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Making News: Two Podcasts of National Radio Trade War & Economy Interviews…& an Eye-Opening Look at Amazon.com!

07 Saturday Dec 2019

Posted by Alan Tonelson in Making News

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Amazon.com, Breitbart News Tonight, economy, election 2020, Gordon G. Chang, Henry George School of Social Science, Hong Kong protests, Jobs, jobs report, Making News, manufacturing, publishing, Rebecca Mansour, Rick Manning, Robin Gaster, Smart Talk, The John Batchelor Show, Trade, trade war, Trump

I’m pleased to announce that just out on-line are two podcasts of national radio interviews on the Trump trade wars and a video on an especially startling aspect of Amazon.com’s stunning rise to business titan status.

The latest interview now available was conducted last night on “Breitbart News Tonight” and can be found at this link.  Once you’re there, scroll down a fair ways till you see my name on a December 6 segment – a discussion with hosts Rebecca Mansour and Rick Manning that ranged from the last (excellent) U.S. jobs report to the Hong Kong protests to the intensifying presidential election campaign.

The previous interview was broadcast Wednesday night on “The John Batchelor Show.”  Click here to listen to a conversation with John and co-host Gordon G. Chang on how well the U.S. manufacturing sector is faring as President Trump keeps trying to revamp U.S. trade policy.

The video shows me reversing roles and interviewing economist Robin Gaster on the implications of Amazon.com’s efforts to disrupt yet another major U.S. industry, and one playing an especially important role in American culture – the book publishing industry.  Click here to watch, and keep in mind that the interview is posted in two parts.

Incidentally, this interview is the latest in the “Smart Talk” series sponsored by the Henry George School of Social Science – a New York City-based economic research and education institute on whose Board I’ve served as a Trustee for several years.  “Smart Talk” has featured some of the world’s leading economic thinkers, and if you search around its section on the website, I’m sure you’ll find some fascinating and important material.

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

Our So-Called Foreign Policy: Signing the Hong Kong Democracy Bill Should be a No-Brainer for Trump

24 Sunday Nov 2019

Posted by Alan Tonelson in Our So-Called Foreign Policy

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China, Congress, democracy, Hong Kong, Hong Kong protests, human rights, Our So-Called Foreign Policy, sanctions, trade deal, trade talks, Xi JInPing

Full disclosure: I don’t believe that promoting human rights and democracy abroad should be a high priority for U.S. foreign policymakers. (My most detailed explanation comes in this late-1994 article in FOREIGN POLICY magazine, which is available on-line here and here.) All the same, there’s no doubt in my mind that President Trump would be making a big political and substantive mistake if he, as he’s (very obliquely, to be sure) hinted that he might veto the Hong Kong Human Rights and Democracy Act of 2019 just passed overwhelmingly by both the House and Senate.

Don’t get me wrong: I’m under no illusion that the legislation will do anything in the foreseeable future to promote human rights and democracy in Hong Kong – and you shouldn’t be, either. In fact, there’s every reason to believe that it’s a classic example of political virtue-signaling. For example, even the sponsors of the bill don’t seem to believe that any plausible official American words or deeds can affect the fate either of Hong Kong generally or of the huge numbers of protesters who have been challenging China’s determination to keep eating away at the special freedoms enjoyed by its residents since its hand over by the United Kingdom to Beijing in 1997.

If they did, you’d think that they’d have included in the bill some economic sanctions against the Chinese economy. But not only are such provisions entirely missing. The only measures resembling economic sanctions or potential sanctions are directed against the economy of Hong Kong – in the form of requirements that the various ways in which U.S. policies and other laws that treat Hong Kong differently from China (based on the assumption that this “Special Autonomous Region,” as Beijing calls it) really still is autonomous – remain justified by the facts on the ground in Hong Kong.

The bill does contain some sanctions instructions directed at China – but not at any sectors of its economy. Instead, they’re to be applied against “foreign persons” determined to be “knowingly responsible” for any “gross violations of internationally recognized human rights in Hong Kong.”

