Big Government

“Sustaining” your Way to Serfdom as a Grand Strategy

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Originally posted at Zenpundit.com

Friend of the blog, commenter L.C. Rees, likes to point out that one of the most important part of a grand strategy, particularly one that is maintained despite evidence of being a geopolitical failure, are the domestic political effects that work to the advantage of the faction supporting it.  In my view, grand strategy usually has a political or cultural evolutionary component and, human nature being unchanging, Rees’s cynical observation has merit.

Last year, a couple of JCS aides/field grade officers wrote a grossly  overpraised paper that was pushed by Anne-Marie Slaughter, Thomas Friedman and assorted worthies, that purported to be about a new grand strategy with which America could navigate the world. Mostly it centered on a preference for an America being run by a vaguely EU-like, technocratic, regime under the rubric of “sustainment”, in which the authors wisely folded in a number of  shibboleths popular with the corporate-liberal upper class who write large donation checks to think tanks or make their living in public policy and academia.

The talk of this nature died down when the election cycle began, but the themes were recently revived by the New America Foundation’s Grand Strategy Project whose director had an op-ed in Foreign Policy to reintroduce this agenda to the chattering classes now that the pesky voters are out of the way until 2014:

A New U.S. Grand Strategy  

….Walkable  communities:  The first pool of demand is homegrown. American tastes have changed from the splendid isolation of the suburbs to what advocates are calling the “five-minute lifestyle” — work, school, transit, doctors, dining, playgrounds, entertainment all within a five-minute walk of the front door. From 2014 to 2029, baby boomers and their children, the millennial generation, will converge in the housing marketplace — seeking smaller homes in walkable, service-rich, transit-oriented communities. Already, 56 percent of Americans  seek this lifestyle  in their next housing purchase. That’s roughly three times the demand for such housing after World War II.
If only Bismarck had included some “walkable communities” for Prussia, Europe might have avoided the tragedy of World War I.
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Our Broken Frame of Reference on Government Spending

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When I first traveled to Door County in Wisconsin I visited the various lighthouses and was given a tour by local historians. One of the points that stuck with me most of all was that these lighthouses essentially were one of the few elements of the Federal government that were locally present in the region.

Today our government is ubiquitous at the Federal, State and local level, especially here in Chicago where Cook County is one of the largest counties in the country, with massive hospitals and criminal court facilities.

I wrote about government influence and how it is all around us in posts aptly titled “We’re Barely Capitalists” here and here based on some (semi-humorous) local insights. It would be difficult to find substantial portions of the economy anywhere in a place like Chicago that wasn’t heavily influenced by government spending and allocations.

This article in Business Insider reviews recent job growth and notes that 40% of it was subsidized by government.

Consider our economy right now: about 17% of it is health care; about 6% in terms of GDP is education; and with some overlap, 15-20% is what we call government consumptiongovernment activity, not just transfers. At all levels of government, including state and local. Add those all up, take out the overlap, and it’s a pretty big chunk of the economy, like 20-30%. Those are all sectors where there are massive subsidies, massive distortions of incentives, a lot of bad policy; and it’s hard to measure value.

State and Local governments are poised to grow in 2013, according to this Bloomberg article.

After slashing their workforces by about half a million in the past five years, state and local authorities will add employees in 2013… Their payrolls in the fourth quarter will be 220,000 larger than in the same period for 2012.

Bloomberg then goes on to explain how this state and local government job growth is funded; by Federal US deficits at the trillion dollar+ level that then are passed down to the State and Local levels.

States get about one-third of their revenues from Washington. The agreement Congress hammered out to avoid more than $600 billion in automatic spending reductions and tax increases –the so-called fiscal cliff — spared states from cutbacks, at least for now. (states received) approximately $519 billion…in aid last year.

Don’t forget that, in addition to the US Federal debt and borrowings, the state and local governments are also deeply indebted. Not only are we borrowing to fund current needs, we are also accumulating pension and medical obligations that are truly enormous and growing, especially here in Illinois where recent pension reforms failed to get off the ground.

Our frame of reference on all this government spending and debt, however, is skewed by our comparison group. We continually compare US spending levels to the “Industrialized Powers” which include Western Europe and Japan. Comparing the US to these countries, many of which are economic “basket cases”, is not relevant for a forward looking appraisal of countries where our actual economic competition is coming from – we need to look at China, India, and other rising powers that represent the future.

