Category Archives: United States

Why Obama will almost certainly visit Hiroshima

US secretary of state John Kerry became the highest-ranking US official to pay his respects to the victims of Hiroshima this week. (Telegraph)
US secretary of state John Kerry became the highest-ranking US official to pay his respects to the victims of Hiroshima this week. (Telegraph)

John Kerry, the US secretary of state, had not even appeared at Hiroshima’s peace memorial before word leaked that US president Barack Obama could visit Hiroshima at the end of May following the G7 meeting in Shima, Japan.JapanUSflag

The Obama administration, it’s safe to say, is in full legacy-building mode.

Last month, Myanmar’s government transitioned to a democratically elected government (and, yes, Kerry’s predecessor at State, Hillary Clinton, played a critical role in US support for Burmese democracy). There’s the landmark deal of the ‘P5 + 1’ countries with Iran to bring more transparency to its nuclear energy program and, possibly, its nuclear weapons ambitions. There’s the opening to Cuba after decades of isolation and resentment on both sides of the Straits of Florida, and Obama’s historic visit to Havana.

Kerry is now the highest-ranked US official to visit Hiroshima, but a presidential visit would be exponentially more important — and symbolic — for at least three reasons. Continue reading Why Obama will almost certainly visit Hiroshima

No, Bernie wasn’t right about Panama — and offshore havens have little to do with trade

Even before a bilateral free trade deal with the United States, Panama City was thriving as a center of commerce, banking and shipping in the Caribbean. (Kevin Lees)
Even before a bilateral free trade deal with the United States, Panama City was thriving as a center of commerce, banking and shipping in the Caribbean. (Kevin Lees)

During Barack Obama’s presidential administration, the United States entered into bilateral free trade agreements with not only Panama, but Colombia and South Korea as well.USflagPanama Flag Icon

It might surprise Vermont senator Bernie Sanders, but that didn’t transform Colombia and South Korea offshore tax havens.

Panama, like the British Virgin Islands or a handful of well-known jurisdictions (including Delaware), was known as a top offshore destination for foreign assets well before 2012, when the U.S.-Panama Trade Promotion Agreement took effect. Today, in the aftermath of the jaw-dropping leak of the ‘Panama Papers,’ a 2011 video clip of Sanders, the insurgent candidate for the Democratic presidential nomination, is now going viral.

But it’s far from evidence that Sanders was somehow prescient, and the suggestion that the U.S.-Panama free trade agreement somehow led to Panama’s reputation as a tax haven is disingenuous.

The truth is that offshore jurisdictions have been under siege for years, and the United States has been at the forefront of that fight. It began in earnest in the 1990s, a result of efforts to stymie money laundering related to drug trafficking. But it accelerated to warp speed after the 2001 terrorist attacks in response to concerns about the intricate networks that financed terrorism. Both before and after the aftermath of the global financial crisis in 2008-2009, the Organization for Economic Co-operation and Development took steps to force many of the worst global offenders, named and shamed on its ‘blacklist’ and ‘graylist’ of violators, to weaken their bank secrecy regimes.

That included, perhaps most notably, Switzerland, once the gold standard of secret bank accounts, which agreed to relent its famous standards of bank secrecy in 2009 and 2010. For the record, neither Panama nor the United States signed a more recent effort from 2014 to introduce greater tax transparency. Yet, under the Obama administration, the Foreign Account Tax Compliance Act (FATCA) has put unprecedented burdens on foreign financial institutions in the effort to root out American tax cheats.

Despite the easy meme about Sanders, the U.S.-Panama free trade agreement was always about free trade.

Continue reading No, Bernie wasn’t right about Panama — and offshore havens have little to do with trade

Beyond Cuba: why Caribbean debt crisis could become American security crisis

Cuban president Raúl Castro met US president Barack Obama Monday morning in Havana. (Al Diaz/Miami Herald)
Cuban president Raúl Castro met US president Barack Obama Monday morning in Havana. (Al Diaz/Miami Herald)

It’s not just voters in Spain, Ireland and Greece who are weary of austerity economics.PRjamaicacubaUSflag

Voters in Jamaica last month narrowly ejected their prime minister, Portia Simpson-Miller, giving opposition leader Andrew Holness and the nominally center-right Jamaica Labour Party a razor-thin 32-31 majority in the House of Representatives. Though Jamaican politics has been famous since the 1970s for its polarization, Holness will govern with the narrowest margin in the House since 1949.

