Making News: New National Interest Article on Why the Foreign Policy Establishment Was Always Overrated

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academia, Afghanistan, alliances, Blob, Bretton Woods, China, Cold War, foreign policy establishment, forever wars, global financial crisis, globalism, Iran, liberal global order, Mainstream Media, Making News, Max Boot, Richard Haass, Soviet Union, The National Interest, think tanks

I’m pleased to announce that The National Interest has just published my latest article for an outside publication: an essay on why recent defenses of America’s bipartisan globalist foreign policy establishment (AKA, “The Blob”) wouldn’t hold any water even if this powerful, durable in-crowd hadn’t botched practically everything about Afghanistan. Here’s the link.

Also, a new twist today: Unfortunately, I thought some of the edits undermined the flow of the piece. I’m going to try to get at least some of them corrected. But in the meantime, to show careful readers what they were, I’m presenting below the draft as I sent it off. Let me know if you think I have some grounds for grousing. (P.S. I’m just fine with their title and love the subhead’s reference to the “poisoned well”!)

And keep checking in with RealityChek for news of upcoming media appearances and other developments.

Why the Blob Really Has Been Unimpressive

by Alan Tonelson

So the Blob is starting to fight back. The bipartisan globalist national foreign policy establishment is being blamed both for President Biden’s hellaciously botched withdrawal from Afghanistan, and (including by the Blob-y Mr. Biden himself), for pushing the transformation of a necessary anti-terrorist operation into a naively grandiose nation-building project.

It’s time, the argument goes, to marginalize – or at least view more skeptically – this hodgepodge of former diplomats and Congressional aides, retired military officers, genuine academics, and think tank hacks that has shaped American diplomacy in two critical ways: by being used as the main personnel pool for staffing presidential administrations and House and Senate offices on rotating bases, and for serving up informal advisers for these politicians; and by dominating the list of sources used by overwhelmingly sympatico Mainstream Media journalists to report and interpret the news, and thus define for the public which foreign policy ideas are and aren’t legitimate to discuss.

“Don’t throw the baby out with the bathwater!” Blob-ers are responding.

“The foreign policy establishment did get it wrong in Iraq, where the U.S. overreached,” allowed Richard Haass, who as President of the Council on Foreign Relations would arguably win a contest for Blob-er-in-Chief. “We got it wrong in Libya, we got it wrong in Vietnam. But over the last 75 years, the foreign policy establishment has gotten most things right.”

Washington Post pundit (and neoconservative apostate) Max Boot similarly has declared that “we can confidently say that, overall, the foreign policy establishment has served America well over the past 76 years.”

In other words, look past not only Afghanistan and Libya and Iraq and Vietnam but also the failure to anticipate the September 11 terrorist attack; and the long-time cluelessness about the emergence of security and economic threats from China (following the stubborn, decades-long determination to antagonize China after 1949); and a peacekeeping debacle in Somalia; and the Bay of Pigs fiasco; and the blind loyalty to an Iranian Shah hated by nearly all his subjects. Focus instead on all the – presumably more important – successes. (I’m excluding the numerous Blob-y decisions to back all manner of dictators, primarily in the developing world, and ignore human rights considerations because whatever their ethical flaws, only the Vietnam and Iran policies undermined American interests significantly.)

Paramount among them: victory over the Soviet Union in the Cold War; the protectorate-alliances, foreign aid, and open trading system that keyed this triumph – in the process pacifying and democratizing Germany and Japan – fostering recovery in these former enemy dictatorships as well as the rest of Western Europe; and ushering in decades of record prosperity in these regions.

One obvious rejoinder: Today’s Blob and its most recent forerunners merit zero credit for those achievements because almost none of its members simply weren’t around or in power then. Meaning maybe America simply needs a more competent Blob?

At the same time, there’s inevitably been personnel continuity in the Blob’s ranks over time (think of recently deceased centenarian George Shultz, and the 98-year old Henry Kissinger, both still influential well into their golden years). Moreover, today’s establishment was largely groomed in Blob-y institutions, claims to be acting in that original Blob-y tradition, and has clearly remained stalwart in its advocacy of tireless international activism, and support for what it calls the liberal global order and its constituent institutions created by the older Blob generation. As a result, including those decades-old developments in judgements of today’s Blob is eminently defensible.

And in retrospect, what’s particularly revealing but neglected about these achievements is the extent to which they stemmed from circumstances almost ideally suited for foreign policy success, rather than from Blob-er genius. Globalists of the first post-World War II decades unquestionably faced serious domestic political obstacles to breaking with the country’s historic aloofness to most non-Western Hemispheric developments.

But they also enjoyed enviable advantages. Especially important was global economic predominance, which blunted much criticism on the home front by permitting subsidization of both the security and well-being of enormous foreign populations without apparent cost to American living standards or national finances.

It’s no coincidence, therefore, that as this advantage eroded, and the core Blob tactic of handling problems literally by throwing money at them and refusing to choose meaningfully between guns and butter became more problematic, the Blob’s record worsened – and undercut the intertwined domestic political and economic bases of active and passive public support for its strategies.

In fact, post-Vietnam, it’s difficult to identify any important foreign policy decision that Blob-y leaders have gotten right, or even handled reasonably well, with the exception of the first Persian Gulf War. (Ronald Reagan’s dramatic military buildup certainly helped spend and innovate the Soviets into collapse, but it was opposed by much and possibly most of the Blob, which favored continued containment and the simultaneous pursuit of arms control and detente.)

Just as important, this Blob’s very profligacy meant that many of its biggest post-Vietnam failures were economic in nature. Two leading examples – the messy collapse of the early World War II international monetary system and structural inflation and long sluggish growth that followed; and the 2007-09 global financial crisis and ensuing Great Recession.

Both crises were brought on fundamentally by global financial imbalances stemming from the Blob-ers’ stubborn refusal to support even minimal budget discipline on the foreign policy side; and from their failure to require reciprocal market access for traded goods either in the early post-World War II Bretton Woods monetary system or into its patchwork successors. And both revealed the Blob’s obliviousness to the intertwined imperatives of maintaining the national economic power needed to pay for their preferred policies responsibly; and of defining U.S. interests realistically enough to avoid needless costs and addiction to debt, inflation, or both.

Do today’s attacks, then, mean that the Blob’s demise is in sight? Not nearly likely enough. After all, it’s survived its decades-long string of blunders with its status pretty much intact. It’s bound to be keep being replenished by the same elite universities whose relevant faculty members are overwhelmingly Blob-y themselves. There’s no sign that their corporate funders are backing away from the think tanks that keep its many of its members employed when they’re out of public office. And its record will surely keep being reported principally by a news media that’s thoroughly Blob-y itself. That – frighteningly – leaves a foreign policy catastrophe inflicting lasting damage on the nation as America’s best hope for replacing the Blob even with simply a more genuinely diverse source of experience and expertise.

Our So-Called Foreign Policy: Biden’s Just Blundered on Taiwan, Too

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ABC News, Afghanistan, alliances, allies, Article Five, Biden, China, Cold War, Congress, credibility, George Stephanopoulos, Japan, NATO, North Atlantic treaty Organization, Our So-Called Foreign Policy, Republic of China, semiconductors, South Korea, Taiwan, treaties, vital interests

Last week I tweeted that I was worried that President Biden would do something stupid and reckless to try to establish or reestablish (depending on our viewpoint) his global chops following the Afghanistan military withdrawal his administration has so disastrously conducted. As known by RealityChek regulars, American Presidents have followed this course before – notably John F. Kennedy.

