(What’s Left of) Our Economy: Why China Really is Like Nazi Germany

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Albert O. Hirschman, allies, Biden, China, dumping, Information Technology and Innovation Foundation, intellectual property theft, Japan, multilateralism, NATO, Nazi Germany, nuclear umbrella, Robert D. Atkinson, sanctions, South Korea, tariffs, tech industry, technology extortion, Trade, tripwire, Trump, {What's Left of) Our Economy

Because Nazi references can be so irresponsibly inflammatory, and therefore have been so often abused, I haven’t yet compared the threat posed by China to the rest of the world to that posed by Nazi Germany. (In my view, these comparisons have been used even more recklessly lately in U.S. domestic politics, chiefly to describe former President Trump and his views and policies.) So even though the People’s Republic, its ambitions, and its burgeoning capabilities do scare the living daylights out of me (and should scare you), I was nonetheless pretty surprised to see precisely this comparison just made by Robert D. Atkinson.

Atkinson is the head of a technology-focused Washington, D.C. think tank who I’ve known since the early 1990s. I’ve admired some of its work and haven’t been so crazy about other examples of its output, but I’ve never, ever considered him a boat-rocker, much less a rhetorical bomb thrower. In fact, my criticisms of the numerous studies and articles issued by his Information Technology and Innovation Foundation stem from my view that they’re way too cautious when it comes to countering China’s wide range of predatory economic practices (which include predatory technology policy practices like the theft and extortion of intellectual property).

And I’ve attributed much of this caution to the Foundation’s donor base – which is dominated by the U.S. and in some cases foreign tech and manufacturing companies that have worked so hard to send so much production and employment, and (voluntarily) so much technology to China for decades. It’s true that many of these firms are now crying foul as Beijing in recent years has aimed to strengthen its own entities’ positions at the foreigners’ expense. Yet their stubborn opposition to the unilateral Trump tariffs and some key sanctions on the Chinese tech outfits that have been major customers made clear their vain hope that they could somehow have their China cake and eat it, too.

Yet here comes Atkinson in the Fall issue of The International Economy (a publication that’s as – proudly – establishment oriented as they come) with a piece titled “A Remarkable Resemblance” likening China’s international economic policies to those of “Germany for the first forty-five years of the twentieth century” – which of course include the twelve Nazi years (1933-1945).

As the author argues, Germany during these decades was:

“a ‘power trader’ that used trade as a key tool to gain commercial and military advantage over its adversaries. Likewise, China’s trade policy is guided neither by free trade nor protectionism, but by power trade, with remarkably similar strategy and tactics to those of 1940s Germany. Understanding how Germany manipulated the global trading system to degrade its adversaries’ capabilities, entrap nations as reluctant allies, and build up its own industries for commercial and military advantage, just as China is doing, can shed light and point the way for solutions to the China challenge.”

Atkinson reports that this description of German policies came from a 1945 book by the important economist Albert O. Hirschman, which concluded that “[I]t’s is possible to turn foreign trade into an instrument of power, of pressure, and even of conquest. The Nazis have done nothing but exploit the fullest possibilities inherent in foreign trade within the traditional framework of international economic relations.”

The author rightly observes that

“Hirschman’s key insight was that some countries— in this case Germany under three very different government regimes from 1900 to 1945—focus not on maximizing free trade or even on protecting their industries, but on changing the relative power of nations through trade to achieve global power. Germany’s policies and programs were designed not only to advance its own economic and military power, but to also degrade its adversaries’ economies, even if that imposed costs on their own economy relative to a free trade regime.”

Germany also consistently sought, as the author points out “to make it more difficult for its trading partners to dispense entirely with trade with Germany, thus creating dependency.” And if that’s not enough to convince you about the comparison with China today, Atkinson himself notes that the German policy recipe also included massive industrial espionage, and Hirschman identified a major element as the equally massive dumping (selling at prices way below production costs) of goods into foreign markets to destroy overseas competition.

Atkinson’s diagnosis of the problem is so spot-on that it makes his recommended solution especially disappointing. Kind of like President Biden, he believes that the best internationally oriented option by far (on top of more effective support for U.S. industry, which I strongly support) is forming a “NATO for trade” that would be

“governed by a council of participating [free trading] countries…if any member is threatened or attacked unjustly with trade measures that inflict economic harm, DATO [the “Democratically Allied Trade Organization] would quickly convene and consider whether to take joint action to defend the member nation.”

I’ve already pointed out that the consensus on standing against China economically among America’s allies is way too weak to enable such multilateral approaches to succeed. But as long as we’re talking in terms of NATO – the military alliance between the United States and much of first Western and now Eastern Europe – and the Cold War, let’s not forget two other big problems. First, NATO (and this also goes for America’s security ties with South Korea and Japan) was never so much an alliance as a protector-protectorate relationship. The vast bulk of the heavy lifting was always done by the United States.

This allied security dependence in turn has produced the second major obstacle to a DATO’s effectiveness. Because the United States coddled allied defense free-ridingcand opened its markets one-sidedly for so long, the allies’ protectorate status was substantially cost-free economically, and even came with trade rewards no other country could remotely offer. (In addition, as I’ve also written, the creation of an American nuclear umbrella combined with the stationining of U.S. “tripwire” forces on the NATO frontlines in Germany also greatly minimized the military risks of siding with Washington.)

Today, however, economic power between the United States and the allies is more evenly distributed, and the allies’ profitable trade with and investment in China has, as noted in my aforementioned writings, greatly increased the economic price they would pay for lining up against China.

Still, by comparing the China threat to the Nazi threat, Atkinson’s article significantly bolsters the case for the United States escalating its response to the “all of society” level – or at least intensifying it qualitatively. Let’s just hope, as the author writes, that this time around the United States fully awakens a lot faster.

Im-Politic: Did “The Science” Give Us the Virus?