What he does with his mandate could matter not only for Jamaica, but the entire Caribbean.

Simpson-Miller, who took power in 2012 and secured yet another IMF bailout in 2013 for the debt-plagued island, marked some success in bringing the country’s debt-to-GDP ratio down from 140% to around 125%. For now, Holness is working with IMF officials, but he won election after pledging to spend more revenues on health care, education and stimulating the economy, part of a generous and populist 10-point plan that will be difficult for him to enact under current fiscal restraints.

The Caribbean’s self-cannibalizing debt crisis

Holness will find himself in a trap all too common in the 21st century Caribbean, where manufacturing, tourism and, in some cases, modest oil production, have not been sufficient to boost economies and incomes. Without higher GDP growth, Holness will face two difficult options. If his government spends too much, he’ll unwind the careful work of his predecessor and send Jamaican debt levels spiraling upwards again. If Holness spends too little, he will alienate the electorate that gave him a majority and that, like Americans and Europeans, are weary of roller-coaster economic uncertainty and a widening inequality gap.

It’s a story that is increasingly familiar across the region and, today, it’s not just Jamaica that is falling into the debt trap. Barbados and Grenada have both marked 60% increases in their debt/GDP ratios in the last 15 years, and the Bahamas, Bermuda and other countries, not typically associated with imprudence, are also struggling with rising debt. Islands like Martinique and Guadeloupe thrive as fossils of France’s colonial empire, thriving due to hefty subsidies from Paris. Trinidad and Tobago, only recently flush with the promise of offshore oil drilling, has watched its expectations plummet with global oil prices. Puerto Rico, a commonwealth of the United States, endures a grinding debt default amid prolonged economic misery with little hope that legislative action can fix its economy. Despite years of advanced warning, neither Democrats nor Republicans have the inclination or ability to provide relief from Capitol Hill.

Taken together, the spiraling debt and economic stagnation of the Caribbean represents an overlooked security challenge in the years ahead that China, Russia or even the Middle East might exploit.

Cuba, Cuba, Cuba

Jamaica’s election didn’t generate the same excitement in the American media as U.S. President Barack Obama’s historic trip this week to Havana, the first since Calvin Coolidge visited in 1928. But it’s only the third time that Obama himself has traveled to the Caribbean at all – he visited Jamaica in April 2015, and he went to Trinidad and Tobago in 2009, when it hosted the 5th Summit of the Americas. Continue reading Beyond Cuba: why Caribbean debt crisis could become American security crisis

Will Melania Trump make Slovenia great again?

Melania Trump could become the most influential Slovenian-born figure in American history. (Facebook)
Melania Trump could become the most influential Slovene-born figure in American history. (Facebook)

Donald Trump’s campaign to ‘Make America Great Again’ may be associated with halting immigration from Mexico or making deals with China, Russia or Japan. But a Trump administration might bring another country to the forefront of international relations. USflagslovenia

That’s because his wife, Melania Knauss Trump (in Slovene, Melanija Knavs) would be only the second First Lady born outside the United States.

Louisa Adams, the wife of the sixth president, John Quincy Adams, was born in England. Teresa Heinz Kerry, a Mozambican-born American, the wife of US Secretary of State John Kerry, would have also been a foreign-born First Lady, had Kerry won the 2004 presidential election.

With a staggering victory in Florida’s Republican primary on Tuesday, Trump has amassed around 673 delegates to July’s Republican convention in Cleveland — more than half of what he’ll need to reach 1,237 and the nomination, and much to the horror of a shellshocked Republican Party that’s watched Trump attack Mexican immigrants as racists, called for a blanket ban on Muslims entering the United States, threatened to sue journalists and encouraged physical violence at rallies.

So, even as Trumpmania sweeps right-wing voters across the United States, is the country ready for a Slovene-born supermodel in the East Wing?

For a candidate whose approach to presidential politics is anything but ordinary, Melania Trump’s approach to the campaign trail has been equally unorthodox in a race pitting her against former US president Bill Clinton for the title of ‘first spouse.’

If Bill Clinton’s role in a Hillary-led White House remains something of a mystery, so does Melania Trump’s. She hasn’t identified any particular key issues that she would champion as First Lady, such as Laura Bush’s focus on education and literacy or Michelle Obama’s focus on childhood obesity and fitness. But that’s also because she is raising a 10-year old son, Barron, the youngest of Donald Trump’s five children across three marriages. There’s more than a murmur of talk that Donald Trump’s daughter Ivanka, would fulfill more of the traditional roles of the First Lady.