To which the only serious response is “So what?” The Hong Kong officials who give the specific orders to the police to fire tear gas or crack some heads or shoot rubber bullets into crowds are nothing more than tools of the dictators in Beijing. Concentrating punishment on them amounts – knowingly – to punishing the little fish and letting the prize catches get away. And P.S. – they’re as easily replaceable and interchangeable as any ordinary functionary.

Unless you can think of many U.S. politicians in either party who would back imposing sanctions on Chinese kingpin Xi Jinping or any of his senior cronies? Fat chance – assuming you could even locate any of their assets vulnerable to America’s reach. After all, how many American elected officials genuinely doubt that China’s top leaders are ultimately responsible for the harsh repression of the Hong Kong protests – or for the extradition law that triggered this uprising?

Nonetheless, the politics alone argue compellingly for presidential signing of the Hong Kong measure. It attracted nearly unanimous support on Capitol Hill, so a veto override is likely. And although the President won’t win much praise for enacting the bill into law, he’ll generate a hail of brickbats for any opposition.

And for what? As I argued in the article cited at the beginning, human rights interests generally should take a back seat in U.S. foreign policy for any number of reasons, but chiefly because other interests are usually more important for America’s security or prosperity (since foreign governments’ human rights practices as are almost completely incapable of undermining these objectives). Moreover, American actions can sometimes backfire, and it’s far from far-fetched to worry that a Trump approval of the Hong Kong bill and more frequent and stronger expressions of official outrage will only further convince China’s dictators (and much of the nationalistic Chinese public) that the unrest in Hong Kong stems from foreign meddling, not legitimate concerns.

Yet U.S.-China relations these days are so bad that it’s difficult to imagine a Trump signature on the Hong Kong legislation significantly worsening them. It’s possible that Beijing could retaliate with still higher tariffs or other curbs on American exports, especially farm products, but China remains much more vulnerable to U.S. economic pressure than vice versa. Nor is the President likely to suffer much politically from such measures during the upcoming election year, since nearly all of his political opponents have spoken out much more emphatically against China’s record in Hong Kong than he has. As for “outside agitator” claims – the Chinese are already making them, including against the United States.

Which leaves us with the one stated presidential reason for considering a veto of the Hong Kong bill – that an obstacle could be created to reaching a trade deal. The problem here is that a trade deal that serves U.S. interests (as opposed to a cosmetic deal that, e.g., results in increased American exports to China in exchange for American tariff reductions with no commitments from Beijing to end its most important predatory trade practices) simply isn’t possible. As I’ve written repeatedly, even a complete Chinese cave-in on paper to every demand the administration has ever made can’t possibly be verified adequately – because the Chinese government is so big and so secretive.

In fact, if there’s any relationship between trade policy and Hong Kong policy, it surely works the other way: More human rights pressure from Mr. Trump would be added to the economic pressure that’s already making Xi’s life hard enough. And whatever throws the Chinese off balance by definition helps the United States. For it would force Beijing to spend more time putting out fires and playing defense generally across the board, and leaves less time for pursuing offensive economic and geopolitical goals that undermine American interests.

As I’ve always seen it, claims that these interests (properly defined, of course) and ideals are always ultimately compatible are among the most fatuous made by practitioners, scholars, and historians of American foreign policy. But especially for a country with America’s range of geopolitical and economic choice (by dint of its high degree of built-in security and economic self-sufficiency, and potential for even more), there’s also no question that the United States can afford to promote its admirable values on a regular basis.

Hong Kongers’ struggle for more freedom and democracy represents one such case, meaning that a Trump-ian failure to sign the Hong Kong bill would call into question not only his support for these ideals, but his pragmatic instincts as well.

Im-Politic: On Sports, Politics, and Boundaries

20 Sunday Oct 2019

Posted by Alan Tonelson in Im-Politic

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boycotts, China, culture, entertainment, First Amendment, free speech, Hong Kong protests, Im-Politic, national anthem, National Basketball Association, National Invitational Tournament, NBA, politics, Princeton University, protests, social media, sports, Vietnam War

One my my funnest (indulge me) memories of college was driving round trip between central New Jersey and New York City’s Madison Square Garden four times one week in the spring of 1975 to see the Princeton men’s basketball team play in – and win! – the National Invitational Tournament (which was a reasonably big deal back then).

