brown political review - fall 2012 issue

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ELECTION 2012 RYAN PLAN TAX CUTS IRAN BARACK O B A M A SYRIA BAIN IRAQ MITT ROMNEY ISRAEL ABORTION JOBS ECONOMY DREAM ACT OBAMACARE STIMULUS GAY MARRIAGE LIBYA PAUL RYAN AFGHANISTAN IMMIGRATION CLIMATE CHANGE AUSTERITY FISCAL CLIFF DAVID PLOUFFE MEDICARE REFORM DEBT CEILING JOE BIDEN SUPER PACS JOBS MIDDLE CLASS OBAMACARE IRAN ABORTION ISRAEL CLIMATE CHANGE BIPARTISANSHIP GOP MIDDLE EAST DEBATES MIDDLE CLASS DREAM ACT ELECTION 2012 RYAN PLAN TAX CUTS IRAN BARACK OBAMA SYRIA BAIN IRAQ MITT ROMNEY ISRAEL ABORTION JOBS ECONOMY DREAM ACT OBAMACARE STIMULUS GAY MARRIAGE LIBYA PAUL RYAN AFGHANISTAN IMMIGRATION CLIMATE CHANGE AUSTERITY FISCAL CLIFF DAVID PLOUFFE MEDICARE REFORM DEBT CEILING JOE BIDEN SUPER PACS JOBS MIDDLE CLASS OBAMACARE IRAN ABORTION ISRAEL CLIMATE CHANGE BIPARTISANSHIP GOP MIDDLE EAST DEBATES MIDDLE CLASS DREAM ACT ELECTION 2012 RYAN PLAN TAX CUTS IRAN BARACK O B A M A SYRIA BAIN IRAQ MITT ROMNEY ISRAEL ABORTION JOBS ECONOMY DREAM ACT OBAMACARE STIMULUS GAY MARRIAGE LIBYA PAUL RYAN AFGHANISTAN IMMIGRATION CLIMATE CHANGE AUSTERITY FISCAL CLIFF DAVID PLOUFFE MEDICARE REFORM DEBT CEILING JOE BIDEN SUPER PACS JOBS MIDDLE CLASS OBAMACARE IRAN ABORTION ISRAEL CLIMATE CHANGE BIPARTISANSHIP GOP MIDDLE EAST DEBATES MIDDLE CLASS DREAM ACT ELECTION 2012 RYAN PLAN TAX CUTS IRAN BARACK O B A M A SYRIA BAIN IRAQ MITT ROMNEY ISRAEL ABORTION JOBS ECONOMY DREAM ACT OBAMACARE STIMULUS GAY MARRIAGE LIBYA PAUL RYAN AFGHANISTAN IMMIGRATION CLIMATE CHANGE AUSTERITY FISCAL CLIFF DAVID PLOUFFE MEDICARE REFORM DEBT CEILING JOE BIDEN SUPER PACS JOBS MIDDLE CLASS OBAMACARE IRAN ABORTION ISRAEL CLIMATE CHANGE BIPARTISANSHIP GOP MIDDLE EAST DEBATES MIDDLE CLASS DREAM ACT PAUL RYAN AFGHANISTAN IMMIGRATION CLIMATE CHANGE AUSTERITY FISCAL CLIFF DAVID PLOUFFE MEDICARE REFORM DEBT CEILING IRAN ABORTION ISRAEL the choice 2012 VOLUME I ISSUE 1 INTERVIEW NATIONAL EZRA KLEIN GROVER NORQUIST HOWARD DEAN PAUL BEGALA DAVID FRUM WHO FILLS THE EMERGING RIFT IN THE NEW REPUBLICAN PARTY? PAGE 26 PAGE 12 GLOBAL SEARCHING FOR WHY LEBANON MAY BE SYRIA’S NEXT BATTLEGROUND. PAGE 22 Sponsored by: INAUGURAL ISSUE

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The inaugural edition of the Brown Political Review, Brown's student-written and student-run, nonpartisan political magazine.

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ELECTION 2012 RYAN PLAN TAX CUTS IRAN BARACK OBAMA SYRIA BAIN IRAQ MITT ROMNEY ISRAEL ABORTION JOBS

ECONOMY DREAM ACT OBAMACARE STIMULUS GAY MARRIAGE LIBYA PAUL RYAN AFGHANISTAN IMMIGRATION CLIMATE

CHANGE AUSTERITY FISCAL CLIFF DAVID PLOUFFE MEDICARE REFORM DEBT CEILING JOE BIDEN SUPER PACS JOBS MIDDLE

CLASS OBAMACARE IRAN ABORTION ISRAEL CLIMATE CHANGE BIPARTISANSHIP GOP MIDDLE EAST DEBATES MIDDLE CLASS

DREAM ACT ELECTION 2012 RYAN PLAN TAX CUTS IRAN BARACK OBAMA SYRIA BAIN IRAQ MITT ROMNEY ISRAEL ABORTION

JOBS ECONOMY DREAM ACT OBAMACARE STIMULUS GAY MARRIAGE LIBYA PAUL RYAN AFGHANISTAN IMMIGRATION CLIMATE CHANGE AUSTERITY FISCAL CLIFF DAVID PLOUFFE

MEDICARE REFORM DEBT CEILING JOE BIDEN SUPER PACS JOBS MIDDLE CLASS OBAMACARE IRAN ABORTION ISRAEL CLIMATE CHANGE BIPARTISANSHIP GOP MIDDLE EAST DEBATES MIDDLE

CLASS DREAM ACT ELECTION 2012 RYAN PLAN TAX CUTS IRAN

BARACK OBAMA SYRIA BAIN IRAQ MITT ROMNEY ISRAEL ABORTION JOBS ECONOMY DREAM ACT OBAMACARE STIMULUS GAY MARRIAGE LIBYA PAUL RYAN AFGHANISTAN IMMIGRATION

CLIMATE CHANGE AUSTERITY FISCAL CLIFF DAVID PLOUFFE MEDICARE REFORM DEBT CEILING JOE BIDEN SUPER PACS JOBS

MIDDLE CLASS OBAMACARE IRAN ABORTION ISRAEL CLIMATE CHANGE BIPARTISANSHIP GOP MIDDLE EAST DEBATES MIDDLE

CLASS DREAM ACT ELECTION 2012 RYAN PLAN TAX CUTS IRAN

BARACK OBAMA SYRIA BAIN IRAQ MITT ROMNEY ISRAEL ABORTION JOBS ECONOMY DREAM ACT OBAMACARE STIMULUS GAY MARRIAGE LIBYA PAUL RYAN AFGHANISTAN IMMIGRATION

CLIMATE CHANGE AUSTERITY FISCAL CLIFF DAVID PLOUFFE MEDICARE REFORM DEBT CEILING JOE BIDEN SUPER PACS JOBS

MIDDLE CLASS OBAMACARE IRAN ABORTION ISRAEL CLIMATE CHANGE BIPARTISANSHIP GOP MIDDLE EAST DEBATES MIDDLE

CLASS DREAM ACT PAUL RYAN AFGHANISTAN IMMIGRATION CLIMATE CHANGE AUSTERITY FISCAL CLIFF DAVID PLOUFFE MEDICARE REFORM DEBT CEILING IRAN ABORTION ISRAEL

thechoice2012

Volume I Issue 1

INTERVIEW NATIONALEZRA KLEIN

GROVER NORQUISTHOWARD DEAN PAUL BEGALA DAVID FRUM

WHO FILLS THE EMERGING RIFT IN

THE NEW REPUBLICAN PARTY?

PAGE 26 PAGE 12

GLOBAL

SEARCHING FORWHY LEBANON MAY

BE SYRIA’S NEXT BATTLEGROUND.

PAGE 22

Sponsored by:

INAUGURAL ISSUE

160k

21%27

26

22

20

18

16

12

10

8

6

4

CONTENTS

NATIONAL

FEATURE

INTERVIEW

STA

FF

Executive BoardEditors-in-ChiEfsEnior Managing Editor

ChiEf-of-staff

intErviEws dirECtor

onlinE dirECtorBusinEss & MarkEting dirECtor

layout dirECtor

Haakim NaiNar & BeN Woffordoliver HudsoN

laureN sukiN

CHristopHer WilBurleWis pollis

CHiamaka aNyoku

katriNa maCHado

Interviews Board

Online Board

Columnists

Business & Marketing Board

Layout Board

Editorial Board

jaCoB karr, Carol kim BeNjamiN koatz, aNNika

liCHteNBaum & dori raHBar

seNior maNagiNg editor oliver HudsoN

editors-at-large

NatioNal maNagiNg editor katHy NguyeNgloBal maNagiNg editor jorge tamames

Copy Editorial BoardaNNe moody

jaCqueliNe riCe fraNCis torres & Ned

Willig

CHief Copy editor mariNa do NasCimeNtoCopy editors

viktoria BelBerova BuCk greeNWald &

HeNry kNigHt

iNtervieWs direCtor CHristopHer WilBur

iNtervieWs assoCiatesassoCiate iNtervieWs direCtor CHristiNa kata

peNelope kyritsis & eleNa saltzmaN

BusiNess & marketiNg direCtor CHiamaka aNyoku

BusiNess & marketiNg assoCiates

assoCiate marketiNg direCtor HaNNaH BogeNassoCiate BusiNess direCtor adWa HaBtu

oNliNe direCtor leWis pollis

NeW media maNager Neil siNgH

WeBmaster emma fuNkprojeCts maNager jarrett key

projeCts CoNsultaNt Naser maHfouz

BeNjamiN WolkoN HoustoN davidsoN

Bradley silvermaN & iNNi youH

ColumN maNagers

featured ColumNists leNa Barsky, miCHael d’orteNzio, BeNjamiN

gellmaN, mattHeW mCCaBe, siavasH

Naderi, HimaNi sood & alexis sterN

layout direCtor katriNa maCHadoassoCiate layout direCtor marleNa morsHead

layout assoCiates BeN Berke, mara freiliCH & raCHel

HaBerstroH

The Carbon Tax

President Obama’s Electoral GambleRomney’s Race to Lose

Big Government, Big Capitalism, Big Growth

The G.O.P. is Cracking

The Iranian Missile Crisis?

Rio at War

GLOBAL

Lebanon’s Game of Sects

Ezra Klein

Paul Begala

Howard Dean

David Frum

Grover Norquist

28

29

30

Staff ArtistsraCHel HaBerstroH

katriNa maCHadosHeila sitaram

Cover ArtkatriNa maCHado

Foreign Aid: A Double Edged Sword

Increase from 2008 in Latino voters registered in Arizona. Can Obama put the state in play? pg 7

The new portion of GDP that federal taxation would account for under Simpson-Bowles, according to Grover Norquist. pg 30

}

}

last semester, a few students had the idea for a nonpartisan political review at Brown. We thought there was room for a political magazine to complement other political outlets on campus. 2012 has been a special year to start off, and we are excited to present our inaugural issue to coincide with the November election that in recent weeks has become increasingly captivating.

But Bpr is also more than a written magazine. our website Brownpoliticalreview.org hosts four great columns covering the election, public policy, the supreme Court and in-ternational affairs, as well as the constant insights of our editorial board. it also features radio podcasts, exclusive audio interviews and our Webtv project Bproundtable. the mission throughout is to contribute to a thoughtful and nonpartisan political culture at Brown.

there are so many people without whose incredible help this would not be possible. first, many thanks to professor john tomasi, dina egge, and everyone at the political theory project, whose generous funding and unending support turned this idea into reality. special appreciation to the two co-founders not at Brown this semester, alex-andros Diplas and Todd Harris, who invested significant time and effort into launching this publication. of course, this would not be a magazine without our thoughtful and articulate writers, who were committed from first pitch to final edit. And most impor-tantly, endless credit to our 40-odd staff who have worked incredibly hard and devoted themselves to creating something new throughout the summer and the hectic weeks of this semester.

finally, thank you in advance for picking up Bpr. We hope you enjoy reading it as much we enjoyed creating it.