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Regardless, Melania Trump would certainly bring a level of elegance to the White House unseen since perhaps the 1960s when Jacqueline Kennedy lived there. As American voters focus on a general election showdown between Donald Trump and Hillary Clinton, Melania Trump’s most important role could be humanizing and softening her husband’s image — he would enter the general election as the most unpopular major-party candidate in recent US history.

Born in 1970 in the small town of Sevnica in southeastern Slovenia, the 45-year-old Melania Trump, is the daughter of a fashion designer, which propelled young Melania’s own modeling career in Milano and Paris and, finally, New York City. She first met Donald Trump at fashion week in the autumn of 1998, and they married in 2005. To date, it’s been Donald Trump’s longest and, seemingly, most successful marriage. Although she became a permanent resident of the United States in 2001, she obtained her citizenship a decade ago in 2006.

But the 45-year-old supermodel, who has graced the cover of Vogue and GQ but not Time, is not exactly a ubiquitous presence on the campaign trail. She rarely makes speeches or gives interviews, though that has changed as Trump’s candidacy gained traction. The rapid transition from supermodel to campaign trail spouse hasn’t been incredibly easy. Most potential first ladies spend a lifetime in politics becoming just as savvy in politics as their spouses. Melania Trump, whose first language isn’t English, has had exactly nine months.

Moreover, when she has ventured into the media, she’s faced tough questions about her husband’s statements about women and his strong anti-immigration stands. In particular, she has faced criticism that as a European model, her path to American citizenship, which involved a special kind of H1B visa, has been far easier than most immigrants. In a debate earlier this month, Donald Trump appeared to soften his stand against the kind of H1B visas available to workers in high demand (including models), only to harden his stand again a day later.

(GRID-Arendal)
(GRID-Arendal)

But the nature of the modern presidency means that Trump’s nomination or, especially, a Trump victory in November, will bring Slovenia squarely into the center of American consciousness for, let’s face it, probably the first time in US history. It would be a surprise if many Americans could even place Slovenia on a map or even know that it’s part of what used to be Yugoslavia.

Television news crews have already started descending on Sevnica, a trickle that is likely to turn into a flood by the time of the July convention or, despite the terror of Democrats and more than a few Republicans, next January’s presidential inauguration.

More importantly for Slovenia, the rash of attention means that even if the Trump candidacy somehow fades this spring or falls short of 270 electoral votes in November, interest in Slovenia, including tourism from the United States, could skyrocket for years to come. Since 2012, The New York Times has published just four items in its travel section on Slovenia. It’s a smart bet that will change as the Trump narrative dominates headlines in 2016 and the American electorate gets to know Melania Trump and her background.
Continue reading Will Melania Trump make Slovenia great again?

Four foreign policy arguments Sanders could still deploy against Clinton

Vermont senator Bernie Sanders, fresh off a win in Michigan's Democratic presidential primary, debated last night in Miami. (Joe Raedle / Getty Images)
Vermont senator Bernie Sanders, fresh off a win in Michigan’s Democratic presidential primary, debated last night in Miami. (Joe Raedle / Getty Images)

If there’s one thing we know about Bernie Sanders, he sure doesn’t like Henry Kissinger.USflag

And if there’s one fact that he likes to deploy in his foreign policy case against Hillary Clinton, it’s her vote authorizing the Iraq War 14 years ago, when Clinton was just in her second year as a senator from New York.

But aside from the Kissinger snark and some minor back-and-forth over US policy in Cuba, foreign policy played only a little role in Wednesday night’s Democratic presidential debate, and it’s played an equally minor role throughout the entire contest. On one hand, that’s because the Sanders insurgency has zeroed in on income inequality, the growing wealth gap and the role of wealthy donors in campaign finance. But it’s also because Clinton, whether or not you trust her judgment, is the most qualified non-incumbent candidate in decades when it comes to international affairs. In addition to her service in the US senate, she also served for four years as secretary of state and eight years as first lady. It’s truly formidable.

Yet, given Clinton-Sanders dynamic, there’s still a lot of space for Sanders to make a strong foreign policy case against Clinton, and time after time, Sanders just hasn’t made that case. Maybe that’s politically wise; shifting his emphasis from Wall Street and income inequality would dilute his message with an attack based on issues that seem far less salient to Democratic primary voters.

