Do Republicans think Milton Friedman was a big government liberal?
How much can you get wrong in just three sentences? A whole lot, it turns out.
Consider Mitt Romney's most recent fundraising email titled "Another Bailout?!?" -- not exactly a policy document, but still -- about the Fed's latest round of quantitative easing. See if you can spot anything that might correctly be called "correct".
Barack Obama is at it again -- spending your tax dollars to bail out his failed economic plan. It's more of the same from an out-of-touch president with no plan to fix our economy and put Americans back to work.
This past week, the Federal Reserve announced it would print $40 billion every month to prop up this administration's jobless recovery -- that's money we can't afford for jobs we will never see.
Okay, the Fed did announce that it would buy $40 billion of mortgage bonds a month until unemployment starts coming down -- which is, more or less, "printing" money -- but the rest is nonsense.
First, Barack Obama had nothing to do with the Fed's decision to do QE3. Only the Fed had anything to do with the Fed's decision to do QE3. It's independent.
Second, the Fed isn't spending tax dollars. As Team Romney acknowledges two sentences later, the Fed is printing money to buy bonds.
Third, this isn't a bailout. It's not even clear who is supposedly getting "bailed out". Is it the government? We can already borrow for basically nothing for 20 years. Is it the banks? The Fed is just swapping one interest-bearing asset for another when it buys long-term bonds and gives the banks more reserves.
Fourth, QE3 isn't more of the same, because it's a new kind of open-ended commitment from the Fed. That's why markets are excited.
Fifth, President Obama actually does have a plan to get the economy moving again. It was called the American Jobs Act -- remember it, from last year? -- and it died where all good ideas go to die: Congress. More specifically, Republicans on Capitol Hill killed it, and then they turned around and blamed Obama for the weak economy. It was a neat political trick, but it meant we didn't get the 2.1 million additional jobs that Macroeconomic Advisers estimated the bill would create.
Sixth, there's no way we can't afford printing money, because ... we're printing it. Taxes aren't going up. Neither are deficits -- the opposite, actually. As Ben Bernanke pointed out in his press conference, the Fed expects to make money from its bond-buying, which it is then legally required to remit to the Treasury. In other words, Fed policy is reducing the deficit -- by $76.9 billion in 2012 and $78.4 billion in 2011.
That's a lot of errors crammed into 73 words. But there's a bigger error here. That's Romney's approach to monetary policy. He's repudiating a generation of conservative economic thought. It used to be that conservatives championed monetary demand management as the superior alternative to fiscal demand management. It was an intellectual battle between Milton Friedman and John Maynard Keynes -- and Friedman very much seemed to carry the day. Economists from both sides of the aisle agreed that the Fed rather than Congress should manage the business cycle, unless short-term interest rates were stuck at zero, like they are now. As Paul Krugman has pointed out, this was the mainstream Republican position as recently as 2004 -- current Romney adviser and former Bush adviser Greg Mankiw wrote then that "aggressive monetary policy can reduce the depth of a recession". (To his credit, Mankiw has been a voice of reason on the right about the Fed in recent years). But that is an idea non grata among conservatives nowadays. Paul Ryan's hard money views have won the day instead. Inflation is always just around the corner -- never mind that it isn't -- jobs be damned.
Don't believe me? Here's something to remember: Bernanke himself is a Republican. He's become such a political punching bag for the right that it's easy to forget, but he hasn't done anything that Milton Friedman wouldn't have approved of.
The question is if Mitt Romney does too, or if he means what he says. A magic eight-ball might be a better guide there than an Etch A Sketch.
As Donald Trump’s troubles deepen, he keeps trying to shift attention to his old rival—but finds it no longer works like it used to.
