Celebrity historian Niall Ferguson doesn't like President Obama, and doesn't think you should either.
That's perfectly fine. There are plenty of legitimate reasons to disapprove of the president. Here's the big one: 8.3 percent. That's the current unemployment rate, fully three years on from the official end of the Great Recession. But rather than make this straightforward case against the current administration, Ferguson delves into a fantasy world of incorrect and tendentious facts. He simply gets things wrong, again and again and again. (A point my colleague James Fallows makes as well in a must-read.)
Here's a tour of some of the more factually challenged sections of Ferguson's piece.
"Certainly, the stock market is well up (by 74 percent) relative to the close on Inauguration Day 2009. But the total number of private-sector jobs is still 4.3 million below the January 2008 peak."
Did you catch that little switcheroo? Ferguson concedes that stocks have done very well since January 2009, but then says that private sector payrolls have not since January 2008. Notice now? Ferguson blames Obama for job losses that happened a full year before he took office. The private sector has actually added jobs since Obama was sworn in -- 427,000 of them, to be exact. For context, remember that the private sector lost 170,000 jobs during George W. Bush's eight years.
Of course, it's not really fair to blame Obama -- or Bush -- for jobs lost in their first few months before their policies took effect. If we more sensibly look at private sector payrolls after their first six months in office, then Obama has created 3.1 million jobs and Bush created 967,000 jobs.
"Meanwhile real median annual household income has dropped more than 5 percent since June 2009."
I can't replicate this result. It's difficult, because Ferguson does not cite his source. The Census Bureau only has data on real median household incomes through 2010 -- and it shows them falling 2.28 percent from 2009. The Bureau of Labor Statistics has numbers on real median weekly earnings that go through 2012, but those only show a 3.7 percent decrease from June 2009.
"Welcome to Obama's America: nearly half the population is not represented on a taxable return--almost exactly the same proportion that lives in a household where at least one member receives some type of government benefit. We are becoming the 50-50 nation--half of us paying the taxes, the other half receiving the benefits."
It is true that 46 percent of households did not pay federal income tax in 2011. It is not true that they pay no taxes. Federal income taxes account barely account for half of federal taxes, and much less of total taxes, if you count the state and local level. Many of those other taxes can be regressive. If you take all taxes into account, our system is barely progressive at all.
But why do almost half of all households pay no federal income tax? Because they don't have much money to tax. Here's the breakdown from the nonpartisan Tax Policy Center. Half of these households are simply too poor -- they make under $20,000 -- to have any liability. Another quarter are retirees on tax-exempt Social Security benefits. The remaining households have no liability because of tax expenditures like the earned-income tax credit or the child credit.
In other words, the poor, the old, and children. Not exactly the "50-50 nation" of makers and takers -- or "lucky duckies" -- that Ferguson imagines.
"By the end of this year, according to the Congressional Budget Office (CBO), [debt-to-GDP ratio] will reach 70 percent of GDP. These figures significantly understate the debt problem, however. The ratio that matters is debt to revenue. That number has leapt upward from 165 percent in 2008 to 262 percent this year, according to figures from the International Monetary Fund."
This is incorrect. Ferguson had it right the first time -- the number that matters is debt-to-GDP, not debt-to-revenue. The former reflects our capacity to pay; the latter our willingness to pay right now. Moving on.
"Not only did the initial fiscal stimulus fade after the sugar rush of 2009, but the president has done absolutely nothing to close the long-term gap between spending and revenue."
Ferguson wasn't always a critic of the stimulus. Back in August 2009, he wrote that "the stimulus clearly made a significant contribution to stabilizing the U.S. economy." Perhaps he thinks the stimulus should have been bigger so the "sugar rush" would last lasted longer? It's not clear. What is clear is that Obama has tried to close long-term deficits -- several times! And the sequester scheduled for next January is his deal with Republicans to rein in spending. More on that in a bit.
"The most recent estimate for the difference between the net present value of federal government liabilities and the net present value of future federal revenues--what economist Larry Kotlikoff calls the true "fiscal gap"--is $222 trillion."