But it’s true that Clinton’s foreign-policy instincts have always been more hawkish than those in her own party and, often, those of president Barack Obama and vice president Joe Biden (who, according to Jeffrey Goldberg’s amazing piece in The Atlantic about Obama’s world view, said Clinton ‘just wants to be Golda Meir’).

To some degree, the problem with challenging Clinton on foreign policy is that Sanders would largely be challenging the Obama administration, and that’s tricky when you’re trying to win the votes of an electorate that still adores Obama. But Sanders certainly hasn’t shied away from stating clear differences with the Obama administration’s approach to domestic policy.

Moreover, to the extent that Sanders made a clear and cogent case on international affairs, he could claim that his more dovish approach represents true continuity with the Obama administration (and that Clinton’s more hawkish approach shares more in common with a  potential Republican administration). There’s no doubt that Sanders is a talented politician; in one fell swoop, he could use foreign policy to drive a wedge between Clinton and the Obama legacy. That’s a very powerful tool, and it’s one that Sanders, so far, hasn’t been interested in wielding.

Fairly or unfairly, Sanders is tagged as a one-issue protest candidate, and he suffers from the perception that his candidacy’s purpose is to nudge Clinton further to the left, not to win the Oval Office. By adding a foreign policy element to his critique of the Democratic frontrunner, Sanders could bend a more skeptical media into taking him more seriously and show voters that he really can fill out what Americans expect from a president. In the 21st century, like it or not, the president is the chief policymaking official when it comes to foreign policy.

Given the stakes involved, it’s not too late for Sanders to make this case as the Democratic contest turns to larger states like Ohio, Illinois and Florida next week and, after that, Pennsylvania, New York, New Jersey and California. If he wanted to do so, there’s a long list of areas from which Sanders could choose.

Here are four of the most salient. Continue reading Four foreign policy arguments Sanders could still deploy against Clinton

Hillary Clinton might be the Chirac of the 2016 election

French President Jacques Chirac met Hillary Rodham Clinton as first lady in Paris in 1996. (AP / Michel Euler)
French President Jacques Chirac met Hillary Rodham Clinton as first lady in Paris in 1996. (AP / Michel Euler)

Neither Hillary Clinton nor Donald Trump will come out of the ‘Super Tuesday’ primaries tonight with the delegates they need to wrap up either the respective Democratic or Republican presidential nominations.USflagFrance Flag Icon

Trump, in particular, will face sustained pressure from Texas senator Ted Cruz, who won Texas and Oklahoma, from Florida senator Marco Rubio, who won Minnesota’s caucuses and only narrowly lost Virginia and even from Ohio governor John Kasich, who may have won Vermont.

But the most likely outcome certainly seems like a Trump-Clinton general election. (And yes, that means I was wrong about my forecast of how the Republican contest would unfold).

There are, of course, reasons to believe that Trump would force a much tougher race against Clinton than Cruz or Rubio, because of his showmanship, his ability to transcend the left-right polarization and his ability to run against the ‘establishment’ choice of Clinton just as easily as he dispatched Jeb Bush.

But there’s also a chance that Clinton will demolish him.

Over the weekend, former far-right Front national leader Jean-Marie Le Pen Tweeted his support for Trump.   Continue reading Hillary Clinton might be the Chirac of the 2016 election

The comparison between Sanders and Venezuela is misguided and facile

'Socialism' may be at the heart of chavismo and the Sanders campaign, but they come from two very different political traditions.
‘Socialism’ may be at the heart of chavismo and the Sanders campaign, but they come from two very different political traditions.

One of the more popular comparisons of critics of Vermont senator Bernie Sanders is between the brand of ‘democratic socialism’ that Sanders has espoused in his Democratic presidential campaign and Venezuelan-style socialism.Venezuela Flag IconUSflag

But for reasons I’ll describe below, it’s a facile and wrong-headed comparison, and it’s an insult both to Sanders and to the Venezuelan opposition that’s struggling so hard against something much more insidious than just ‘democratic socialism.’