Donald Trump’s brand-new communications director got a glimpse of the challenge he faces this weekend. As Anthony Scaramucci toured the Sunday shows, promising a new era of better relations and positive vibes, his boss was firing off his most active string of Twitter complaints in some time, taking shots at Democrats, Republicans, the press, James Comey, Robert Mueller, and—for the second time in less than a week—his own attorney general:
So why aren't the Committees and investigators, and of course our beleaguered A.G., looking into Crooked Hillarys crimes & Russia relations?
The president’s choice of words to describe Attorney General Jeff Sessions is bizarre, though the condescending mockery matches the tone he often uses for adversaries. To paraphrase Trump, somebody’s doing the beleaguering, and that person is Trump himself, who railed at Sessions during an interview with The New York Times last week, saying he wished he hadn’t appointed him, and that Sessions’s decision to recuse himself from the Russia investigation was unfair to Trump.
Thirty-one-year-old Ezra Cohen-Watnick holds the intelligence portfolio on the National Security Council—but almost everything about him is a mystery.
Just 24 days into his tenure as Donald Trump’s national-security adviser, Michael Flynn was forced to resign, having reportedly misled Vice President Mike Pence about his contacts with Russian officials. When Flynn departed, the men and women he’d appointed to the National Security Council grew nervous about their own jobs, and with good reason. The new national-security adviser, General H.R. McMaster, promptly began clearing out Flynn’s people, among them Dave Cattler, the deputy assistant to the president for regional affairs, Adam Lovinger, a strategic affairs analyst on loan from the Pentagon, and KT McFarland, Flynn’s deputy, who was eased out with the ambassadorship to Singapore. Even Steve Bannon, among the most powerful people in the White House, was removed from the meetings of the NSC Principal’s Committee, where he had been installed early on in the administration.
Three Atlantic staffers discuss “Stormborn,” the second episode of the seventh season.
Every week for the seventh season of Game of Thrones, three Atlantic staffers will discuss new episodes of the HBO drama. Because no screeners were made available to critics in advance this year, we'll be posting our thoughts in installments.
This was the first resignation of its kind in France in six decades, but it was enough to remind me how much Americans take healthy civil-military relations for granted. Unlike the French, for example, who have had some terrible episodes between their civilian and military leaders over the years, Americans have never had to disband a parachute infantry regiment because it literally threatened to drop onto the nation’s capital and depose the elected government.
That’s not to say we haven’t had our issues, but aside from Douglas MacArthur’s repeated (and successful) attempts to embarrass himself and his profession, Americans have rarely had to worry about the U.S. military and its leadership as a threat to the Republic.
Biology textbooks tell us that lichens are alliances between two organisms—a fungus and an alga. They are wrong.
In 1995, if you had told Toby Spribille that he’d eventually overthrow a scientific idea that’s been the stuff of textbooks for 150 years, he would have laughed at you. Back then, his life seemed constrained to a very different path. He was raised in a Montana trailer park, and home-schooled by what he now describes as a “fundamentalist cult.” At a young age, he fell in love with science, but had no way of feeding that love. He longed to break away from his roots and get a proper education.
At 19, he got a job at a local forestry service. Within a few years, he had earned enough to leave home. His meager savings and non-existent grades meant that no American university would take him, so Spribille looked to Europe.
Terminating the special counsel would show recklessness, imply corruption, and irrevocably damage the country.
Last week, President Donald Trump fueled speculation that he might work to oust Robert Mueller, the former FBI director appointed to probe Russian interference in the 2016 presidential election. Trump could do so today, or tomorrow, or three months from now; the news could be announced in a televised speech, through a spokesperson, or even in a late night tweet sent on an impulse after his advisers have gone to bed.
If Trump fires Robert Mueller, few will be surprised. But if that happens, as the Department of Justice is thrown into chaos, as the American public sees its clearly expressed support for the special counsel disregarded, as the vital inquiry into the integrity of American elections stalls, as protesters take to the streets in a show of outrage at the affront to the rule of law, as the 2018 midterms morph into a referendum on the administration, and as American democracy reels into unknown territory, the House of Representatives should immediately impeach the president.