That's a lot of trillions! But if our fiscal gap is "really" this many trillions, why can we borrow for 30 years for a real rate of 0.64 percent? It's because this number is meaningless. First of all, it seems to project many decades of growth figures and budget decisions that we simply don't know will happen. It assumes the Bush tax cuts never ever expire and that the healthcare cost curve never ever bends. This is like projecting, in 1942, that the Empire of Japan will rule the entire Asian continent for 70 years based on a few years of battle outcomes. It's an interesting prediction, but it's not an empirical vision of the future.
"The country's largest banks are at least $50 billion short of meeting new capital requirements under the new "Basel III" accords governing bank capital adequacy."
This would be damning if we had already fully implemented the Basel III bank rules. We have not. As this handy timeline from Deloitte shows, the bank capital ratios don't take effect until January 2013. And even if they had -- which again, they have not -- it would be a bad idea to change risk-weighted capital too much too soon. Europe's banks have done just that, and the results have left something to be desired. The IMF projects their banks will deleverage some $2.6 trillion over the next year and a half -- starving their economies of credit when they most need it. In other words, Ferguson not only get the facts wrong; he gets the economics wrong too.
"The Patient Protection and Affordable Care Act (ACA) of 2010 did nothing to address the core defects of the system: the long-run explosion of Medicare costs as the baby boomers retire, the "fee for service" model that drives health-care inflation, the link from employment to insurance that explains why so many Americans lack coverage, and the excessive costs of the liability insurance that our doctors need to protect them from our lawyers."
There are reasons to think the ACA will fail to address the core defects of the health care system. But it's wrong to say it does nothing to address them. Here's a partial list of the things Obamacare does. It tackles the long-run explosion of Medicare costs. It tries to move away from the fee-for-service model that drives healthcare inflation. And it cuts the link between employment and insurance. In other words, Obamacare does everything Ferguson says it doesn't do, with the exception of tort reform. Matt Yglesias of Slate has a good explainer on how Obamacare tries to do these things -- everything from IPAB, to Accountable Care Organizations and guaranteed issue. Read it.
"The president pledged that health-care reform would not add a cent to the deficit. But the CBO and the Joint Committee on Taxation now estimate that the insurance-coverage provisions of the ACA will have a net cost of close to $1.2 trillion over the 2012-22 period."
Maybe Ferguson doesn't understand the meaning of the word "deficit"? The only other explanation is that he is deliberately misleading his readers. The CBO is quite clear about Obamacare's budgetary implications. It reduces the deficit. Here's what the CBO said exactly:
[T]he effects of the two laws on direct spending and revenues related to health care will reduce federal deficits by $210 billion over the 2012-2021 period.
In other words, the law is more than paid for. As Paul Krugman pointed out, it does spend $1.042 trillion covering people, but it pays for this coverage by finding savings in Medicare and levying a surtax on investment income for high-earners. That Ferguson looked up the CBO's estimate of the bill's cost and didn't notice that those costs are paid for is peculiar indeed. Even more peculiar is that he is apparently doubling down on this falsehood. And yes, it is a very deliberate falsehood.
"Having set up a bipartisan National Commission on Fiscal Responsibility and Reform, headed by retired Wyoming Republican senator Alan Simpson and former Clinton chief of staff Erskine Bowles, Obama effectively sidelined its recommendations of approximately $3 trillion in cuts and $1 trillion in added revenues over the coming decade. As a result there was no "grand bargain" with the House Republicans--which means that, barring some miracle, the country will hit a fiscal cliff on Jan. 1 as the Bush tax cuts expire and the first of $1.2 trillion of automatic, across-the-board spending cuts are imposed. The CBO estimates the net effect could be a 4 percent reduction in output."
Now, Obama did not push Congress to adopt Simpson-Bowles, but neither did Congress adopt it. Among those who voted against it? Paul Ryan, who Ferguson later lauds for his fiscal courage. Although that wasn't the last attempt at a so-called "grand bargain". That came during the debt ceiling standoff the Republicans forced. Obama offered a long-term deal heavily tilted towards Republican priorities -- read: spending cuts -- that the Republicans spurned. Among those who pushed the Republicans to reject it? Paul Ryan, who worried that a deal would burnish Obama's bipartisan credentials and make his re-election a foregone conclusion.
And then there's the cognitive dissonance of it all. Noah Smith points out that Ferguson reproaches Obama for both running big deficits and for closing them.