Best regards,Haakim Nainar & Ben Woffordeditors-in-Chief

Gambling on Rhode Island’s Future 31

160k

21%27

26

22

20

18

16

12

10

8

6

4

CONTENTS

NATIONAL

FEATURE

INTERVIEW

STA

FF

Executive BoardEditors-in-ChiEfsEnior Managing Editor

ChiEf-of-staff

intErviEws dirECtor

onlinE dirECtorBusinEss & MarkEting dirECtor

layout dirECtor

Haakim NaiNar & BeN Woffordoliver HudsoN

laureN sukiN

CHristopHer WilBurleWis pollis

CHiamaka aNyoku

katriNa maCHado

Interviews Board

Online Board

Columnists

Business & Marketing Board

Layout Board

Editorial Board

jaCoB karr, Carol kim BeNjamiN koatz, aNNika

liCHteNBaum & dori raHBar

seNior maNagiNg editor oliver HudsoN

editors-at-large

NatioNal maNagiNg editor katHy NguyeNgloBal maNagiNg editor jorge tamames

Copy Editorial BoardaNNe moody

jaCqueliNe riCe fraNCis torres & Ned

Willig

CHief Copy editor mariNa do NasCimeNtoCopy editors

viktoria BelBerova BuCk greeNWald &

HeNry kNigHt

iNtervieWs direCtor CHristopHer WilBur

iNtervieWs assoCiatesassoCiate iNtervieWs direCtor CHristiNa kata

peNelope kyritsis & eleNa saltzmaN

BusiNess & marketiNg direCtor CHiamaka aNyoku

BusiNess & marketiNg assoCiates

assoCiate marketiNg direCtor HaNNaH BogeNassoCiate BusiNess direCtor adWa HaBtu

oNliNe direCtor leWis pollis

NeW media maNager Neil siNgH

WeBmaster emma fuNkprojeCts maNager jarrett key

projeCts CoNsultaNt Naser maHfouz

BeNjamiN WolkoN HoustoN davidsoN

Bradley silvermaN & iNNi youH

ColumN maNagers

featured ColumNists leNa Barsky, miCHael d’orteNzio, BeNjamiN

gellmaN, mattHeW mCCaBe, siavasH

Naderi, HimaNi sood & alexis sterN

layout direCtor katriNa maCHadoassoCiate layout direCtor marleNa morsHead

layout assoCiates BeN Berke, mara freiliCH & raCHel

HaBerstroH

The Carbon Tax

President Obama’s Electoral GambleRomney’s Race to Lose

Big Government, Big Capitalism, Big Growth

The G.O.P. is Cracking

The Iranian Missile Crisis?

Rio at War

GLOBAL

Lebanon’s Game of Sects

Ezra Klein

Paul Begala

Howard Dean

David Frum

Grover Norquist

28

29

30

Staff ArtistsraCHel HaBerstroH

katriNa maCHadosHeila sitaram

Cover ArtkatriNa maCHado

Foreign Aid: A Double Edged Sword

Increase from 2008 in Latino voters registered in Arizona. Can Obama put the state in play? pg 7

The new portion of GDP that federal taxation would account for under Simpson-Bowles, according to Grover Norquist. pg 30

}

}

last semester, a few students had the idea for a nonpartisan political review at Brown. We thought there was room for a political magazine to complement other political outlets on campus. 2012 has been a special year to start off, and we are excited to present our inaugural issue to coincide with the November election that in recent weeks has become increasingly captivating.

But Bpr is also more than a written magazine. our website Brownpoliticalreview.org hosts four great columns covering the election, public policy, the supreme Court and in-ternational affairs, as well as the constant insights of our editorial board. it also features radio podcasts, exclusive audio interviews and our Webtv project Bproundtable. the mission throughout is to contribute to a thoughtful and nonpartisan political culture at Brown.

there are so many people without whose incredible help this would not be possible. first, many thanks to professor john tomasi, dina egge, and everyone at the political theory project, whose generous funding and unending support turned this idea into reality. special appreciation to the two co-founders not at Brown this semester, alex-andros Diplas and Todd Harris, who invested significant time and effort into launching this publication. of course, this would not be a magazine without our thoughtful and articulate writers, who were committed from first pitch to final edit. And most impor-tantly, endless credit to our 40-odd staff who have worked incredibly hard and devoted themselves to creating something new throughout the summer and the hectic weeks of this semester.

finally, thank you in advance for picking up Bpr. We hope you enjoy reading it as much we enjoyed creating it.

Best regards,Haakim Nainar & Ben Woffordeditors-in-Chief

Gambling on Rhode Island’s Future 31

BR

OW

N P

OLI

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4 5

the climate crisis

Climate science is not new. As the literature grows, we know more specifics about climate change. The Intergovernmental Panel on Cli-mate Change (IPCC) and climate scientists have established that climate change effects are “virtually certain,” including lasting effects on surface temperature, heat waves, changing precipitation patterns (in-cluding droughts), rises in sea levels and increases in tropical storm intensity. Historical temperature data indicate that greenhouse gas emissions have shifted our weather

patterns to make hotter seasons more likely.

Although environmental ef-fects are enough reason to worry, the economic impact of climate change is more concerning. While many forecasts show a modest net economic gain for small levels of global land temperature increase, the range of warming that will oc-cur based on the expected emission trajectory far exceeds any possible net economic benefits, ultimately imposing a net cost on the global economy. Moreover, there are many uncertain parameters that govern climate models. Although

scientists are doing their best, there remain inherent uncertainties in finding the economic costs of temperature shifts, especially when modeling the possibilities of “ex-treme” shifts. Policy action is not just moral; it also represents a kind of insurance against the possibility that the Earth warms faster than anticipated.

a simple solution to a complex problem?

Fortunately, carbon taxation of-fers a simple method to discourage the proliferation of carbon emis-

sions, while simultaneously avoid-ing picking favorites in the market. Indeed, this idea is not new—carbon-pricing schemes have been instituted in a number of national and regional governments.

There are several possible de-signs for such a carbon tax. First, policymakers must decide where in the economic cycle to impose the tax. There are many proponents of imposing the tax “upstream”—coal mine mouths, gas wellheads, refineries and ports of entry—as opposed to “downstream,” where it would more directly engage con-sumers and businesses. Taxing the carbon content of fossil fuels is the least administratively burdensome method. Since the price increase would be passed on to each in-termediary in the economy, it is equivalent to taxing downstream, but has the added benefit of inter-acting with fewer economic agents. Taxing upstream ensures that all sectors will see a price change, but if there are many loopholes, the tax becomes much less efficient—not to mention the potential for economic favoritism.

use of revenue

Although the way in which the government dispenses their carbon tax revenue remains inconsequen-tial from an environmental stand-point, it is a crucial consideration from an economic standpoint. Giv-en the United States’ current fiscal condition, carbon taxes afford an opportunity to generate funds that could be used to help balance the national accounts. The introduction of a national, economy-wide tax of $20 per ton of carbon emissions is estimated to generate $1.25 trillion over the next decade. While this is only a fraction of the $16 trillion

deficit, it is a sizeable chunk of reve-nue and could represent significant progress toward both economic and environmental goals.

Broadly speaking, there are three sensible ways to redistribute the funds generated with a carbon tax. Revenues can be funneled into specific carbon mitigation or carbon reduction policies directed toward individuals through tax breaks, or used to supplement the government’s budget. Some re-searchers propose that the best way to utilize the large sum of revenue from carbon taxes is to make the policy revenue-neutral. This can be accomplished by reducing an exist-ing distortionary tax—a tax dis-couraging desirable activity—by an amount equivalent to the amount levied by the carbon tax. While instituting a tax does increase costs, these costs are often mitigated by

the simultaneous cuts to other taxes. Additionally, these costs dis-courage unsustainable growth that might generate short-term profits but imposes substantial long-term costs on society.

However, there are other im-portant considerations for design-ing the optimal carbon-tax policy. Although society as a whole will be better off regardless of the exact use of carbon tax revenue, the use of funds affects the degree of econom-ic benefit. Using the revenue from a carbon tax to reduce corporate income taxes might produce the greatest level of economic growth, but it does so at the expense of being highly regressive, imposing a greater burden on taxpayers less able to pay. Reducing the pay-roll tax might represent a middle ground designed to be revenue neutral, ensuring that carbon tax

reform does not harm families with incomes lower than the median while generating the stimulating aspect of removing distortionary taxes that discourage work.

Instituting a na-tional carbon tax policy could be used either to reduce distortionary taxes that lead to drags in the economy or as a novel way to raise revenue to help reduce the national deficit. If instated at a low rate and then gradually in-creased, reform would avoid introducing a ma-jor shock to businesses, provide certainty about carbon regulation and allow for more effective long-term planning.

The Carbon Tax: A Win for the Economy and the Environment

Story by Peter Vail / Art by Rachel Haberstroh

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4 5

the climate crisis

Climate science is not new. As the literature grows, we know more specifics about climate change. The Intergovernmental Panel on Cli-mate Change (IPCC) and climate scientists have established that climate change effects are “virtually certain,” including lasting effects on surface temperature, heat waves, changing precipitation patterns (in-cluding droughts), rises in sea levels and increases in tropical storm intensity. Historical temperature data indicate that greenhouse gas emissions have shifted our weather

patterns to make hotter seasons more likely.

Although environmental ef-fects are enough reason to worry, the economic impact of climate change is more concerning. While many forecasts show a modest net economic gain for small levels of global land temperature increase, the range of warming that will oc-cur based on the expected emission trajectory far exceeds any possible net economic benefits, ultimately imposing a net cost on the global economy. Moreover, there are many uncertain parameters that govern climate models. Although

scientists are doing their best, there remain inherent uncertainties in finding the economic costs of temperature shifts, especially when modeling the possibilities of “ex-treme” shifts. Policy action is not just moral; it also represents a kind of insurance against the possibility that the Earth warms faster than anticipated.

a simple solution to a complex problem?

Fortunately, carbon taxation of-fers a simple method to discourage the proliferation of carbon emis-

sions, while simultaneously avoid-ing picking favorites in the market. Indeed, this idea is not new—carbon-pricing schemes have been instituted in a number of national and regional governments.

There are several possible de-signs for such a carbon tax. First, policymakers must decide where in the economic cycle to impose the tax. There are many proponents of imposing the tax “upstream”—coal mine mouths, gas wellheads, refineries and ports of entry—as opposed to “downstream,” where it would more directly engage con-sumers and businesses. Taxing the carbon content of fossil fuels is the least administratively burdensome method. Since the price increase would be passed on to each in-termediary in the economy, it is equivalent to taxing downstream, but has the added benefit of inter-acting with fewer economic agents. Taxing upstream ensures that all sectors will see a price change, but if there are many loopholes, the tax becomes much less efficient—not to mention the potential for economic favoritism.

use of revenue

Although the way in which the government dispenses their carbon tax revenue remains inconsequen-tial from an environmental stand-point, it is a crucial consideration from an economic standpoint. Giv-en the United States’ current fiscal condition, carbon taxes afford an opportunity to generate funds that could be used to help balance the national accounts. The introduction of a national, economy-wide tax of $20 per ton of carbon emissions is estimated to generate $1.25 trillion over the next decade. While this is only a fraction of the $16 trillion

deficit, it is a sizeable chunk of reve-nue and could represent significant progress toward both economic and environmental goals.