Tags

Anthony S. Fauci, bio-weapons, CCP Virus, China, coronavirus, COVID 19, Im-Politics, Joe Biden, lockdowns, National Institutes of Health, New York, Nicholson Baker, pandemics, public health, SARS, stay-at-home, terrorism, Trump, virology, Wuhan virus

That’s a pretty stunning header, I know. But it’s anything but crazy, or even click-baity – at least if you take seriously a long, very serious, and very carefully reported article published January 4 about the CCP Virus’ origins in New York magazine, which hasn’t exactly been an enthusiast for President Trump or science- or China-bashing.

For author Nicholson Baker makes clear not only that for years before the Trump era, America’s top public health officials (who epitomize “The Science” that all the adults in the nation’s room from President-elect Joe Biden on down have anointed as the only valid sources of U.S. and global virus policy advice) pushed measures certain to boost the odds that something like Covid 19 would be created, and somehow escape from, a laboratory someplace in the world – including China.

And notably, one of the main pushers was one Dr. Anthony S. Fauci, Director of the National Institutes of Health’s (NIH) National Institute of Allergy and Infectious Diseases.

It’s important to make clear here what Baker isn’t saying. He isn’t saying that the Chinese manufactured the virus as a bio-weapon. He isn’t saying that Beijing loosed this pandemic on the world on purpose. And he certainly isn’t accusing Fauci and the rest of the public health establishment of acting maliciously.

But what he is saying is awfully damning, and urgently needs to be examined by the incoming Biden administration, the entire U.S. political and policy communities, and of course the public.  For Baker marshalls and summarizes voluminous evidence for the proposition that the most reasonable theory of the virus’ origin is not that in its highly infectious form it developed naturally in some mammal species (like a bat) and then jumped to humans (e.g., at a wet market) – the explanation offered at various times by the Chinese government and by many infectious disease specialists. Instead, the author supports the idea that it was produced by scientists from a naturally occuring mammalian virus, specifically by scientists at one of the three advanced virology facilities in and around the city of Wuhan.

And then, Baker – who is extremely careful to distinguish between facts and suppositions – speculates that “it eventually got out” by hazard. Release via “a lab accident — a dropped flask, a needle prick, a mouse bite, an illegibly labeled bottle,” he emphasizes, “isn’t a conspiracy theory. It’s just a theory.” But he rightly argues that “It merits attention…alongside other reasoned attempts to explain the source of our current catastrophe.”

But where do the roles of the U.S. and global public health establishments come in? During recent decades, as Baker reports, scientists have been conducting “’gain of function’ experiments — aimed to create new, more virulent, or more infectious strains of diseases in an effort to predict and therefore defend against threats that might conceivably arise in nature.” And many of these experiments were funded by the Fauci’s Institute at the NIH. (Similar work was being funded by the Defense Department, whose interest in bio-weapons and fighting them was reawakened by the increase in global terrorism in the 1990s and the prospect that germs like anthrax would be used to advance extremist goals. This threat, of course, materialized right after September 11 with letters containing the germs sent through the mail – in an immense irony – by a U.S. government bio-weapons researcher.)

As implied immediately above, Fauci and his colleagues had the best of intentions. But as Baker documents exhaustively, they ignored numerous warnings from fellow professionals that, in no less than two related ways, they might be creating a problem far worse than that they were trying to solve. First,in their determination to design in the lab super-dangerous bio threats that terrorists hypothetically might some day create and use, they lost sight of how their own experiments could unleash such actual threats in the here-and-now due to the real possibility of leaks (hardly unknown in the world of biological research).

In Baker’s words, “Why, out of a desire to prove that something extremely infectious could happen, would you make it happen? And why would the U.S. government feel compelled to pay for it to happen?” Echoing these worries were numerous scientists, such as Johns Hopkins biomedical engineer Steven Salzberg, who noted several years ago, “We have enough problems simply keeping up with the current flu outbreaks — and now with Ebola — without scientists creating incredibly deadly new viruses that might accidentally escape their labs.”

Second, no evidence has been found yet that any of the coronaviruses that are naturally occuring and that have infected humans (like the SARS “bird flu” – which actually came from mammals – of 2002-03) are remotely as contagious as their lab versions, or are found in animals that often come into contact with humans outside China and its wet markets. In fact, Baker quotes Rutgers University microbiologist Richard Ebright has describing Chinese virologists’ efforts to scour remote locations for animal sources of natural coronaviruses that can be supercharged in a lab as “looking for a gas leak with a lighted match.”

In addition, Fauci arguably magnified these dangers by channeling some of the U.S. government funding for “gain of function” research to the Wuhan virology labs. On the one hand, this decision made sense (as long as gain-of-function was being sought in the first place) because China has been the origin point of so many mammalian coronaviruses, and therefore the home of so many leading virus specialists. On the other hand, safety first hasn’t exactly been a national Chinese watchword.

So the implications for simply “following The Science” seem clear. And they go beyond what should be (but isn’t) the screamingly obvious point that, especially in a field as new and rapidly changing as this branch of virology, there is no “The Science.” Expert opinion almost inevitably will be mixed, and politicians and their journalist mouthpieces flocking to one side while completely ignoring the other is bound to end badly. Matters are bound to end even worse, of course, when the favored faction aggressively tries to stamp out and discredit as “conspiracy thinking” the other’s theories – as Baker shows indisputably was the case with public health authorities and experts (including Fauci) who continue to try absolving the Wuhan labs from any responsibility.

More important, this tale bears out what I and many others have written for months (e.g., here): The pandemic is a crisis with many dimensions – economic and social as well as medical. The public health establishment’s contributions are indispensible. But not only is its expertise limited. Like any other human grouping defined by common characteristics and experiences like fundamental interests and educational backgrounds and occupational environments, this establishment is influenced by its own distinctive unconscious biases and predispositions.

In this case, in Baker’s words, some of the most important are “scientific ambition, and the urge to take exciting risks and make new things.” All of which are perfectly fine and even praiseworthy – in their place.

Further, the medical dimension of the crisis is complex, too, as shown both by all the evidence of major public health costs generated by the lockdown and stay-at-home orders championed so singlemindedly by Fauci and his acolytes, and by the strong disagreements among the virologists and similar researchers laid out in such detail by Baker. So it’s the job of political leaders to take all these considerations into account, not to act as if only one cohort of advisers has a monopoly on wisdom in all relevant areas.