"The failures of leadership on economic and fiscal policy over the past four years have had geopolitical consequences. The World Bank expects the U.S. to grow by just 2 percent in 2012. China will grow four times faster than that; India three times faster. By 2017, the International Monetary Fund predicts, the GDP of China will overtake that of the United States."
China has 1.3 billion people. The United States has 300 million people. China's GDP will pass ours when they are only four times poorer than us. That might happen in 2017; it might happen later if China's current slowdown is more than a blip. It doesn't really matter if and when this happens. There's nothing Obama can do to prevent China from catching up -- nor should Obama want to! Economics isn't zero sum. The more money China has, the more money they have to buy things from us and other countries. This is good news, and yet Ferguson treats it like a modern-day equivalent of "losing China".
"In his notorious "you didn't build that" speech, Obama listed what he considers the greatest achievements of big government: the Internet, the GI Bill, the Golden Gate Bridge, the Hoover Dam, the Apollo moon landing, and even (bizarrely) the creation of the middle class. Sadly, he couldn't mention anything comparable that his administration has achieved."
It's bizarre that Ferguson thinks government policies didn't help create America's middle class. America was the first country to make high school compulsory. It was also the first country to make college widely accessible with the G.I. bill. This democratization of education went a long way towards laying the foundation for broad-based prosperity. And as for big things the government has achieved lately, surely moving to near-universal healthcare coverage counts?
In the world as Ferguson describes it, Obama is a big-spending, weak-kneed liberal who can't get the economy turned around. Think Jimmy Carter on steroids. But the world is not as Ferguson describes it. A fact-checked version of the world Ferguson describes reveals a completely different narrative -- a muddy picture of the past four years, where Obama has sometimes cast himself as a stimulator, a deficit hawk, a health care liberal and conservative reformer all at once. And it's a world where the economy is getting better, albeit slowly.
It would have been worthwhile for Ferguson to explain why Obama doesn't deserve re-election in the real world we actually live in. Instead, we got an exercise in Ferguson's specialty -- counterfactual history.
Emma Perrier was deceived by an older man on the internet—a hoax that turned into an unbelievable love story.
Emma Perrier spent the summer of 2015 mending a broken heart, after a recent breakup. By September, the restaurant manager had grown tired of watching The Notebook alone in her apartment in Twickenham, a leafy suburb southwest of London, and decided it was time to get back out there. Despite the horror stories she’d heard about online dating, Emma, 33, downloaded a matchmaking app called Zoosk. The second “o” in the Zoosk logo looks like a diamond engagement ring, which suggested that its 38 million members were seeking more than the one-night stands offered by apps like Tinder.
She snapped the three selfies the app required to “verify her identity.” Emma, who is from a volcanic city near the French Alps, not far from the source of Perrier mineral water, is petite, and brunette. She found it difficult to meet men, especially as she avoided pubs and nightclubs, and worked such long hours at a coffee shop in the city’s financial district that she met only stockbrokers, who were mostly looking for cappuccinos, not love.
On Monday, Trump set out to emphasize honor and integrity—and then he made a series of unsubstantiated claims.
The week of October 15 was supposed to be set aside to reflect on character.
“We celebrate National Character Counts Week because few things are more important than cultivating strong character in all our citizens, especially our young people,” President Trump said in declaring it. “The grit and integrity of our people, visible throughout our history, defines the soul of our Nation. This week, we reflect on the character of determination, resolve, and honor that makes us proud to be American.”
There hasn’t been much time to talk about character. Instead, politics this week has been dominated by a peculiar scandal, beginning with one off-base remark from the president on Monday, that has managed to somehow leave everyone it touches worse off than they were at the start of the week—including the president, his chief of staff and spokeswoman, a member of Congress, and the family of a Special Forces soldier killed in Niger earlier this month.
Rumors are swirling over what took place in the final hours before four U.S. servicemen died—but a clear picture of what actually took place is only beginning to emerge.
On October 4, a small group of U.S. troops were preparing to leave a meeting with community leaders near the small town of Tongo Tongo in Niger. They were close to the Malian border, traveling in unarmored pick-up trucks with limited weaponry and a few dozen of their Nigerien counterparts. Then they were ambushed.