And sure enough, on Wednesday he at least came uncomfortably close. No, Mr. Biden didn’t invade or threaten another country, or even move U.S. military forces into provocative positions versus, say, China or Russia or Iran or North Korea. But he did say something that should worry all Americans. In his interview with ABC News’ George Stephanopoulos, the President suggested that Taiwan now enjoys the same status in American eyes as Japan, South Korea, and the members of the North Atlantic Treaty Organization (NATO). That is, they’re allies in whose defense against external aggression the United States is treaty-bound to fight.

Specifically, when asked by Stephanopoulos if China could credibly tell the Taiwanese – who they claim run a renegade province that Beijing has vowed to bring back into its fold with force if necessary – “See? You can’t count on the Americans,” Mr. Biden’s response included:

“We have made– kept every [defense] commitment. We made a sacred commitment to Article Five that if in fact anyone were to invade or take action against our NATO allies, we would respond. Same with Japan, same with South Korea, same with– Taiwan. It’s not even comparable to talk about that.”

The President is right about NATO. In fact, that Article Five he mentioned is the keystone of the treaty that established the alliance. In 1949, the signatories agreed

“that an armed attack against one or more of them in Europe or North America shall be considered an attack against them all and consequently they agree that, if such an armed attack occurs…will assist the Party or Parties so attacked by taking forthwith, individually and in concert with the other Parties, such action as it deems necessary, including the use of armed force, to restore and maintain the security of the North Atlantic area.”

The Japan-U.S. Security Treaty of 1951 contains its own Article Five. The key section:

“Each Party recognizes that an armed attack against either Party in the territories under the administration of Japan would be dangerous to its own peace and safety and declares that it would act to meet the common danger in accordance with its constitutional provisions and processes.”

The promise to meet aggression with U.S. military force is a little looser here – and notice that the treaty creates no Japanese obligation to aid the United States with its own military if American territory comes under attack. The reasons are complicated – for example, in 1947, Japan, then under U.S. military cooperation, adopted a constitution containing a proposal from Supreme Allied Commander General Douglas MacArthur that pledged “never” to “maintain” “land, sea and air forces, as well as other war potential.” The idea, of course, was to prevent Japan from ever reemerging as the type of threat it became in the 1930s. And at that point, it wasn’t even a fully sovereign nation, much less an armed one.

Nonetheless, as the Cold War developed, and Washington’s priorities in East Asia shifted toward using any actual and potential assets available to resist communist aggression, the United States proceeded to push Japan to rearm and add to the regional forces that could fight the Soviets or the Chinese or the North Koreans. But even though Japan continuously balked, the United States’ determination to defend Japan could never be seriously doubted as long as tens of thousands of American servicemen were stationed on Japanese soil, representing a “tripwire” whose presence and possible vulnerability to the superior conventional militaries of potential regional aggressors would guarantee an armed U.S. response – poentially complete with the use of nuclear weapons – against an attack on Japan. 

A similar U.S. commitment – complete with unequal obligaions and tripwire forces – has been made to South Korea.

There’s now clearly a case for adopting the same policy toward Taiwan. From 1954 to 1979, the U.S. security relations with Taiwan were governed by a assymetrical defense treaty, too, complete wiith an Article Five American commitment. But since the United States decided to recognize the People’s Republic of China (yes, the Communists) as China’s sole legitimate government, its approach toward Taiwan’s defense has been informally called “strategic ambiguity” – which is just as fuzzy and plastic as it sounds.

Yet whereas that posture arguably made sense for most of the post-1979 period, since the People’s Republic has grown so much stronger and more important economically than Taiwan (which still calls itself the Republic of China), the island can now legitimately claim to boast an asset vital to America’s own national security and prosperity – world leadership in the manufacture of the world’s most advanced and powerful semiconductors.

At the same time, extending Article Five-type status even to a technological powerhouse like Taiwan isn’t a decision to be made on the spur of the moment. The impact on China – which has significantly closed the military gap with the United States especially in its own backyard (where Taiwan is located) – needs to be carefully considered. And more important, it’s a move that the United States can’t make by presidential fiat. Congress needs to approve.

On Thursday, a “senior Biden administration official” told reporters that American “policy with regard to Taiwan has not changed.” And the usual supposed experts and talking heads said that Mr. Biden had simply added to his long record as a “gaffe machine.” But who the heck is this senior official, anyway? Why should anyone believe him or her if they’re not willing to speak for attribution? And why should the Chinese take this walk-back seriously, or take comfort in (unofficial) assurances that the President was just Biden-ing again – especially since “strategic ambiguity” has become a lot bolder under both him and President Trump?

Moreover, if they’re not aware of it already, the Chinese should know that Presidents have used all sorts of ways short of formal treaties to tie the nation militarily to foreign countries, and even to use military force (Google “Tonkin Gulf Resolution,” or “Authorization for Use of Military Force”), and that timely, effective Congressional resistance is anything but a sure thing. That could go double for a national political establishment that today is united by a sense of humiliation due to the Afghanistan debacle – and possibly spoiling for an opportunity to regain global confidence.

Again, I’m not against a treaty commitment to Taiwan. But it needs to be made with full consideration of all the pluses and minuses, and according to clear Constitutional procedures. And it certainly shouldn’t result from an out-of-the-blue comment by a Chief Executive under heavy political fire, however richly deserved.

Our So-Called Foreign Policy: Afghanistan and the Credibility Crock

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Afghanistan, Bay of Pigs, Biden, Central America, Cold War, communism, credibility, Cuba, Cuban Missile Crisis, Gideon Rachman, Grenada, John F. Kennedy, Laos, Lebanon, Lyndon B. Johnson, Our So-Called Foreign Policy, Reagan Doctrine, Richard M. Nixon, Ronald Reagan, Samuel Johnson, Southeast Asia, Soviet Union, Vietnam

Forgive me if this header makes it sound like I’m unusually ticked off. But I sort of am. Because I’ve been dealing for decades with the claim that the United States can’t set meaningful foreign policy priorities because tolerating any international setbacks of any kind would destroy its global credibility forever.

I haven’t heard this argument lately, no doubt because it’s rooted in the Cold War era, and the absence of a superpower adversary determined to engage in a full-fledged contest for global supremacy (and no, the Chinese aren’t there yet, especially when it comes to fighting proxy wars) drained it of lots of its…well…credibility as a rationale for sweeping American global activism.

Now, however, the seeming certainty of a Taliban takeover following the nearly completed U.S. military withdrawal from Afghanistan has brought it back (see, e.g., here and here), and it’s even less convincing than during its Cold War heyday.

As a review of U.S. Cold War history makes clear, there were actually several varieties of the credibility theory. For example, John F. Kennedy’s effort to halt the spread of Communism in Vietnam clearly was influenced by the acute need he felt to bolster his own credibility after the Bay of Pigs debacle, a performance at a summit with Soviet leader Nikita Khrushchev that he himself viewed as a dangerous flop, and a widely criticized diplomatic settlement to a conflict in neighboring Laos. In other words, Kennedy perceived an urgent need to salvage a reputation for simple foreign policy competence.

Credibility throughout the early Cold War decades in particular had an ideological dimension, too. As this study handily summarizes, U.S. leaders strongly believed that prevailing against the Soviets and Chinese required that Americans help threatened countries demonstrate to the world at large that non-Communist systems had the vigor to repel subversion and outright revolt by adherents of that creed. So establishing credibility during that period was also an exercise in global morale building. (Interestingly, echoes of this idea permeate the rhetoric of the Biden administration and other globalists on the subject of China.)

