WHAT’S TO BE DONE

America cannot pass essential legislation that fairly addresses the burden and potential benefit of immigration.

Books of Interest
 Website: chetyarbrough.blog

“A Map of Future Ruins” (On Borders and Belonging)

By: Lauren Markham

Narrated by: Gilli Messer

Lauren Markham (Author, reporter on issues about migration and human rights.)

Immigration is a hot subject around the world.

Lauren Markham writes a somewhat disjointed book about immigration to a Greek island between Turkey and Greece.

Lauren Markham offers a report of a fire in a Lesbos refugee camp in the small town of Moria on September 9, 2010. There were no deaths from the fire but the conditions of the encampment and the government’s response to the crises tell of unfair and inadequate treatment of refugees–reminiscent of other countries dealings with unwanted immigrants.

The camp was designed to hold 3,000 people but grew to nearly 13,000. Seventy percent of the migrants were from Afghanistan. A fire of unknown origin destroyed the immigrant’s shelter that gave notice to the world of the inadequate care offered refugees fleeing crime, poverty, and displacement in their home countries.

Turkey and Greece have a storied history of conflict that is reminiscent of the Afghanis flight from Afghanistan. Turkey’s most revered leader, Mustafa Kemal Ataturk, ordered Greeks to leave Turkey in a mass exodus during his reign. Ethnic and religious differences between the Ottoman Empire and Greece came to a boil in 1923. Those differences are reminiscent of the escape of Afghanis from the restrictive life of the Taliban in Afghanistan. Afghanis chose a route from Afghanistan through Iran to Turkey to the Greek Island of Lesbos to escape the Taliban.

Markham shows the initial response of the Greeks was to aid the Afghanis in their flight but as the number of refugees grew, the burden became too great. The conditions of the encampment deteriorated, and the anger of the Greek government escalated. A fire of unknown origin began in the camp. Six Afghanis, two of which were minors under 18 years of age, were arrested and found guilty of setting the fire. Markham shows the evidence for conviction had nothing to do with truth but was manufactured by the Greek Court to find a verdict of guilt.

“Dallas, Texas, United States – May 1, 2010 a large group of demonstrators carry banners and wave flags during a pro-immigration march on May Day.”

The inference from Markam’s report is that America’s border state conflicts will, and undoubtedly have, resulted in unjust treatment of emigrants. The irony is that America needs emigrants to meet the needs of its economic future. America seems to be doing as poor a job of addressing immigration as the story of the Afghanis in Moria. America cannot pass essential legislation that fairly addresses the burden and potential benefit of immigration.

THE MARSHALL PLAN

NATO is not an American Marshall Plan but a bulwark for nation-state self-determination.

Books of Interest
 Website: chetyarbrough.blog

“The Marshall Plan” (Dawn of the Cold War)

By: Benn Steil

Narrated by: Arthur Morey

Benn Steil (Author, American economist, senior fellow and director of international economics at the Council on Foreign Relations.)

Along with an excellent history of America’s “…Marshall Plan”, there is an underlying message about two fundamental forms of government, i.e., one is democratic, and the other is authoritarian. By democratic, the point is not to suggest an idyllic understanding of American Democracy or Russian Authoritarianism. America and Russia have experienced government leadership that has been both authoritarian and democratic in the last 248 years.

One can justifiably argue America’s authoritarianism was experienced during the four years of the Trump administration (2017-2021).

In contrast Russia’s democratic experience was with Mikhail Gorbachev between 1985 and 1991. Before and after Gorbachev, democratic experience in Russia has been limited and largely authoritarian. What history of “The Marshall Plan” shows is the superior value of American democracy’s checks and balances that limit the power of authoritarian leadership by preserving deliberations of the many as opposed to the one. Trump is not the first U.S. President that was an authoritarian.

George Catlett Marshall Jr. (1880-1959, American army officer and statesman, became Secretary of State and Secretary of Defense during the Truman administration.)

