America under the Articles of Confederation was a mess, not unlike Europe today. Could it lead to a stronger European Union?
German Chancellor Angela Merkel and French President Nicolas Sarkozy after a joint press conference at the Elysee Palace in Paris / AP
Monday, French President Nicolas Sarkozy and German Chancellor Angela Merkel spoke of their desire to change the treaties currently holding the European Union together, and to push the countries towards a tighter, more integrated federation. "We want to make sure that the imbalances that led to the situation in the euro zone today cannot happen again," Sarkozy said.
This would be a worthy project, of course, but treaty change and Union restructuring are about as big a political and legal headache as one could possibly imagine. With Europe this fractured, could leaders really agree upon a new setup? Is the political will present in the right states? Will the markets wait for the deliberations?
One always wants to be careful with historical comparisons: though TV pundits toss them around like party favors, their predictive power is limited. Looking to the Great Depression, for instance, doesn't immediately yield a solution or a timeline for our current economic woes. But there's another moment in American history that makes for a better comparison to Europe today: the 1781 signing of the Articles of Confederation.
There's something comforting about turning to a time when America was nearly as screwed up as Europe is today. Not only did the U.S. emerge from the tangle, but it emerged considerably stronger: the states' and nation's financial and logistical problems and mismanagement wound up pushing them to develop "a more perfect Union." So let's take a look for a moment at our own country's poor showing under the Articles of Confederation.
The Articles of Confederation, our pre-Constitution national legal framework, were drafted during the American Revolution and ratified largely in the late 1770s, Maryland finally signing on in 1781. By the late 1780s -- though historians may disagree over the extent to which the states were in actual crisis -- the Confederation and its members were looking pretty shabby.
American was then a picture of, at least superficially, fascinating disarray. Under the Articles, the federal government had no power to tax. It procured money through a "requisition" system, all states contributing, in theory, to the cost of providing national, public goods. In practice, this was a disaster. After only a few requisitions, as Keith Dougherty and Michael J.G. Cain recall in an article on "Marginal Cost Sharing and the Articles of Confederation" in the journal Public Choice, "states learned to withold their payments, leaving Congress without the resources to carry out its constitutional responsibilities. Lack of revenue prevented Congress from forcefully responding to British non-compliance with the 1783 Anglo-American peace treaty, reacting to the Spanish blockade of the Mississippi River between 1784 and 1787, enforcing treaties with the Indians by limiting western movement of settlers, and averting the piracy of the Barbary states."
A pretty little arrangement, no? Much has been written about the Articles' failings, but what Dougherty and Cain point out is that they "failed to organize a union where state and national interests coincided." In practice, "states fully complying with [...] requisitions, when others did not, incurred a greater portion of the national costs than originally intended." Game theory 101.
Another set of problems, of course, came from the fact that the states were proving truly terrible at handling issues of taxation on their own. In fact, though the particulars differ, the strong financial and debt-driven component to the Confederation's problems really does prompt images of Athens in the past year.
The American Revolution, after all, was a war, wars being so famously costly that historians like Charles Tilly have argued warmaking and its associated taxation were the main drivers of state formation in Western Europe. The American Revolution had been financed through loans, bonds, and poorly conceived paper currency. States then took on this debt. Historians Oscar and Mary Flug Handlin estimated that Massachusetts in the 1780s owed over $5 million to the Confederation, its total debt around $14 million -- enormous numbers at that time. The taxes imposed as a result proved extremely burdensome, one of a few factors leading to unrest in Massachusetts culminating in the armed uprising known as Shays' Rebellion, which then became one of the factors in the general consensus that a new system might be a good idea.
Causation is tricky to establish: Robert Freer argued forcefully in The New England Quarterly back in the '60s that "in all likelihood, the Constitutional Convention would have met when it did, the same document would have been drawn up, and it would have been ratified even if Shays's Rebellion had not taken place." But one of the reasons Freer argued that we would have gotten the Constitution anyway is that there were plenty of other examples of financial and political disorder, like failure to pay federal requisitions and the states of Maryland, Virginia, and Rhode Island mucking around with paper money.
America under the Articles of Confederation, in short, was a mess. And though you could debate the details endlessly, there's little doubt that the extent of that mess was in political leaders' minds when they started talking about reconfiguring things and calling the Constitutional Convention. Thus far, the Constitution has had a better track record than the Articles in keeping order.