But the main version of Cold War credibility theory held any U.S. failure to resist Communist expansionism the world over would convince friend and foe alike that American declarations of resolve were shams and that American security commitments were worthless whenever push came to shove. The resulting shift in the global balance of power and influence, as U.S. allies and neutrals alike scrambled to accommodate ascendant Communist forces as best they could, would leave an internationally isolated America much weaker and poorer.

Such fears were behind Lyndon B. Johnson’s declaration that America would not “cut and run” from Vietnam because “We must meet our commitments in the world….”

They were behind Richard M. Nixon’s Vietnam-induced fear that “If, when the chips are down, the world’s most powerful nation, the United States of America, acts like a pitiful, helpless giant, the forces of totalitarianism and anarchy will threaten free nations and free institutions throughout the world.”

And they were explicitly behind Ronald Reagan’s case for his doctrine of resisting Moscow’s efforts to expand its influence in Central America, sub-Saharan Africa – and Afghanistan: “The U.S. must rebuild the credibility of its commitment to resist Soviet encroachment on U.S. interests and those of its Allies and friends, and to support effectively those Third World states that are willing to resist Soviet pressures or oppose Soviet initiatives hostile to the United States, or are special targets of Soviet policy.”

Thankfully, today’s credibility-mongers are outside of power in Washington, not inside. But these members of the globalist foreign policy Blob concentrated in the Mainstream Media, the think tank world, and some factions in Congress, are hardly devoid of influence, especially if the optics coming out of Afghanistan are ugly, as can be counted on. So it’s worth reviewing the main reasons that this form of obsessing about U.S. credibility has no claim to be taken seriously both for that reason, and because their fatal flaws remain the same, too.

In the first place, credibility-mongering falls on its face because its main animating fears have simply not materialized over any stretch of time. The fall of Vietnam, most prominently, clearly led to Communist takeovers in Laos and Cambodia, too. But in the immediate aftermath of Vietnam, no U.S. treaty allies defected into the Communist camp, or turned neutral. Even in Southeast Asia, no more dominoes topped – despite the clear lack of any American appetite to help with any resistance.

In fact, as (globalist) Financial Times columnist Gideon Rachman just noted, “within fourteen years of the fall of Saigon, the cold war was over, and the west had won.”

A least as interesting, as I noted way back in 1985, successful American demonstrations of credibility have displayed little long-term value. For example, Reagan’s 1983 invasion of Grenada was a clear-cut win for the United States. But for years afterwards, Soviet- and Cuban-backed leaders and insurgents in nearby Central America continued defying his administration’s will for years afterward. Outside the Western Hemisphere, the Grenada victory did nothing to stop deadly attacks on U.S. Marines stationed in civil war-torn Lebanon. Meanwhile, many American allies viewed Grenada as more evidence that Reagan was a dangerous cowboy. Even staunch Reagan ally and close personal friend Margaret Thatcher, the British Prime Minister, was unnerved.

More important, though, as I argued in that 1985 article, given inevitable limits on American power and will, the real measure of U.S. credibility isn’t a stated determination to respond strongly to every single foreign challenge that arises, or even to try doing so. In fact, because its post-Vietnam circumstances and behavior have made those limits obvious globally, such pretensions are likeliest to have the opposite effect – to fuel doubts about American judgment and wisdom.

Rather than depending on “convincing the rest of the world that the United States will respond to all instances of aggression,” I continued, building and preserving American credibility “must depend on convincing the world that the United States will respond to some instances of aggression” based on the identification of specific interests that are regarded as important enough to defend (or to advance, for that matter, when such opportunities appear). And operationally, “this translates into an ability to use finite assets efficiently and rationally – to convey a clear sense of priorities.”

Of course, adversaries might as a result view countries or regions left off an American definition of crucial interests as tempting targets. But precisely because these would be low priorities, by definition any adversary wins in these areas would pose few if any risks to the United States.

The 18^th century British literary giant Samuel Johnson famously proclaimed that false, cynical expressions of patriotism are “the last refuge of a scoundrel.” I wouldn’t go so far as to attach that label to the credibility-mongers. But resort to  this ploy too often has been the last refuge of globalists who are completely out of any other reasons to insist on dubious forms of international activism, and the current hysteria over Afghanistan is clearly the latest example.

Our So-Called Foreign Policy: Biden’s Biggest Putin Summit Failure

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Biden, China, Cold War, Democrats, election 2016, election interference, globalism, Henry Kissinger, impeachment, Nordstream 2, Our So-Called Foreign Policy, Russia, Trump-Russia, Ukraine, Vladimir Putin

Even though he’s just turned 98, I’m still surprised that none of the voluminous coverage and commentary on the just-concluded summit between President Biden and Russian leader Vladimir Putin featured any analysis from Henry Kissinger. Not that I agree with every policy decision or even strategy that the former Secretary of State and White House national security adviser favored – far from it.

But as I’ve written before, he’s one of the few first-rate analysts of U.S. foreign policy that I’ve encountered over my own decades in the field (and would have been even if in fact this bar was not so low). He’s still speaking out on these issues. And most important of all, Mr. Biden seems to have paid little attention either in the run-up to the Putin meeting and at the actual session (though of course, the details will long remain highly classified) to an historic insight that Kissinger helped contributed to American diplomacy whose core is as relevant as ever: the imperative of not needlessly antagonizing Russia and China at the same time. 

At this point, three big caveats need to be mentioned. First, it’s an imperative if U.S. foreign policy is to take a globalist course. That’s not my favored course, and under my kind of America First framework, the approach toward each of this powers would be substantially different. But the President is a died-in-the-wool globalist, so what counts most isn’t how his decisions compare with my preferences, but how well and coherently he’s pursuing his own strategy.

Second, there’s no question that Kissinger – and the rest of the bipartisan globalist U.S. foreign policy establishment – took the engage-with-China strategy way too, and indeed disastrously, too far. But at the time, and given the prevailing Cold War priorities both he and then President Nixon held, opening ties with China largely (but not exclusively) to complicate global matters for a Soviet Union feeling its oats, not only made good sense, but was long overdue.

And third, as suggested by my Cold War reference and my claim that U.S. China policy went way overboard, both national and international circumstances have changed dramatically.

Nonetheless, although China today is the rising behemoth facing the United States and post-Soviet Russia’s power is greatly diminished, the latter is still more than strong enough militarily and technologically to cause major problems for America. These range from aggressive designs on vulnerable new U.S. allies like the Baltic countries and Moscow’s former Warsaw Pact satellites, to damaging and disruptive hacks to America’s infrastructure. (I put election interference in a different box, since only extreme partisans believe that Russian operations made the difference in 2016.)

Since the China threat is far greater – and much more multidimensional – than the Russia threat, Mr. Biden has to date sensibly continued his predecessor’s policies of pushing back both militarily (in areas like the South China Sea) and economically (by keeping the Trump China tariffs and tech sanctions in place).

But he’s also spent his first months in office until this week seemingly determined to do his utmost to villify Russia and Putin verbally, apparently heedless of how his posture threatened to push Moscow and Beijing even closer together.

That’s not to say that a rapprochement between China and Russia didn’t take place during the Trump years. It did. (See, e.g., here.) And undoubtedly one big reason was that the Trump actions were much tougher than the Trump words. That’s true whether we’re talking about energy policy (where the former President’s encouragement of American independence gravely weakened the economies of Russia and other big foreign oil and gas producers), or Europe policy (where despite Trump’s scorn for America’s militarily free-riding allies, he beefed up the U.S. air and ground force and naval presence in and around Eastern Europe, right at Russia’s doorstep).

