The welfare state is dead. Long live the welfare state!
It's getting hard to keep track of which countries aren't Greece anymore.
First, Ireland wasn't Greece. Then it kind of was. Then it was Portugal's turn to not be Greece. Then it was Portugal's turn to be Greece. Next, Spain wasn't Greece. But now it might be. At the very least it's Ireland. Although Uganda looks like it's in the clear. It's not Spain, which could be Greece. That's better than Cyprus can say. They're pretty much Greece. And, of course, Greece is almost certainly Greece. That goes without saying.
But there's one country that definitely isn't Greece. That's the United States.
Let's step back. What makes a country "Greece"? It's become shorthand for wild government overspending -- especially on entitlements. Paul Ryan says we don't have long to avoid the same fate. Neither does the terrifyingly successful investor Michael Burry. They think that absent drastic reform -- read: cuts -- to the social safety net, we'll end up in penury like the Greeks.
It's a scary story. But it's just a scare story. Yes, we have a long-term healthcare spending problem. But that doesn't make us Greece. Heck, Greece isn't even Greece. At least not the "Greece" that's become such a political football. The evidence -- or lack thereof -- is in the chart below. It compares each country's average social spending since 1999, via the OECD, against its current borrowing costs. See the pattern?
There is none. Europe's biggest social spenders don't have any problems. And Europe's biggest problem countries don't spend that much on social programs. The death knell of the welfare state this is not.
Here's the dirty little secret of the euro debt crisis. There is no euro debt crisis. There is a euro crisis. The debt is a symptom of the crisis of the common currency.* Europe's bailed out countries all saw piles of capital pour in during the boom, only to pour out during the bust. They were left with inflated, uncompetitive wages -- and that's sent them into deep slumps. That's been despite lower social spending than their northern euro neighbors. Germany, Austria, Finland, Finland, the Netherlands, Belgium and -- at least for now -- France have all been able to sustain more generous safety nets thanks to the magic of competitive wages.
It's the same story for Europe's non-euro nations. Sweden, Denmark, Norway, Switzerland and the Czech Republic are all lucky enough to not be passengers on the Titantic members of the common currency. (Denmark has pegged its krone to the euro, but they still have their own central bank). Most of them spend more on social programs than the so-called PIIGS, but all of them can borrow for almost nothing. Investors are actually paying the Swiss and Danish governments for the privilege of lending to them short-term. Think about that. What's going on? Well, if things ever get rough, they can just print money or devalue their currencies. In other words, they can never run out of money.
But Greece can. Being in the euro means never being able to print your own money. And that turns each euro country into a bank. Imagine a bank run. Fear becomes self-fulfilling. Depositors try to pull their money out before everyone else because they're worried the bank will collapse -- which, of course, causes the bank's collapse. Very Oedipal -- minus the parent love. It's the same with Greece. Investors worry that Greece will run out of euros. That's a very rational fear right now. So they try to sell-off their bonds, which pushes up Greece's borrowing costs -- and makes it more likely that Greece will run out of euros. This kind of panic is why Italy -- which has a primary surplus! -- is flirting with trouble too. Only the ECB can stop this.
Notice that I didn't talk about debt at all in the previous paragraph. The PIIGS have too-high wages, too little growth, and face crippling crises of confidence. Austerity won't cure any of that. It'll make things worse. It has. It kneecaps growth. And investors are more worried about growth right now than they are deficits.
Also notice that none of this applies to the United States. We never have to worry about self-fulfilling prophesies of bankruptcy because we can never run out of dollars. As the Boomers retire, we'll spend more on entitlements. That's not the end of the world. Unless you think Sweden is the end of the world. Yes, we need to rein in healthcare inflation, and, yes, we need to raise some more revenue. The former might already be happening. The latter is a political choice. Neither makes us Greece.
So don't believe the rumors of the welfare state's death. They're greatly exaggerated.
* Caveat: Greece is sui generis. They really did just spend too much money. They're not pictured here, because their 10-year bond yield is -- wait for it -- off the chart. Fitting their 27 percent borrowing costs onto this graph makes it too hard to see anything else. But Greece's average social spending is only 21.4 percent of GDP.
The comparatively less flashy, less spirited former First Kid managed to show her mom’s softer side at the DNC on Thursday.
Yes, yes, yes. Chelsea Clinton is not the most charismatic orator—as the Twittersphere was happy to point out during her brief address on Thursday night. She is like her mother that way. There’s something not quite natural about her self-presentation. She’s not stilted, exactly. But she can come across as too cautious, too reserved, too conscious of other people’s eyes upon her.