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RELATED: Eight things Americans should know about the Danish (and Nordic) welfare state

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Sanders has looked to countries like Sweden and Denmark, arguing that the US social welfare net should look more like the Nordic social welfare net. Those are countries that, by and large, conduct free and fair elections with a firm dividing line between government and party, squeaky-clean transparency, a tradition both of consensus-building  and more recently, a reformist nudge that’s tried to retool creaking social welfare system toward more competition and liberalism.

No one disputes Venezuela’s problems, which faces today probably the globe’s most painful economic crisis. They are immense.

But it didn’t get there through Scandinavian-style socialism. Or social democracy. Or democratic socialism.  Continue reading The comparison between Sanders and Venezuela is misguided and facile

For El Paso-Juárez, Trump’s vision of Mexico based on misconception

In the leadup to Pope Francis's visit to Juárez, signs and billboards welcome him with slogans like, 'Chihuahua is love.' (Kevin Lees)
In the leadup to Pope Francis’s visit to Juárez, signs and billboards welcome him with slogans like, ‘Chihuahua is love.’ (Kevin Lees)

EL PASO, Texas and CIUDAD JUÁREZ, Mexico – When Pope Francis visits Ciudad Juárez on Wednesday, city officials hope that the international attention will change its reputation as the homicidal, lawless capital of Mexican drug violence.USflagMexico Flag Icontexas flag

Five years ago, at the height of the city’s instability, it registered over 3,000 homicides annually. But that was before a renewed push for less corrupt policing, the local victory of the Sinaloa cartel and a retreat by the current Mexican government from a militarized approach to defeating drug cartels.

In 2015, the city recorded just 311 homicides, the lowest murder rate in nearly a decade. Philadelphia, by contrast, with roughly the same population, recorded 277 homicides in 2015.

But it’s not just Juarenses who hope the papal presence can rebrand the city. It’s also El Paso, which lies just across the border, and which is one of the safest cities in the United States, even at the height of the violent battle between the Sinaloa and Juárez cartels. In fact, Beto O’Rourke, who has represented the 16th Congressional district that includes El Paso since 2013, had hoped to work with Mexican officials to use to visit to highlight U.S.-Mexican relations on a far grander scale.

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RELATED: An interview with El Paso-area congressman Beto O’Rourke

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“There was an attempt that we were part of, short-lived, that was ambitious, to construct at small bridge across the [Rio Grande] to allow the Pope to sort of walk across and put his hand on the border fence,” O’Rourke said in an interview late last month. “I spoke to the diocese, to the bishop. I think that would have done so much to bring home to people how connected our two countries are. It would have been a powerful message.”

Though the plans fell through, O’Rourke will attend this week’s papal mass in Juárez, and he hoped that many El Pasoans will have a chance to see Francis, the first Latin American pope, as he drives along a border that divides one community into two cities that belong to two countries, the Apollonian yin of El Paso counterbalancing the Dionysian yang of Juárez.

In snowy New Hampshire, voters endorsed another view about the U.S.-Mexican border last week when Donald Trump swept to a crushing victory in the Republican presidential primary. When he announced his candidacy for the nomination last June in the lobby of Manhattan’s Trump Tower, the businessman attacked Mexico as an enemy of the United States, a country “killing us economically,” and he painted the vision of a southern border overrun with immigrants “bringing drugs” and “bringing crime,” labeling many would-be migrants as “rapists,” even while conceding that some “are good people.” Continue reading For El Paso-Juárez, Trump’s vision of Mexico based on misconception

An interview with El Paso-area Congressman Beto O’Rourke

Congressman Beto O'Rourke has been representing the El Paso area in the U.S. House of Representatives since January 2013. (Rod Lamkey / Getty Images)
Congressman Beto O’Rourke has been representing the El Paso area in the US House of Representatives since January 2013. (Rod Lamkey / Getty Images)

As part of a reporting trip to El Paso and Ciudad Juárez earlier last month, I spoke with El Paso’s congressman, Beto O’Rourke, by telephone, on January 27. The transcript follows below, and it encompasses essentially the entire interview with the congressman, a member of the Democratic Party and a former member of the El Paso city council. Congressman O’Rourke has represented Texas’s 16th district since January 2013.USflagtexas flagMexico Flag Icon

You will be able to read my piece on El Paso and Juárez — and how their interconnectivity belies the rhetoric of Donald Trump — shortly. But the more wide-ranging and thoughtful interview with Congressman O’Rourke is also worth a read, given that we touched on many topics, including Trump, the history of the El Paso-Juárez region, the US ‘war on drugs,’ income inequality in an international context and the Democratic primary battle between former US secretary of state Hillary Clinton and Vermont senator Bernie Sanders.