But unlike Mr. Biden to date, Trump also just as undoubtedly sought to contain disputes and even keep open the door to lowering tensions. And one key reason for this hostile posture can only be the flagrantly false claims from so many Democratic party politicians that Trump was excusing and even enabling Putin’s hostile actions out of gratitude for that election year assistance. President Biden eagerly joined the chorus, which tragically turned any outreach toward Russia toxic politically, and now he’s paying the piper – coming under fire from vengeful Republicans and other conservatives for even so modest and reasonable a decision as meeting Putin in person.

As a result, despite this recent report that “Biden fears what ‘best friends’ [Chinese leader] Xi and Putin could do together” and that “U.S. wariness over the Russia-China relationship has grown to the point where high-level American strategists are weighing how to factor it in as they try to reorient U.S. foreign policy to focus more on a rising China,” there’s not only no evidence that the subject came up in any serious way. It’s difficult at best to imagine that Mr. Biden could actually take any noteworthy steps in this direction without sparking (understandable) charges that he’s a Trump-like Putin lapdog, too. Just think of the reactions even in his own party to his recent decision to waive U.S. sanctions on finishing the Nordstream 2 natural gas pipeline, which as I’ve written, can only enrich Russia at the expense of Ukraine (whose security against Russian expansionism was declared vital to the United States itself by so many Democrats during the first Trump impeachment procedings).

An anti-American genuine Russia-China alliance is still no foregone conclusion. After all, countries bordering each other often have long histories of intense and often violent rivalries (like Russia and China). Dictators and would-be dictators like Putin and Xi Jinping rarely trust each other. As a result, countries headed by such authoritarians that are also next-door neighbors are especially unlikely partners.

But there’s also historically a great deal to the adage that “the enemy of my enemy is my friend.” And for the time being – and at an especially crucial juncture – Mr. Biden will struggle mightily to heed it. 

Im-Politic: Can Biden Really Solve the “Root Causes” Behind His Border Crisis?

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Biden, Border Crisis, border security, CAFTA, Central America, Central America Free Trade Agreement, Colbert I. King, Cold War, Donald Trump, El Salvador, foreign aid, George W. Bush, globalism, Guatemala, Honduras, Im-Politic, immigrants, Immigration, Jorge Castaneda, Kamala Harris, Lawence E. Harrison, migrants, Northern Triangle, race to the bottom, Trade, Washington Post

One of the time-honored practices – and myths – behind globalist U.S. foreign policies has been its faith that turmoil in various parts of the world that allegedly threatens American interests can be either eliminated or reduced to manageable levels with enough foreign aid. The idea is that such assistance will address the social and economic problems thought to be mainly to blame for the instability. So it’s no surprise that the globalist Biden administration has decided that aid programs are the keys to bringing immigration from Central America under control – though not of course right away.

As stated by Vice President Kamala Harris upon being tasked by President Biden to oversee U.S. effort to turn the counties of the region’s “Northern Triangle” into places whose populations won’t be determined to leave, the United States “must address the root causes that cause people to make the trek” northward.

That’s why I sure hope she reads Colbert I. King’s column in Tuesday’s Washington Post before she rolls up her sleeves too far. For as the author notes, the Biden administration plan to turn the Northern Triangle countries (El Salvador, Guatemala, and Honduras) from clearly failed states into (reasonable) success stories isn’t exactly new in its essentials.

And especially in recent years, when conditions in the region ostensibly worsened dramatically, and therefore fueled especially big migrants flows, there’s been no shortage of U.S. aid, especially considering the tiny size of the three economies.

As King details,

“Congress appropriated more than $3.6 billion to fund a Strategy for Engagement in Central America program between 2016 and 2021. The money was supposed to strengthen rule of law, improve the administration of justice, promote economic prosperity, prevent violence and combat gangs, and empower youth and women.

“>In fiscal 2021 alone, U.S. funding amounted to $505.9 million.

“>Between 2013 and 2018, The U.S. Agriculture Department allocated $407 million to Central America to provide school meals, nutritional programs for women, infants and children, and to train and provide technical assistance to improve agricultural productivity.

“>The Obama administration asked for money to help the region in fiscal 2016, and Congress appropriated $750 million, requiring the countries to improve border security, combat corruption and address human rights concerns.”

Then the author – properly – proceeds to ask “What happened to it all?” And what can the Biden administration do to make sure that the $4 billion it plans to spend in the region will work any better if Congress approves this sum?

Moreover, the case against more Central America aid as a Border Crisis game changer is actually stronger than King describes. Because Washington has not only been pouring money into the region for decades. It’s also granted these three Central American countries (and their regional neighbors) tariff cuts and other trade-related assistance aimed at enabling them to export their way to prosperity.

Indeed, as then President George W. Bush declared while lobbying for passage of the Central America Free Trade Agreement (CAFTA) – which was eventually expanded to include the Dominican Republic,

“People have got to understand that by promoting policy that will help generate wealth in Central America, we’re promoting policy that will mean someone is less–more likely to stay at home to find a job. If you’re concerned about immigration to this country, then you must understand that CAFTA and the benefits of CAFTA will help create new opportunity in Central American countries, which will mean someone will be able to find good work at home, somebody will be able to provide for their family at home, as opposed to having to make the long trip to the United States. CAFTA is good immigration policy as well as good trade policy.”

Critics can reasonably argue that these U.S. programs failed to achieve their immigration aims because they were poorly designed. On the aid front, it’s true that too much of the assistance provided by the United States during the Cold War was military or other security assistance that largely helped corrupt governments repress their own people – and fight rebels labeled as tools of the Soviet Union and Cuba.

When it comes to trade, globalist U.S. Presidents did Central America no favors, either. For CAFTA simply plunged the region into a frantic race to the bottom in wages and worker safety that had been sparked by the decision to free up trade indiscriminately with all the very low-income countries (including China, India, and Bangladesh) that also produced the apparel products that have represented Central America’s best hope for prospering via globalization.

At the same time, significant U.S. assistance for Central America continued after the Cold War’s end, and more was targeted at economic development. And the Biden administration has said nothing about U.S. trade policy reforms that actually would give the Northern Triangle – or the rest of Central America for that matter, or Mexico – major legs up on non-Western Hemisphere competitors.

All of which could support the conclusion that no amount of aid or trade breaks can make Central America successful. A globalist administration will be particularly loathe to accept this admittedly depressing proposition, but there’s abundant evidence in its favor. The work of development economist Lawrence E. Harrison, to cite one leading example, has compellingly argued that some counties – and entire regions – simply don’t have what it takes to achieve economic success because of the cultures they’ve evolved.

At the same time, as my friend – and noted political scientist and former Mexican Foreign Minister Jorge Castaneda – has argued, the Central American economies are so small that enough smartly spent U.S. money might be able to overcome even these deep-rooted obstacles.

I can’t say that I know the answer. But the analyses of King, Harrison, and Castaneda all point to the overarching conclusion that the kind of business-as-usual version of the address-the-root-causes of Central America’s failings being contemplated by the Biden administration can’t possibly stem the migrant flow. Moreover, until genuinely promising plans are developed, there will be no substitute for re-securing the border by reinstating the type of Trump-ian controls that minimize the strength of the U.S. magnets that influence migrant flows as surely as the problems of sending countries.