Broadly speaking, there are three sensible ways to redistribute the funds generated with a carbon tax. Revenues can be funneled into specific carbon mitigation or carbon reduction policies directed toward individuals through tax breaks, or used to supplement the government’s budget. Some re-searchers propose that the best way to utilize the large sum of revenue from carbon taxes is to make the policy revenue-neutral. This can be accomplished by reducing an exist-ing distortionary tax—a tax dis-couraging desirable activity—by an amount equivalent to the amount levied by the carbon tax. While instituting a tax does increase costs, these costs are often mitigated by

the simultaneous cuts to other taxes. Additionally, these costs dis-courage unsustainable growth that might generate short-term profits but imposes substantial long-term costs on society.

However, there are other im-portant considerations for design-ing the optimal carbon-tax policy. Although society as a whole will be better off regardless of the exact use of carbon tax revenue, the use of funds affects the degree of econom-ic benefit. Using the revenue from a carbon tax to reduce corporate income taxes might produce the greatest level of economic growth, but it does so at the expense of being highly regressive, imposing a greater burden on taxpayers less able to pay. Reducing the pay-roll tax might represent a middle ground designed to be revenue neutral, ensuring that carbon tax

reform does not harm families with incomes lower than the median while generating the stimulating aspect of removing distortionary taxes that discourage work.

Instituting a na-tional carbon tax policy could be used either to reduce distortionary taxes that lead to drags in the economy or as a novel way to raise revenue to help reduce the national deficit. If instated at a low rate and then gradually in-creased, reform would avoid introducing a ma-jor shock to businesses, provide certainty about carbon regulation and allow for more effective long-term planning.

The Carbon Tax: A Win for the Economy and the Environment

Story by Peter Vail / Art by Rachel Haberstroh

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6 7

President Obama’s Electoral

Gamble

At the beginning of October, it seemed likely that President Obama would win re-election. The Obama campaign faced a choice, then as now: to consolidate resources in hopes of improving the President’s odds for a surefire (if narrower) vic-tory, or to focus resources elsewhere. In light of that choice, the campaign appears to have shifted strategy from simply improving the odds of an Obama victory to instead build-ing an electoral mandate for the President, supporting campaigns of fellow Democrats and developing the Democratic Party.

If the goal were simply to win 270 electoral votes, it seems logical the Obama campaign would spend resources primarily in the states cru-cial to victory. If Nevada, Colorado, Iowa, Ohio, Virginia, South Caro-lina, Florida and New Hampshire are the too-close-to-call states in

this election, then President Obama leads Mitt Romney 247 to 191. With only 23 more votes needed, the President could focus almost en-tirely on swing states most likely to vote Democratic, specifically Ohio and Nevada, to achieve victory with 271 electoral votes. Alternatively, the campaign could also spend in Florida, New Hampshire and Iowa to be safe, in the event Ohio or Ne-vada don’t turn blue. Yet in the past weeks, this is not the strategy the campaign has executed.

Consider North Carolina, an unlikely state to support Obama which, according to Nate Silver (the 538.com statistician famous for his accurate state-by-state Presiden-tial and Senatorial predictions in 2008), holds only a 0.6% chance of determining the election outcome. Yet the President’s campaign has in-vested greatly in the state, already

spending nearly $19 million in ad-vertising in North Carolina—not to mention the decision to hold the Democratic National Convention in Charlotte. The path to 270 is far easier elsewhere, so why is the cam-paign competing in this state?

One likely reason is the desire to avoid the negative symbolism that would come from badly losing a state that the President won in 2008. President Obama will likely lose In-diana, which he won four years ago, and losing North Carolina as well might reinforce the notion of for-merly supportive states abandoning the President, consequently weak-ening any mandate that the Presi-dent might receive. Alternatively, if an upset occurred that allowed him to win North Carolina, it might go a long way to winning that mandate in addition to a second term.

The President’s campaign is thus

taking some strategic risks in No-vember by not focusing entirely on re-election. That the race has tight-ened dramatically and unexpect-edly following the first debate only heightens the gamble that the cam-paign has already waged by sinking resources into this approach.

Yet securing an electoral man-date in some ways is worth the risk for President Obama’s second term. A mandate would show support for his first-term policies and give the President credibility for his second-term agenda. It might also prove a resounding renunciation of Repub-lican obstructionism in Congress, forcing Republicans to change their tactics and possibly cooperate more with the President, making more bipartisan bills a possibility. With-out this all-important mandate, the President’s second term would likely be as contentious as the first, and Republicans would have little reason to discontinue their obstruc-tionist strategy.

Moreover, by competing in states with close House and Senate races, the President hopes to help Democratic candidates and thus bolster Democratic Party represen-tation in Congress. This coattail ef-fect has an especially great impact on House races, in which voters may not be very familiar with less-er-known candidates but may be more willing to vote for candidates based on the strength of the party’s Presidential nominee. For example, Minnesota is very likely to support President Obama, but there also still remain several House races that are expected to be close and could benefit from an Obama advertising presence.

An interesting example of this effect is playing out in New Hamp-shire and Massachusetts. It is clear that New Hampshire is an impor-

tant swing state for the President. In addition, the Boston media mar-ket serves significant parts of New Hampshire, forcing the Obama campaign to show ads in New Hampshire and Massachusetts si-multaneously. As a consequence, Democratic Senate candidate Eliza-beth Warren in Massacusetts may actually indirectly benefit from Obama’s advertising spending in New Hampshire. Locked in a tight race with incumbent Scott Brown, Warren is also polling below the President’s own numbers in Mas-sachusetts, giving the Obama cam-paign further reason to increase me-dia buys in that market.

The case of Arizona also suggests the Team Obama is not pursuing a “win at any cost” strategy. Arizona is expected to support Governor Romney, and Nate Silver estimates that the state holds a 0.1% chance of determining an Electoral-College victory. Yet the President’s cam-paign has long considered compet-ing for Arizona. Again, why would the Obama campaign contemplate a significant investment in a state un-likely to affect the final results?

In Arizona and elsewhere, build-ing the Democratic Party appears to be the third objective of the Obama campaign. Party-building is a nebu-lous task that involves, though is hardly limited to, registering vot-ers, building field networks, recruit-ing strong candidates, winning lo-cal offices and improving the party brand. As DNC Chair from 2005 to 2009, Howard Dean helped bring about unlikely Democratic victories in Mississippi and Louisiana using his 50-State Strategy, which utilized such party building tactics. Presi-dent Obama’s campaign similarly has the capacity again to help spur some of this party building.

In fact, Arizona could become

very competitive in future elections, if not this time around. An influx of Latino voters (160,000 more Latinos are registered to vote in 2012 than in 2008), coupled with Republican an-ti-immigration policies, mean that Democrats could gain ground in Arizona in 2016 and beyond. Invest-ing there now could serve to further increase that chance.

Arizona is only one part of an expanding electoral map for Demo-crats. If current demographic trends continue, traditional swing states such as Pennsylvania, Ohio and Virginia could become Democratic strongholds, while new swing states open up; even Republican strong-holds Georgia and South Carolina could become more competitive. Investments in these almost-swing states, while not profitable this elec-tion, could lead the way to develop-ing future Democratic victories.

And yet with the race now look-ing far closer than it did before, it seems no long-term game plan could supersede the imperative for an Obama victory, and casting a gaze to the future never feels re-assuring during a nail-biter. That critique is hardly new—Dean’s de-tractors saw a misguided idealist diverting crucial money away from swing races in need of help—but his strategy largely paid off, and Dean is often regarded as visionary. But if it so happens that the $19 million sunk into long-shot North Carolina might have saved Ohio—and the election—the President’s re-election team may not be so lucky.

With two weeks remaining, the Obama campaign is following a non-traditional electoral strategy. His re-election hinges on a singular question: is it worth risking a Presi-dential victory for a larger win, or more seats in Congress? Only No-vember 6 will tell.

Story by Taylor Daily / Art by Katrina Machado

**Could Obama’s quest for a mandate be the very thing that costs him the election?

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President Obama’s Electoral

Gamble

At the beginning of October, it seemed likely that President Obama would win re-election. The Obama campaign faced a choice, then as now: to consolidate resources in hopes of improving the President’s odds for a surefire (if narrower) vic-tory, or to focus resources elsewhere. In light of that choice, the campaign appears to have shifted strategy from simply improving the odds of an Obama victory to instead build-ing an electoral mandate for the President, supporting campaigns of fellow Democrats and developing the Democratic Party.

If the goal were simply to win 270 electoral votes, it seems logical the Obama campaign would spend resources primarily in the states cru-cial to victory. If Nevada, Colorado, Iowa, Ohio, Virginia, South Caro-lina, Florida and New Hampshire are the too-close-to-call states in

this election, then President Obama leads Mitt Romney 247 to 191. With only 23 more votes needed, the President could focus almost en-tirely on swing states most likely to vote Democratic, specifically Ohio and Nevada, to achieve victory with 271 electoral votes. Alternatively, the campaign could also spend in Florida, New Hampshire and Iowa to be safe, in the event Ohio or Ne-vada don’t turn blue. Yet in the past weeks, this is not the strategy the campaign has executed.

Consider North Carolina, an unlikely state to support Obama which, according to Nate Silver (the 538.com statistician famous for his accurate state-by-state Presiden-tial and Senatorial predictions in 2008), holds only a 0.6% chance of determining the election outcome. Yet the President’s campaign has in-vested greatly in the state, already

spending nearly $19 million in ad-vertising in North Carolina—not to mention the decision to hold the Democratic National Convention in Charlotte. The path to 270 is far easier elsewhere, so why is the cam-paign competing in this state?

One likely reason is the desire to avoid the negative symbolism that would come from badly losing a state that the President won in 2008. President Obama will likely lose In-diana, which he won four years ago, and losing North Carolina as well might reinforce the notion of for-merly supportive states abandoning the President, consequently weak-ening any mandate that the Presi-dent might receive. Alternatively, if an upset occurred that allowed him to win North Carolina, it might go a long way to winning that mandate in addition to a second term.

The President’s campaign is thus

taking some strategic risks in No-vember by not focusing entirely on re-election. That the race has tight-ened dramatically and unexpect-edly following the first debate only heightens the gamble that the cam-paign has already waged by sinking resources into this approach.

Yet securing an electoral man-date in some ways is worth the risk for President Obama’s second term. A mandate would show support for his first-term policies and give the President credibility for his second-term agenda. It might also prove a resounding renunciation of Repub-lican obstructionism in Congress, forcing Republicans to change their tactics and possibly cooperate more with the President, making more bipartisan bills a possibility. With-out this all-important mandate, the President’s second term would likely be as contentious as the first, and Republicans would have little reason to discontinue their obstruc-tionist strategy.

Moreover, by competing in states with close House and Senate races, the President hopes to help Democratic candidates and thus bolster Democratic Party represen-tation in Congress. This coattail ef-fect has an especially great impact on House races, in which voters may not be very familiar with less-er-known candidates but may be more willing to vote for candidates based on the strength of the party’s Presidential nominee. For example, Minnesota is very likely to support President Obama, but there also still remain several House races that are expected to be close and could benefit from an Obama advertising presence.

An interesting example of this effect is playing out in New Hamp-shire and Massachusetts. It is clear that New Hampshire is an impor-

tant swing state for the President. In addition, the Boston media mar-ket serves significant parts of New Hampshire, forcing the Obama campaign to show ads in New Hampshire and Massachusetts si-multaneously. As a consequence, Democratic Senate candidate Eliza-beth Warren in Massacusetts may actually indirectly benefit from Obama’s advertising spending in New Hampshire. Locked in a tight race with incumbent Scott Brown, Warren is also polling below the President’s own numbers in Mas-sachusetts, giving the Obama cam-paign further reason to increase me-dia buys in that market.