Kevin Lees: Thanks for talking to me today.

Congressman Beto O’Rourke: My pleasure.

KL: How much time do we have?

BOR: I have right now about 30 minutes.

KL: So when are you headed back to Washington?

BOR: Monday, and you probably know this, but we were supposed to be there this week.

KL: You missed a snowstorm!

BOR: I know! [small talk continues]

BOR: I’m interested in people’s impression of El Paso. We have a very large military installation here. And there are somewhere around 30,000 to 32,000 active duty service members, most of whom are not from El Paso. And you hear what they thought when they found out they were going to be posted to El Paso, which is almost always negative, and then [you hear] what their actual experience was when they got here, is almost always positive. In part because they really assumed and feared the worst, and so starting from such a low point it can only get better once they got here. But it is really beautiful. We’re in the Rocky Mountains, which people don’t expect when they are in Texas. Where the US and Mexico, and then Texas and New Mexico and Chihuahua all meet. There‘s no other place that I’ve ever been that is as extraordinary. I haven’t been everywhere in the world, but I’ve been to a lot of places, it’s really beautiful.

A view of El Paso and the Rocky Mountains from the US-Mexican border. (Kevin Lees)
A view of El Paso and the Rocky Mountains from the US-Mexican border. (Kevin Lees)

KL: And the culture is really a very bespoke culture, a sort of hybrid between American and Mexican culture. Its own borderlands kind of thing, where everyone sort of has a foot in two different countries. It’s very special to me. I thought it was a lot of fun.

BOR: I don’t know if you Snapchat at all, but we’re trying to connect with people to broadcast their views, information exclusively from Snapchat. Which apparently is big for a lot of people 14- to 24-year olds. And I’m trying to use it to show people what it is when they think about this region. So I used it for a run today along the Rio Grande and the Upper Valley of El Paso, and I kind of took a shot and posted it of ‘Over here is El Paso, this is Del Ray where Mexico, New Mexico, and Mexico all connect; this is a neighborhood in Juárez; all in one shot.’

It really kind of blows people’s minds when they see that or realize that we really are either at the end of the world, or the beginning of the world in terms of what your world is. Either the back door to the United States or the front door to the United States. Front door or back door to Latin America.

KL: One of the things that you realize when you are in El Paso and Juárez is the two cities function as sort of each other’s yin and yang in some ways. In what ways do you consider El Paso and Juárez the same city? Continue reading An interview with El Paso-area Congressman Beto O’Rourke

Trump’s ‘mercantilist’ economic views had their heyday in the 17th century

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Donald Trump’s economic policies are rooted less in monetarism or neo-Keynesianism, but in the now-discredited economic 17th century theory of mercantilism. (Facebook)

For the most part, mainstream economic views in the United States (and most of the developed world, for that matter) can be traced to a long-established line of theory in the history of economic thought. USflag

Adam Smith’s invisible hand. David Ricardo’s views on free trade and comparative advantage. Joseph Schumpeter’s concept of creative destruction. If you’re on the right, you look perhaps to 19th century marginalists or monetarists like Milton Friedman. If you’re on the left, perhaps you look more to John Maynard Keynes and other macroeconomic theories.

But Donald Trump’s view of economics and world trade seems to have its roots, intentionally or unintentionally, in a brand of economic theory that predates Smith and Ricardo — the mercantilist school, which essentially views world trade as a zero-sum exercise. The key to wealth is to maximize your exports, limit your imports and, for good measure, amass as much gold as possible. England’s loss was France’s gain.

Those kind of mercantilist theories are at the heart of Trump’s economic pitch to voters. It was on full display in his victory speech after Trump handily won the New Hampshire Republican presidential primary:

We’re going to beat China, Japan, beat Mexico at trade. We’re going to beat all of these countries that are taking so much of our money away from us on a daily basis. It’s not going to happen anymore.