 

Our So-Called Foreign Policy: An America Last Troop Agreement with South Korea

Tags

alliances, allies, Biden, China, Cold War, deterrence, Donald Trump, Japan, North Korea, Our So-Called Foreign Policy, South Korea, Soviet Union, tripwire

The United States and South Korea have negotiated an agreement on sharing the cost of basing U.S. troops on the peninsula, and the outcome raises the question of why the Biden administration bothered to negotiate in the first place. For the agreement simply endorsed the offer made by the Koreans under the Trump administration. In fact, it clearly signaled to America’s other security allies that under Mr. Biden, the United States will revert to its pre-Trump policies of permitting them to skimp on outlays for their own defense, thereby needlessly exposing the American homeland to the risk of nuclear attack by the adversaries these alliances are supposed to resist.

Let’s begin by remembering why the link between these decades-old alliances and nuclear risk exist in the first place. As I’ve written repeatedly (and most comprehensively here), it resulted from an early-Cold War period American decision to give up on the hugely expensive idea of using U.S. conventional military forces to deter threats posed by the old Soviet Union, China, and North Korea, and rely instead on intimidating these foes by brandishing nuclear swords.

Non-nuclear U.S. forces, however, still played a vital role in this strategy. Their purpose was serving as “tripwires.” It was the prospect of their being destroyed by their superior enemies that was deemed likely to spur U.S. Presidents to use the nukes to save them, and creating the prospect of escalation to full-scale, intercontinental nuclear exchanges that would prevent the initial aggression to begin with.

Of course, if such deterrence failed, and a full-scale nuclear war broke out, the U.S. homeland would probabl become a casualty. But in those days, the gambit wasn’t completely crazy. In the first place, the security of the allies being protected (mainly Western Europe and Japan) was arguably vital to America’s own security. In the second place, for most of the Cold War, the United States possessed either a nuclear monopoly over the potential adversaries, a meaningful edge, or parity. And even the latter was considered adequate to keep the nuclear retaliation threat credible. In the third place, during the early Cold War decades, the allies – all of which were devastated by World War II – simply couldn’t mount serious defenses of their own.

These days, though, the alliances situation has changed dramatically. Most of the allies can still be considered vital assets for the United States. And all of them are now wealthy enough to build militaries capable of self-defense. But they choose not to, preferring instead to rely on those American military tripwires to deter attack and use their national resources elsewhere, thereby ensuring the continuing nuclear threat to the United States.

Significantly, the major ally that always and still has the least significance to America’s safety and well-being has been South Korea. In addition, the ally-adversary wealth gap is clearly widest between South Korea and its economically impoverished, Stalinist northern neighbor. But because of Seoul’s defense free-riding, because North Korea now has built an impressive nuclear arsenal and is nearing the capability of reaching the continental United States with its missiles, and because not even the alliance-skeptical Trump administration elected to remove the tripwire and thus eliminate any reason for North Korea to threaten, much less actually strike, U.S. targets, the alliance-related nuclear danger to America remains and (given North Korea’s unpredictability, could well be greatest) where running this risk is least justifiable.

Not that the Trumpers ignored the situation completely. Before his administration began, the former President did reveal some awareness of alliance-related nuclear security problems – especially in Asia. And although this theme quickly vanished from the list of stated Trump alliance concerns, he did vigorously press all the major allies, including South Korea, to boost their military budgets and pay more of the costs of hosting U.S. forces. In fact, during his term, the former President continued his pre-inauguration threats to remove some of the American forces from South Korea in order to turn up the heat on Seoul. (He actually ordered a troop drawdown from Germany for the same reasons).

The allies – including South Korea – and their enthusiasts in the bipartisan globalist U.S. foreign policy establishment predictably cried “foul,” contending that Trump had turned American alliance policy into a base exercise in “transactionalism” and “shakedowns,” and none more loudly than candidate Joe Biden last year. In an October op-ed for a South Korean new agency he made clear his determination to return to pre-Trump coddling regardless of the nuclear risk to his own country.

“As President,” he promised, “I’ll stand with South Korea, strengthening our alliance to safeguard peace in East Asia and beyond, rather than extorting Seoul with reckless threats to remove our troops.”

And unfortunately for anyone who would put America’s security first, he’s been true to his word. The latest agreement specifying South Korea’s payment level for the 28,500 American troops stationed in harm’s way right up against the Demilitarized Zone that divides the peninsula had run out in 2019. Deadlocking the talks since then had been Trump’s insistience that Seoul roughly quintuple its last agreed-on figure of about $920 million annually to about $5 billion, and consent to renegotiating the amounts each year rather than every five years. (One news account reported that this demand didn’t come from Trump himself, and that the administration eventually decided to call for a 50 percent first-year hike.)

Biden’s solution? Secure a marginal increase from 13 percent to 13.9 percent in the last annual payments offer reportedly made by South Korea. Thereafter, Seoul will boost its yearly contributions at the same rate as it increases its defense budget – which of course by definition remains woefully inadequate, since despite some recent military spending progress clearly spurred by America First-fueled anxieties, it would still require South Korea to depend on American support. (Incidentally, different accounts of the exact terms have been reported here and here.)

The result? The South Koreans are happy that the Biden administration is dealing with them in “ mutually beneficial and rational manner” and not in “a transactional fashion.” A State Department spokesperson was tickled that the deal has kept the “Biden-Harris Administration’s commitment to reinvigorating and modernizing our democratic alliances around the word to advance our shared security and prosperity.” The Mainstream Media’s globalism cheerleaders are impressed that Mr Biden is farsightedly willing to “cut allies a break to build unity in competition against China and Russia.”

And Americans are still one temper tantrum by Kim Jong Un away from either sitting by and watching nearly 30,000 of their soldiers overrun in an invasion, or trying to save them from total destruction and South Korea from armed conquest with nuclear attacks that could bring a North Korean warhead down on a major American city…or two…or three.

P.S. All indications are that the Biden administration is going to stage a rerun with Japan – though as indicated above, this ally is at least more important than South Korea.

Our So-Called Foreign Policy: Mr. President, U.S. Dealings with China are No Game

Tags

alliances, allies, Antony Blinken, Asia-Pacific, Biden, China, Cold War, democracy, Donald Trump, Indo-Pacific, Jake Sullivan, Kurt M. Campbell, national interests, Our So-Called Foreign Policy, Soviet Union

For literally decades, American foreign policy makers, and especially the pre-Trump globalists, fell into the dangerous habit of obsessing about second-order questions (like whether the old Soviet Union was a fundamentally aggressive or defensively-oriented power, whether military force or diplomacy was the nation’s most effective foreign policy tool, whether unilateral or multilateral actions were most likely to succeed, and whether a more or less involvement in world affairs was preferable).

As a result, they typically neglected the paramount first-order questions: Principally, what overseas goals does the United States need to achieve to secure adequate levels of safety and well-being? In other words, which foreign objectives matter decisively for the United States in and of themselves, and which don’t? And those are first-order question because assessing others’ intentions is much more guesswork than science, and because no one can sensibly choose tools for a job without knowing what job they want to do.

(See this 1985 FOREIGN POLICY essay and this 1991 Atlantic Monthly article on the general failure of not only American leaders but of presumed foreign policy experts to think rigorously about national interests. See this 1991 New York Times piece about the hazards of divining intentions as opposed to capabilities. Apologies if the first two are no longer available for free on-line.)