The case of Arizona also suggests the Team Obama is not pursuing a “win at any cost” strategy. Arizona is expected to support Governor Romney, and Nate Silver estimates that the state holds a 0.1% chance of determining an Electoral-College victory. Yet the President’s cam-paign has long considered compet-ing for Arizona. Again, why would the Obama campaign contemplate a significant investment in a state un-likely to affect the final results?

In Arizona and elsewhere, build-ing the Democratic Party appears to be the third objective of the Obama campaign. Party-building is a nebu-lous task that involves, though is hardly limited to, registering vot-ers, building field networks, recruit-ing strong candidates, winning lo-cal offices and improving the party brand. As DNC Chair from 2005 to 2009, Howard Dean helped bring about unlikely Democratic victories in Mississippi and Louisiana using his 50-State Strategy, which utilized such party building tactics. Presi-dent Obama’s campaign similarly has the capacity again to help spur some of this party building.

In fact, Arizona could become

very competitive in future elections, if not this time around. An influx of Latino voters (160,000 more Latinos are registered to vote in 2012 than in 2008), coupled with Republican an-ti-immigration policies, mean that Democrats could gain ground in Arizona in 2016 and beyond. Invest-ing there now could serve to further increase that chance.

Arizona is only one part of an expanding electoral map for Demo-crats. If current demographic trends continue, traditional swing states such as Pennsylvania, Ohio and Virginia could become Democratic strongholds, while new swing states open up; even Republican strong-holds Georgia and South Carolina could become more competitive. Investments in these almost-swing states, while not profitable this elec-tion, could lead the way to develop-ing future Democratic victories.

And yet with the race now look-ing far closer than it did before, it seems no long-term game plan could supersede the imperative for an Obama victory, and casting a gaze to the future never feels re-assuring during a nail-biter. That critique is hardly new—Dean’s de-tractors saw a misguided idealist diverting crucial money away from swing races in need of help—but his strategy largely paid off, and Dean is often regarded as visionary. But if it so happens that the $19 million sunk into long-shot North Carolina might have saved Ohio—and the election—the President’s re-election team may not be so lucky.

With two weeks remaining, the Obama campaign is following a non-traditional electoral strategy. His re-election hinges on a singular question: is it worth risking a Presi-dential victory for a larger win, or more seats in Congress? Only No-vember 6 will tell.

Story by Taylor Daily / Art by Katrina Machado

**Could Obama’s quest for a mandate be the very thing that costs him the election?

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Four years ago, Barack Obama ran for President on a platform of hope and change. His campaign promised a new path for Washing-ton. He vowed to close the detention facility at Guantanamo Bay within a year of being elected. He swore to rebuild America’s standing in the world—particularly in the Middle East, where the U.S. invasion of Iraq had been condemned as belliger-ence without cause. He also pledged in an interview with Univision that “we will have in the first year an im-migration bill that I strongly sup-port and that I’m promoting.” Most notably, back in 2009 the President suggested he would solve the unem-

ployment crisis: “If I don’t have this done in three years, then this is go-ing to be a one-term proposition.”

Back in 2008, Americans had to take President Obama at his word, since he lacked any significant re-cord on which voters could judge his abilities as a leader. Today, Ameri-cans have the benefit of comparing the President’s first term against the laundry list of promises he made on the campaign trail. The resulting picture is not very pretty.

President Obama has failed to deliver on each of the promises listed above and more. Guantana-mo Bay remains open for business. Protests in Libya and across the

Middle East have sparked new ire from abroad while our alliance with Israel has become strained. Immi-gration remains in desperate need of reform. Until the last leg of the presidential race, unemployment remained above a staggering 8% for 43 straight months. These failures do not just speak to a failed set of policy proposals, but to a more fun-damental concern. This President has continually failed to lead, and it has meant devastating consequenc-es both for working class Americans still in search of a job and for foreign allies who wonder where the United States stands as new threats con-tinue to surface. In a global era in-

creasingly defined by the dual forces of economic instability and political unrest, the United States can no lon-ger afford to drag its feet as a leader on the world stage, nor lose sight of its focus on economic growth.

Yet this is precisely what Presi-dent Obama has done time and time again during his first term in office. When it came to creating 20,000 new jobs and decreasing America’s dependence on foreign oil, Presi-dent Obama played politics, catered to the environmentalist fringe of his party’s base and delayed approving the Keystone XL pipeline. On an issue as important as the national debt, when the President called a bi-partisan Simpson-Bowles commis-sion to devise a comprehensive plan to reduce the deficit by $1.2 trillion dollars, President Obama rejected it rather than lead on the proposal, which remains one of the only so-lutions with any hope of biparti-san agreement. President Obama’s record makes it clear that when it comes to the tough issues, Ameri-cans should not expect to see him out front leading the charge. What a difference four years can make.

Even the President’s own Super-Pac advisor Paul Begala admits the Obama record is a tough sell. “This should’ve been a pretty good year to be a Republican candidate,” says Be-gala in an extended online interview with BPR, “acknowledging that 8% unemployment is “saddling” Amer-ican families or, more to Begala’s point, Obama’s re-election chances. With Americans still struggling in the worst recovery since the Great Depression, how is it that the Presi-dent continues to remain competi-tive in swing-state polls? Two words: Mitt Romney.

As Begala hints, if voters were to look at the candidates on paper and pick the best résumé for the posi-

tion, Mitt Romney would win in a landslide. After a sterling business career at Bain Capital where he was regarded by many of his coworkers as a legendary business manager,” Mr. Romney would bring to the Oval Office the first-hand knowl-edge of the economy the country desperately needs. As the President of the 2002 Winter Olympics in Salt Lake City, Romney displayed the type of leadership and management skills required to rescue a struggling organization riddled with scandal. And as a Republican Governor of the heavily Democratic state of Massachusetts, Romney exhibited the ability to compromise and work with a Democratic state legislature to pass important legislation, such as the state’s now-infamous health care overhaul. With partisanship in Washington now at fever pitch and leaving some to question whether the American model of democratic governance has run off the tracks, a bold leader like Mitt Romney with a track record of compromise and success is the precise antidote for America’s current ills.

So what’s the catch? Whatever advantage Governor Romney has on the President with his résumé, he more than forfeited it by mud-dling through the summer without establishing a coherent vision or dispelling the narrative that he is a Wall Street fat cat out of touch with the challenges facing the average American. As if his uncomfortably exaggerated laugh and corny jokes on the trail are not enough cause for concern on the likability front, the Governor’s recently released com-ments regarding 47% of “lazy and dependent Americans” only dig the hole deeper. These distractions have allowed President Obama to drive the conversation despite his numer-ous failures of the past four years.

The Romney message has been an unconvincing combination of “Are you better off than you were four years ago?” and successive strings of reactionary press statements. Just because the President has failed to get the country driving in the right direction again generally does not mean Americans will simply hand the keys to someone without know-ing where he plans to take them.

And yet for all of this, suddenly October has witnessed the arrival of Redemption Romney: an unfore-seen K.O. in the first presidential debate rocketed the Romney Cam-paign into its first substantive lead in months, surprising nearly everyone, including perhaps Romney himself. The question of the moment—Can he hold on?—seems to capture per-fectly Romney’s fundamental prob-lems that analysts had once said prevented exactly this kind of resur-gence. The deeper question is, has the Romney surge tipped the scales and finally pinned Obama under the rock of voters’ ambivalence about his first term?

Now with the race officially down to the wire, more Ameri-cans are paying attention to each candidate. It is impossible to know whether this is good or bad news for Mitt Romney, but the slogans of each campaign provide a tell-ing glimpse: “Forward” is the cold, declarative embrace of Obama’s re-cord; like Begala’s acknowledgment, it invites that perennial question—“Are you better off?”—but never re-ally provides an answer.

Romney’s scriptural “Believe in America,” meanwhile, fully suggests all the divine intervention he will need to pull this off—a victory that would constitute one of the greatest comebacks in politics. Has Romney finally hit his stride? We’ll only need 24 hours in November to find out.

Story by Heath Mayo / Art by Katrina Machado

High negative ratings. The Bain attacks. The 47% comment. Let’s

say his likability is an issue.

But after a stellar first debate, can Mitt Romney

finally hit his stride?

Why it’s still

ROMNEY’SRACE

TO LOSE

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IEW

8 9

Four years ago, Barack Obama ran for President on a platform of hope and change. His campaign promised a new path for Washing-ton. He vowed to close the detention facility at Guantanamo Bay within a year of being elected. He swore to rebuild America’s standing in the world—particularly in the Middle East, where the U.S. invasion of Iraq had been condemned as belliger-ence without cause. He also pledged in an interview with Univision that “we will have in the first year an im-migration bill that I strongly sup-port and that I’m promoting.” Most notably, back in 2009 the President suggested he would solve the unem-

ployment crisis: “If I don’t have this done in three years, then this is go-ing to be a one-term proposition.”

Back in 2008, Americans had to take President Obama at his word, since he lacked any significant re-cord on which voters could judge his abilities as a leader. Today, Ameri-cans have the benefit of comparing the President’s first term against the laundry list of promises he made on the campaign trail. The resulting picture is not very pretty.

President Obama has failed to deliver on each of the promises listed above and more. Guantana-mo Bay remains open for business. Protests in Libya and across the

Middle East have sparked new ire from abroad while our alliance with Israel has become strained. Immi-gration remains in desperate need of reform. Until the last leg of the presidential race, unemployment remained above a staggering 8% for 43 straight months. These failures do not just speak to a failed set of policy proposals, but to a more fun-damental concern. This President has continually failed to lead, and it has meant devastating consequenc-es both for working class Americans still in search of a job and for foreign allies who wonder where the United States stands as new threats con-tinue to surface. In a global era in-

creasingly defined by the dual forces of economic instability and political unrest, the United States can no lon-ger afford to drag its feet as a leader on the world stage, nor lose sight of its focus on economic growth.

Yet this is precisely what Presi-dent Obama has done time and time again during his first term in office. When it came to creating 20,000 new jobs and decreasing America’s dependence on foreign oil, Presi-dent Obama played politics, catered to the environmentalist fringe of his party’s base and delayed approving the Keystone XL pipeline. On an issue as important as the national debt, when the President called a bi-partisan Simpson-Bowles commis-sion to devise a comprehensive plan to reduce the deficit by $1.2 trillion dollars, President Obama rejected it rather than lead on the proposal, which remains one of the only so-lutions with any hope of biparti-san agreement. President Obama’s record makes it clear that when it comes to the tough issues, Ameri-cans should not expect to see him out front leading the charge. What a difference four years can make.

Even the President’s own Super-Pac advisor Paul Begala admits the Obama record is a tough sell. “This should’ve been a pretty good year to be a Republican candidate,” says Be-gala in an extended online interview with BPR, “acknowledging that 8% unemployment is “saddling” Amer-ican families or, more to Begala’s point, Obama’s re-election chances. With Americans still struggling in the worst recovery since the Great Depression, how is it that the Presi-dent continues to remain competi-tive in swing-state polls? Two words: Mitt Romney.

As Begala hints, if voters were to look at the candidates on paper and pick the best résumé for the posi-

tion, Mitt Romney would win in a landslide. After a sterling business career at Bain Capital where he was regarded by many of his coworkers as a legendary business manager,” Mr. Romney would bring to the Oval Office the first-hand knowl-edge of the economy the country desperately needs. As the President of the 2002 Winter Olympics in Salt Lake City, Romney displayed the type of leadership and management skills required to rescue a struggling organization riddled with scandal. And as a Republican Governor of the heavily Democratic state of Massachusetts, Romney exhibited the ability to compromise and work with a Democratic state legislature to pass important legislation, such as the state’s now-infamous health care overhaul. With partisanship in Washington now at fever pitch and leaving some to question whether the American model of democratic governance has run off the tracks, a bold leader like Mitt Romney with a track record of compromise and success is the precise antidote for America’s current ills.