History of “The Marshall Plan” shows the resilience of democratic versus authoritarian governance. Steil shows “The Marshall Plan” is created in a boiling cauldron of disagreement among branches of the American government. The conflicts between American political parties and departments of government hammered out a plan that improved the economies of both America and Europe after the war. America became the economic hegemon of the world as Russia’s economy collapsed in the early 60s.

One might argue the success of China came as a result of the more inclusive economic decision-making policies of Deng Xiaoping after Mao Zedong’s death. With Deng’s opening the economy to market-oriented reforms in 1978, worker efficiency and productivity created an economic boom in China. China’s danger today is the autocratic rule of Xi Jinping. His one-man rule nearly collapsed the economy during Covid 19. America certainly suffered from Covid, but Trump’s authoritarian character was mitigated by political resistance to unilateral Presidential decision-making.

Steil explains how Molotov delayed negotiations on “The Marshall Plan” with a clear understanding that only one person, Joseph Stalin, made decisions in Russia.

Steil notes “The Marshall Plan” is singularly disparaged and reviled by the Russian government. That disparagement is directed by one person, Joseph Stalin. There is no one to oppose the autocratic rule of Stalin’s leadership. Stalin’s opposition was either sent to the Gulag or murdered. A more balanced power structure in Russia could have taken advantage of “The Marshall Plan” but by singular fiat of one person (Stalin) implementation was impeded after WWII. The errors inherent in communism and authoritarian rule are being recreated by Putin in the 21st century.

What Steil shows is that many elected officials in America fought the principles of “The Marshall Plan”. However, the constant back and forth of government policy arguments in Congress aided European recovery after the war in a way that stabilized Europe and monumentally improved the economic growth of America.

Autocracies can certainly improve their economic growth at a pace that is superior to governments ruled by democratic ideals. However, autocracies have a much greater risk of following the wrong path because of their singular focus on one person’s decisions.

With an autocrat’s decision-making process, economic growth is either stultified or accelerated by one person’s decision. The give and take of democracies offer the benefit of different policy maker’s perspectives that may slow policy decisions but ultimately improve the odds of forward economic growth.

However, it is more than the availability of natural resources that made America economically successful. It is the give and take of a democratic process that protects America from the giant missteps that can come from autocratic rule. America has had some good to great rulers, but it has also had some ignorant, bigoted autocrats that offered minimal support for the ideals of freedom and equality. Checks and balances are the strength of American democracy. Presidents can make a difference, but they cannot destroy America’s future.

Ben Steil’s history of “The Marshall Plan” is not limited to an explanation of how important and difficult it is for America to pass important and consequential legislation.

The last chapters of Steil’s history of the Marshall Plan explains why Russia, China, and North Korea resent American encroachment on their spheres of influence. From the era of Stalin, Mao, and Kim Jong II, there has been a growing concern over the expansion of America’s sphere of influence. Steil explains how the Marshall Plan has morphed into a deepening concern about NATO expansion in Europe. As noted in an earlier, the Marshall Plan is created to aid recovery of countries that were impacted by WWII’s destruction. In reality it aided America to become the hegemon of the world. Because of the economic stimulus that revived the countries damaged by WWII, America created new markets for their industrial growth and international trade.

NATO is viewed as another vehicle for America’s economic growth and ideological threat to Putin, Xi, and Kim Jong Un’s control of their countries.

NATO is viewed as another invidious way for America to expand their influence and power. That seems an unfair evaluation of NATO. NATO is a military defense plan saying one country within NATO that is attacked by another country is an attack on all NATO countries. Every nation that has managed to become an independent country should be able to pursue there own interests.

The iron curtain is rusting but its characteristic strength remains a barrier to international cooperation.

The rusting of the iron curtain comes from the tears of societies ruled by authoritarians. The authoritarians are leaders who believe their way of life is threatened. NATO is viewed as a trojan horse at the front gates of non-aligned countries.

