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.
Critics of the mainstream media were quick to charge that Harvey Weinstein’s misdeeds were an open secret, yet none of them were able to expose it.
Last week, the New York Times and The New Yorker published multiple allegations of abhorrent sexual misconduct against the movie producer Harvey Weinstein, drawing on years of costly investigative reporting; risking legal retaliation that could cost millions to litigate; and forcing its subject from his powerful perch in Hollywood, where his ability to lure aspiring film starts into hotel rooms is all but gone.
The episode was a credit to the reporters, editors, and publishers who broke the story; an example of why it is vital to support an independent press that probes wrongdoing; and a spur to examine all the factors that delayed the truth outing for so long, including apparent failures by some journalists and news-gathering organizations.
Ivana Trump’s new book is a parenting memoir—and an ode to being better than everyone else.
There’s a story Ivana Trump tells in Raising Trump, her new memoir of parenting, work, and marriage. It was New Year’s Eve, 1977; she and Donald Trump were together in the hospital room after their first child had been born, discussing the matter of what name to give their new infant. Ivana suggested that the son should be named after the father: Donald Trump Jr. Donald, however, balked at this.
“What if he’s a loser?” he said.
Ivana got her way, in this instance as in many she describes in Raising Trump, which begins and ends with the premise that none of the three children Ivana and Donald Trump created together have been consigned to a life of loserdom. The book may be a parenting memoir; it may feature practical tips about punishments and allowances and the compulsory writing of thank-you notes; it may even feature a curated selection of awkward family photos and treasured family recipes; but it is about parenting, as most people practice it, in only the most superficial sense. By virtue of its core characters—a man who becomes the American president, a daughter who becomes his advisor, a son-in-law who becomes responsible for criminal justice reform and opioid crisis managementand bringing peace to the Middle East—Raising Trump is less a straightforward memoir than it is a teasing exploration of the workings of the presidential family. Here are the oft-discussed “Trump family values,” as explained by the woman who helped to create them.
The staggering scope of the country’s infrastructure initiative—and what it means for the international order
The Pakistani town of Gwadar was until recently filled with the dust-colored cinderblock houses of about 50,000 fishermen. Ringed by cliffs, desert, and the Arabian Sea, it was at the forgotten edge of the earth. Now it’s one centerpiece of China’s “Belt and Road” initiative, and the town has transformed as a result. Gwadar is experiencing a storm of construction: a brand-new container port, new hotels, and 1,800 miles of superhighway and high-speed railway to connect it to China’s landlocked western provinces. China and Pakistan aspire to turn Gwadar into a new Dubai, making it a city that will ultimately house 2 million people.
China is quickly growing into the world’s most extensive commercial empire. By way of comparison, after World War II, the Marshall Plan provided the equivalent of $800 billion in reconstruction funds to Europe (if calculated as a percentage of today’s GDP). In the decades after the war the United States was also the world’s largest trading nation, and its largest bilateral lender to others.
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.”
The last seventy-five years of American foreign policy are not the story of a country consistently pursuing democratic ideals, only to see them undermined now by a fearful “blood and soil” isolationism.
Being a liberal in the Donald Trump era is tricky. On the one hand, you’re grateful for any conservative who denounces the president’s authoritarian lies. On the other, you can’t help but notice that many of the conservatives who condemn Trump most passionately—Bill Kristol, Bret Stephens, Michael Gerson, Jennifer Rubin—remain wedded to the foreign policy legacy of George W. Bush. And in criticizing Trump’s amoral “isolationism,” they backhandedly defend the disastrous interventionism that helped produce his presidency in the first place.
The godfather of this brand of hawkish, anti-Trump conservatism is John McCain. Sure, McCain—being a Republican Senator—doesn’t condemn Trump as forthrightly as his “neoconservative” allies in the press. But the terms of his critique are similar.
The director is blaming the critical aggregator for dooming more complex films, but the deeper problem is studio neglect.
Last weekend, Professor Marston and the Wonder Women, a drama about the creator of the famed comic-book character, became the latest mid-budget casualty. It was marketed on the back of its connection with Wonder Woman, one of the biggest hits of the year. It received a moderately wide release and got strong reviews, but its three-day box-office total was just $736,883—a flimsy average of $600 per theater, which essentially doomed any future chance of success. Critics and industry insiders alike have lamented for years the decline of modestly budgeted movies aimed at grownups, the sort of film that was once the backbone of Hollywood.