And let’s end on an O’Henry type note. I can’t resist pointing out that President Trump, too, has been one of those U.S. leaders whose administration has robustly funded this gain-of-function research – one of the few instances in which he’s, apparently with no objections, followed The Science.

Making News: Trump “Requiem” Post Re-Published in The National Interest…& More!

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allies, Capitol riots, Cato Institute, China, Ciaran McGrath, conservatism, Croatia, Daily Express, Dnevno, economic nationalism, EU, European Union, Geopolitika, globalism, GOP, impeachment, Joe Biden, Making News, Populism, Republicans, Ted Galen Carpenter, The National Interest, Trump

I’m pleased to announce that The National Interest has re-posted (with permission!) my offering from last Wednesday that could be my last comprehensive look-back at President Trump and his impact on politics and policy (at least until the next utterly crazy development along these lines). Click here if you’d like to read in case you missed it, or if you’d like to see it in a more aesthetically pleasing form than provided here on RealityChek.

One small correction still needs to be made: The last sentence of the paragraph beginning with “Wouldn’t impeachment still achieve….” should end with the phrase “both laughable and dangerously anti-democratic.” I take the blame here, because my failure to keep track of the several versions that went back and forth.

In addition, it’s been great to see my post on the first sign of failure for President-Elect Joe Biden’s quintessentially globalist allies’-centric China strategy (also re-published by The National Interest) has been cited in new and commentary on both sides of the Atlantic.

Two of the latest came from Zagreb, Croatia. (And yes, I needed to look up which former region of the former Yugoslavia contained Zagreb – though I did know it was some place in the former Yugoslavia!) They’re found on the news sites Geopolitika and Dnevno.  (These sites must be related somehow because since it’s the same author, it must be the same article.)

On January 14, Ciaran McGrath of the London newpaper Daily Express used my analysis to sum up a column analyzing the Europe-China investment agreement that prompted my post in the first place.

And on January 5, the Cato Institute’s Ted Galen Carpenter (full disclosure: a close personal friend) cited my piece in a post of his expressing general agreement.

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

(What’s Left of) Our Economy: Mainstream Media Article Debunks its Own Trump-Caused Shortage Claim

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automotive, China, fake news, Mainstream Media, Reuters, sanctions, semiconductors, tech, Trump, {What's Left of) Our Economy

For all the dreadful journalism I’ve read in recent years (and it’s a lot), I never considered the possibility that a Mainstream Media article could come out in which the thrust of the story changed, and changed substantially, no less than three times between the headline and the story’s 15^th paragraph (two-thirds in). In fact, the thrust changed so substantially that it finally became clear to a reader diligent enough to stick with the article that long that the headline was genuine Fake News.

Here’s the header for the Reuters report in question: “Trump’s China tech war backfires on automakers as chips run short.” The clear implication: “That moronic President! He and his stupid China policies are ruining a major U.S. and global industry!”

Which makes the first change of thrust awfully strange – especially since it came in the very first paragraph. “Automakers around the world are shutting assembly lines because of a global shortage of semiconductors that in some cases has been exacerbated by the Trump administration’s actions against key Chinese chip factories, industry officials said.”

That is, it hasn’t been just the Trump policies. They’ve been a problem in only “some cases.”

Even that development would be newsworthy – although not terribly so. Except just five paragraphs later, readers learn that “In at least one case, the shortage ties back to President Donald Trump’s policies aimed at curtailing technology transfers to China.”

One case! And the company concerned isn’t even named, which is fishier still. In addition, keep in mind that when reporters or anyone else use phrases like “in at least one case,” that means they looked for other cases and couldn’t find any. According to this reputable source, the number of vehicle (including heavy duty truck) manufacturers in the world as of 2018 was 56 – making me wonder how with how many such companies the two reporters who wrote the story checked – before arbitrarily giving up and concluding that what they found couldn’t possibly the only such instance of this Trump policy effect.

And finally, nine paragraphs later, comes the third change – a context-setting observation that further demolishes the storyline: “The chipmaking industry has always strained to keep up with sudden demand spikes. The factories that produce wafers cost tens of billions of dollars to build, and expanding their capacity can take up to a year for testing and qualifying complex tools.”

In other words, buyers of semiconductors have been dealing with sudden shortages literally since chips first starting being used in significant volumes in other goods and services industries.

So the only reasonable conclusion that can be drawn from this article is that, although there’s no meaningful shortage of automotive semiconductors that can be attributed to President Trump’s policies, there’s a major shortage of either journalistic integrity or maybe plain old competence at Reuters.

(What’s Left of) Our Economy: Biden Trade Policy’s Off to a Flying Stop

Tags

China, inflation, Joe Biden, Katherine Tai, National Foreign Trade Council, offshoring lobby, tariffs, Trade, trade policy, trade war, Trump, U.S. Trade Representative, USTR, {What's Left of) Our Economy

Any minimally intelligent discussion of the incoming Biden administration’s trade policy and the role of his pick for U.S. Trade Representative (USTR) needs to recognize at the start that Katherine Tai will make exactly none of the big calls on trade.

That’s not a knock on her specifically. But as nearly always the case (and the Trump administration was a major exception, as its trade envoy, Robert Lighthizer, was a prime author of specific, central initiatives), these decisions will be made way above her pay grade – almost certainly by the President himself or Treasury Secretary-designate Janet Yellen, or a combination of those two, along with the various special interests they need to please.

Even so, Tai will play an important message-bearing and policy defense role, especially in testimony before Congress, and in this vein, her first effort following her brief remarks following her nomination announcement got the Biden team’s record off to a start just ever so slightly above “same-old-stuff” level.

Most noteworthy, puzzling, and perhaps revealing was the choice of audience: the National Foreign Trade Council. For with its membership consisting of U.S. multinationals and big firms from highly protectionist economies like Germany and Japan, it’s long been a pillar of the corporate Offshoring Lobby.