One decries Putin’s slaughter of Ukrainians in an unjust war. Life of innocents have no value to today’s Russian leadership that believes their power and way of life is threatened.

The real-politic of authoritarian’s desire for stability and power outweigh the value of human life. The same is seen in the plight of Palestinians who are not part of the October 7th’ terrorists’ killings and kidnappings but are in the way of Israel’s retaliation against Hamas.

In my amateur opinion, China, Russia, North Korean, or other authoritarian governments have a right to rule their countries as they wish. Their citizens are the key to every leader’s longevity. NATO is an effort to offer freedom of choice to established independent countries but if the citizens of a country support their leaders, there is little NATO, or any alliance can do, except to support the sovereignty of all nations.

NATO is not an American Marshall Plan but a bulwark for nation-state self-determination.

Steil argues George Kennan is right in suggesting NATO expansion would be “the most fateful error of American policy in the entire post-Cold War era”. Kennan believed it would inflame nationalist beliefs and reinvigorate the Cold War. And so, it has–as evidenced by Russia’s invasion of Ukraine, China’s expressed intention and action toward Taiwan, and North Korea’s armaments support of Russia.

UNIONIZATION

Nolan clearly illustrates how important political power is in balancing corporate owner/managers’ disproportionate incomes and privileges with labor.

Books of Interest
 Website: chetyarbrough.blog

“The Hammer” (Power, Inequality, and the Struggle for the Soul of Labor)

By: Hamilton Nolan

Narrated by: Franklin Pierson

Hamilton Nolan (Author and free-lance Journalist)

“The Hammer” is a paean to unionization. Unions lost much of their political power in the early 1970s. Political power of labor was diminished by State governments, poor labor union management, and a diminishing number of labor union members. Nolan’s argument is workers have to reestablish political power to change their unfair and inequitable relationship with business.

The widening gap between rich and poor is traced to the era of President Reagan when the first deep cuts in corporate taxes occur.

Reagan fought unionization by firing air traffic controllers that sought better wages. Reagan’s supporters believed government social programs were out of control and their cost diminished the power of free enterprise. Much of the American public either agreed or were apathetic. However, as the gap between rich and poor accelerated, Americans began to complain about inequality. With extraordinary income increases for business owners and CEOs, and repressed wages for workers, the need for unionized political power became self-evident. Nolan introduces his book about unionization with a brief biography of Sara Nelson.

Sara Nelson (AFA president of the Association of Flight Attendants.)

Nolan writes about Sara Nelson who became a union member when she worked for United Airlines as a stewardess. Nelson was born and lived in Corvallis, Oregon. She applies for a job with United Airlines in St. Louis. She gets the job but her first paycheck is late. She couldn’t pay her rent. A check is given to her by a union employee to tide her over until her first check is delivered. From that day forward, according to Nolan, Nelson became a supporter of unions. Eventually Nelson becomes the president of the Association of Flight Attendants (AFA).

Liz Shuler (President of the AFL-CIO since 8/5/21.)

Ironically, the first woman President of the AFL-CIO is also from Oregon. Liz Shuler received a bachelor’s degree in journalism from U of O in Eugene, Oregon. She became a union activist after college and worked to organize clerical workers at Portland General Electric. She is elected as the President of the AFL-CIO in 2021 after serving as the first woman Secretary-Treasurer of the organization.

Nolan’s book addresses State conflicts with unionizers and family-income for low-income workers. The first states he addresses are South Carolina and California. Nolan notes South Carolina has become a haven for businesses wishing to avoid unions. South Carolina’ State laws discourage unionization which appeals to businesses wishing to relocate. Nolan notes South Carolina attracts businesses looking to improve profits by reducing labor costs. The consequence of business’s lower labor cost is to reduce South Carolina workers’ standard of living. South Carolina’s workers are among the lowest (19th out of 50 States) paid workers in the U.S. Nolan implies South Carolina’s income inequality is a consequence of the State’s policy of discouraging unionization.