What does this mean for Europe today? There are a number of cases in both American and European history where a non-lethal screwup -- say, the Articles of Confederation -- has provided the necessary impetus to establish a more screwup-resistant setup, as with the Constitution. So, while the ratings agencies seem to get more pessimistic by the day about Europe's prospects, maybe European leaders could pull out of this with something even stronger. Merkel and Sarkozy likely have a very nasty path ahead of them, if, indeed, either of them manages to stay around to push the treaty modifications through -- France, recall, has elections scheduled for next year. But there's a universe in which Europe exits this crisis in a better position than that in which it entered.
People labeled “smart” at a young age don’t deal well with being wrong. Life grows stagnant.
ASPEN, Colo.—At whatever agesmart people develop the idea that they are smart, they also tend to develop vulnerability around relinquishing that label. So the difference between telling a kid “You did a great job” and “You are smart” isn’t subtle. That is, at least, according to one growing movement in education and parenting that advocates for retirement of “the S word.”
The idea is that when we praise kids for being smart, those kids think: Oh good, I'm smart. And then later, when those kids mess up, which they will, they think: Oh no, I'm not smart after all. People will think I’m not smart after all. And that’s the worst. That’s a risk to avoid, they learn.“Smart” kids stand to become especially averse to making mistakes, which are critical to learning and succeeding.
The untold story of the improbable campaign that finally tipped the U.S. Supreme Court.
On May 18, 1970, Jack Baker and Michael McConnell walked into a courthouse in Minneapolis, paid $10, and applied for a marriage license. The county clerk, Gerald Nelson, refused to give it to them. Obviously, he told them, marriage was for people of the opposite sex; it was silly to think otherwise.
Baker, a law student, didn’t agree. He and McConnell, a librarian, had met at a Halloween party in Oklahoma in 1966, shortly after Baker was pushed out of the Air Force for his sexuality. From the beginning, the men were committed to one another. In 1967, Baker proposed that they move in together. McConnell replied that he wanted to get married—really, legally married. The idea struck even Baker as odd at first, but he promised to find a way and decided to go to law school to figure it out.
As he prepares for a presidential run, the governor’s labor legacy deserves inspection. Are his state’s “hardworking taxpayers” any better off?
This past February, at the Conservative Political Action Conference (CPAC) outside Washington, D.C., Wisconsin Governor Scott Walker rolled up his sleeves, clipped on a lavalier microphone, and without the aid of a teleprompter gave the speech of his life. He emerged from that early GOP cattle call as a front-runner for his party’s nomination for president. Numerous polls this spring placed him several points ahead of former Florida Governor Jeb Bush, the preferred candidate of the Republican establishment, in Iowa and New Hampshire. Those same polls showed him with an even more substantial lead over movement conservative favorites such as Ted Cruz, Rand Paul, and Mike Huckabee. In late April, the Koch brothers hinted that Walker would be the likely recipient of the nearly $900 million they plan to spend on the 2016 election cycle.
Mike Huckabee and Ted Cruz are suggesting there might be ways for states and cities to nullify the justices’ ruling. They’re wrong.
The Supreme Court’s decision last week did make gay marriage legal around the nation. Unfortunately for social conservatives, it did not, however, make nullification legal around the nation.
Nullification is the historical idea that states can ignore federal laws, or pass laws that supercede them. This concept has a long but not especially honorable pedigree in U.S. history. Its origins date back to antebellum America, where Southern states tried to nullify tariffs and Northern states tried to nullify fugitive-slave laws. In the 1950s, after Brown v. Board of Education, some Southern states tried to pass laws to avoid integrating schools. It didn’t work, because nullification is not constitutional.
Was the Concorde a triumph of modern engineering, a metaphor for misplaced 20th-century values, or both?
The box sat untouched in his bottom desk drawer. For weeks we discussed opening it, and one January morning he was ready. I set the box on his white bedsheets and removed the stack of passports, which could have belonged to a family with dual citizenship. But all nine—from 1956 to a valid update issued in 2014—belong to my 89-year-old grandfather.
Lying in bed, he unfolded a stamp-covered page like an accordion and held it open above his chest. “Oh my,” he kept repeating. He paused, and pointed.
London. March 22, 1976. My then-50-year-old grandfather, Raymond Pearlson, the inventor ofSyncrolift, was traveling the world selling his shiplift system. Concorde had launched commercially that January. He knew exactly what this stamp represented: Washington Dulles to London Heathrow in 3.5 hours—the first of at least 150 supersonic flights he took on the legendary aircraft.
Many authors have been tempted into writing revisionist histories of the 37th U.S. president, but these counterintuitive takes often do not hold up under closer scrutiny.