So what’s the catch? Whatever advantage Governor Romney has on the President with his résumé, he more than forfeited it by mud-dling through the summer without establishing a coherent vision or dispelling the narrative that he is a Wall Street fat cat out of touch with the challenges facing the average American. As if his uncomfortably exaggerated laugh and corny jokes on the trail are not enough cause for concern on the likability front, the Governor’s recently released com-ments regarding 47% of “lazy and dependent Americans” only dig the hole deeper. These distractions have allowed President Obama to drive the conversation despite his numer-ous failures of the past four years.

The Romney message has been an unconvincing combination of “Are you better off than you were four years ago?” and successive strings of reactionary press statements. Just because the President has failed to get the country driving in the right direction again generally does not mean Americans will simply hand the keys to someone without know-ing where he plans to take them.

And yet for all of this, suddenly October has witnessed the arrival of Redemption Romney: an unfore-seen K.O. in the first presidential debate rocketed the Romney Cam-paign into its first substantive lead in months, surprising nearly everyone, including perhaps Romney himself. The question of the moment—Can he hold on?—seems to capture per-fectly Romney’s fundamental prob-lems that analysts had once said prevented exactly this kind of resur-gence. The deeper question is, has the Romney surge tipped the scales and finally pinned Obama under the rock of voters’ ambivalence about his first term?

Now with the race officially down to the wire, more Ameri-cans are paying attention to each candidate. It is impossible to know whether this is good or bad news for Mitt Romney, but the slogans of each campaign provide a tell-ing glimpse: “Forward” is the cold, declarative embrace of Obama’s re-cord; like Begala’s acknowledgment, it invites that perennial question—“Are you better off?”—but never re-ally provides an answer.

Romney’s scriptural “Believe in America,” meanwhile, fully suggests all the divine intervention he will need to pull this off—a victory that would constitute one of the greatest comebacks in politics. Has Romney finally hit his stride? We’ll only need 24 hours in November to find out.

Story by Heath Mayo / Art by Katrina Machado

High negative ratings. The Bain attacks. The 47% comment. Let’s

say his likability is an issue.

But after a stellar first debate, can Mitt Romney

finally hit his stride?

Why it’s still

ROMNEY’SRACE

TO LOSE

BR

OW

N P

OLI

TIC

AL

RE

VIE

W N

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ION

AL

NA

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10 11

Big government and the free market. These two terms do not of-ten mesh well together. In the U.S., the State is often seen as the referee of market excesses—regulating it when it runs awry and redistribut-ing profits when it prospers. The proper degree of regulation and re-distribution is contentious. As the American economy continues to suffer from the effects of a broken financial system, the debate over how big the government should be is more relevant than ever. That said, we must take a step back and turn our gaze to the Far East—no, not to the over-stigma-tized and currency-manipulating Chinese, but to our more agreeable friends in Japan: a nation that aver-aged 8% growth rates for over 20 years and is now the world’s third-largest economy. Nowadays, there are few who would argue that Japan has not embraced capitalism. However, it may surprise many to learn that the State was so involved in Japan’s growth that up until the 1980s, Japanese observers thought it was

benefiting from extreme luck in “getting the prices right […] and would soon begin to show signs of Soviet-type misallocation of re-sources and structural rigidities.” But was Japan really a command economy, dictating prices, wages and production quotas? No. Japan had just found an economic structure that theory did not have a frame-work to capture. This structure was based neither on the

command economy of the U.S.S.R., nor on the individualistic, laissez-faire model of the West. Instead, the Japanese state embarked on a

market-driven industrial policy. The government did intervene by choosing which sectors should re-ceive greatest investment and pro-tection. However, such investment and protection occurred mostly early during development, with performance indicators pegged to international markets. Once in-

fancy ended, firms were released to either harness the power of the free market or fail trying. The relationship between the Japanese state and private busi-ness is much like an Asian family dinner. Picture two parents and their eight children. There is lots of rice and only one fish to be shared among the entire family. The par-ents could do one of three things. They could mandate that everyone got an equal, but tiny portion of the fish (communism). They could not give the children any fish, fearing it would disincentivize their drive to find their own fish (economic liberalism). Or, they could give the fish to the three kids who are the most hardworking, productive, and who demonstrate the potential to catch the most fish in the future (Ja-pan’s Industrial Policy). The ques-tion is: how to identify which kids hold such potential? While parents may know intuitively, the Japanese state needed to study and guide the industries (children) they invested in thoroughly. The responsibility of gaining such an awareness of its industries

BIGGovernment

Capitalism

Growth

==

(If YOU’RE JAPAN, SINGAPORE OR TAIWAN, THAT IS)

fell to, and still lies in the hands of, the Ministry of International Trade and Industry (MITI). The MITI often supported key industries against the winds of the free mar-ket. With the Japanese economy in shambles at the end of WW II, American advisors tried to con-vince Japan to take its “natural,”

free market course of producing low-value-added goods. After all, what industrial capacity did a state that lost one third of its manufac-turing capacity to bombing have? In fact, John Dulles, Truman’s special envoy, was recorded telling the Japanese Finance Ministry that they should consider exporting things such as cocktail napkins to the United States. Instead, Japan produced against its comparative advantage, funneling the fish to the three children who are known as some of the greatest innovators of today—Mitsubishi, Canon and Mit-sui. In fact, the Reconstruction Fi-nance Bank of Japan gave out 87% of all its loans to just ninety-seven firms in six targeted sectors. Had the government not intervened, the Japanese economy might still be producing only napkins. This trend can also be seen in Taiwan and Singapore. After ignoring advice from American economists in the 1950s, the Tai-wanese state enticed firms to enter a new textile industry by assuring them with a market and raw ma-terials. However, this assurance

was temporary and aimed only to reduce the entrepreneurial risk in an unchartered market. Once that initial risk had been absorbed, the state extracted itself, exchanging protection for export incentives. Singapore in the 1960s was another example of how the state had to in-tervene to drive new industry. Con-sidered a developing nation with a GDP per capita of 400 USD, the State chose to produce against its comparative advantage and began to refine oil in 1961. It is now home to the world’s largest oil distillation center and stands as the third rich-est country per capita. It is important to recognize that such state involvement is not neces-sarily geared towards extracting from the rich to support the poor, as is the view of government in the U.S. Instead, the government’s in-volvement is actually “rich friendly,” helping key businesses and indus-tries grow. And though the scope of those investments may be narrow at first, in a time where resources are scarce, such executive direction may be crucial. The point is this: “big govern-ment” does not have to be a re-strictive, business unfriendly but socially necessary force. We already know government can be a force for good in the realm of social welfare (Japan has universal health-care coverage), but what we often ignore is the positive role the government can play in driving the economy. Through effective industrial policy, big government can be favorable for both the market and social welfare. As the U.S. economy languishes and its political parties grow more confrontational about the size of the government, perhaps the U.S. would do well to look eastward. The Far East is, after all, America’s greatest competitor.

It is important to recognize that such state involvement is not necessarily geared towards extracting from the

rich to support the poor...Instead, the government’s in-volvement is actually “rich friendly,” helping key busi-

nesses and industries grow.

BIGBIG

Story by Han Sheng / Art by Sheila Sitaram

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10 11

Big government and the free market. These two terms do not of-ten mesh well together. In the U.S., the State is often seen as the referee of market excesses—regulating it when it runs awry and redistribut-ing profits when it prospers. The proper degree of regulation and re-distribution is contentious. As the American economy continues to suffer from the effects of a broken financial system, the debate over how big the government should be is more relevant than ever. That said, we must take a step back and turn our gaze to the Far East—no, not to the over-stigma-tized and currency-manipulating Chinese, but to our more agreeable friends in Japan: a nation that aver-aged 8% growth rates for over 20 years and is now the world’s third-largest economy. Nowadays, there are few who would argue that Japan has not embraced capitalism. However, it may surprise many to learn that the State was so involved in Japan’s growth that up until the 1980s, Japanese observers thought it was

benefiting from extreme luck in “getting the prices right […] and would soon begin to show signs of Soviet-type misallocation of re-sources and structural rigidities.” But was Japan really a command economy, dictating prices, wages and production quotas? No. Japan had just found an economic structure that theory did not have a frame-work to capture. This structure was based neither on the

command economy of the U.S.S.R., nor on the individualistic, laissez-faire model of the West. Instead, the Japanese state embarked on a

market-driven industrial policy. The government did intervene by choosing which sectors should re-ceive greatest investment and pro-tection. However, such investment and protection occurred mostly early during development, with performance indicators pegged to international markets. Once in-

fancy ended, firms were released to either harness the power of the free market or fail trying. The relationship between the Japanese state and private busi-ness is much like an Asian family dinner. Picture two parents and their eight children. There is lots of rice and only one fish to be shared among the entire family. The par-ents could do one of three things. They could mandate that everyone got an equal, but tiny portion of the fish (communism). They could not give the children any fish, fearing it would disincentivize their drive to find their own fish (economic liberalism). Or, they could give the fish to the three kids who are the most hardworking, productive, and who demonstrate the potential to catch the most fish in the future (Ja-pan’s Industrial Policy). The ques-tion is: how to identify which kids hold such potential? While parents may know intuitively, the Japanese state needed to study and guide the industries (children) they invested in thoroughly. The responsibility of gaining such an awareness of its industries

BIGGovernment

Capitalism

Growth

==

(If YOU’RE JAPAN, SINGAPORE OR TAIWAN, THAT IS)

fell to, and still lies in the hands of, the Ministry of International Trade and Industry (MITI). The MITI often supported key industries against the winds of the free mar-ket. With the Japanese economy in shambles at the end of WW II, American advisors tried to con-vince Japan to take its “natural,”

free market course of producing low-value-added goods. After all, what industrial capacity did a state that lost one third of its manufac-turing capacity to bombing have? In fact, John Dulles, Truman’s special envoy, was recorded telling the Japanese Finance Ministry that they should consider exporting things such as cocktail napkins to the United States. Instead, Japan produced against its comparative advantage, funneling the fish to the three children who are known as some of the greatest innovators of today—Mitsubishi, Canon and Mit-sui. In fact, the Reconstruction Fi-nance Bank of Japan gave out 87% of all its loans to just ninety-seven firms in six targeted sectors. Had the government not intervened, the Japanese economy might still be producing only napkins. This trend can also be seen in Taiwan and Singapore. After ignoring advice from American economists in the 1950s, the Tai-wanese state enticed firms to enter a new textile industry by assuring them with a market and raw ma-terials. However, this assurance

was temporary and aimed only to reduce the entrepreneurial risk in an unchartered market. Once that initial risk had been absorbed, the state extracted itself, exchanging protection for export incentives. Singapore in the 1960s was another example of how the state had to in-tervene to drive new industry. Con-sidered a developing nation with a GDP per capita of 400 USD, the State chose to produce against its comparative advantage and began to refine oil in 1961. It is now home to the world’s largest oil distillation center and stands as the third rich-est country per capita. It is important to recognize that such state involvement is not neces-sarily geared towards extracting from the rich to support the poor, as is the view of government in the U.S. Instead, the government’s in-volvement is actually “rich friendly,” helping key businesses and indus-tries grow. And though the scope of those investments may be narrow at first, in a time where resources are scarce, such executive direction may be crucial. The point is this: “big govern-ment” does not have to be a re-strictive, business unfriendly but socially necessary force. We already know government can be a force for good in the realm of social welfare (Japan has universal health-care coverage), but what we often ignore is the positive role the government can play in driving the economy. Through effective industrial policy, big government can be favorable for both the market and social welfare. As the U.S. economy languishes and its political parties grow more confrontational about the size of the government, perhaps the U.S. would do well to look eastward. The Far East is, after all, America’s greatest competitor.