By the time the more than 30-minute assault was over, three U.S. troops were confirmed dead and two more were gravely injured. Another, Sergeant La David Johnson, was missing and his body would not be recovered for another two days. French aircraft, called in for back-up, circled overhead as fire was exchanged below. They later helped to evacuate survivors.
This account, based on public statements from the Trump administration, interviews with U.S. Africa Command officials; former State Department and intelligence officials; and the man who almost served as the senior director for Africa on the National Security Council, along with additional reporting from other news outlets like CNN and The Washington Post, suggests a direct link between the fatal ambush and the absence of a clear strategy or perhaps even a cursory understanding of U.S. operations in Africa by the Trump administration.
DeepMind’s new self-taught Go-playing program is making moves that other players describe as “alien” and “from an alternate dimension.”
It was a tense summer day in 1835 Japan. The country’s reigning Go player, Honinbo Jowa, took his seat across a board from a 25-year-old prodigy by the name of Akaboshi Intetsu. Both men had spent their lives mastering the two-player strategy game that’s long been popular in East Asia. Their face-off, that day, was high-stakes: Honinbo and Akaboshi represented two Go houses fighting for power, and the rivalry between the two camps had lately exploded into accusations of foul play.
Little did they know that the match—now remembered by Go historians as the “blood-vomiting game”—would last for several grueling days. Or that it would lead to a grisly end.
Early on, the young Akaboshi took a lead. But then, according to lore, “ghosts” appeared and showed Honinbo three crucial moves. His comeback was so overwhelming that, as the story goes, his junior opponent keeled over and began coughing up blood. Weeks later, Akaboshi was found dead. Historians have speculated that he might have had an undiagnosed respiratory disease.
Michelle Kuo’s Reading with Patrick avoids the educator-as-savior cliché and opts for a subtler portrait of her relationship with a troubled student.
In books and films about failing schools attended by poor students of color, a suspiciously upbeat plotline has become all too familiar. A novice teacher (usually white) parachutes in, overcomes her students’ distrust and apathy, and sets them on the path to college and worldly success. Such narratives are every kind of awful. They make the heroic teacher the center of attention, relegating the students to secondary roles. They pretend that good intentions and determination have the magical power to transform young people’s lives, even in the most adverse circumstances. And they treat schools as isolated sites of injustice, never connecting educational disadvantage to other forms of inequality.
More comfortable online than out partying, post-Millennials are safer, physically, than adolescents have ever been. But they’re on the brink of a mental-health crisis.
One day last summer, around noon, I called Athena, a 13-year-old who lives in Houston, Texas. She answered her phone—she’s had an iPhone since she was 11—sounding as if she’d just woken up. We chatted about her favorite songs and TV shows, and I asked her what she likes to do with her friends. “We go to the mall,” she said. “Do your parents drop you off?,” I asked, recalling my own middle-school days, in the 1980s, when I’d enjoy a few parent-free hours shopping with my friends. “No—I go with my family,” she replied. “We’ll go with my mom and brothers and walk a little behind them. I just have to tell my mom where we’re going. I have to check in every hour or every 30 minutes.”
Those mall trips are infrequent—about once a month. More often, Athena and her friends spend time together on their phones, unchaperoned. Unlike the teens of my generation, who might have spent an evening tying up the family landline with gossip, they talk on Snapchat, the smartphone app that allows users to send pictures and videos that quickly disappear. They make sure to keep up their Snapstreaks, which show how many days in a row they have Snapchatted with each other. Sometimes they save screenshots of particularly ridiculous pictures of friends. “It’s good blackmail,” Athena said. (Because she’s a minor, I’m not using her real name.) She told me she’d spent most of the summer hanging out alone in her room with her phone. That’s just the way her generation is, she said. “We didn’t have a choice to know any life without iPads or iPhones. I think we like our phones more than we like actual people.”
A trove of recently released documents confirms that Washington’s role in the country’s 1965 massacre was part of a bigger Cold War strategy.
In Indonesia in October 1965, General Suharto responded to the kidnapping and murder of six high-ranking military officers by accusing the Indonesian Communist Party (PKI) of organizing a brutal coup attempt. Over the months that followed, he oversaw the systematic extermination of up to a million Indonesians for affiliation with the party, or simply for being accused of harboring leftist sympathies. He then took power and ruled as dictator, with U.S. support, until 1998.