But, let’s face it, as the lead-in to Hillary’s big nominating speech, a little bit of boring was called for. Unlike some of this convention’s high-wattage speakers, there was zero chance Chelsea was going to upstage Hillary with a barnburner or tear-jerker. Chelsea wasn’t there to pump up the crowd. Her role was to comfort, to explain, to cajole, with an eye toward giving Americans a glimpse of her mother’s softer side.
In her acceptance speech, the Democratic nominee took on her Republican rival by throwing Donald Trump’s own words back at him.
The unicorn of American politics, the “real Hillary Clinton”—the Hillary Clinton I’ve known for nearly 30 years—that Hillary Clinton likes to wear low-heeled shoes to a butt-kicking.
“A man you can bait with a tweet is not a man we can trust with nuclear weapons,” she said of her Republican rival, Donald Trump, while accepting the Democratic presidential nomination, the first woman in U.S. history to head a major-party ticket.
It was a sound bite for the ages, searing and on point.
“Do you really think Donald Trump has the temperament to be commander in chief?” she continued. “Donald Trump can’t even handle the rough and tumble of a presidential campaign. He loses his cool at the slightest provocation. Imagine, if you dare, imagine him in the Oval Office facing a crisis.”
The father of a Muslim American who died in Iraq confronts Donald Trump.
Khizr Khan began his speech at the Democratic National Convention on Thursday with words I wish he didn’t have to say: “Tonight we are honored to stand here as parents of Captain Humayun Khan and as patriotic American Muslims—as patriotic American Muslims with undivided loyalty to our country.”
I wish he and his wife didn’t have to stand there as the parents of a 27-year-old Army captain who was killed by suicide bombers while serving in the Iraq War. And I wish Khizr Khan hadn’t felt the need to declare his patriotism and loyalty to the United States of America. Those truths should have been self-evident.
The state of the union is not strong when an American feels compelled to clarify such things. In better times, Khizr Khan, who was born in Pakistan and moved to America from the United Arab Emirates, might have begun his speech with what he said next: “Like many immigrants, we came to this country empty-handed. We believed in American democracy—that with hard work and [the] goodness of this country, we could share in and contribute to its blessings.”
Chris Morris’s brutal satire aired its last and most controversial episode in 2001, but its skewering of the news media feels more relevant than ever.
A sex offender is thrown in the stocks, presented with a small child, and asked if he wants to molest him. A mob of protestors is thrown a “dummy full of guts” that is stomped to pieces within seconds. A radio host insists that pedophiles have “more genes in common with crabs” than the rest of humanity, insisting, “There’s no real evidence for [that], but it is scientific fact.”
It’s hard to pinpoint the most cringe-inducing moment on “Paedogeddon,” a special episode of the British TV satire Brass Eye. But 15 years after the episode aired, it remains a totemic, terrifying satirical vision. Few comedies since have dared to cross the boundaries of taste with such impunity.
“Paedogeddon” aired in the U.K. in the summer of 2001, a year after the murder of a young girl had sparked national hysteria over the country’s sex-offender registry. Britain’s most-read newspaper led a campaign to publish the names and locations of all 110,000 convicted sex offenders, prompting a riot in which an angry mob ransacked the home of an ex-con. Brass Eye, a parody of a 60 Minutes-like newsmagazine show, had been dormant after airing one season in the UK in 1997. But it returned four years later for this surprise broadcast, one that saw its furious (fictional) anchors barking from a dark studio about the plague of seemingly super-powered child molesters stalking the nation, holding a funhouse mirror up to the climate of paranoia and fear that had built up around the country. It was a bold, wildly insensitive piece of comedy, but one that captured the growing madness of the 24-hour news media and foreshadowed some uglier aspects of its future.
The Fox host’s insistence that black laborers building the White House were “well-fed and had decent lodgings” fits in a long history of insisting the “peculiar institution” wasn’t so bad.
In her widely lauded speech at the Democratic National Convention on Monday, Michelle Obama reflected on the remarkable fact of her African American family living in the executive mansion. “I wake up every morning in a house that was built by slaves. And I watch my daughters, two beautiful, intelligent, black young women, playing with their dogs on the White House lawn,” she said.
On Tuesday, Fox News host Bill O’Reilly discussed the moment in his Tip of the Day. In a moment first noticed by the liberal press-tracking group Media Matters, O’Reilly said this:
As we mentioned, Talking Points Memo, Michelle Obama referenced slaves building the White House in referring to the evolution of America in a positive way. It was a positive comment. The history behind her remark is fascinating. George Washington selected the site in 1791, and as president laid the cornerstone in 1792. Washington was then running the country out of Philadelphia.
Slaves did participate in the construction of the White House. Records show about 400 payments made to slave masters between 1795 and 1801. In addition, free blacks, whites, and immigrants also worked on the massive building. There were no illegal immigrants at that time. If you could make it here, you could stay here.