During one of the games, a friend and I unfurled a dorm-made sign protesting something or other about the rapidly ending Vietnam War. We considered it an important message to send, and given the conflict’s damage to America’s economy, politics, society, and culture, and given the destruction wreaked throughout Southeast Asia, I have no problem all these decades later with the content.

In retrospect, though, I wish we’d left the banner back on campus, because I’m now convinced that injecting political and policy debates into a college basketball game wasn’t the right decision. I’m bringing it up today because I wish those well-meaning basketball fans supporting the Hong Kong protesters and China’s other repressive policies inside the arena would recognize that these actions are mistaken, too.

Don’t get me wrong: As I’ve written, I have no problem with athletes and other figures from the sports world expressing political and policy views. I don’t find them to be of any special interest, and way too often they’re the epitomes of ignorance, virtue signaling, or both. But all of them – along with celebrities and others from entertainment circles – unmistakably enjoy the same First Amendment rights of all other Americans. (Complications do arise, however, when their free speech rights clash with their obligations as employees of companies concerned that such words and actions will be bad for business.)

In fact, I’ve also urged National Basketball Association officials, players, owners, and other employees to think much more seriously about their partnership with China (and, by extension, other repressive countries), and even consider a boycott.

But just as I’ve urged athletes to keep their political views (e.g, taking a knee during the playing of the national anthem before pro football games) off the court and playing field (because their fame gives them so many other high-profile opportunities to speak out – and to big audiences), I’d urge fans to keep home their own beliefs, however heartfelt and morally compelling. The same, by the way, should apply to entertainers turning awards shows into political fora.

For even though spectators lack the renown and followings of athletes and entertainers, they’re hardly devoid of influence. They can choose to stay away from arenas, cinemas, theaters, and other venues showcasing performers, franchises, or entertainment businesses whose actions or statements they dislike. They can also organize boycotts of these individuals and organizations if they wish – and social media gives them a more powerful megaphone than ever. (For the record, I’m anything but enthusiastic about such politicization, especially regarding prominent individuals and organizations who fail to take desired stances.)

And I can’t imagine how any court could legitimately decide that such protesters aren’t allowed to make their views known verbally and/or visually on public transportation corridors and systems leading to and servicing sports or entertainment venues (subject of course to any level of government’s right to regulate protest activity in such a way as to permit travel and other everyday activity from proceeding).

But even if businesses and organizations that stage sports or entertainment events lacked the legal authority to ban activity at events that has nothing intrinsically to do with the sporting or entertainment angle of these events (the current legal consensus is pretty unclear, at least judging from this article), would anyone this side of rational and sane really want to go to, say, a Los Angeles Lakers pro basketball game and be forced to listen to some attendees heckle star LeBron James all contest long for his failure to condemn China’s human rights practices? Or to need to see “Free Hong Kong” banners throughout the Staples Center or any other NBA court?

The law plainly prevents such heckling or chants or other disruptive behavior at entertainment events where it’s crucial to listen to the performers. But even when speaking and listening aren’t important, who would really want to visit an art museum whose every gallery contains a protester or two or ten holding up Pro-Life or Pro-Choice signs? Who would really want to walk around a Central Park blanketed with Dump Trump or MAGA posters?

The sports, entertainment, and cultural worlds shouldn’t be shielded from politics and policy, and indeed can’t be – unless we want to make them completely irrelevant to our lives and to our posterity. But given all the opportunities available to all Americans nowadays to express political and policy views, it seems not only entirely reasonable to treat actual performances as refuges – including as escapist opportunities, from these other spheres, but essential to the health and vibrancy of both individuals and the nation as a whole. And these are boundaries that a genuinely wise society should be respected regardless of whether, and to what extent, they’re legally enforceable or not.