Sure, many of these members have started to voice complaints about their China-related troubles in particular. But they’ve made equally clear that they have no clue as to realistic ways of solving them. In fact, their dogged opposition to unilateral, Trump-like U.S. tariffs as remedies (which have sharply curbed the access to the American market of their overseas production, and the availability of massively subsidized Chinese inputs for their domestic operations) has rendered them big obstacles to the remaining overhaul national trade policy needs.

It’s also true that everything known about Biden’s own long record on the matter, and his own statements during the campaign, makes clear the incoherence – and just as likely cynicism – of his own current stated approach (notably, stressing the imperative of working with – deeply conflicted and chronically fence-sitting — American allies to counter China’s trade and broader economic abuses).

Even so, given the pains Biden took to portray himself as “Middle Class Joe” whose trade initiatives and related decisions would prioritize American worker interests above all else, it needs to be asked why, from a purely political standpoint, his choice for trade negotiator chose an audience whose members have long pushed for exactly the opposite. Why not appear before a union audience?

Just as bizarre, Tai emphasized to these died-in-the-wool offshorers that “The President-Elect’s vision is to implement a worker-centered trade policy. What this means in practice is that U.S. trade policy must benefit regular Americans, communities, and workers.”

What did she and her superiors (who of course cleared her remarks) hope to accomplish with this declaration? Agreement? Or even the beginnings of theological conversion?

Weirder still: Her observation that “people are not just consumers — they are also workers, and wage earners” and, more pointedly, that when thinking about trade, it’s crucial to emphasize that “Americans don’t just benefit from lower prices and greater selection in shops and markets.” After all, her boss emphasized throughout the campaign that “President Trump may think he’s being tough on China. All that he’s delivered as a consequence of that is American farmers, manufacturers and consumers losing and paying more.”

It’s of course possible that Biden and his team could figure out a way to shield the entire U.S. domestic economy, from Chinese – and other countries’ – predatory practices without reducing the price competitiveness of these imports in the U.S. market. But it’s suggestive at the very least that after months on the campaign trail – and many decades in public life – the President-Elect has offered no specifics. And Tai’s speech did nothing to clear up this mystery.

(Not that there’s been any sign of noteworthy trade-related inflation during the “trade war” period – as shown, e.g., here – but one way greatly to boost the odds that tariffs don’t send prices upward would be to accompany trade restrictions with greater anti-trust enforcement that increases domestic competition, as I’ve argued here.)      

Tai advertised her and the broader Biden trade policy points as part of the former Vice President’s promise to “Build Back Better.” So far, though, the most charitable description of these is actually more like “Pretend More Assertively.”

Im-Politic: Looking Backward and Forward on Trump and Trumpism

Tags

cancel culture, Capitol Hill, Capitol riots, China, climate change, Congress, Conservative Populism, Constitution, Democrats, election 2016, election 2020, election challenge, Electoral College, establishment Republicans, Hillary Clinton, identity politics, Im-Politic, Immigration, impeachment, incitement, insurrection, Joe Biden, Josh Hawley, left-wing authoritarianism, mail-in ballots, nationalism, Populism, Republicans, sedition, separation of powers, tariffs, Ted Cruz, Trade, trade war, Trump, violence

(Please note: This is the linked and lightly edited version of the post put up this morning.)

The fallout from the Capitol Riot will no doubt continue for the foreseeble future – and probably longer – so no one who’s not clairvoyant should be overly confident in assessing the consequences. Even the Trump role in the turbulent transition to a Biden administration may wind up looking considerably different to future generations than at present. Still, some major questions raised by these events are already apparent, and some can even be answered emphatically, starting off with the related topic of how I’m viewing my support for many, and even most, of President Trump’s policies and my vote for him in both of his White House runs.

Specifically, I have no regrets on either ground. As I’ll make clear, I consider Mr. Trump’s words and deeds of the last few weeks to represent major, and completely unnecessary, failures that will rightly at least tarnish his place in history.

All the same, legitimate analyses of many developments and resulting situations need to think about the counterfactual. Here, the counterfactual is a Trump loss to Democratic presidential nominee Hillary Clinton in 2016. And I’m confident that her presidency would have been both disastrous in policy terms (ranging from coddling China to moving steadily toward Open Borders immigration policies to intervening militarily more often and more deeply in numerous foreign conflicts of no importance to the United States) and heatedly divisive in political terms (because of her grifting behavior in fundraising for the various supposedly philanthropic initiatives she started along with her husband, former President Bill Clinton; because of her campaign’s payment for the phony Steele dossier that helped spur the unwarranted and possibly criminal Obama administration investigation of the Trump campaign; and because of intolerant and extremist instincts that would have brought Identity Politics and Cancel Culture to critical mass years earlier than their actual arrivals).

As for the worrisome events of the last several weeks:

>As I’ve written, I don’t regard Mr. Trump’s rhetoric at his rally, or at any point during his election challenges, as incitement to violence in a legal sense. But is it impeachable? That’s a separate question, because Constitutionally speaking, there’s a pretty strong consensus that impeachment doesn’t require a statutory offense. And since, consequently, it’s also a political issue, there’s no objective or definitive answer. It’s literally up to a majority of the House of Representatives. But as I also wrote, I oppose this measure.

>So do I agree that the President should get off scot free? Nope. As I wrote in the aforementioned post, I do regard the Trump record since the election as reckless. I was especially angered by the President’s delay even in calling on the breachers to leave the Capitol Hill building, and indeed the entire Capitol Hill crowd, to “go home.” In fact, until that prompting – which was entirely too feeble for my tastes – came, I was getting ready to call for his resignation.

>Wouldn’t impeachment still achieve the important objective of preventing a dangerously unstable figure from seeking public office again? Leaving aside the “dangerously unstable” allegation, unless the President is guilty (as made clear in an impeachment proceding) of a major statutory crime (including obstruction of justice, or incitement to violence or insurrection), I’d insist on leaving that decision up to the American people. As New York City talk radio host Frank Morano argued earlier this week, the idea that the Congress should have the power to save the nation from itself is as dangerously anti-democratic as it is laughable.