It is important to recognize that such state involvement is not necessarily geared towards extracting from the

rich to support the poor...Instead, the government’s in-volvement is actually “rich friendly,” helping key busi-

nesses and industries grow.

BIGBIG

Story by Han Sheng / Art by Sheila Sitaram

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To many, the GOP National Convention in August may have appeared to be politics as usual for the Republican Party. There was the usual rigmarole of patriotic fanfare and rallying cries around capital-ism, punctuated by a memorable Clint Eastwood dialogue with a chair. However, one small, isolated incident provides an important insight into the current status of the Republican Party and raises ques-tions about the future of the Ameri-can political arena.

On August 28, Speaker of the

House John Boehner called for a vote on changing the way del-egates are allocated during primary elections. Previously candidates received delegates in proportion to their share of the primary vote; the changes would transform the process by awarding all delegates from a given state to that state’s primary winner. Boehner was met with loud boos and jeers from Ron Paul supporters, who felt these rules would silence challengers to the entrenched establishment of the Republican Party.

This simple scene is emblematic of a larger movement that is slowly but steadily gaining momentum in American politics. Libertarian-ism is shedding its reputation as a political sideshow and remolding the modern GOP—for better or for worse. This libertarian faction, emphasizing liberty, strict consti-tutionalism and absolute minimal government drew national atten-tion during the 2009 Tea Party movement. In the span of just three years, libertarianism has gained a large enough following that there

C R A C K I N GStory by Thomas Nath

G. O. P.I S

T H E

A N D L I B E R T A R I A N I S M I S H E R E T O S T A YlIbeRtARIANIsm Is sheddING Its

ReputAtIoN As A polItICAl sIdeshow ANd RemoldING the modeRN Gop —

foR betteR oR foR woRse.

are presidential candidates with strong libertarian views both within the Republican Party, such as Ron Paul, and outside of the party, such as Libertarian Party candidate and former Governor of New Mexico Gary Johnson.

First, however, a definition of the term “libertarian” and how it relates to American politics is in order. Over the years, the term has become a catchall for view-points that span the entire political spectrum, from objectivism and anarcho-capitalism on the right, to libertarian socialism on the left. But all share an emphasis on freedom, liberty, voluntary association and small government. Libertarianism has generally come to connote an outlook of fiscal conservatism and social liberalism, all governed by the overarching principle that an individual has the natural right to do as he or she pleases. The lib-ertarian philosophy differs from traditional, standard GOP conser-vatism in key ways. While Repub-

licans usually assume an aggressive stance on foreign policy and have no problem with curtailing civil liberties in the name of national security, libertarians see this as a severe deviation from the Constitu-tion. Additionally, libertarians are usually far more socially liberal than Republicans on issues such as prostitution, gay marriage and narcotics legalization, since they

believe these subjects should not be under the jurisdiction of the federal government.

This mixture of fiscal con-servatism and social liberalism has touched a raw nerve with disenchanted Americans, espe-cially young voters in the 18–29 age range. A recent poll conducted by the Harvard Institute of Politics

found that voters in this range were “very likely” to express skepticism of the government’s power to solve problems but retained socially lib-eral stances. In other words, these “millennials” are very likely to hold perspectives on national and global issues that align closely with liber-tarianism. Grassroots support for Ron Paul has been largely fueled by younger voters; he won the youth

vote by overwhelming margins in the 2012 Iowa, New Hampshire and South Carolina primaries.

This may initially seem surpris-ing; after all, it is usually assumed that young voters skew more liberal and generally move closer to the center, or even to the right, as they grow older. But consider the world in which our generation came of

age. Social liberalism has increas-ingly become the norm, especially among younger voters, on issues from gay rights to marijuana legal-ization to religious freedom. This is reflected in recent legislation, such as the repeal of Don’t Ask Don’t Tell and the decriminalization of mari-juana in several states. Additionally, this generation grew up in an age during which the United States

Iowapolitics.com

Rep. Ron Paul speaks with Gov. Jon Huntsman at a Republican debate.

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To many, the GOP National Convention in August may have appeared to be politics as usual for the Republican Party. There was the usual rigmarole of patriotic fanfare and rallying cries around capital-ism, punctuated by a memorable Clint Eastwood dialogue with a chair. However, one small, isolated incident provides an important insight into the current status of the Republican Party and raises ques-tions about the future of the Ameri-can political arena.

On August 28, Speaker of the

House John Boehner called for a vote on changing the way del-egates are allocated during primary elections. Previously candidates received delegates in proportion to their share of the primary vote; the changes would transform the process by awarding all delegates from a given state to that state’s primary winner. Boehner was met with loud boos and jeers from Ron Paul supporters, who felt these rules would silence challengers to the entrenched establishment of the Republican Party.

This simple scene is emblematic of a larger movement that is slowly but steadily gaining momentum in American politics. Libertarian-ism is shedding its reputation as a political sideshow and remolding the modern GOP—for better or for worse. This libertarian faction, emphasizing liberty, strict consti-tutionalism and absolute minimal government drew national atten-tion during the 2009 Tea Party movement. In the span of just three years, libertarianism has gained a large enough following that there

C R A C K I N GStory by Thomas Nath

G. O. P.I S

T H E

A N D L I B E R T A R I A N I S M I S H E R E T O S T A YlIbeRtARIANIsm Is sheddING Its

ReputAtIoN As A polItICAl sIdeshow ANd RemoldING the modeRN Gop —

foR betteR oR foR woRse.

are presidential candidates with strong libertarian views both within the Republican Party, such as Ron Paul, and outside of the party, such as Libertarian Party candidate and former Governor of New Mexico Gary Johnson.

First, however, a definition of the term “libertarian” and how it relates to American politics is in order. Over the years, the term has become a catchall for view-points that span the entire political spectrum, from objectivism and anarcho-capitalism on the right, to libertarian socialism on the left. But all share an emphasis on freedom, liberty, voluntary association and small government. Libertarianism has generally come to connote an outlook of fiscal conservatism and social liberalism, all governed by the overarching principle that an individual has the natural right to do as he or she pleases. The lib-ertarian philosophy differs from traditional, standard GOP conser-vatism in key ways. While Repub-

licans usually assume an aggressive stance on foreign policy and have no problem with curtailing civil liberties in the name of national security, libertarians see this as a severe deviation from the Constitu-tion. Additionally, libertarians are usually far more socially liberal than Republicans on issues such as prostitution, gay marriage and narcotics legalization, since they

believe these subjects should not be under the jurisdiction of the federal government.

This mixture of fiscal con-servatism and social liberalism has touched a raw nerve with disenchanted Americans, espe-cially young voters in the 18–29 age range. A recent poll conducted by the Harvard Institute of Politics

found that voters in this range were “very likely” to express skepticism of the government’s power to solve problems but retained socially lib-eral stances. In other words, these “millennials” are very likely to hold perspectives on national and global issues that align closely with liber-tarianism. Grassroots support for Ron Paul has been largely fueled by younger voters; he won the youth

vote by overwhelming margins in the 2012 Iowa, New Hampshire and South Carolina primaries.

This may initially seem surpris-ing; after all, it is usually assumed that young voters skew more liberal and generally move closer to the center, or even to the right, as they grow older. But consider the world in which our generation came of

age. Social liberalism has increas-ingly become the norm, especially among younger voters, on issues from gay rights to marijuana legal-ization to religious freedom. This is reflected in recent legislation, such as the repeal of Don’t Ask Don’t Tell and the decriminalization of mari-juana in several states. Additionally, this generation grew up in an age during which the United States

Iowapolitics.com

Rep. Ron Paul speaks with Gov. Jon Huntsman at a Republican debate.

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“became entangled in a web of inter-national military endeavors (Af-ghanistan and Iraq), which yielded minimal gains for the effort and expenditure.

This group of 18–29-year-old Americans has seen the conse-quences of engaging in interna-tional conflicts of questionable necessity, which have firmly turned them against the Republicans’ aggressive militaristic stance. At the same time, this generation has watched the national deficit rapidly expand out of control as a result of wanton government expendi-tures. These young individuals have come of age in a world with a shaky economy and a dismal job market, potently underscoring the impor-tance of fiscal responsibility. The youth vote saw a tremendous spike in both participation and enthusi-asm for the candidacy of President Obama. But now some see a lack of real change in the still-floundering economy, producing disillusioned

vot-ers search-ing for a third option, one that the libertarian movement seeks to provide.

This wave of new, young libertarians has not yet drastically changed American politics. The Democratic Party still has a firm grasp on the youth vote, and the platform of the Republican Party is not undergoing threat of a radical overhaul. However, lib-ertarians have made a dent in the support of both parties in roughly equal amounts. Gary Johnson is currently polling at over 5%, which could prove a deciding factor in such a close election. For reference, Ralph Nader won 2.74% of the pop-ular vote in the 2000 election and his candidacy is seen by many lib-erals as having stolen valuable bal-lots from Gore, ultimately costing

Gore the presiden-cy. Mean-while, follow-ing the GOP’s refusal to allow Rep. Paul to speak at the na-tional convention, several Maine delegates mentioned the possibility that they may not support Romney in the gen-eral election, which could influ-ence the outcome in November.

The libertarian movement is not ready now and may in-deed never have the means to become a viable political party with strength akin to that of the Republicans and Democrats. But increasingly it will affect more elections so long as charismatic candidates such as Rep. Paul and Mr. Johnson continue to garner some significant sup-port. In order to prevent losing votes to these and other similar candidates, each party must take the libertarian movement into account and address it in differ-ent ways.

For the Republican Party to keep voters from switching to roberthuffstutter/ Gage Skidmore

isn’t ready to become a viable political party. but increasingly it will affect more elections.

as diversify its movement. Other-wise increasing numbers of moder-ate or progressive conservatives will abandon it.

The Democratic Party, on the other hand, must begin focusing on economic issues in order to obtain the support of this new genera-tion, which will probably tend to be more leery of government expendi-tures. Issues such as the unemploy-ment rate and the ballooning deficit are at the forefront of national politics, and for Democrats to avoid

losing votes they must provide practical economic solutions.

How will the budget be bal-anced? What percentage of

discretionary spending should be allocated

to military ex-penditures? Is

it possible

the libertarian faction, the GOP must be progressive when address-ing its more socially liberal mem-bers, as well as younger voters. The party has been dominated for too long by Christian conservatives whose respective platforms all share far too much in common with that of George W. Bush. Simply consider the foremost candidates during the Republican primaries leading up to the 2012 election: Mitt Romney, Rick Santorum and Newt Gingrich. Sharing an aggressive foreign policy, relentlessly pro-business economic principles and religiously motivated social conservatism, all three represent the GOP’s stubborn

adherence to its past principles. As the United States enters an

increasingly globalized and technological world,

the Republican Party needs to learn to

look forward as well

”to prevent college students from en-tering the workforce already thou-sands of dollars in debt? Questions such as these require more nuanced answers than the rote Keynesian response of more deficit spending. Democrats must avoid repeating the same trite formula if they want to avoid becoming economically irrelevant in a day and age in which fiscal responsibility has become ever more vital.

In response to questions re-garding the improbability of their chances at victory, both Ron Paul and Gary Johnson have reiterated their plans to continue campaign-ing and spreading their principles. Libertarianism, whether as a third party or as a faction in the GOP, is a movement that, while not yet ready for fully mainstream interest, will continue to develop and appeal to voters who have grown tired of the two-party system. For Democrats and Republicans to ignore this new, young group of voters would be political folly. The libertarian move-ment is here to stay.