In 1800, President John Adams took up residence in what was then called the Executive Mansion. It was only later on they named it the White House. But Adams was in there with Abigail, and they were still hammering nails, the construction was still going on.
Slaves that worked there were well-fed and had decent lodgings provided by the government, which stopped hiring slave labor in 1802. However, the feds did not forbid subcontractors from using slave labor. So, Michelle Obama is essentially correct in citing slaves as builders of the White House, but there were others working as well. Got it all? There will be a quiz.
The Democratic nominee for United States president made a play for progressives, moderates, and Independents alike during her address in Philadelphia on Thursday night.
“America's strength doesn't come from lashing out,” Hillary Clinton said Thursday, delivering a harsh rebuke to Donald Trump as she accepted the Democratic nomination for U.S. president.
Clinton’s speech capped the Democratic National Convention in Philadelphia, where she made history as the first female presidential nominee of a major party. While Clinton did not skip over the historic aspect of her nomination, she spent most of her hour-long speech emphasizing two, interlocking themes: the importance of community and togetherness, and the fundamental unfitness of the Republican nominee for office. It was not so dark and ominous a speech as Trump’s own acceptance speech a week ago in Cleveland, but it was a negative speech: a warning against the danger posed to America by a Trump presidency.
Narcissism, disagreeableness, grandiosity—a psychologist investigates how Trump’s extraordinary personality might shape his possible presidency.
In 2006, Donald Trump made plans to purchase the Menie Estate, near Aberdeen, Scotland, aiming to convert the dunes and grassland into a luxury golf resort. He and the estate’s owner, Tom Griffin, sat down to discuss the transaction at the Cock & Bull restaurant. Griffin recalls that Trump was a hard-nosed negotiator, reluctant to give in on even the tiniest details. But, as Michael D’Antonio writes in his recent biography of Trump, Never Enough, Griffin’s most vivid recollection of the evening pertains to the theatrics. It was as if the golden-haired guest sitting across the table were an actor playing a part on the London stage.
“It was Donald Trump playing Donald Trump,” Griffin observed. There was something unreal about it.
Psychologists have long debated how flexible someone’s “true” self is.
Almost everyone has something they want to change about their personality. In 2014, a study that traced people’s goals for personality change found that the vast majority of its subjects wanted to be more extraverted, agreeable, emotionally stable, and open to new experiences. A whopping 97 percent said they wished they were more conscientious.
These desires appeared to be rooted in dissatisfaction. People wanted to become more extraverted if they weren’t happy with their sex lives, hobbies, or friendships. They wanted to become more conscientious if they were displeased with their finances or schoolwork. The findings reflect the social psychologist Roy Baumeister’s notion of “crystallization of discontent”: Once people begin to recognize larger patterns of shortcomings in their lives, he contends, they may reshuffle their core values and priorities to justify improving things.
Hillary Clinton accepted the Democratic nomination in Philadelphia, ratifying a promise made there 240 years before—that all are created equal.
PHILADELPHIA—“Daddy,” my daughter recently asked me, “Why are there no girl presidents? Is it because boys are stronger than girls? Because they’re smarter?”
It left me speechless.
On Thursday night, in the city where the Founders declared all men created equal, I found my answer. It’s because no major party has ever tried nominating one before.
“Tonight, we’ve reached a milestone in our nation’s march toward a more perfect union: the first time that a major party has nominated a woman for president,” Clinton said as she accepted the nomination. “Standing here as my mother’s daughter, and my daughter’s mother, I’m so happy this day has come.”
It wasn’t the theme of her speech. But it was the unspoken subtext that ran through it. And Clinton took pains to frame the achievement not as the triumph of some subset of Americans, but as a victory for all Americans. She proclaimed herself both “happy for grandmothers and little girls,” but also “happy for boys and men—because when any barrier falls in America, it clears the way for everyone.”
The State Department is reopening its investigation into Hillary Clinton’s emails, just as she puts a Justice Department investigation behind her.
Hillary Clinton is out of the frying pan and into the fire. On July 6, Attorney General Loretta Lynch announced that the Justice Department would not pursue criminal charges against the presumptive Democratic presidential nominee for her use of a private email server at the State Department. But the following day, with that criminal investigation closed, the State Department reopened its own probe into the emails, the AP reported.
State Department spokesman John Kirby told the AP that it would be looking at potential mishandling of classified information by Hillary Clinton and her top aides. Former officials could face administrative sanctions, including a loss of their security clearances—a step that would be both politically embarrassing for Clinton, and complicate efforts to staff a national-security team should she prevail in November.