Sir Thomas Mun, one of the leading lights of mercantilism, wrote something eerily similar in his 1630 tract England’s Treasure By Foreign Trade: Continue reading Trump’s ‘mercantilist’ economic views had their heyday in the 17th century

How Hillary Clinton can get her groove back: paid parental leave

One way for Hillary Clinton to align her message and draw support from both the hard left and the center-right is to embrace paid parental leave. (Facebook)
One way for Hillary Clinton to align her message and draw support from both the hard left and the center-right is to embrace paid parental leave at the center of her campaign. (Facebook)

It’s not been a great night for former US secretary of state Hillary Clinton, who is losing the New Hampshire primary to Vermont senator Bernie Sanders by a margin of more than 20%USflag

Though there’s reason to believe that Clinton will bounce back in the Nevada caucuses on February 20 and the South Carolina primary on February 27, there’s one low-hanging piece of fruit that she could pluck that might instantly boost her campaign’s chances. It’s a policy that could attract Sanders supporters, emphasize the historic nature of her candidacy to become the first female president of the United States and put the eventual Republican presidential nominee on the defensive, all at once.

It’s paid parental leave — and the United States is one of the few countries in the developed world that doesn’t guarantee it. The OECD average is 17 weeks of maternity leave, the United Kingdom offers 39 weeks, Mexico offers six weeks, and many European countries offer far more to both mothers and fathers (though not always paid at 100% of one’s income):

maternity leave
(OECD)

In fact, extending Australia’s paid parental leave was at the heart of former prime minister Tony Abbott’s successful 2013 bid to return his conservative Liberal Party to government. Indeed, it was his subsequent u-turn on parental leave that cost Abbott his popularity and, ultimately, his premiership.  Continue reading How Hillary Clinton can get her groove back: paid parental leave

Just how massive was Sanders’s NH primary victory?

NH Democrats

This big.new hampshire flagUSflag

It’s hard to compare one primary contest to another.

Each race has its own dynamics, and the 2008 contest among then-senators Hillary Clinton, Barack Obama and John Edwards was as different from this year’s race as the 2000 election between vice president Al Gore and former New Jersey senator Bill Bradley.

But if there’s one thing that we can compare, it’s the margin of victory between the first-placed candidate and the second-placed candidate. Exit polls showed that 12% more of the electorate considered themselves ‘liberal’ than the 2008 Democratic electorate, for example, an effect of growing political polarization that surely boosted Vermont senator Bernie Sanders into landslide territory.

But it was a landslide by this measure. The only primary victory that comes close to Sanders territory was then-Massachusetts governor Michael Dukakis’s win in 1988 en route to the nomination (but not, alas, the presidency).  Continue reading Just how massive was Sanders’s NH primary victory?

Why Bill Clinton’s attack on Sanders won’t work

Former president Bill Clinton's comments against insurgent Vermont senator Bernie Sanders could backfire. (Win McNamee/Getty Images)
Former president Bill Clinton’s comments against insurgent Vermont senator Bernie Sanders could backfire. (Win McNamee/Getty Images)

If you had a sense of deja vu to former president Bill Clinton’s weekend harangue against Vermont senator Bernie Sanders, it’s understandable. USflagUnited Kingdom Flag Icon

The attack was reminiscent of Clinton’s bristling criticisms of then-senator Barack Obama in the 2008 Democratic presidential nomination contest, when Obama upset Clinton’s wife Hillary Clinton, who is running again for the nomination against Sanders, a septuagenarian democratic socialist. Sanders essentially tied Clinton in last week’s Iowa caucuses and is projected to win tomorrow’s New Hampshire primary.

But Clinton’s remarks are also eerily reminiscent of the attacks that former British prime minister Tony Blair mounted against the insurgent candidate of the hard left, Jeremy Corbyn, when it looked like Corbyn, another elderly socialist, might win the Labour Party’s leadership last summer.  Continue reading Why Bill Clinton’s attack on Sanders won’t work

What Iowa taught us about the 2016 Democratic nomination race

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Vermont senator Bernie Sanders has to win over more of the ‘Obama 2008’ coalition if he really wants to win the 2016 Democratic nomination. (Facebook)

Earlier in January, I gamed out what I thought would be the more toughly fought of the 2016 primary fights — that on the Republican side. iowa flagUSflag

By and large, my analysis held up — Ted Cruz and Donald Trump will both live to fight another day and a third candidate (Marco Rubio) will now have fresh momentum in New Hampshire to consolidate ‘establishment lane’ supporters.

Polls, in the days leading up to the Iowa caucuses on the Democratic side, showed a very tight race between Vermont senator Bernie Sanders and former US secretary of state Hillary Clinton and, as of this post, she’s up by 49.9% to 49.6%.