>Of course, this conclusion still leaves the sedition and insurrection charges on the table – mainly because, it’s contended, the President and many of his political supporters (like all the Republican Senators and House members who supported challenging Electoral College votes during the January 6 certification procedure) urged Congress to make an un-Constitutional, illegal decision: overturning an election. Others add that the aforementioned and separate charge not includes endorsing violence but urging the January 6 crowd to disrupt the certification session.

>First, there’s even less evidence that the lawmakers who challenged the Electoral College vote were urging or suggesting the Trump supporters in the streets and on the lawn to break in to the Capitol Building and forcibly end the certification session than there’s evidence that Mr. Trump himself gave or suggested this directive.

>Second, I agree with the argument – made by conservatives such as Kentucky Republican Senator Rand Paul (often a Trump supporter) – that authorizing a branch of the federal government unilaterally to nullify the results of elections that the Constitution stipulates should be run by the states is a troubling threat to the Constitutional principle of separation of powers. I’m also impressed with a related argument: that sauce for the goose could wind up as sauce for the gander.

In other words, do Trump supporters want to set a precedent that could enable Congress unilaterally to overturn the election of another conservative populist with something like a second wave of Russia collusion charges? Include me out.

>Further, if the Trump supporters who favored the Electoral College challenge are guilty of insurrection or fomenting it, and should be prosecuted or censured or punished in some way, shouldn’t the same go for the Democrats who acted in the exact same ways in other recent elections? (See here and here.) P.S. Some are still Members of Congress.

>Rather than engage in this kind of What About-ism, and help push the country further down the perilous road of criminalizing political behavior and political differences, I’d much rather consider these challenges as (peaceful) efforts – and in some cases sincere efforts – to insert into the public record the case that these elections were marred by serious irregularities.

>How serious were these irregularities? Really serious – and all but inevitable given the decisions (many pre-pandemic) to permit mass mail-in voting. Talk about a system veritably begging to be abused. But serious enough to change the outcome? I don’t know, and possibly we’ll never know. Two things I do know, however:

First, given the thin Election 2020 margins in many states, it’s clear that practices like fraudulent vote-counting, ballot-harvesting, and illegal election law changes by state governments and courts (e.g., Pennsylvania) don’t have to be widespread. Limiting them to a handful of states easily identified as battlegrounds, and a handful of swing or other key districts within those states, would do the job nicely.

Second, even though I believe that at least some judges should have let some of the Trump challenges proceed (if only because the bar for conviction in such civil cases is much lower than for criminal cases), I can understand their hesitancy because despite this low-ish bar, overturning the election results for an entire state, possibly leading to national consequences, is a bridge awfully far. Yes, we’re a nation of laws, and ideally such political considerations should be completely ignored. But when we’re talking about a process so central to the health of American democracy, politics can never be completely ignored, and arguably shouldn’t.

So clearly, I’m pretty conflicted. What I’m most certain about, however, is that mass mail-in ballots should never, ever be permitted again unless the states come up with ways to prevent noteworthy abuse. Florida, scene of an epic election procedures failure in 2000 (and other screwups), seems to have come up with the fixes needed. It’s high time for other states to follow suit.

As for the politics and policy going forward:

>President Trump will remain influential nationally, and especially in conservative ranks – partly because no potentially competitive rivals are in sight yet, and possibly because Americans have such short memories. But how influential? Clearly much of his base remains loyal – and given his riot-related role, disturbingly so. How influential? Tough to tell. Surely the base has shrunk some. And surely many Independents have split off for good, too. (See, e.g., this poll.) Perhaps most important, barring some unexpected major developments (which obviously no one can rule out), this withering of Trump support will probably continue – though the pace is tough to foresee also.

>The Republican Party has taken a major hit, too, and the damage could be lasting. In this vein, it’s important to remember that the GOP was relegated to minority status literally for decades by President Herbert Hoover’s failure to prevent and then contain the Great Depression. Those aforementioned short American memories could limit the damage. But for many years, it’s clear that Democratic political, campaigns, and conservative Never Trumper groups like the Lincoln Project, will fill print, broadcast, and social media outlets with political ads with video of the riot and Mr. Trump’s rally and similar statements, and the effects won’t be trivial.

>What worries me most, though, is that many of the urgently needed policies supported and implemented by the Trump administration will be discredited. Immigration realism could be the first casualty, especially since so many of the establishment Republicans in Congress were such willing flunkies of the corporate Cheap Labor Lobby for so much of the pre-Trump period, and Open Borders- and amnesty-friendly stances are now defining characteristics of the entire Democratic Party.

The Trump China policies may survive longer, because the bipartisan consensus recognizing – at least rhetorically – the futility and dangers of their predecessors seems much stronger. But given Biden’s long record as a China coddler and enabler, the similar pre-Trump views of those establishment Republicans, and their dependence on campaign contributions from Wall Street and offshoring-happy multinational companies, important though quiet backtracking, particularly on trade, could begin much sooner than commonly assumed. One distinct possibility that wouldn’t attract excessive attention: meaningfully increasing the number of exemptions to the Trump China and remaining metals tariffs to companies saying they can’t find affordable, or any, alternatives.

>Much of the political future, however, will depend on the record compiled by the Biden administration. Not only could the new President fail on the economic and virus-fighting fronts, but on the national unity front. Here, despite his reputation as a moderate and a healer, Biden’s charge that Republican Senators Ted Cruz and Josh Hawley have used Nazi-like tactics, and race-mongering comments accusing law enforcement of handling the overwhelmingly white Capitol Rioters more gingerly than the racial justice protesters earlier this year represent a lousy start. And as his harsh recent rhetoric suggests, Biden could also overreach greatly on issues like climate change, immigration, and Cancel Culture and Identity Politics. Such Biden failures could even shore up some support for Mr. Trump himself.

>How big is the violence-prone fringe on the American Right? We’ll know much more on Inauguration Day, when law enforcement says it fears “armed protests” both in Washington, D.C. and many state capitals. What does seem alarmingly clear, though – including from this PBS/Marist College poll – is that this faction is much bigger than the relatively small number of Capitol breachers.

