undangerous man, in the manner of all pragmatists and opportunists. He reveres reason, though he often confuses it with conversation. His domestic goals are good, though the titans of American finance, the greedy geniuses of Wall Street, may have made many of those goals fantastic. He will see to it that some liberalism survives at the Supreme Court. This leaves only the rest of the world. What a time for a novice! I dread the prospect of Obama's West Wing education in foreign policy: even when he spoke well about these matters in the debates, it all sounded so new to him, so light. He must not mistake the global adulation of his person with the end of anti-Americanism. And he must not mistake his hope for the world with his analysis of the world. But OK, then: Obama, and another anxious visit to the ballot box, with--in the stinging words of Du Bois--"a hope not hopeless but unhopeful."
The new interventionism isn't so much socialist as it is Confucian -- a belief that a public-private partnership of the wise ones will get us out of the mess. And if it's any consolation, the Chinese are becoming more like us, even as we are becoming more like them. . . .
One hopeful sign last week was that the Chinese were moving toward private ownership, even as America and Europe were moving away from it. The Chinese government announced a new rural policy aimed at allowing millions of farmers to own the land they have been working. This would create a huge new reserve of private wealth in China, which could power domestic spending and growth. [Read more.]
. . . the government of Iceland is presiding over a massive default by all the country's major banks. This troubling development points not only to an even more painful recession than anticipated, but also to the urgent need for international coordination to avoid something worse: all-out financial warfare.
. . . Iceland's promise to guarantee domestic depositors while reneging on guarantees to foreigners may be just a first step. British Prime Minister Gordon Brown's decision last week to sue Iceland over this issue may escalate the crisis. The use of counterterrorist legislation to take over Icelandic bank assets and operations in the United Kingdom also has a potentially dramatic symbolic effect. (Peter Boone and Simon Johnson, "The Next World War? It Could Be Financial." The Washington Post, 10/12/08.)