It’s great news for Clinton, because the Sanders campaign always seemed best fit to states like Iowa (and New Hampshire,  where Sanders is currently projected to win by a double-digit margin).

But 49.9% in a race for a former first lady, New York senator and the 2008 presidential runner-up? Losing by a nearly 4-to-1 margin among young voters, the future of the Democratic Party? Weak tea.

So Iowa is, essentially, a tie.

The most valuable lesson that we learned is that the 2016 election is not just a rerun of the 2008 election, a theory that’s become popular among some commentators.

Very broadly, in 2008, Obama crafted a coalition of three sets of voters: African Americans and Latinos, so-called ‘wine track’ white voters (typically higher income and professional) and the young, while Clinton attracted women and so-called ‘beer track’ white voters (typically lower income). Demographics were destiny, so much so that you could plausibly predict a primary’s winner in 2008 on the electorate demographics alone.

Last night showed that 2016 is scrambling those coalitions. Sanders is winning a dwindling contingent of ‘beer track’ voters (many of whom are trending Republican), a handful of ‘wine track’ voters and the young. Clinton is winning women, minorities and a plurality of ‘wine track voters.’ For example, Clinton leads among those who make over $100,000 in income, Sanders less than $50,000.

Each candidate in 2016 is winning around 50% of Obama’s 2008 supporters and around 50% of Clinton’s 2008 supporters:

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That makes relatively ‘whiter’ states like Iowa and New Hampshire fertile ground for Sanders; it’s a different story in more diverse states like Nevada and South Carolina, to say nothing of California or New York or Florida.

So his post-New Hampshire challenge will be to win over more ‘wine-track’ white voters and minorities.

Many voters still think Sanders doesn’t have the right experience to be president. But he has decades of legislative experience building relationships in Congress and, perhaps most importantly,  executive experience as Burlington’s mayor, where he governed as a pragmatic progressive, championing things like mixed-use housing, green space and bike paths — urban policies that seemed outlandish, perhaps, in the 1980s but are commonplace today. Sanders has left that record completely out of his campaign’s narrative.

Sanders has struggled to demonstrate his understanding, let alone commitment, to the priorities of the Black Lives Matter movement. But even in the second term of the first non-white US president, racial injustice remains stubbornly commonplace in American justice and economic systems, and Sanders must give racial inequities as prominent a role as income inequality if he wants to have any real chance at the nomination.

How Bernie Sanders blew an opportunity on health care reform

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Though Vermont senator Bernie Sanders is surging in some polls, the response to his universal ‘Medicare for all’ health care plan was mixed. (Facebook)

Bernie Sanders might just be the American version of Jeremy Corbyn after all. USflag

On the eve of Sunday night’s Democratic presidential debate, Sanders, the Vermont senator with a self-proclaimed ‘democratic socialist’ charge to win the Democratic presidential nomination, released a more detailed plan for achieving universal health care. By its own terms, the Sanders plan would provide ‘Medicare for all,’ though it actually goes much further by eliminating co-pay and deductibles, adding to the sticker shock of a federal program that would cost $1.38 trillion annually. It also comes with huge tax increases that would give US citizens, in one fell swoop, higher tax rates than many ‘social welfare states’ in western Europe.

Many critics, including those on the left who should be sympathetic to achieving even more universal health care, have been skeptical.

Ezra Klein at Vox chides the Sanders plan for omitting details about how a single-payer system would be forced to deny many benefits and treatments, just as Medicare does today. Paul Krugman at The New York Times calls the Sanders plan an exercise in fantasy budgeting, arguing that it relies on wild assumptions about the savings it can achieve in health care spending through a single-payer system. Jonathan Chait at The New Yorker argues that the next president will invariably face a Republican-controlled House (if not Senate) and that introducing a single-payer system would be impossible.

All of these are valid, reasonable criticisms of the Sanders plan.

But if you really believe that president Barack Obama’s health care reforms are just one step on the way to universal health care and, like Sanders, you are committed to a single-payer system, there was always a much better policy plan:

Lower the eligibility age of Medicare from its current level (65 and older) to allow all Americans aged 55 or older to participate. 

It could have been, for Sanders, a beautiful political maneuver that would put both his rival for the Democratic nomination, Hillary Clinton, and congressional Republicans on the defensive, all while having the benefit of being generally great policy.  Continue reading How Bernie Sanders blew an opportunity on health care reform