California has the fourth largest income inequality in the U.S.

Nolan notes the cascading negative of unfair compensation for domestic labor. Though California now allows childcare servers to be unionized, their unionization efforts are discouraged by government regulation, as well as the fragmentation of its poorly compensated workers. The consequence of State government regulation keeps wages low and discourages entrepreneurs from starting childcare’ businesses. A compounding negative is created when users of childcare’ service, women in particular, are unable to work in regular work-day jobs. Workers are compelled to stay home to take care of their children, reducing family income and further impoverishing low-income childcare’ workers. It becomes a vicious cycle, hurting entrepreneurs trying to start a childcare service, employees wishing to increase family income, and employers needing more workers.

Nolan expands his argument by noting how service industries in Las Vegas, the State of Florida, New Orleans, and Mississippi are benefited by unionization.

Vacation and gambling meccas like Las Vegas, Florida, New Orleans and Mississippi need service industry employees. These vacation and gambling meccas depend on service quality for visiting tourists. Lack of representation for service employees diminishes employee’ standards of living which indirectly damages the reputation of the entertainment and vacation industry.

In Las Vegas, where Nolan lived for twenty years, the service industry is protected by the Culinary Union.

Nolan notes how strong the Culinary Union has become in Las Vegas and disparages casino owners like the Fertitta’s who have fought unionization. Numerous examples are given to show how union actions have improved the lives of Casino workers, many of which are immigrants from other countries.

Nolan’s argument for the value of unionization is compelling but his encomium for the union movement ignores America’s immigration crises.

The vast need for immigration reform is not being forcefully addressed by unions. Compensation inequity is a noble fight carried out by unionization, but it needs to broaden its role in immigration. Unions need to use their power and influence to change immigration policies to equitably treat a labor force that is sorely needed in America. Unions need to help educate and house legal immigrants, so they do not become a part of America’s growing homelessness. Additionally, unions could use their recruiting expertise to get Americans off the street by providing job training services and gainful employment.

Public perception of unions could be monumentally improved with a program to recruit and indoctrinate the homeless with training for jobs in the 21st century.

There is so much that unions could do to far exceed the minimalist goal noted in Liz Shuler’s plan to add a million union members over the next 10 years. Nolan pitches for Sara Nelson as a more dynamic leader for the union movement. Maybe Nelson would be better than Shuler, but growth, value, and public perception of union members could be monumentally improved with a program to recruit and indoctrinate the homeless with training and jobs for the 21st century.

Whomever the leaders of unionization may be in the future, Nolan clearly illustrates how important political power is in balancing corporate owner/managers’ disproportionate incomes and privileges with labor.

AMERICAN PRESIDENTS

“Confront and Conceal” is a depressing examination of the American Presidency.

Books of Interest
 Website: chetyarbrough.blog

“Confront and Conceal

By: David Sanger

David Sanger (Author, American journalist for the New York Times, Harvard graduate. Co-winner of 3 Pulitzer Prizes.)

David Sanger offers a journalist eye view of the first four years of the Obama Administration in “Confront and Conceal”. The most impactful impression a reader gets of a U.S. presidential office is that it is a difficult and complex job. Sanger’s observations imply the best a voter can hope for in electing a President is that he/she is a good student of the politics of life and government. Sanger shows Obama has the skill of both while the President who follows only understands the first and cares nothing about the second. This is not to suggest Sanger shows Obama as a perfect President but that his skill in governing far exceeds his successor.

Obama eschewed American intervention in foreign governments but inherited American presence in Iraq and Afghanistan.

At the same time, the American economy was in free fall. A mortgage crisis was born from the greed of human nature. The cure for the mortgage crisis is initiated by the Bush administration. However, like many Presidents before, American foreign government intervention plagues Obama throughout his tenure.

The horrible consequence and resolution of the mortgage crises fell largely on the poor in America.