Therefore, it’s awfully depressing to see the Biden administration staging its own version of backwards strategizing. It’s evidently determined to base its China policy on figuring out what kind of relationship it wants with the People’s Republic, and paying much less attention to identifying specific actions the United States wants China to take, stop, and refrain from in the first place.

The Biden approach is completely mistaken for two main reasons. First, whenever relationships are pursued regardless of their impact on particular, concrete interests, these national needs and wants inevitably become subordinated to atmospherics and abstractions and processes – a decidedly unpromising recipe for national success.

Second, the particular relationship on which President Biden and his top aides are focusing – one marked by competition – is so intrinsically ambivalent (especially in the realm of world affairs) that its much likelier to confuse than to provide useful policy guidance. In addition, competition is a concept that evokes the playing field, where both victory and defeat have ultimately trivial consequences, rather than the fundamentally anarchic and much more dangerous international landscape. Consequently, its use tends to downplay even stakes otherwise defined more threateningly.

These obstacles to clear foreign policy thinking and numerous others all rear their heads in statements the new President and his leading advisers have made during the campaign and transition, and since Inauguration Day.

For instance, Jake Sullivan and Kurt M. Campbell, who have become, respectively, Mr. Biden’s White House national security adviser and National Security Council “czar” for the Asia-Pacific region, perceptively noted in a prominent 2019 article that terms used by the Trump administration like “strategic competition,” unless elaborated on, can’t help but connote “uncertainty about what that competition is over and what it means to win.”

They did write of the need to decide what “kinds of interests the United States wants to secure.” And they do dance around some specific objectives, like maintaining unimpeded navigation in Asia-Pacific (or, to use a term more expanive and popular lately because it includes India – “Indo-Pacific”) waters, and preventing China from taking over Taiwan, and safeguarding America’s global technology leadership. 

But the authors also drone on and on about achieving a state of coexistence that “would involve elements of competition and cooperation, with the United States’ competitive efforts geared toward securing those favorable terms” (but never absolutely committed to securing them); and about “accepting competition as a condition to be managed rather than a problem to be solved”; and about how the Chinese competitive challenge differs from its Cold War-era Soviet counterpart; and about how China has become an “essential partner” as well as a formidable competitor with the United States because of the appearance of shared global dangers like climate change and pandemics; and about an “emerging” global contest of social and economic models; and about how to “get the balance between competition and cooperation right.” Indeed, the piece is titled “Competition Without Catastrophe.”

In addition, last year, new Secretary of State Antony Blinken took pains in a lengthy interview to emphasize that although “we are in competition with China,” there’s “nothing wrong with competition if it’s fair” That point is entirely valid in the context of a sporting event, a spelling bee, or other forms of competition with relatively trivial consequences.

At best, however, it’s deeply puzzling when dealing with decisions that can bring either great benefit or harm to an entire nation, and that can create major risks and require massive expenditures of national blood and treasure. In cases where winning and losing matter considerably and even vitally, it should be obvious, that prevailing or figuring out how to cope with defeat are worth the candle. Yet if and when it’s the fairness of the outcome that matters most rather than the outcome itself, why bother competing at all? Worse, these efforts can produce inexcusable wastes of resources that will surely be invaluable in the more important situations sure to come somewhere down the line.

In one instance reminiscent of the Cold War thinking they generally criticize in the China context, Campbell and Sullivan write that winning that competition of social and economic models with Beijing counts significantly because the United States (in unspecified ways to be sure) will be much better off in a world mainly made up of free market democracies than in one dominated by countries that try to emulate China’s totalitarianism.

Their point is fortified by the leading role advanced surveillance systems play in China, which additionally means that the United States must stay ahead in these fields both in order to ensure military superiority when push comes to shove, and to defend itself against Chinese cyber-aggression. Moreover, intuition and common decency lead all Americans to root for the widest possible global triumph of political and economic freedom (realizing of course that the latter can be defined in many different ways).

Even here, though, the framing U.S. strategy as a competition with China can complicate as many choices as it clarifies. For example, a defining principle of Biden foreign policy is that, in the President’s words, “America’s alliances are our greatest asset” in world affairs. Yet if so, then the new administration, as with its Cold War predecessors, will need to recognize that many of its current and desired partners won’t be either political or economic democracies or even close (in Asia, Communist-ruled Vietnam and the quasi-at-best democracies of Thailand and the Philippines come to mind), and that today’s genuine democracies often feel free – as during the Cold War – to ignore or actually undermine U.S. interests (like Germany nowadays regarding both China and Russia).

Finally, it’s all too easy to conclude that the Biden-ites’ focus on second-order questions first and foremost represents a series of word games aimed at masking their inability or unwillingness to identify first-order issues. Take the President’s insistence that he’ll carry out an “extreme competition” with China. Even leaving aside that he immediately proceeded to trivialize the term by declaring that his approach will differ from Donald Trump’s by focusing on “international rules of the road” (another second-order priority), what exactly will be “extreme”? And how does his definition of extreme competition compare with the other varieties of competition detailed by Sullivan and Campbell?

Similarly, Blinken has just ventured that the U.S. relationship with China entails “adversarial,” “competitive,” and “cooperative” aspects. The last category is no mystery. But what’s the difference between the first and the second? Does the first refer to American interests that must be advanced or defended at all costs and risks, or at least major costs and risks? Does the second refer to those situations and interactions where fairness is overriding? 

Sullivan and Blinken in particular admit that they used to belong to the dangerously naive China engagement mainstream of the U.S. foreign and economic policy communities.  But until they, their colleagues, and the President stop talking about the China challenge as if it was a game, ample doubt will be justified as to whether they’ve yet become China realists.           

Our So-Called Foreign Policy: Globalism on Steroids on the Way for America?

Tags

alliances, America First, Antony Blinken, Blob, Cold War, containment, Foreign Affairs, George F. Kennan, globalism, international institutions, Joe Biden, Our So-Called Foreign Policy, Trump

I’ve written at length on how President Trump has conducted a foreign policy that follows America First principles unevenly at best. Now the evidence is growing that if Joe Biden becomes President, he’ll pursue a strategy that will look like globalism on steroids – in other words, an approach certain to return the nation to a diplomacy that minimizes or ignores completely America’s unique advantages on the world stage, maximizes its vulnerabilities, and needlessly increases its exposure to danger.

Aside from Biden’s own strongly globalist impulses, the main evidence so far is the news that he’s decided to appoint longtime aide Antony Blinken as his Secretary of State. Practically all you need to know about this Washington foreign policy veteran, his priorities, and the almost congenitally globalist worldview from which they spring was summed up in this New York Times headline: “Biden Chooses Antony Blinken, Defender of Global Alliances, as Secretary of State.”

For those still doubting his hallmark, The Times stressed in its homepage subhead that, “Mr. Blinken is expected to try to re-establish the U.S. as a trusted ally ready to rejoin international agreements” – which had the added virtue of making clear that Blinken (along with Biden) is thinking not only about America’s security arrangements with Europe and East Asian countries, but about the entire raft of international institutions ranging from the United Nations to the World Trade Organization.

As I’ve explained, this globalist obsession with multilateralism overlooks (1) the potential of the security alliances in particular to plunge the United States into nuclear war for stakes far less than vital; and (2) America’s matchless overall capabilities and potential to achieve security and prosperity in an inevitably unstable, dangerous world through its own power, favored geographic position, and wealth, rather than by making quixotic attempts to pacify the international environment.