Many point to unromantic 20-somethings and women’s entry into the workforce, but an overlooked factor is the trouble young men have in finding steady, well-paid jobs.
TOKYO—Japan’s population is shrinking. For the first time since the government started keeping track more than a century ago, there were fewer than 1 million births last year, as the country’s population fell by more than 300,000 people. The blame has long been put on Japan’s young people, who are accused of not having enough sex, and on women, who, the narrative goes, put their careers before thoughts of getting married and having a family.
But there’s another, simpler explanation for the country’s low birth rate, one that has implications for the U.S.: Japan’s birth rate may be falling because there are fewer good opportunities for young people, and especially men, in the country’s economy. In a country where men are still widely expected to be breadwinners and support families, a lack of good jobs may be creating a class of men who don’t marry and have children because they—and their potential partners—know they can’t afford to.
To influence U.S. politics, foreign governments don’t have to hack one party and collude with the other.
Russia’s apparent interference in the U.S. presidential election is a big story, but it’s part of an even bigger one: the ease with which foreign actors can insert themselves into the democratic process these days, and the difficulty of determining how to minimize that meddling.
Witness the disagreement in recent weeks among leaders of the U.S. Federal Election Commission. Democratic Commissioner Ellen Weintraub has urged the regulatory agency to plug the types of “legal or procedural holes” that enabled Russia to pose “an unprecedented threat to the very foundations of our American political community,” while her Republican colleagues have resisted her proposed fixes. “There are many historical examples of overreaction to foreign threats in American politics,” the Republican Commissioner Lee Goodman observed. Just because a foreign government attempted to mess with American democracy in 2016 doesn’t mean all foreign involvement in U.S. politics is nefarious—or worth shutting down.
Eighty-Sixed, a new web series from the HBO comedy creator’s daughter Cazzie David, taps into an uncomfortable brand of humor for a new generation.
It was pretty, pretty, pretty exciting to learn last week that one of cable’s favorite curmudgeons will return to television this fall. After six years off the air, Larry David—the Seinfeld co-creator known more recently for his Bernie Sanders impression on Saturday Night Live—will bring his hit HBO series Curb Your Enthusiasm back for a ninth season on October 1. But if that release date seems too far off for those avid fans counting the days, there’s another comedy that could fill the void until then.
Cazzie David, the 23-year-old daughter of the Curb creator, has teamed up with a friend from college, Elisa Kalani, to make a web series called Eighty-Sixed. Though just six episodes have been released on YouTube this year, Eighty-Sixed already fits well into a new generation of shows channeling the mockingly self-centered humor that defines Curb. When it premiered in 2000, Curb Your Enthusiasm was unlike anything on television, though some of Seinfeld’s comedic sensibility came through. Shot in a cinema-verité style and largely improvised, Curb followed a fictionalized version of Larry David as he managed to alienate just about everyone he ran into. With his obnoxious nitpicking and disregard for basic etiquette, David’s character was comfortable being self-righteous and offensive at the same time.
Curiosity is underemphasized in the classroom, but research shows that it is one of the strongest markers of academic success.
When Orville Wright, of the Wright brothers fame, was told by a friend that he and his brother would always be an example of how far someone can go in life with no special advantages, he emphatically responded, “to say we had no special advantages … the greatest thing in our favor was growing up in a family where there was always much encouragement to intellectual curiosity.”
The power of curiosity to contribute not only to high achievement, but also to a fulfilling existence, cannot be emphasized enough. Curiosity can be defined as “the recognition, pursuit, and intense desire to explore, novel, challenging, and uncertain events”. In recent years, curiosity has been linked to happiness, creativity, satisfying intimate relationships, increased personal growth after traumatic experiences, and increased meaning in life. In the school context, conceptualized as a “character strength,” curiosity has also received heightened research attention. Having a “hungry mind” has been shown to be a core determinant of academic achievement, rivaling the prediction power of IQ.