(What’s Left of) Our Economy: What the Mini-Deal Says About Trump’s China Policy

11 Friday Oct 2019

Posted by Alan Tonelson in (What's Left of) Our Economy

≈ 1 Comment

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agriculture, business investment, censorship, China, decoupling, democracy, Democrats, election 2020, Elizabeth Warren, Hong Kong, Hong Kong protests, human rights, impeachment, Populism, Republicans, tariffs, Trade, trade talks, trade war, Trump, Uighurs, Ukraine, Ukraine Scandal, {What's Left of) Our Economy

The “Phase One” min-deal reached by the United States and China tamping down bilateral trade tensions for the moment, speaks volumes about the three major forces that are now driving President Trump’s China policy, and that will keep shaping it through the next U.S. election – though not always in consistent ways. They are:

>the President’s evident belief that his reelection hopes are being threatened mainly by revived impeachment threats but also by an economic slowdown that has unmistakably been influenced by the so-called trade war with China;

>his consequently increased need for political support from the establishment Republicans so numerous in Congress who have never boarded the Trump Tariff Train and who are worried about their own reelection chances next year; and

>Mr. Trump’s consistent (though generally unstated) belief that no matter how the formal trade talks proceed, America’s national security as well as economic interests require the U.S. economy to continue steadily decoupling from China’s.

The strength of the impeachment drive faced by the president is now indisputable. Some polls are even showing growing Republican support for not only impeachment by the House but removal by the Senate. Moreover, this political challenge comes at a time when the President’s strongest suit by far (at least according to polls) – his economic policy record – is looking somewhat weaker.

Few signs point to a recession breaking out by Election Day, much less during the preceding weeks or months. But growth has been slowing to levels that Mr. Trump himself has deemed unacceptable – in no small measure because they were the rates that prevailed for most of the Obama administration.

The tariff-heavy Trump trade policies hardly deserve all the blame. (See, e.g., this recent post.) But the failure of business investment to stay elevated following passage of major tax cuts for business is especially telling. It buttresses claims that both the President’s various sets of tariffs and the inconsistency with which they’ve been both threatened and applied have inhibited companies from approving big new expenditures on new factories and other facilities.

As a result, nothing that can reasonably be expected from Washington (in other words, ruling out a big infrastructure spending bill) is likelier to boost the economy more than a nerve-calming trade truce with China mainly featuring some Chinese market opening or re-opening (especially for agricultural products) in return for some U.S. tariff cuts, promises to refrain from new levies, or some some combination of such moves. At the least, such an agreement would in theory help growth maintain the momentum it has remaining.

A mini-deal along these lines would also please the Senate Republicans who might ultimately judge the President’s fate, and who generally have lagged far behind the GOP base in turning against pre-Trump China and broader trade policies. Moreover, as I’ve written, impeachment politics have greatly magnified their sway over Mr. Trump before. Despite his sky-high popularity with Republican voters, the President was heavily dependent on their political backing until this spring in order to neutralize any impeachment chances while his Russia ties were being investigated. That’s surely why his early policy initiatives were dominated by traditional Republican priorities, like tax cuts and repeal of former President Barack Obama’s healthcare overhaul, rather than by populist priorities like an infrastructure bill and the prompt imposition to tariffs.

Once the Special Counsel and other investigations flopped for various reasons, Mr. Trump had a much freer hand. But because of the emergence of “UkraineGate,” for now, those days are over. Probes growing out of those events are certain to last for months. Therefore, continued, much less higher, tariffs on China that could further drag on the economy and further frustrate the rural constituencies so crucial to the President and many other Republicans seem out of the question.

The President is so hamstrung that he’s been unable to marshal greater public support for staying the tariff course even though China is antagonizing American public opinion with its harsh suppression of the Hong Kong protests and the Muslim Uighur minority, and with its heavy handed efforts to extend its censorship practices to the National Basketball Association and other U.S. businesses. And don’t forget: These developments have placed China in a much weaker position, too.  

One reason that the President hasn’t been able to capitalize could well be his reluctance to declare publicly the functional equivalent of economic war, or his intent to decouple – presumably because any such statements would prompt the Chinese to crack down even further on American companies even doing business in the PRC that have nothing to do with job and production offshoring aimed at serving the U.S. market from super-cheap and highly subsidized Chinese facilities, as opposed to serving Chinese customers. And that reasoning has been entirely understandable.

Much less understandable – the President’s insistence that a trade war with China would be easy to win and inflict no economic harm on Americans, rather than choosing to challenge his compatriots to endure some sacrifices in order to beat back a mortal threat to their national security as well as prosperity. No wonder public support for so-called hard-line policies remotely strong enough to offset the opposition and reservations of the Congressional Republicans and most Democratic politicians is nowhere to be seen.