At least as worrisome, Blinken seems utterly oblivious to the importance of cultivating and wielding national power when international arrangements of various kinds do offer advantages to the United States. No one could reasonably disagree with his recent observation that

“Simply put, the big problems that we face as a country and as a planet, whether it’s climate change, whether it’s a pandemic, whether it’s the spread of bad weapons — to state the obvious, none of these have unilateral solutions. Even a country as powerful as the United States can’t handle them alone.”

You’ll search in vain, however, for any awareness that the multilateral solutions in which he places so much stock will have content. As a result, countries with different strengths and weaknesses, with differing histories and social and economic priorities will be pushing for outcomes likely to differ significantly from those optimal for America. So achieving those optimal outcomes is fanciful without the leverage to compel or to bribe, or some combination of the two.

But there’s another maxim of globalism possibly exemplified by Blinken (and other likely Biden appointees) that’s potentially even more dangerous for the United States. It’s the notion that striving for and achieving triumphs in the international arena are much nobler as well as much more important endeavors than seeking success in domestic affairs. Indeed, globalists have become so convinced of the paramount stakes of foreign policy not only out of sheer necessity but for moral reasons as well that they have crowned foreign policy ambition as nothing less than the ultimate test of the nation’s character and worth.

In this vein, back in 1993, as Americans and especially their leaders were still struggling to grasp the implications of the Cold War’s end, I wrote that that epic contest

“generated some troubling theories about America’s national identity and purpose which have become all too uncontroversial. Specifically, many of us have come to believe that America will never be true to its best traditions unless it is engaged in some kind of world mission, that creating a more perfect United States is not a noble or an ambitious enough goal for a truly great people, that we will be morally and spiritually deficient unless we continue to be the kind of globe-girdling power we have been for the past half century.”

In fact, I was always struck by the fact that even a major foreign policy decision-maker and thinker such as George F. Kennan – who for most of his career was not much of a globalist at all – fell under this idea’s sway (or did during his most globalist period). Why else would he have ended his famous 1947 Foreign Affairs article outlining the anti-Soviet containment strategy with this description of the upcoming challenge:

“The issue of Soviet-American relations is in essence a test of the over-all worth of the United States as a nation among nations. To avoid destruction the United States need only measure up to its own best traditions and prove itself worthy of preservation as a great nation.

“Surely, there was never a fairer test of national quality than this. In the light of these circumstances, the thoughtful observer of Russian-American relations will find no cause for complaint in the Kremlin’s challenge to American society. He will rather experience a certain gratitude to a Providence which, by providing the American people with this implacable challenge, has made their entire security as a nation dependent on their pulling themselves together and accepting the responsibilities of moral and political leadership that history plainly intended them to bear.”

In the Blinken context, I was reminded of these claims by this sentence from someone as embedded in the think tank-centered globalist foreign policy Blob as the likely Secretary-to-be has been. Biden, writes this author, “will be flanked and assisted by a group of ambitious, sophisticated, and energetic aides eager to leave their mark on American foreign policy—and the world.”

This observation isn’t exactly the same as identifying Blinken as a foreign policy-uber-alles type. But it’s close enough to unnerve me, and raises the question of what makes these Biden staffers believe that the vast majority of Americans want them to “leave their mark on…foreign policy – and the world,” as opposed to expecting them to reserve blood and treasure for genuinely, and nationally, vital purposes, and hoping that they’ll avoid major blunders?

The answer, of course, is “nothing,” and makes clear that if Biden foreign policy team members are is thinking of shining in the history books, they’ll lower their sights, keep their collective noses to the grindstone, and view America’s international business as a sacred trust rather than a vehicle for their personal — or even the nation’s — reputation.

Our So-Called Foreign Policy: Trump’s Potentially Disastrous Germany Troops Decision

Tags

America First, Cold War, deterrence, free-riding, Germany, military spending, NATO, North Atlantic treaty Organization, nuclear war, Our So-Called Foreign Policy, Poland, The Wall Street Journal, tripwire, Trump

So where will President Trump send those U.S. troops he’ll be moving out of  Germany? That may sound like an odd question to post about, given the widespread anti-racism and police brutality protests in the United States, still deeply depressed activity across the national economy, some signs of a CCP Virus second wave, and of course the intensifying presidential election campaign.

But precisely because, as Americans hopefully are learning, crises can spring up seemingly out of nowhere, it’s a crucial subject to examine. For if President Trump comes up with the wrong answer – as is entirely possible based on what’s known so far – the stage could be set for a terrifying and completely needless nuclear showdown with Russia that could all too easily result in a nuclear attack on the U.S. homeland. And in a supreme irony, these dangers all stem from what’s been shaping up as one of the President’s sharpest and most dangerous departures from the America First principles on which he’s based much of his foreign policy.

But let’s begin at the beginning. As first reported last week in The Wall Street Journal, and pretty strongly confirmed last week, the President has decided to reduce the numbers of active duty American servicemen and women stationed permanently in Germany from 34,500 to 25,000, and cap this presence at that level.

If the troops would be heading further west on the European continent, or heading back home, that would be great news for Americans, as it would dramatically reduce nuclear war risk. As I’ve frequently written, for decades, (although in much greater numbers during the Cold War), U.S. forces have been deployed in Germany not to defend Germany militarily, but to function as a tripwire.

That is, American policymakers were under no illusion that these units would strong enough (even in tandem with the forces of U.S. allies in the North Atlantic Treaty Organization – NATO – like Germany) to beat back an attack from the conventional forces of the Soviet Union and its satellite allies. But Washington believed that the U.S. presence in West Germany – which bordered then-Communist East Germany) would deter a Soviet attack in the first place precisely because of its vulnerability. Specifically, the specter of American soldiers being  decimated would force an American President to try saving them with nuclear weapons. The resulting prospect of the conflict threatening to escalate to the all-out nuclear leve – which would destroy the Soviet Union, too –  would supposedly be enough to keep Moscow at bay.

As I’ve also written, this strategy arguably made sense during the Cold War, when its aim was keeping in the free world camp West Germany and Western Europe and all of its formidable economic power and therefore military potential. Today, however, it not only makes no sense from a U.S. standpoint. It has become positively deranged, as the likeliest targets of post-Soviet Russian aggression (and the arenas where the U.S. forces would likeliest be sent if the shooting starts) are not the longstanding NATO members of Western Europe. Instead, they’d be sent to the newer NATO members of Eastern Europe – most of which border Russia, but whose security was never viewed as a vital U.S. interest (that is, worth risking war over), even in the Cold War days.

Even less excusably, sizable American forces have remained in Germany and elsewhere in Western Europe in part because Germany and most of the other allies keep skimping so shamefully on their own militaries – even though most have hardly been short of resources.

No ally has been a more disgraceful military free-rider than uber-wealthy Germany, and the President has been right to complain about German and broader stinginess, and to threaten major consequences if the allies’ defense budgets aren’t significantly boosted. But as I’ve also explained, he’s focused on the wrong objective: securing a fairer deal for U.S. taxpayers.

Instead, all along, he should have been seeking the removal of the American military either from Europe altogether, or its transfer far enough from the front lines to reduce meaingfully the odds of it getting entrapped in a new East-West conflict immediately. For those are the kinds of moves that would shrink to insignificance the chances of the United States getting hit by Russian nuclear warheads because of a combination of its forces being placed in a completely impossible position militarily, and because U.S. allies have been too cheap to pay for their own security.