Professor Marston would likely have at least one sympathizer in Martin Scorsese, who recently wrote an op-ed for The Hollywood Reporter on how many good, artistic movies are struggling to find receptive audiences in this new era for the industry. “Box office is the undercurrent in almost all discussions of cinema, and frequently it’s more than just an undercurrent,” said the Academy Award-winning director, who also works tirelessly in the field of film preservation. Indeed, in most cases, a movie is judged a flop or a hit within the first few days of its release. Box-office prognosticators can predict a film’s final grosses almost immediately, and there’s very little chance for word-of-mouth to help build up hype, except in the cases of certain smaller independent works.
An archeological discovery has raised questions about Muslims’ influence on Europe.
A researcher at a Swedish university says that Viking burial clothes bear the word “Allah”—and some people really want to believe her.
Annika Larsson, a textile researcher at Uppsala University who was putting together an exhibit on Viking couture, decided to examine the contents of a Viking woman’s boat grave that had been excavated decades ago in Gamla Uppsala, Sweden. Inspecting the woman’s silk burial clothes, Larsson noticed small geometric designs. She compared them to similar designs on a silk band found in a 10th-century Viking grave, this one in Birka, Sweden. It was then that she came to the conclusion that the designs were actually Arabic characters—and that they spelled out the name of God in mirror-image. In a press release, she described the find as “staggering,” and major media outlets (including The New York Times, The Guardian, and the BBC) reported the story last week.
Several of his achievements are under threat—and it’s not all because of Donald Trump.
When Donald Trump last week opted to decertify the nuclear agreement that Barack Obama forged with Iran, it appeared to fit a pattern in the president’s emerging foreign policy. In withdrawing from the Trans-Pacific Partnership trade deal and the Paris climate-change accord, in announcing that he was “canceling” the U.S. opening to Cuba, Trump seemed similarly determined to dismantle Obama’s achievements in international affairs. “The organizing principle for how he approaches foreign policy appears to be, in part, trying to look like he’s doing the opposite of his predecessor,” Ben Rhodes, Obama’s former deputy national-security adviser, told me.
But to the extent that Obama’s foreign-policy legacy is under threat, it’s not only Trump that’s doing the threatening. Some accomplishments are fraying for reasons that have nothing to do with the 45th president’s apparent contempt for the 44th. Obama’s legacy partially depends on his bets that certain countries—Cuba, Iran, Burma—would, with time, respond positively to diplomacy, which the former president once described to The Atlantic as “the element of American power that the rest of the world appreciates unambiguously.”
In the media world, as in so many other realms, there is a sharp discontinuity in the timeline: before the 2016 election, and after.
Things we thought we understood—narratives, data, software, news events—have had to be reinterpreted in light of Donald Trump’s surprising win as well as the continuing questions about the role that misinformation and disinformation played in his election.
Tech journalists covering Facebook had a duty to cover what was happening before, during, and after the election. Reporters tried to see past their often liberal political orientations and the unprecedented actions of Donald Trump to see how 2016 was playing out on the internet. Every component of the chaotic digital campaign has been reported on, here at The Atlantic, and elsewhere: Facebook’s enormous distribution power for political information, rapacious partisanship reinforced by distinct media information spheres, the increasing scourge of “viral” hoaxes and other kinds of misinformation that could propagate through those networks, and the Russian information ops agency.
And there could be far-reaching consequences for the national economy too.
Four floors above a dull cinder-block lobby in a nondescript building at the Ohio State University, the doors of a slow-moving elevator open on an unexpectedly futuristic 10,000-square-foot laboratory bristling with technology. It’s a reveal reminiscent of a James Bond movie. In fact, the researchers who run this year-old, $750,000 lab at OSU’s Spine Research Institute resort often to Hollywood comparisons.
Thin beams of blue light shoot from 36 of the same kind of infrared motion cameras used to create lifelike characters for films like Avatar. In this case, the researchers are studying the movements of a volunteer fitted with sensors that track his skeleton and muscles as he bends and lifts. Among other things, they say, their work could lead to the kind of robotic exoskeletons imagined in the movie Aliens.