Every once in a while someone writes a book arguing that Richard Nixon has been misunderstood. These authors tend to focus on some particular aspect of his presidency that, the argument goes, is more important than that Watergate business. They’ve focused on his domestic policy or his foreign policy as achievements that override his flaws and his presidency’s denouement. Nixon’s highly complex persona also has led to books that probe his psyche—a hazardous and widely debunked practice, though that hasn’t discouraged further attempts.
And, as with other major figures, but all the more so given the drama of his time on the national stage, Nixon’s complexity and essentially low repute tempts some authors to offer revisionist approaches to his place in history. Such approaches have to be assessed on their own merits, not accepted merely because they’re counterintuitive or receive a lot of attention, as new assessments of the controversial and fascinating Nixon tend to do. Two major revisionist books about Nixon argued that his domestic policy was so expansive, humane, and innovative that it overrides his unfortunate behavior; their accounts relegate Watergate to a far less important role. The problem with these books is that they don’t stand up to close scrutiny.
The social network learns more about its users than they might realize.
Facebook, you may have noticed, turned into a rainbow-drenched spectacle following the Supreme Court’s decision Friday that same-sex marriage is a Constitutional right.
By overlaying their profile photos with a rainbow filter, Facebook users began celebrating in a way we haven't seen since March 2013, when 3 million peoplechanged their profile images to a red equals sign—the logo of the Human Rights Campaign—as a way to support marriage equality. This time, Facebook provided a simple way to turn profile photos rainbow-colored. More than 1 million people changed their profile in the first few hours, according to the Facebook spokesperson William Nevius, and the number continues to grow.
“This is probably a Facebook experiment!” joked the MIT network scientist Cesar Hidalgo on Facebook yesterday. “This is one Facebook study I want to be included in!” wrote Stacy Blasiola, a communications Ph.D. candidate at the University of Illinois, when she changed her profile.
For centuries, experts have predicted that machines would make workers obsolete. That moment may finally be arriving. Could that be a good thing?
1. Youngstown, U.S.A.
The end of work is still just a futuristic concept for most of the United States, but it is something like a moment in history for Youngstown, Ohio, one its residents can cite with precision: September 19, 1977.
For much of the 20th century, Youngstown’s steel mills delivered such great prosperity that the city was a model of the American dream, boasting a median income and a homeownership rate that were among the nation’s highest. But as manufacturing shifted abroad after World War II, Youngstown steel suffered, and on that gray September afternoon in 1977, Youngstown Sheet and Tube announced the shuttering of its Campbell Works mill. Within five years, the city lost 50,000 jobs and $1.3 billion in manufacturing wages. The effect was so severe that a term was coined to describe the fallout: regional depression.
The commonwealth is facing a serious debt crisis that could result in default, but that’s only part of the problem.
Updated on June 30, 2015
Puerto Rico is a small island with some big financial problems. Governor Alejandro Garcia Padilla recently told TheNew York Times that there was no way the island, which has been struggling with about $72 billion of debt, would be able to pay, and instead would try to work out new deals and deferred payments with some of its creditors. This, of course, has lead to fears that the commonwealth will default on its loans.
The admission that Puerto Rico’s finances are much worse than originally thought was spurred by areport commissioned by the Government Development Bank, an agency tasked with developing economic and financial strategies for the commonwealth, and conducted by current and former IMF staffers. The report, nicknamed The Krueger Plan for its lead author Anne Krueger, doesn’t mince words when it comes to the outlook for the debt-laden island: "Structural problems, economic shocks and weak public finances have yielded a decade of stagnation, outmigration and debt. Financial markets once looked past these realities but have since cut off the commonwealth from normal market access. A crisis looms.”
The Islamic State is no mere collection of psychopaths. It is a religious group with carefully considered beliefs, among them that it is a key agent of the coming apocalypse. Here’s what that means for its strategy—and for how to stop it.
What is the Islamic State?
Where did it come from, and what are its intentions? The simplicity of these questions can be deceiving, and few Western leaders seem to know the answers. In December, The New York Times published confidential comments by Major General Michael K. Nagata, the Special Operations commander for the United States in the Middle East, admitting that he had hardly begun figuring out the Islamic State’s appeal. “We have not defeated the idea,” he said. “We do not even understand the idea.” In the past year, President Obama has referred to the Islamic State, variously, as “not Islamic” and as al-Qaeda’s “jayvee team,” statements that reflected confusion about the group, and may have contributed to significant strategic errors.