One of the oldest shibboleths is the fact that the US doesn’t have a “single payer” health system, like the (broken) comparison group listed above. However, if you get sick in China, Brazil, India or other rising countries, there is a (small) safety net but you essentially have to pay substantially extra or have connections in order to get what we’d consider to be modern and effective medical care.

Another point of comparison is greenhouse gases and various environmental practices, such as use of “green” power. Our broken “peer group” countries like Spain invested heavily in massively subsidized wind generation, as I document here, which recently collapsed the moment that these subsidies evaporated (which correlated with the country essentially going broke and being re-floated by the EU central bank. China and India continue to invest enormous amounts in coal power, since it is so effective and plentiful and is needed to power their growing economies.

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Hubris

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Hubris is a Greek word that signifies overweening confidence that leads to a big fall. It is a common component of tragedy. The Wiki article seems to get lost in ancient Greek references and, having read a lot about Greece and Greek history, I don’t think they are on target.

In its modern use, hubris denotes overconfident pride and arrogance; it is often associated with a lack of humility, though not always with the lack of knowledge. An accusation of hubris often implies that suffering or punishment will follow, similar to the occasional pairing of hubris and nemesis in Greek society. The proverb “pride goes before a fall” (from the biblical Book of Proverbs, 16:18) is thought to summate the modern use of hubris.

This is a bit closer to the definition I prefer.

I think we are about to see a grand spectacle of hubris on the part of the re-elected president. The Washington Post describes the outline, as if it was a done deal.

The White House is weighing a far broader and more comprehensive approach to curbing the nation’s gun violence than simply reinstating an expired ban on assault weapons and high-capacity ammunition, according to multiple people involved in the administration’s discussions.

A working group led by Vice President Biden is seriously considering measures backed by key law enforcement leaders that would require universal background checks for firearm buyers, track the movement and sale of weapons through a national database, strengthen mental health checks, and stiffen penalties for carrying guns near schools or giving them to minors, the sources said.

To sell such changes, the White House is developing strategies to work around the National Rifle Association that one source said could include rallying support from Wal-Mart and other gun retailers for measures that would benefit their businesses. White House aides have also been in regular contact with advisers to New York Mayor Michael R. Bloomberg (I), an outspoken gun-control advocate who could emerge as a powerful surrogate for the Obama administration’s agenda.

Nowhere in the article does it acknowledge that the enemies of gun bans include, in addition to the NRA and the “gun manufacturers,” a majority of the people. This is why second terms are so well know for trouble for incumbents.

The gun-control push is just one part of an ambitious political agenda that Obama has pledged to pursue after his decisive reelection victory in November, including comprehensive immigration reform, climate-change legislation and long-term deficit reduction. Obama also faces a reshuffling of his Cabinet, and a looming debate over the nation’s debt ceiling that will compete for his time and attention in the coming months.

In addition to potential legislative proposals, Biden’s group has expanded its focus to include measures that would not need congressional approval and could be quickly implemented by executive action, according to interest-group leaders who have discussed options with Biden and key Cabinet secretaries. Possibilities include changes to federal mental-health programs and modernization of gun-tracking efforts by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The election victory was less “decisive” than the White House and the political left seems to believe. It is no surprise that they are looking for ways to avoid Congress. Now that we know how the EPA evaded the Freedom of Information Act with secret e-mail accounts, nothing should surprise us.

I was going to go to the gun store today but got bogged down in running errands and will have to go tomorrow. The nearest one has a good price on Colt 1911 model .45 calibre pistols. Since the proposed actions by the Obama folks are aimed at banning “military-style handguns,” I guess I had better hurry.

One potential strategy would be to win support for specific measures from interest groups that are normally aligned with the NRA, according to one person who works closely with the administration on gun-related issues and who spoke on the condition of anonymity because of the issue’s sensitivity.

For instance, this person suggested, Wal-Mart and other major gun retailers may have an incentive to support closing a loophole that allows people to bypass background checks if they purchase firearms at gun shows or through other types of private sales. That could result in more people buying guns in retail stores.

I think Wal-Mart is too smart to get into bed with this administration but maybe not. Certainly, Obama is no friend of non-union Wal-Mart. The same applies to gun retailers who can’t keep enough guns and ammunition in stock. I think they know who their friends are. If not they will learn quickly.

Finally, At the White House meeting, Stanek said, “the vice president indicated that there was a very short timeline for him to get back to the president with his recommendations because the American public has a short memory.”

Yup. Get that unconstitutional law going before anybody wakes up.