And don’t doubt that the Chinese fully understand. Whatever problems they initially experienced in figuring Mr. Trump out, they surely have concluded that they’re best advised to play the waiting game on the broader and deeper so-called structural issues dividing the two countries (e.g., intellectual property theft, technology extortion, massive subsidies) until the President is replaced by a Democrat who’s much easier to deal with.

Indeed, the evidence for this conclusion is abundant. China issues have played a small role in the Democratic primary campaign so far – even when it comes to long-time critics of pre-Trump trade policies like Democratic Socialist Vermont Senator Bernie Sanders, and Massachusetts Senator Elizabeth Warren. One likely explanation: In recent years, Democratic voters and leaners have markedly flipped on those pre-Trump approaches, from deep dislike to general approval. This shift in public opinion (matched in part by a trade flip in the other direction among Republicans and leaners) may also warrant some Chinese confidence that even a President Warren might prove a more acceptable interlocutor than Mr. Trump.

Nonetheless, the formal talks are not the only track on which the Trump administration’s China trade policies are running. And the other track – featuring unilateral U.S. moves to restrict Chinese involvement in the American economy, and thereby foster decoupling – is much less controversial than the trade talks and especially the tariffs and tariff threats clearly required to spur any meaningful progress.

Highly revealing on this score (in terms of the importance attached in Washington to decoupling): Even as a high level Chinese delegation was jetting to Washington, the President approved actions against Chinese tech companies and Chinese officials that were justified by human rights concerns, but that in the first case clearly advanced decoupling. Just as revealing (in terms of possible Chinese acceptance of a more skeptical new bipartisan U.S. consensus on China policy): Despite the provocative timing, the Chinese didn’t turn around and head back home once they heard the announcement.

Reinforcing the new American consensus on decoupling has unmistakably been the growing realization by the U.S. corporate sector that its heavy bets on China have dangerously increased its vulnerability not only to the whims of American politics, but to a Chinese regime that’s turned out to be much less hospitable than expected. As a result, “Phase One” is not only a suspiciously convenient-looking term being used by the President to describe his new deal. It also looks suitable for describing where his administration’s overall China policy stands right now.     

Im-Politic: The NBA’s Not Real Woke on Hong Kong

07 Monday Oct 2019

Posted by Alan Tonelson in Im-Politic

≈ 1 Comment

Tags

Adam Silver, basketball, Bradley Beal, China, Chris Paul, Daryl Morey, David Fizdale, democracy, Draymond Green, Golden State Warriors, Gregg Popovich, Hong Kong, Hong Kong protests, Houston Rockets, human rights, Im-Politic, James Harden, Jaylen Brown, Kevin Durant, LeBron James, National Basektball Association, NBA, Russell Westbrook, Steph Curry, Steve Kerr, Tilman J. Fertitta, Trump, Twitter, Uighurs

In recent years, the National Basketball Association (NBA) has worked hard to earn its reputation as the most socially conscious sports league in America and possibly the world – and certainly its owners and Commissioner Adam Silver have both permitted the players to speak out on various political and policy issues, and demonstrated a pretty high degree of “wokeness” themselves. Nor has American men’s pro basketball’s commitment to social and economic and political justice been limited to words. Time after time, many of the NBA’s biggest stars and most successful franchises and coaches have backed up their rhetoric with actions, ranging from boycotting events with President Trump to supporting social programs in low-income communities and other worthy causes.

What a shame, then, that neither the players’ nor management seem to believe that Hong Kong’s democracy protesters deserve even a syllable of sympathy. Worse, the issue has gotten the silent treatment even from the NBA’s most outspoken figures, and the league itself just made clear that it’s so determined to maximize profits in its current huge and potentially much bigger China market that it’s given the cause of freedom in Hong Kong – and by extension, the mainland – the back of its hand.

Hong Kong has been in turmoil since June, engulfed by massive, angry, and sporadically violent protests – and a more violent government crackdown – triggered by the government’s proposal of a law that would enable the extradition of criminal suspects to China. To be sure, despite Beijing’s promise as part of the 1997 “handover” agreement with the city’s British colonial rulers to permit Hong Kong to retain its largely democratic political system and rule-of-law legal system to remain in place for fifty years, China has steadily encroached on those freedoms practically since Hong Kong became a “Special Administrative Region” of the People’s Republic.