>Speaking of the breachers, the nature of the crimes they committed obviously varied among individuals. But even those just milling about were guilty of serious offenses and should be prosecuted harshly. The circumstances surrounding those who crossed barriers on the Capitol grounds is somewhat murkier. Those who knocked down this (flimsy) fencing were just as guilty as the building breachers. But lesser charges – and possibly no charges – might be justifiable for those who simply walked past those barriers because they were no longer visible, especially if they didn’t enter the Capitol itself.

>I’m not security expert, but one question I hope will be asked (among so many that need asking) in the forthcoming investigations of the Capitol Police in particular – why weren’t the Capitol Building doors locked as soon as the approach of the crowd became visible? The number of doors is limited, and they’re anything but flimsy. The likely effectiveness of this move can be seen from an incident in October, 2018 – when barred Supreme Court doors left anti-Brett Kavanaugh protesters futilely pounding from the outside when they attempted to disrupt the new Supreme Court Justice’s swearing in ceremony. Window entry into the Capitol would have remained an option, but the number of breachers who used this tactic seems to have been negligible.

What an extraordinary irony if one of the worst days in American history mightn’t have even happened had one of the simplest and most commonsensical type of precaution not been taken.

Making News: Podcast Now On-Line of U.S. China Strategy National Radio Interview

Tags

alliances, allies, America First, China, globalism, Joe Biden, Making News, Market Wrap with Moe Ansari, multilateralism, national security, Trade, trade war, Trump

I’m pleased to announce that the podcast is now available of my interview yesterday with Moe Ansari on his nationally syndicated “Market Wrap” radio program. This was a real corker of a segment, turning into an awfully intense (but always civil!) debate about the best way for the United States to deal with the Chinese economic and national security threat – by relying on its own devices (a la, more or less, President Trump) or by building international coalitions (the preferred approach of President-elect Biden). Click here to listen and go to the “Current Market Wrap: link. My segment begins at about the 27-minute mark.

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

Our So-Called Foreign Policy: Trumply Deranged Coverage of a Trump Security Policy Win

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alliances, allies, America First, burden sharing, deterrence, Financial Times, globalism, James White, Joe Biden, military spending, North Korea, nuclear weapons, Our So-Called Foreign Policy, South Korea, tripwire, Trump

I know that there’s lots more to say about last week’s outrageous Capitol Hill riot and its political and even broader fallout, but sometimes a news development comes along that’s so underappreciated and at the same time so poorly reported that I just couldn’t resist weighing in right away.

I’m talking about decisions being made in South Korea to become more militarily self-reliant, and the way they were reported in the Financial Times a week ago. The article, by Edward White, had it all as far as my Trump-y, America First-type worldview is concerned: an (apparently unwitting account) of signs of a clearly emerging potential triumph for this approach to U.S. foreign policy; a comparably stinging (and unwitting) rebuke of its globalist counterpart; a complete failure to mention the benefits for the United States (as opposed to the impact elsewhere) coupled with  attempts by globalist supposed experts focusinf singlemindedly on the downsides and ignoring the consequences for Americans; and just plain sloppy journalism.

As known by RealityChek regulars, the news that long-time military ally (or protectorate, depending on your point of view) South Korea is revving up its defense spending is an unalloyed good for Americans. For decades, Seoul’s skimpy military budgets, which remained modest despite the country’s phenomenal economic progress, required the United States to supply the conventional forces needed to defend it against a North Korean attack.

The large American troop contingent stationed right at the Demilitarized Zone, directly in the North Koreans’ invasion path, might have made sense when Washington had no reason to fear any conflict going nuclear, and indeed viewed its possession of these arms as a pillar of its strategy of protecting South Korea by deterring aggression (because North Korea had no nukes of its own that could hit the U.S. homeland in retalition). But since North Korea is at the least so close to possessing this capability, the American units have turned into a tripwire all too likely to expose Americans to these risks, thereby rendering the U.S. nuclear guarantee a prime example of policy masochism. (This post described the changing Korean peninsula and overall Asian security environment, and its implications for U.S. strategy, back in 2014.) 

As also known by RealityChek regulars, President Trump has displayed some awareness of this situation, and, as White has reported, has pressed the South Koreans to get their self-defense act together – though in his often typically incoherent way, focusing almost entirely during his term on securing more South Korean financing of the expenses of deploying the U.S. forces on the peninsula than on planning to withdraw, and thereby eliminate the nuclear risk to America that their presence creates.

But White’s article cites evidence that Seoul has interpreted Mr. Trump’s harangues about rip off-obsessed allies as a clear sign that the United States is no longer a reliable ally, and that South Korea needs to build the manpower and especially weaponry it will need if the United States flies the coop. Especially interesting is the apparent South Korean conviction that these preparations must be made even though alliance fetishizer Joe Biden will become President on January 20.

Clearly, nothing could be better for the United States, and just as clearly, Trumpian impatience – following decades of coddling free-riding by globalist American leaders – deserves most of the credit. Even if Biden has no intention of withdrawing the American troops and bolstering his own country’s security, at least one major argument against such a step would be eliminated if South Korea became self-reliant.

But none of this side of the equation will be found in the article. Instead, South Korea’s stated new strategy is depicted as an regrettably inevitable result of “Mr Trump’s treatment of long-term allies.” And of course, grave risks abound, including the chance that “The build-up could send unintended signals of aggression or weakness, inviting miscalculations or adventurism from countries including North Korea, China and Russia.”

Typically, however, these experts ignore the screamingly obvious: If the U.S. troops leave, any miscalculations or adventurism would be problems for South Korea and its neighbors, not for the United States.

As for the sloppy journalism, that comes in when White tries to show that South Korea has already been an impressive military spender:

“South Korea’s annual defence bill is already high compared with those of many countries of a similar size and wealth. Military spending as a percentage of government expenditure was 12.7 last year, according to Stockholm Peace Research Institute data, ahead of 9.2 per cent in the US and the UK’s 4.5 per cent.”