This week, the non-profit National Security Archive, along with the National Declassification Center, published a batch of U.S. diplomatic cables covering that dark period. While the newly declassified documents further illustrated the horror of Indonesia’s 1965 mass murder, they also confirmed that U.S. authorities backed Suharto’s purge. Perhaps even more striking: As the documents show, U.S. officials knew most of his victims were entirely innocent. U.S. embassy officials even received updates on the executions and offered help to suppress media coverage. While crucial documents that could provide insight into U.S. and Indonesian activities at the time are still lacking, the broad outlines of the atrocity and America’s role are there for anyone who cares to look them up.
A new study shows that families act on insufficient information when it comes to figuring out where to enroll their children.
A person trying to choose their next set of wheels might see that car A made it farther than car B in a road test and assume it gets better gas mileage. But that’s only true if the two tanks are filled with the same substance. Putting high-octane gas in one and water in the other, for example, provides little useful information about which car makes the most of its fuel. A new working paper titled “Do Parents Value School Effectiveness?” suggests that parents similarly opt for schools with the most impressive graduates rather than figuring out which ones actually teach best. The study joins a body of research looking critically at what it means for a school to be successful.
Take the work of Erin Pahlke, for example. The assistant professor of psychology at Whitman College saw research showing that girls who attend school only with other girls tend to do better in math and science. The trick, she said, is that those studies didn’t analyze “differences in the students coming into the schools.” As it turns out, those who end up in same-sex schools tend to be wealthier, start out with more skills, and have parents who are more proactive than students who attend co-ed institutions. In a 2014 meta-analysis, Pahlke and her colleagues reviewed the studies and found when examining schools with the same type of students and same level of resources—rather than “comparing [those at] the public co-ed school to [their counterparts at] the fancy private school that’s single-sex down the road”—there isn’t any difference in how the students perform academically. Single-sex schooling also hasn’t been shown to offer a bump in girls’ attitudes toward math and science or change how they think about themselves. In other words, it often looks like single-sex schools are doing a better job educating kids, but they aren't. It's just that their graduates are people who were going to do well at any school. They’re running on high-octane gas.
The president relishes bellicose language and performative violence, but seldom acknowledges its human toll.
When White House Chief of Staff—and Gold Star parent—John Kelly, on Thursday defended Donald Trump’s call to the newly widowed Myeshia Johnson, he was somber and sincere, which is refreshing. But he was wrong.
Context matters. From another person, at another time, observing that Sergeant La David Johnson “knew what he signed up for” by joining the Army wouldn’t have sparked outrage. But consider what else Representative Frederica Wilson—with the backing of Johnson’s mother—has alleged: that Trump didn’t know Johnson’s name; he repeatedly called him “your guy.” And that Trump’s tone was oddly jovial: “He was almost, like, joking.”
Above all, consider what we know about the way Trump discusses pain and death. This is the man who congratulated Puerto Ricans—whose island had been utterly devastated—for losing only “16” and not “thousands of people.” The man who told a crowd in Corpus Christi on August 29, while 30,000 Texans were displaced, “It’s going well.” And who said after touring the convention center where thousands of Houstonians were taking refuge that, “We saw a lot of happiness.”
The foundation of Donald Trump’s presidency is the negation of Barack Obama’s legacy.
It is insufficient to statethe obvious of Donald Trump: that he is a white man who would not be president were it not for this fact. With one immediate exception, Trump’s predecessors made their way to high office through the passive power of whiteness—that bloody heirloom which cannot ensure mastery of all events but can conjure a tailwind for most of them. Land theft and human plunder cleared the grounds for Trump’s forefathers and barred others from it. Once upon the field, these men became soldiers, statesmen, and scholars; held court in Paris; presided at Princeton; advanced into the Wilderness and then into the White House. Their individual triumphs made this exclusive party seem above America’s founding sins, and it was forgotten that the former was in fact bound to the latter, that all their victories had transpired on cleared grounds. No such elegant detachment can be attributed to Donald Trump—a president who, more than any other, has made the awful inheritance explicit.