Nonetheless, the extradition measure has apparently convinced many Hong Kong-ers that China has greatly sped up the timetable for replacing the “one country, two systems” arrangement with “one country, one system.”

But although the NBA has been a large and rapidly growing presence on the Chinese sports scene for decades, there’s no record of anyone associated with the league making any remarks on the Hong Kong situation until last Friday – when Houston Rockets General Manager Daryl Morey tweeted “Fight for Freedom. Stand with Hong Kong.”

That long-time silence isn’t necessarily proof of NBA hypocrisy. What does look disgraceful is the U.S. pro basketball world’s reaction. Morey’s boss, Houston owner Tilman J. Fertitta, denounced the tweet, insisting that the Rockets “are NOT a political organization.” The NBA itself expressed “regret” that Morey had deeply offended many of our friends and fans in China” and specified that his backing of freedom in Hong Kong “does not represent…the values of the league.”

It’s important to note that Morey has (so far) kept his job – after deleting the original tweet from his account and sending out a subsequent statement on the network indicating some contrition, albeit seemingly for commenting on Hong Kong in haste, without considering “other perspectives” and not for his Hong Kong views per se. The NBA also pointedly declared that it backs individuals “sharing their views on matters important to them.”

But there can’t be any reasonable doubt that the NBA’s China stance has been much more timid than its position on issues such as rebuking President Trump – which prompted this statement from Silver:  “These players in our league, our coaches, are speaking out on issues that are important to them and important to society. I encourage them to do that.”

Nor can there be much doubt that the league’s Hong Kong timidity stems from China’s sharp reaction – which has so far included decisions by the league’s chief Chinese digital partner and state media (the only kind permitted in China) to remove Rockets games from their broadcasts, and by the country’s official basketball organization to “suspend cooperation” with the Houston franchise.

In fact, the NBA’s record on other China-related issues looks pretty shabby, too. As reported on Slate.com:

“The league runs a training center in Xinjiang, a region where the state has imprisoned and subjugated an entire class of people who are part of the Uighur minority. The NBA’s most progressive coaches, Steve Kerr and Gregg Popovich, have rightfully spoken out against the Trump administration’s Muslim ban. If anyone associated with the league were to bring attention to human rights abuses, it’s them, but neither man publicly addressed the Chinese government’s imprisonment of roughly a million Uighurs while they were in the country with USA Basketball [the private, non-profit organization that, among other responsibilities, supervises American participation in international basketball competitions like the Olympics] for this summer’s FIBA [International Basketball Federation] Championships.”

All the same, the number of ordinarily outspoken star NBA players, prominent teams, and leading coaches who to date have said absolutely nothing about the Hong Kong protests – or the league’s plain vanilla reaction – is stunning, and aside from Kerr and Popovich includes the following (as of early this afternoon):

Lebron James, Steph Curry, the Golden State Warriors, Draymond Green, Kevin Durant, Bradley Beal, Jaylen Brown, David Fizdale, and Chris Paul.

But even their silence looks good next to James Harden’s reaction: He’s apologized for Morey’s original tweet both on his own behalf and that of Houston Rockets teammate Russell Westbrook.

And here’s what’s even weirder about this soft NBA cave-in to China: It apparently hasn’t occurred to anyone associated with the league that it’s astronomical popularity in the People’s Republic is not only an immense cash cow – it gives them considerable leverage, too. Sure, if major American basketball figures decried repression of Hong Kong-ers, or the Uighurs, or any other Chinese, the government could drastically reduce the NBA’s activities in China and reduce the league’s profits. But just how well is that likely to sit with China’s legions of basketball fans? And given the unrest in Hong Kong, would Beijing really be so anxious to antagonize another significant chunk of its citizenry?

The answer might indeed be “Yes.” But wouldn’t it be interesting and important – not to mention courageous and inspiring – if any of pro basketball’s (already incredibly wealthy) social justice warriors decided to put this proposition to the test?

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