To which the only serious response is, “Seriously?” Because why should anyone except an apologist care how Seoul’s defense spending compares with similarly sized or wealthy countries, much less with the United States’? After all, almost none of these countries lives in what’s probably the world’s most dangerous neighborhood, with an utterly deranged, nuclear-armed regime right next door for starters? Given South Korea’s (great) wealth, and North Korea’s impoverishment, the only important gauge of the adequacy of Seoul’s military budget is whether it can meet South Korea’s needs. And obviously, there’s a long way to go in this respect.

Moreover, even anyone who puts any stock in the numbers mentioned by White needs to ask themselves why the emphasis is on percentages of government spending? What actually counts is percentage of gross domestic product (GDP, or the entire economy). Because it’s the share of total national resources devoted to defense that genuinely makes clear the priority it enjoys. And with 2.7 percent the figure for highly insecure South Korea, according to the latest available data, and 3.4 percent that for the highly secure US of A, the only accurate way to describe defense as a South Korean priority is “not real high.”

Don’t get me wrong: As a sovereign country, Seoul has every right to skimp on defense spending. It also has every right to try to make another country bear an outsized measure of cost and risk for this decision. But the equally sovereign United States has every right to refuse to keep playing Uncle Sucker, especially when North Korea’s nuclear weapons make the stakes so potentially catastrophic. America’s outgoing President understood this, however imperfectly. Anyone believing that America’s security (especially from nuclear attack) needs to come first for Americans should be hoping that the nation’s incoming President quickly gets on this wavelength.

Making News: Podcast On-Line of NYC Impeachment & Economy Interview, New Appearance Coming Today … & a Correction

Tags

China, Frank Morano, impeachment, Making News, manufacturing, Market Wrap with Moe Ansari, Mueller Report, obstruction of justice, Republicans, tariffs, The Other Side of Midnight, Trade, trade war, Trump, Trump-ism, WABC AM

I’m pleased to announce that the podcast is now on-line of an interview last night in the wee hours on New York City’s WABC-AM’s “Other Side of Midnight” program. Click here for a timely conversation with host Frank Morano on the possibility of a Trump impeachment, the political impact of the Capitol riot, and what the latest official U.S. trade report told us about the health of the economy and the effects of Mr. Trump’s tariff-centric policies. (You’ll see my segment right at the top.) 

In addition, I’ll be discussing the same subjects later today on Moe Ansari’s nationally syndicated “Market Wrap” radio show. Click here and then on the “listen live” link on the right starting at a few minutes before 8 PM EST. My segment will probably begin about halfway into the hour-long program. And if you can’t tune in, as usual I’ll be posting a link to the podcast as soon as one’s available.

As for the correction, in yesterday’s post laying out the case against impeaching the President, I stated that the Mueller report into the Trump-Russia collusion charges presented on p. 89 of its second volume the argument that mitigating against accusing Mr. Trump of obstruction of justice was abundant evidence that the President lacked criminal or corrupt intent.

This argument was indeed made, but not on that page. Instead, you’ll find on pp. 7, 47, 51, 56, 57, 62, 76, 97 and 157, descriptions of episodes indicating that the President acted out of a genuine belief that he was being framed and due to other legitimate considerations.  And on p. 7, you’ll find the explanation that the obstruction statues require “consideration of [such] motives for his conduct.”  You can also read these passages in this post.

I apologize for the error and for any confusion caused. Thanks to the careful, sharp-eyed reader who caught the mistake!

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

Im-Politic: The Case Against (Another) Impeachment

Tags

25th Amendment, Capitol assault, Capitol riots, Constitution, election 2020, election challenge, election integrity, Im-Politic, impeachment, incitement, Joe Biden, Mike Pence, Mitch McConnell, obstruction of justice, Trump, Trump rally

These last few days have been a great example of the adage that timing is everything. I was in full politics mode early this week because of the run-up to the eagerly and anxiously anticipated Georgia Senatorial runoff elections on Tuesday, and therefore decided to post Wednesday morning on the likely (and indeed eventual) results and the impact of the Democratic sweep on Republican Party politics.

I put up the post in the very early afternoon, and then almost immediately afterwards came the assault on the Capitol Building. Ordinarily, I’d have followed up with commentary on that outrage on Thursday or Friday. But as known by RealityChek regulars know, I focused instead on the new official U.S. foreign trade figures that came out on Thursday and the official U.S. jobs report issued Friday. In part I wanted to spend my time away from politics because I was trying to think of something original to contribute to the torrent of thoughts and emotions that followed the Capitol chaos, but also because to such an extent I’m an economics type, and the economy and its various problems haven’t gone away.

So it wasn’t until late-ish Saturday afternoon, as the news continued its own assault, that I’d collected my thoughts and reviewed the available evidence sufficiently to start writing on what has emerged as the question of the moment: What should the American system of government do about President Trump? More specifically, since (reportedly, at least) Vice President Mike Pence has ruled out using the Constitution’s 25th Amendment to remove the President from office (and rightly, in my view), should Mr. Trump be impeached again? 

My answer: No.  Let him to serve out his term. But before making the case for that course, here’s one idea suggested by a friend yesterday (and that I subsequently found out also has been suggested here and here): Mr. Trump’s best option for Mr. Trump would be resigning as part of a deal in which new President Mike Pence would pardon him, and thereby shield him from prosecution for any crimes he might have committed as President (more on which below).

Such a pardon would still leave Mr. Trump vulnerable to civil and criminal indictments by state and local law enforcement authorities (described here). But even though there are no signs that President-elect Biden wants to pursue the possible Presidential offenses, foreclosing this option entirely would clearly leave Mr. Trump much better off than leaving it open.

As for impeachment, it’s important that Mr. Biden hasn’t yet endorsed such an effort. But he hasn’t opposed it, either. I hope he will, for the following reasons:

>The Senate trial that would follow an affirmative vote by the Democratic-controlled House of Representatives would further deepen and enflame national passions that clearly are more than deep and enflamed enough already, thank you very much.