Worst of all, though, far from moving U.S. forces away from the front lines of a Russian attack, Mr. Trump consistently has been moving them closer, by cautiously but steadily stationing more in Poland and elsewhere in Eastern Europe. And numerous reports have suggested that Poland is exactly where at least some of the 9,500 U.S. troops leaving Germany will be heading.

Because a final decision to transfer the troops to Poland hasn’t been made yet, there’s still hope that this potentially disastrous mistake can be avoided. But that outcome seems unlikely without a serious intervention from a Trump advisor influential enough to produce an about-face. Anyone out there know how I can get a hold of Jared, Ivanka, or Melania?

(What’s Left of) Our Economy: How Bad Will it Get?

Tags

Baby Boom, CCP Virus, Cold War, coronavirus, COVID 19, Edward Harrison, Federal Reserve, Great Depression, Great Recession, health security, military spending, moral hazard, recession, recovery, secular stagnation, small business, start-ups, technology, Trump, uncertainty, unemployment, World War II, Wuhan virus, {What's Left of) Our Economy

How bad economically? That’s a CCP Virus-related question everyone’s understandably asking these days. In fact, last night one of my social media friends expressed the super-bear case pretty compellingly:

“I can’t see any way this is not going to destroy us. No one will have any money, so they won’t buy anything, won’t pay their bills, can’t pay rent or mortgages. No spending power means no employment. More layoffs. certainly as soon as stores open there wil be a rush to sell everything, a rush to normal, hoping for the best, but I think this is pretty much The End of life as we know it.”

And an economy-watcher I know with an unusually good feel for finance is awfully pessimistic, too – and has been right so far about the virus’ impact on output, employment, and the markets.

I’m feeling even less confident than usual in my economy crystal ball (that’s a low bar). The main reason of course is that the current U.S. nosedive, as I (and nearly everyone else) have observed, isn’t a standard recession or depression. That is, it hasn’t been caused either by some built-in weakness in the economy that finally becomes too big to ignore or paper over, or similar problems in the financial system that wind up wrecking the “real economy.” We can’t even blame the current crisis on some outside economic shock, like the boost in global oil prices that wreaked such economic havoc in the 1970s.

Even so, here are four somewhat related, extremely tentative thoughts that I hope will help readers form their own judgments about the American economy’s future. Spoiler alert: They’re pretty pessimistic.

First, the fundamentally biological nature of the crisis creates the kind of uncertainty that’s unprecedented in modern times, and that consumers, businesses, and investors will hate even more than usual. For example, what if there’s a second wave? Or a third? How will these three groups of economic actors respond to attempted restarts of economic activity that, however gradual or rolling, turn out to be premature?

Worse, what if the CCP Virus is here to stay for the time being, and treatments can only become good enough to reduce it to the status of a really nasty flu? And what if it mutates into something requiring qualitatively different cures?

Second, because of all these possible biology-rooted uncertainties, I fear that many of the standard arguments for expecting a relatively quick, strong rebound should be thrown out the window. All of them, after all – including President Trump’s – apparently assume that the timeout mandated in most of the economy’s consumption (and that therefore inevitably undermines its business spending) is creating lots of frustrated demand that will burst into actual spending once the crisis passes.

One big historical precedent cited: the aftermath of World War II. At that time, officials inside the federal government feared that growth would fizzle at best for two main reasons. First, the massive boost to growth and employment delivered by wartime military spending would dramatically fade. Second, this pessimism was no doubt greatly reenforced by the nation’s immediate pre-war experience – a lengthy and deep depression that showed no signs of ending until the global fascist threat inspired a pre-Pearl Harbor military buildup.

But after the war, consumption came back with a vengeance – because the main threats on everyone’s mind were decisively defeated; because so many Americans had lots of income to spend; because Washington laid the ground for more income-earning with programs like the G.I. Bill, along with war-time advances in science and technology that boasted phenomenal peacetime uses; and because baby-making boomed along with consumption, juicing demand for more housing in particular.

And let’s not forget the Cold War! The household spending binge did slow in 1947 and 1948. But by 1949, defense spending began rising again, and it really took off from 1951 on, once the Korean War in particular convinced policymakers that a global Communist threat was alive and here to stay.

Today, however, determining when the major threat is finally over is much more difficult. Unemployment is sure to rise much higher than the 5.9 percent pre-Korean War peak (in 1949), meaning that not only will incentives to save remain stronger, but that much more income is being lost. And nothing like a post-World War II Baby Boom was even in sight before the CCP Virus struck. Indeed, the arrows were pointing in the opposite direction. A post-virus repeat seems unimaginable.

The one interesting possible reason for purely economic optimism? A new military spending surge – perhaps spurred by worries about China? And new healthcare products investment might jump as well, possibly boosted by government incentives, to prevent a repeat of current supply shortages.

The third consideration weighing on my mind is the separation factor. Even if post-virus improvement is solid, I wonder how sustainable it will be. The main reason is that, at least during past episodes of major job loss (e.g., the last decade’s Great Recession that followed the global financial crisis), many of the unemployed face big difficulties returning to work in any form, and particular difficulties finding work at previous pay levels. Because the longer unemployment lasts, the harder these obstacles generally become, and because of the likely rate joblessness is likely to hit, this separation factor could become considerable even if unemployment insurance and other income supports do turn out to be generous enough to sustain such economic victims until the nation reaches “the other side.” 

The separation factor, moreover, may go beyond workers. I don’t by any means rule out the possibility that significant numbers of small business owners may call it quits, too – either because cratering demand for their products and services will kill off their enterprises, because the the government aid being offered doesn’t cover all their losses for long enough, or because they conclude that applying for the aid just isn’t worth the candle.

Sure, new start-ups will fill part of this gap. But all of it? Not if the abundant pre-crisis evidence of a significant drop-off in such entrepreneurism is any indication.

Fourth, also reenforcing the bear case: Although the roots of the current economic mess are dramatically different from those of the last near-meltdown and recession, the “whatever it takes” response of the federal government and the Federal Reserve are remarkably similar. As pointed out by Edward Harrison, the economy- and finance-watcher I cited above, on the one hand, the authorities probably don’t have a choice. On the other, this thick, pervasive safety net did produce an epidemic of “moral hazard” – financial decisions in particular that turn out to be bad but that initially look smart because confidence in some form of bailout reduces the perceived risks and costs of mistakes.

As I explained previously, the last outbreak of moral hazard took a painful pre-virus economic toll, as the resulting inefficient use of capital helped produce  one of the weakest economic recoveries American history. In fact, it’s produced a theory that I personally find as convincing as it is depressing (personally): secular stagnation. It holds that the economy has become so fundamentally unproductive and inefficient that the only way it’s been able to generate even adequate (not especially strong) levels of growth has been for government to inflate bubbles of various kinds (with all its moral hazard-creating spending and guarantees) that, of course, eventually burst. So it doesn’t seem at all unreasonable to believe that the upcoming recovery will be similarly feeble.

Even worse, according to Harrison, even the current official backstopping might not suffice to prevent defaults by the financially weakest businesses – which would generate their own harmful spillover effects.

I’m not saying that there’s no case for optimism – at least cautious optimism. The overall long-term historical momentum for improvement in living conditions the world over is very impressive. As a result, doom-saying has a lousy record in the post-World War II period in particular. Technological advance isn’t going to stop, and may not even slow much. Maybe most important, at least in the medium-term, the human desire to acquire and consume shows no signs of having vanished.

So maybe the safest conclusion to come to (however unsatisfyingly timid): This time won’t be completely different. But don’t bet on a simple, and particularly a quick, return to pre-virus times.