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“became entangled in a web of inter-national military endeavors (Af-ghanistan and Iraq), which yielded minimal gains for the effort and expenditure.

This group of 18–29-year-old Americans has seen the conse-quences of engaging in interna-tional conflicts of questionable necessity, which have firmly turned them against the Republicans’ aggressive militaristic stance. At the same time, this generation has watched the national deficit rapidly expand out of control as a result of wanton government expendi-tures. These young individuals have come of age in a world with a shaky economy and a dismal job market, potently underscoring the impor-tance of fiscal responsibility. The youth vote saw a tremendous spike in both participation and enthusi-asm for the candidacy of President Obama. But now some see a lack of real change in the still-floundering economy, producing disillusioned

vot-ers search-ing for a third option, one that the libertarian movement seeks to provide.

This wave of new, young libertarians has not yet drastically changed American politics. The Democratic Party still has a firm grasp on the youth vote, and the platform of the Republican Party is not undergoing threat of a radical overhaul. However, lib-ertarians have made a dent in the support of both parties in roughly equal amounts. Gary Johnson is currently polling at over 5%, which could prove a deciding factor in such a close election. For reference, Ralph Nader won 2.74% of the pop-ular vote in the 2000 election and his candidacy is seen by many lib-erals as having stolen valuable bal-lots from Gore, ultimately costing

Gore the presiden-cy. Mean-while, follow-ing the GOP’s refusal to allow Rep. Paul to speak at the na-tional convention, several Maine delegates mentioned the possibility that they may not support Romney in the gen-eral election, which could influ-ence the outcome in November.

The libertarian movement is not ready now and may in-deed never have the means to become a viable political party with strength akin to that of the Republicans and Democrats. But increasingly it will affect more elections so long as charismatic candidates such as Rep. Paul and Mr. Johnson continue to garner some significant sup-port. In order to prevent losing votes to these and other similar candidates, each party must take the libertarian movement into account and address it in differ-ent ways.

For the Republican Party to keep voters from switching to roberthuffstutter/ Gage Skidmore

isn’t ready to become a viable political party. but increasingly it will affect more elections.

as diversify its movement. Other-wise increasing numbers of moder-ate or progressive conservatives will abandon it.

The Democratic Party, on the other hand, must begin focusing on economic issues in order to obtain the support of this new genera-tion, which will probably tend to be more leery of government expendi-tures. Issues such as the unemploy-ment rate and the ballooning deficit are at the forefront of national politics, and for Democrats to avoid

losing votes they must provide practical economic solutions.

How will the budget be bal-anced? What percentage of

discretionary spending should be allocated

to military ex-penditures? Is

it possible

the libertarian faction, the GOP must be progressive when address-ing its more socially liberal mem-bers, as well as younger voters. The party has been dominated for too long by Christian conservatives whose respective platforms all share far too much in common with that of George W. Bush. Simply consider the foremost candidates during the Republican primaries leading up to the 2012 election: Mitt Romney, Rick Santorum and Newt Gingrich. Sharing an aggressive foreign policy, relentlessly pro-business economic principles and religiously motivated social conservatism, all three represent the GOP’s stubborn

adherence to its past principles. As the United States enters an

increasingly globalized and technological world,

the Republican Party needs to learn to

look forward as well

”to prevent college students from en-tering the workforce already thou-sands of dollars in debt? Questions such as these require more nuanced answers than the rote Keynesian response of more deficit spending. Democrats must avoid repeating the same trite formula if they want to avoid becoming economically irrelevant in a day and age in which fiscal responsibility has become ever more vital.

In response to questions re-garding the improbability of their chances at victory, both Ron Paul and Gary Johnson have reiterated their plans to continue campaign-ing and spreading their principles. Libertarianism, whether as a third party or as a faction in the GOP, is a movement that, while not yet ready for fully mainstream interest, will continue to develop and appeal to voters who have grown tired of the two-party system. For Democrats and Republicans to ignore this new, young group of voters would be political folly. The libertarian move-ment is here to stay.

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government. Now, GDP per capita in Somaliland is $300, compared to $225 for southern Somalia and Somaliland combined. Somaliland also boasts increased enrollment in school and falling infant mortality rates. In the words of the Human Rights Watch, its achievements are “both improbable and deeply im-pressive.” In fact, Somaliland even had a peaceful transition of power in a presidential election decided by an 80-vote margin.

How did Somaliland achieve

such impressive results without foreign aid? There are two reasons. First, because the state did not re-ceive significant foreign support, it was forced to rely upon its citizens for tax revenues. In Somaliland, the business community demanded public goods such as education, and the owners of Somaliland’s main port extracted taxes in return for democratic reforms. Second, Somaliland agreed to peace talks with fractious groups, facilitating democratic reform. If the govern-

ment had external funding to wage war, this likely would not have happened. The Biafran government in Nigeria, on the other hand, was able to extend war for 18 months due to external aid. While not all aspects of the Somaliland case are generalizable, it is an example of successful development with little foreign assistance.

Afghanistan, which has an aid-to-GDP ratio of 71 percent, has not experienced similar success. Only 18 percent of external assistance in Afghanistan is administered through the government’s budget; the rest is by way of subcontractors. In most cases, however, donors either pay rent to local figureheads or subcontract the work so many times that output quality falls dra-matically. In fact, the people of Af-ghanistan understand international aid to be so vulnerable to corrup-tion and inefficiency that many see its purpose as “personal enrich-ment.” Still, there has been some success. The National Solidarity Program, which focuses on small-scale projects, has made progress in easing tensions between the people and the government.

Nonetheless, Afghanistan has fallen into many of the typical foreign aid traps, while Somaliland, with very little aid, is on the path to sustainable democracy and growth. The United States experienced similar issues when giving aid to Vietnam. One was the Vietnam-ese “Dutch Disease”—a decrease in exports due to the inflow of money, raising prices and wages. Countries’ export sectors may be disproportionately affected by aid money, reducing the growth of such industries in the long run. If Japan had found oil reserves (which, like aid, allows the government to avoid taxation) in the 1950s, it may

not have invested as intensively in manufacturing and perhaps would not be as wealthy as it is today.

The examples above present the current weaknesses of aid, but these doubts have lingered for decades without complete proof. Various studies use different models and methods to analyze aid, which indi-cate aid’s effectiveness under certain parameters. Peter Boone concluded in 1996 that short-term aid given to more liberal regimes would be effective at reducing poverty. The following year, Burnside and Dol-lar concluded that aid had a posi-tive impact only on countries with functional political institutions and sound monetary, fiscal and trade policies.

Easterly, Levine and Rood-man called this into question in 2003. Using the same technique as Burnside and Dollar, but running their analysis on more data, they concluded that the previous find-ings do not hold up with the new evidence. Then, in 2005, Rajan and Subramanian found that different parameters did not increase the effectiveness of aid and that, in fact, there is little correlation between

foreign aid and growth. Given the amount of contra-

dictory policy papers published by economists, what should gov-ernments believe and what steps should well-intentioned donors take to help developing countries promote growth?

One option is to encourage free trade, allowing the development of an export industry to promote growth. A new Cash on Delivery program, which would make cash contingent upon countries achiev-ing certain outcomes, is worth try-ing. Another alternative is foreign direct investment (FDI), which helps break the cycle of poverty and often brings advanced technologies, managerial expertise and other high-value skills. However, there is currently little or no much-needed FDI in over half of all developing countries.

There is no single answer to this foreign aid challenge. In most cases, evidence indicates that we should remain skeptical of foreign aid. For truly effective growth, developing countries need to be given a fishing rod with which to fish, rather than given a fish to eat.

International aid organiza-tions provide foreign aid to coun-tries in hopes of alleviating poverty and spurring economic develop-ment. But does foreign aid do what it is supposed to do? Many have argued that aid is not always posi-tive and may on occasion stifle a country’s economic growth.

Long-term programs gener-ally aim to promote growth, but there is little evidence that they have been successful. The experi-ences of Somaliland and Afghani-stan in particular cast doubt on the effectiveness of aid programs. Somaliland has emerged as rela-tively successful without much aid, whereas Afghanistan, despite be-ing the world’s second highest aid recipient, is still a poor and volatile state.

When the international community refused to recognize Somaliland’s secession from Soma-lia, it became ineligible for foreign aid. Thus, Somaliland was forced to rely on tax revenue to sustain its

Is foreign Aid

A Double-Edged Sword?

G. A

. Hussein

The experiences of Somaliland and

Afghanistan in particular cast doubt on the effec-

tiveness of aid programs.

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government. Now, GDP per capita in Somaliland is $300, compared to $225 for southern Somalia and Somaliland combined. Somaliland also boasts increased enrollment in school and falling infant mortality rates. In the words of the Human Rights Watch, its achievements are “both improbable and deeply im-pressive.” In fact, Somaliland even had a peaceful transition of power in a presidential election decided by an 80-vote margin.

How did Somaliland achieve

such impressive results without foreign aid? There are two reasons. First, because the state did not re-ceive significant foreign support, it was forced to rely upon its citizens for tax revenues. In Somaliland, the business community demanded public goods such as education, and the owners of Somaliland’s main port extracted taxes in return for democratic reforms. Second, Somaliland agreed to peace talks with fractious groups, facilitating democratic reform. If the govern-

ment had external funding to wage war, this likely would not have happened. The Biafran government in Nigeria, on the other hand, was able to extend war for 18 months due to external aid. While not all aspects of the Somaliland case are generalizable, it is an example of successful development with little foreign assistance.

Afghanistan, which has an aid-to-GDP ratio of 71 percent, has not experienced similar success. Only 18 percent of external assistance in Afghanistan is administered through the government’s budget; the rest is by way of subcontractors. In most cases, however, donors either pay rent to local figureheads or subcontract the work so many times that output quality falls dra-matically. In fact, the people of Af-ghanistan understand international aid to be so vulnerable to corrup-tion and inefficiency that many see its purpose as “personal enrich-ment.” Still, there has been some success. The National Solidarity Program, which focuses on small-scale projects, has made progress in easing tensions between the people and the government.

Nonetheless, Afghanistan has fallen into many of the typical foreign aid traps, while Somaliland, with very little aid, is on the path to sustainable democracy and growth. The United States experienced similar issues when giving aid to Vietnam. One was the Vietnam-ese “Dutch Disease”—a decrease in exports due to the inflow of money, raising prices and wages. Countries’ export sectors may be disproportionately affected by aid money, reducing the growth of such industries in the long run. If Japan had found oil reserves (which, like aid, allows the government to avoid taxation) in the 1950s, it may

not have invested as intensively in manufacturing and perhaps would not be as wealthy as it is today.

The examples above present the current weaknesses of aid, but these doubts have lingered for decades without complete proof. Various studies use different models and methods to analyze aid, which indi-cate aid’s effectiveness under certain parameters. Peter Boone concluded in 1996 that short-term aid given to more liberal regimes would be effective at reducing poverty. The following year, Burnside and Dol-lar concluded that aid had a posi-tive impact only on countries with functional political institutions and sound monetary, fiscal and trade policies.

Easterly, Levine and Rood-man called this into question in 2003. Using the same technique as Burnside and Dollar, but running their analysis on more data, they concluded that the previous find-ings do not hold up with the new evidence. Then, in 2005, Rajan and Subramanian found that different parameters did not increase the effectiveness of aid and that, in fact, there is little correlation between

foreign aid and growth. Given the amount of contra-

dictory policy papers published by economists, what should gov-ernments believe and what steps should well-intentioned donors take to help developing countries promote growth?