Unacceptable Performance by the Veterans Affairs Department

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Here’s a Rudyard Kipling poem which isn’t as well known as some of his other ones:

There were thirty million English who talked of England’s might,
There were twenty broken troopers who lacked a bed for the night.
They had neither food nor money, they had neither service nor trade;
They were only shiftless soldiers, the last of the Light Brigade.

They felt that life was fleeting; they knew not that art was long,
That though they were dying of famine, they lived in deathless song.
They asked for a little money to keep the wolf from the door;
And the thirty million English sent twenty pounds and four !

They laid their heads together that were scarred and lined and grey;
Keen were the Russian sabres, but want was keener than they;
And an old Troop-Sergeant muttered, “Let us go to the man who writes
The things on Balaclava the kiddies at school recites.”

(read the whole poem here)

What reminded me of this poem?

This story.

Apparently, in 2012 the average time to complete a VA disability or pension claim was 262 days, up from 188 days in the prior year and far above the official target of 125 days. More at Nextgov.

I’m not very impressed with the excuses offered by the VA for this situation:

VA officials attribute the backlog, defined as claims in the system for more than 125 days, in part to higher demand by veterans returning from 10 years of wars in Iraq and Afghanistan with severe and complex injuries.

A Texas Veterans Commission official noted that the agency is caught in a “perfect storm” of claims from veterans of recent wars and those from aging Vietnam and Korea veterans whose disabilities are worsening.

But wasn’t this all predictable? Obviously wars cause injuries, and better battlefield medical attention means that more wounded soldiers will survive and hence need extended care. And wasn’t the higher claims rate “from aging Vietnam and Korea veterans” largely predictable from simple demographic analysis? I’m reminded of the saying about a British railroad from several decades ago:  “Despite its frequency and general regularity, Sunday morning seems to consistently catch this railroad by surprise.”

The above remark about the railroad notwithstanding, private enterprises generally seem to be able to deal with fluctuating demand and other problems quite well. There is almost always food in the supermarkets, despite droughts, crop failures, logistical problems, strikes, etc etc. The electricity is almost always on despite storms and electrical failures. And while businesses generally do a better problem than government at dealing with daunting arrays of problems, some government agencies do manage to deal with demand increases and fluctuations far better than the VA seems able to do with these disability claims. Somehow the FAA manages to conduct air traffic control safely and effectively despite the increased demand that occurs in holiday seasons and the varied and often nefarious effects of the weather. The military itself often manages to quickly deploy forces and equipment to far-distant locations. Why has the VA been unable to modify its processes to provide resolution of disability claims in a timely manner?

Sad and disturbing.

They are all lying.

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I’ve tried to think about anything but the coming economic calamity but this column from the Daily Telegraph is too perceptive to ignore. Of course, the liars include most of the US media, press and TV. We have to get our news from the British media about American politics. The US media has become an arm of the Democratic party.

Must we assume now that no party that speaks the truth about the economic future has a chance of winning power in a national election? With the results of presidential contests in the United States and France as evidence, this would seem to be the only possible conclusion. Any political leader prepared to deceive the electorate into believing that government spending, and the vast system of services that it provides, can go on as before or that they will be able to resume as soon as this momentary emergency is over was propelled into office virtually by acclamation.
So universal has this rule turned out to be that parties and leaders who know better whose economic literacy is beyond question are now afraid even to hint at the fact which must eventually be faced. The promises that governments are making to their electorates are not just misleading: they are unforgivably dishonest.

I have not believed that Romney’s problem was one of poor communication or salesmanship. Certainly, the turnout numbers show that Obama’s organization made the most of a very intrusive data mining system. The possibility that the system of the campaign will become part of the political party’s permanent infrastructure is worrisome. I don’t want to be an alarmist but one feature of totalitarian governments, after the French Revolution, was the intrusion into daily life.

Of course, once in power all governments must deal with reality even if they have been elected on a systematic lie. As one ex-minister famously put it when he was released from the burden of office: “There’s no money left.” So that challenge must be met. How do you propose to go on providing the entitlements that you have sworn never to end, without any money? The victorious political parties of the Left have a ready answer to that one. They will raise taxes on the “rich”. In France and the United States, this is the formula that is being presented not only as an economic solution but also as a just social settlement, since the “rich” are inherently wicked and must have acquired their wealth by confiscating it from the poor.

I see no sign of any recognition of reality yet by Obama or his government. The “fiscal cliff” negotiations, if they can be called that, have been a farce. The Republicans have allowed themselves to be maneuvered into secret negotiations which have been demagogued and which have set them up for blame for what is coming. They would have been far better advised to insist on open negotiations, on C-SPAN if necessary.

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