>Reportedly, Republican Senator Mitch McConnell of Kentucky, who is still the upper chamber’s majority leader, has sent out to his colleagues a schedule for a possible trial that serves as a reminder that, under existing Senate procedures, no such event could even start until January 19 – the day before Inauguration Day – without the consent of all sitting Senators. Since the President retains fairly substantial support from the Republican side, this means that the Senate vote required to approve the impeachment would take place after Mr. Trump has left office – an action that could easily be portrayed as one of pure vengeance, and that would further intensify political divisions.

>At least as important, for those claiming to be worried (as they should be) about the possibility of hostile foreign powers moving to capitalize on U.S. political turmoil, a full impeachment and trial would significantly lengthen this window of danger. It’s true that America’s adversaries have held back so far, but why increase the odds of a crisis, especially after the President is gone from the White House?

>Similarly, a full impeachment process would represent a major and completely unnecessary distraction for the federal government at a time when major distractions, even leaving aside national security considerations, are exactly what America doesn’t need right now. In case you’ve forgotten, a second (or third?) CCP Virus wave is still mounting, the economy remains in the toilet, and even with a major new stimulus/relief bill, months more of widepread suffering for many individuals, households, and businesses seems certain.

You don’t need to believe that the Trump administration excelled at dealing with the pandemic’s arrival to recognize that the previous impeachment effort preoccupied the attention of both the Executive and Congress for many critical weeks. Would the likely benefits of indicting President Trump and then seeking to remove him from office (at a Senate trial that would certainly take place after Inauguration Day) really outweigh the risks? And outweigh them significantly? Even though my belief has always been that any political leader or government worth its salt needs to be able to handle multiple challenges at once, I can’t see the wisdom of adding unnecessary challenges.

>One argument for impeachment and conviction is that the latter would prevent the dangerously unstable Mr. Trump from ever again holding public office at any level. That’s an understandable goal for those viewing the outgoing President as an incorrigible menace to America’s democracy and way of life. But even for such Never Trumpers, is it a goal consistent with democratic principles?

I’d answer “Yes,” if smoking gun-type evidence existed for Trumpian offenses. But as explained further below, based on what’s currently public knowledge, I don’t see a viable case. And in its absence, shouldn’t the final verdict on the President’s political future be left up to the American people? Don’t opponents trust in the electorate’s judgment? And in their ability to keep Mr. Trump away from official power-wielding via politics?

As for the Wednesday events themselves, and the issue of the President’s responsibility and the case for other instances of criminality during the last weeks of his presidency (which Constitutionally can be prosecuted once he’s out of office):

I watched the entire video of his speech to the rally that morning and have now examined the transcript. The only phrasing I heard that could even by the wildest stretch of the imagination be considered “incitement” was the President’s single use of the word “fight” and statements like “We’re just not going to let that [a final Congressional certification of the Electoral College vote] happen.”

In addition, on December 20, the President sent out this tweet: “Statistically impossible to have lost the 2020 Election. Big protest in DC on January 6th. Be there, will be wild!”

I agree with Fox News talker – and generally strong Trump supporter – Tucker Carlson that these remarks were “reckless,” because national passions are running so hot. But terrible judgment alone is almost never criminal according to both common sense and the American legal system.  

Further, the above remarks were accompanied by Trump statements like “I know that everyone here will soon be marching over to the Capitol building to peacefully and patriotically make your voices heard”; and ”[W]e’re going to try and give our Republicans, the weak ones, because the strong ones don’t need any of our help, we’re going to try and give them the kind of pride and boldness that they need to take back our country”; and “We’re going walk down to the Capitol, and we’re going to cheer on our brave senators, and congressmen and women. We’re probably not going to be cheering so much for some of them because you’ll never take back our country with weakness. You have to show strength, and you have to be strong.”

In other words, the only explicit instructions or advice or whatever you want to call it given by Mr. Trump to the crowd entailed peaceful, not violent, behavior. And anyone seizing (in isolation) on the use of “fight” needs to ask themselves if they’ve never heard a politician exhort his followers with that verb? Or characterize a campaign as a “battle”? That’s why the only reaction justified by the “fight charge” is “Oh, please.” The same goes for his claim that neither he nor his followers should ever accept the election results. That’s a far cry from recommending that they commit violent acts.

Regarding the December 20 tweet – which was sent out weeks before the Capitol attack – the “wild” reference was clearly meant as a description of the anticipated rally scene, and used to convey boisterousness, excitement, etc. Good luck contending in a court of law that this amounted to a request or demand to act in an out-of-control, much less illegal, manner, and using it as a basis of an incitement charge.

>Arguments have also been made that the President’s phone calls to the Georgia state officials and especially his January 2 declaration that he “just wanted to find 11,780 votes” amounted to solicitation of election fraud or participating in a conspiracy against people exercising their civil rights.

Ironically, though, one of the President’s best defenses harkens back to one of Special Counsel Robert Mueller’s explanations for why there was no airtight case for charging Mr. Trump with obstruction of justice based on the evidence he uncovered in his probe of the so-called Russia collusion scandal: The President arguably had no criminal or corrupt intent because he genuinely believed he was being framed. Similarly, Mr. Trump’s phone call was motivated by a sincere belief that the election had been stolen. (See Volume II, p. 89 here.)

The election fraud etc argument is also ironic because of all the pre-Capitol riots talk of indicting the President for obstructing justice based on the Mueller probe’s findings. Even Mueller wasn’t terribly confident about Mr. Trump’s culpability on this score.

The only caveat to this analysis that needs to be kept in mind is that the standards for determinations of guilt in civil law suits are lower than for criminal prosecutions.  So in principle, those kinds of legal avenues are plausible, and convictions might obtained in at least some cases – even though these procedings won’t do wonders for the cause of reasonable national unity, either. 

But overall, just as genuinely good options are usually awfully difficult to find during hot messes like that which the United States faces now, options that satisfy everyone or even a majority of Americans will be scarce at best, too. So permitting the Trump presidency to come to as normal a possible end seems the best of an unsatisfactory lot – provided of course that new news shocks don’t shake up an already disturbingly settled national scene over the next ten days.