The rich generally escaped its devastating impact because they had the resources to cash out debts carrying rising interest rates. An estimated 861,664 families lost their homes to foreclosure. The lending institution’ managers who approved loans to the poor on false pretenses were largely forgiven for their greed. Obama’s administration succeeded in stabilizing the American economy, but the fairness of the process is grossly inequitable.

With the exception of the first Bush’s invasion of Iraq, American military intervention in foreign governments has been a failure in every circumstance since WWII.

One might argue this is less true in the case of Korea but the continued belligerence of North Korea and foreign relations conflicts with China and Russia are a direct result of past American military interventions. Obama attempts to improve relations with China but is unsuccessful. Sanger shows that lack of success is because of suspicion of America’s past history and because of a belief that Obama is simply trying to isolate China’s influence in the world. Russia’s invasion of Ukraine speaks for itself. It will ultimately fail but at the consequence of many lost Russian and Ukrainian lives.

“Confront and Conceal” is no pean to the Obama administration. It is a revealing examination of a well-educated and prudent President who wishes to do what is best for America but is trapped by history and human nature.

Obama, like all 21st century Presidents, has the power to kill individual human beings by remote control and direct covert actions that can and do have unintended consequences. Obama is the first President to wheel the power of drone death to eliminate enemy combatants. Even though Obama martials western powers to participate in the overthrow of the Libyan government, Quaddaffi is not given a trial but murdered by rebel Libyan forces. Libya remains a failed government in search of stability. The idea of an incompetent and revengeful elected President of the United States with the power of drone murder is frightening.

“Confront and Conceal” is a depressing examination of the American Presidency because it shows a decent and intelligent President is only slightly better than an incompetent, dishonest, and poorly educated human being like Donald Trump. President Obama’s biggest contribution to America is in providing better health care for the poor but even that is being challenged by his successors.

WHO’S LAUGHING

Appelbaum infers no American President has found the magic formula for balancing the needs of its citizens with the concept of Adam Smith’s free enterprise.

Books of Interest
 Website: chetyarbrough.blog

“The Economists’ Hour: False Prophets, Free Markets, and the Fracture of Society

By: Binyamin Appelbaum

Narrated by: Dan Bittner

Binyamin Appelbaum (Author, winner of a George Polk Award and a finalist for the 2008 Pulitzer Prize, lead writer on economics and business for The New York Times Editorial Board)

Binyamin Appelbaum has written an interesting summary of a difficult but immensely important subject. Economic policy and theory are boring, but they touch every aspect of life. Appelbaum shows economic policy magnifies or diminishes the welfare of every American, let alone every economy in the world.

Adam Smith’s foundational theory of economics.

Though only briefly mentioned by Appelbaum, American economic policy begins with Adam Smith (1723-1790), the Scottish philosopher who wrote “The Wealth of Nations”. Smith advocated free trade and argued against parochial maximization of exports and imports that is manipulated by strict governmental regulation meant only to accumulate gold and silver.

Appelbaum illustrates how American policy violated the entrepreneurial freedom that Adam Smith advocated. In contrast to Smith, John Maynard Keynes (1883-1946) advocates government intervention whenever there is an economic downturn. Equally interventionist is Milton Freidman’s (1912-2006) belief that government should increase or decrease the money supply for national economic stability. The point seems to be that every economist thinks they have a magic bullet that will cure the ills of a faltering economy.

To be fair, Friedman did believe in free enterprise in regard to nation-state currencies. He argued for a floating currency rate that ultimately led to President Nixon’s abandonment of the gold standard. However, the nature of human beings led to speculation and manipulation of nation-state’ currencies that exacerbated trade tariffs and defeated the policy’s free-enterprise objective.

One concludes from “The Economists’ Hour…”, there is no magic solution for an economy in crises. Neither Franklin Roosevelt, George W. Bush, Barack Obama, or any American President cured what ails an American economy that succumbs to economic crises. Adam Smith would argue an economic crisis is caused by a governments’ interference with free enterprise.

Applebaum explains how every 20th and 21st century President of the United States placed their faith in economists’ economic assessments of their day. All Presidents have found intervention by the government has unintended consequences.

President Nixon adopted Freidman’s monetary policy by imposing a freeze on prices and wages that squeezed the life out of the business economy and beggared the wage-earning public with job loss.

A decade of stagflation (high inflation and slow growth) followed Nixon’s administration. Stagflation is attacked by the Reagan administration with mixed results. A myth from economists like Arthur Laffer grew in 1974. Laffer believes taxation is either too high or too low for any benefit to society. Laffer argued zero tax and maximum taxation are equally harmful and produce economic stagnation and/or collapse.

ARTHUR LAFFER (American economist and author, served on President Reagan’s Economic Policy Advisory Board 1981-1989, Here illustrating the “Laffer Curve”.)

Laffer argued every government that reduces tax revenue decreases the stimulative effect of government spending. On the other hand, he suggested every tax cut increases income for taxpayers that will stimulate business and increase employment while encouraging higher production. He laughably created the “Laffer curve” to imply there is an optimum balance of tax reduction that would stimulate economic growth with proportionate increases in government revenue to provide for better government services. That balance has never been found. President Ronald Reagan experimented with Laffer’s idea, but it fails from unintended consequences. The principal consequence is to increase the gap between rich and poor.

BENEFIT OF TAX REDUCTION

Reagan accelerated a movement for government tax reduction that ultimately reduced income taxes from 70% to 28%. The result of government tax reduction during the Reagan years increased the U.S. budget deficit from $78.9 billion to $1.412 trillion. The benefit of that tax reduction went to the wealthy while school lunches were cut, subsidized housing declined by 8%, and poor families lost $64 a month in welfare payments. In 2023, the budget deficit stood at $1.70 trillion, an imbalance that shows why the “Laffer curve” is sardonically laughable.

President Reagan’s administration (1981-1989) was influenced by Laffer’s curve.

The joke is “There is no perfect balance on the curve because of the nature of human beings.”

Roosevelt, George W. Bush, and Obama choose to follow Keynesian policy. Roosevelt bloated government employment. All three increased the government deficit.

Some suggest the idea of
“Cost benefit analysis” (CBA) is recommended to the federal government by two law professors, Michael Livermore and Richard Revesz during the George H. Bush administration but Reagan initiated it with an Executive Order in 1981.

Appelbaum notes that “cost benefit analysis” for government is first used during the administration of Ronald Reagan. However, Bill Clinton reifies its use with an Executive Order in 1993 that required covered agencies to do a CBA on “economically significant” government regulations. Ironically, Clinton was the first President in the post 19th century to balance the budget. Andrew Jackson manages to do it in his term between 1829 and 1837.

An irony of using “cost benefit analysis” is that it required a determination of of a human life’s value. Presidents Nixon, Ford, Carter, and future Presidents use value per statistical life during their administrations. High-income earners were worth $10 million to $15 million, middle-income earners $1 million to $2 million, and low-income earners $100,00 to $200,000. Of course, these values were always litigable. The point is that CBA became a tool for government to regulate the costs of government policies, ranging from military expense to the health, safety, and welfare of American citizens.

The remainder of Appelbaum’s book reflects on the experience of America, Chile, and Taiwan in the 20th century. The implication of his review of economic policy is that those countries that align with the free enterprise beliefs of Adam Smith have made mistakes. However, America’s, Chile’s, and Taiwan’s economic policies seem to have had more economic success when following Smith’s beliefs.

Along with CBA, Appelbaum notes the ongoing controversy is about regulation by government when it tries to balance American health, education, and welfare with Adam Smith’s concept of free enterprise. Appelbaum infers no American President has found the magic formula for balancing the needs of its citizens with the concept of Adam Smith’s free enterprise.