One option is to encourage free trade, allowing the development of an export industry to promote growth. A new Cash on Delivery program, which would make cash contingent upon countries achiev-ing certain outcomes, is worth try-ing. Another alternative is foreign direct investment (FDI), which helps break the cycle of poverty and often brings advanced technologies, managerial expertise and other high-value skills. However, there is currently little or no much-needed FDI in over half of all developing countries.

There is no single answer to this foreign aid challenge. In most cases, evidence indicates that we should remain skeptical of foreign aid. For truly effective growth, developing countries need to be given a fishing rod with which to fish, rather than given a fish to eat.

International aid organiza-tions provide foreign aid to coun-tries in hopes of alleviating poverty and spurring economic develop-ment. But does foreign aid do what it is supposed to do? Many have argued that aid is not always posi-tive and may on occasion stifle a country’s economic growth.

Long-term programs gener-ally aim to promote growth, but there is little evidence that they have been successful. The experi-ences of Somaliland and Afghani-stan in particular cast doubt on the effectiveness of aid programs. Somaliland has emerged as rela-tively successful without much aid, whereas Afghanistan, despite be-ing the world’s second highest aid recipient, is still a poor and volatile state.

When the international community refused to recognize Somaliland’s secession from Soma-lia, it became ineligible for foreign aid. Thus, Somaliland was forced to rely on tax revenue to sustain its

Is foreign Aid

A Double-Edged Sword?

G. A

. Hussein

The experiences of Somaliland and

Afghanistan in particular cast doubt on the effec-

tiveness of aid programs.

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In the summer issue of Foreign Affairs, Harvard Kennedy School professor Graham Allison reviews the Cuban Missile Crisis, compar-ing it to the current conflict with Iran (“a Cuban missile crisis in slow motion”). He opposes the conventional wisdom that the U.S. “president will be forced to choose between ordering a military at-tack and acquiescing to a nuclear-armed Iran.” Instead, he defends the approach JFK took during the Cuban confrontation, in which JFK “ejected both of these options and chose instead to craft “an imagina-tive alternative.” JFK’s alternative was a set of pledges from the U.S. to the Soviet Union never to invade Cuba and to withdraw missiles from Turkey within six months. To close the deal, Kennedy delivered an “ultimatum threatening to at-tack Cuba within 24 hours unless Khrushchev accepted.”

Crisis averted. If diplomacy were a class, Kennedy would have received an “A” on his exam. However, Allison overlooks that the standoff was only the second half of the story. While the solution to the crisis was without a doubt the success of last-ditch diplomacy with the U.S.S.R., the crisis itself was the consequence of the fail-ure—or rather, plain lack—of U.S. diplomacy with Cuba. The true les-son of the Cuban Missile Crisis is that diplomacy should be a matter not just of crisis containment, but also of crisis prevention. In other words, the policy of the United

States should be to regard dialogue as the first option, not the last.

Soon after communist revolu-tionary Fidel Castro and his band of barbudos (bearded revolution-aries) overthrew the U.S.-backed autocrat Fulgencio Batista and assumed power in 1959, diplomatic relations between Cuba and the United States began to deteriorate. In retaliation against the Cuban nationalization of U.S. economic interests President Eisenhower imposed an embargo in 1960 on the island and radically reduced imports of Cuban sugar—then the staple of the Cuban economy (supplying 40% of the US market). Castro refused to yield, so the US administration severed all ties with his government on January 3, 1961.

The United States dismissed dialogue as compromise and Presi-dent Kennedy chose instead to ex-tend the economic embargo. Unof-ficially, the CIA coupled half-baked attacks (the Bay of Pigs) with botched assassination attempts (as recorded in the documentary 638 Ways to Kill Castro). Due to the real and perceived threats of economic and military aggression, Castro sought Soviet support in or-der to preserve Cuban sovereignty. The U.S.S.R. guaranteed trade with Cuba in the short term, curbing the complete economic collapse that U.S. foreign policymakers had counted on to compel Castro to comply. The first lesson: economic

U.S. policy denies a dialogue with Iran. But we should be treating Iran more like a nuclear power already.

Today, the United States pur-sues a policy against Iran that is shockingly similar to the one against Cuba. The United States and Iran share no formal diplo-matic relations, which were termi-nated in 1980 during the Iranian Hostage Crisis. It was then that the U.S. began to implement a series of international sanctions against Iran. While U.S. measures have historically been broad, the rest of the West has focused narrowly on targeting the Iranian oil sec-tor—the foundation of the Iranian economy—and Iranian oil exports are now down to 1 million barrels a day, from 2.2 million last year. Iran’s currency has also plummeted: The Rial has dropped 50% against the Dollar since the beginning of 2012.

Yet the Cuban case study is evidence enough that this dual policy—the rejection of dialogue in favor of economic or conventional war—may trigger exactly what it is meant to disarm. Policymakers who believe the current currency collapse means a victory is close at hand must remember that the economic war declared on Cuba continues to this day, and that in 50 years it has inflicted only civil-ian casualties: rice and beans have come and gone, but El Comandante

(The Commander) soldiers on. As for the option of conven-

tional warfare against Iran to halt its nuclear program, a recent report by the Wilson Center claims that U.S. strikes against nuclear targets within Iran could only “delay Iran’s ability to build a bomb by up to four years—if the military opera-tion is carried out to near perfec-tion.” A unilateral Israeli attack would be much less effective. Thus, if Iran decided to acquire nuclear capability, even a military attack could not stop it permanently. Nothing short of a full military oc-cupation could prevent a nuclear-armed Iran.

Iran has consistently denied that it is developing a nuclear weapons program. But so did the Soviets deny developing any nucle-ar program in Cuba. Ironically, as long as U.S. foreign policy toward Iran continues to consist solely of threats, preconditions and ulti-matums, not only will Iran not be deterred from its nuclear program, it may also even be convinced that possessing nuclear weapons is es-sential.

Right now, U.S. policy seems to be continuing to delay dialogue with the Iranian government. Yet the U.S. should be treating Iran more like a nuclear power now—

that is, treating Iran as it treated the Soviet Union. A nuclear-armed Iran would be much more difficult to negotiate with than it is now, or indeed than the Soviet Union was in 1962. The Iranian government does not have many bargaining chips. The possession of nuclear arms within Iran’s borders would be much more strategically important for its current regime than missiles in Cuba were for the Soviets. Thus, rejecting dialogue now as a method of crisis prevention will severely limit the ability to compromise later.

Diplomatic relations are neces-sary, both to contain conflict and to prevent it in the first place. The American government may toss around ultimatums and threats, but as the successes and failures of the Cuban Missile Crisis reveal, only if both parties have a conversa-tion will policymakers ever know whether the other side is listening.

U.S. policymakers sometimes claim that they are engaged in dialogue—that it is only the Iranian policymakers who are not “sin-cere,” as Secretary of State Hilary Clinton has said. But to be serious about diplomacy, the U.S. must take concrete steps. Re-opening Ameri-can embassies in both Tehran and Havana would be a good start.

coercion does not always convince the opponent to capitulate.

Instead, Castro and Khrush-chev conceived of an idea to ensure Castro’s rule for the long term. In October 1962, a U.S. reconnaissance flight over Cuba recorded the construction of Soviet nuclear missile bases. The U.S. government was caught off guard. Until then, the Cuban and Soviet governments had schemed in secret and had repeatedly de-nied the existence of a plan. The question is whether the Soviets could have snuck in had the U.S. maintained a presence on the island. The second lesson: refusal to remain in direct contact with the opponent results in a reliance on secondhand information and intelligence.

Overconfidence in tactics of intimidation and an underestima-tion of Cuban audacity set the US on a nuclear collision course with a strong superpower. At this juncture, the rules of the game changed, and the strategy was revised—Kennedy knew he could neither ignore the Russians, nor bully them into submission. He opened the lines of communica-tion and put together a compro-mise that was equally acceptable to both sides. The third lesson: dialogue can result in conflict resolution.

The Iranian Missile Crisis?

BY: Jake Karr

APOCALYPSE NOW: REDUx

Story by Jake Karr

MEMBERS ONLY

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In the summer issue of Foreign Affairs, Harvard Kennedy School professor Graham Allison reviews the Cuban Missile Crisis, compar-ing it to the current conflict with Iran (“a Cuban missile crisis in slow motion”). He opposes the conventional wisdom that the U.S. “president will be forced to choose between ordering a military at-tack and acquiescing to a nuclear-armed Iran.” Instead, he defends the approach JFK took during the Cuban confrontation, in which JFK “ejected both of these options and chose instead to craft “an imagina-tive alternative.” JFK’s alternative was a set of pledges from the U.S. to the Soviet Union never to invade Cuba and to withdraw missiles from Turkey within six months. To close the deal, Kennedy delivered an “ultimatum threatening to at-tack Cuba within 24 hours unless Khrushchev accepted.”

Crisis averted. If diplomacy were a class, Kennedy would have received an “A” on his exam. However, Allison overlooks that the standoff was only the second half of the story. While the solution to the crisis was without a doubt the success of last-ditch diplomacy with the U.S.S.R., the crisis itself was the consequence of the fail-ure—or rather, plain lack—of U.S. diplomacy with Cuba. The true les-son of the Cuban Missile Crisis is that diplomacy should be a matter not just of crisis containment, but also of crisis prevention. In other words, the policy of the United

States should be to regard dialogue as the first option, not the last.

Soon after communist revolu-tionary Fidel Castro and his band of barbudos (bearded revolution-aries) overthrew the U.S.-backed autocrat Fulgencio Batista and assumed power in 1959, diplomatic relations between Cuba and the United States began to deteriorate. In retaliation against the Cuban nationalization of U.S. economic interests President Eisenhower imposed an embargo in 1960 on the island and radically reduced imports of Cuban sugar—then the staple of the Cuban economy (supplying 40% of the US market). Castro refused to yield, so the US administration severed all ties with his government on January 3, 1961.

The United States dismissed dialogue as compromise and Presi-dent Kennedy chose instead to ex-tend the economic embargo. Unof-ficially, the CIA coupled half-baked attacks (the Bay of Pigs) with botched assassination attempts (as recorded in the documentary 638 Ways to Kill Castro). Due to the real and perceived threats of economic and military aggression, Castro sought Soviet support in or-der to preserve Cuban sovereignty. The U.S.S.R. guaranteed trade with Cuba in the short term, curbing the complete economic collapse that U.S. foreign policymakers had counted on to compel Castro to comply. The first lesson: economic

U.S. policy denies a dialogue with Iran. But we should be treating Iran more like a nuclear power already.

Today, the United States pur-sues a policy against Iran that is shockingly similar to the one against Cuba. The United States and Iran share no formal diplo-matic relations, which were termi-nated in 1980 during the Iranian Hostage Crisis. It was then that the U.S. began to implement a series of international sanctions against Iran. While U.S. measures have historically been broad, the rest of the West has focused narrowly on targeting the Iranian oil sec-tor—the foundation of the Iranian economy—and Iranian oil exports are now down to 1 million barrels a day, from 2.2 million last year. Iran’s currency has also plummeted: The Rial has dropped 50% against the Dollar since the beginning of 2012.

Yet the Cuban case study is evidence enough that this dual policy—the rejection of dialogue in favor of economic or conventional war—may trigger exactly what it is meant to disarm. Policymakers who believe the current currency collapse means a victory is close at hand must remember that the economic war declared on Cuba continues to this day, and that in 50 years it has inflicted only civil-ian casualties: rice and beans have come and gone, but El Comandante

(The Commander) soldiers on. As for the option of conven-

tional warfare against Iran to halt its nuclear program, a recent report by the Wilson Center claims that U.S. strikes against nuclear targets within Iran could only “delay Iran’s ability to build a bomb by up to four years—if the military opera-tion is carried out to near perfec-tion.” A unilateral Israeli attack would be much less effective. Thus, if Iran decided to acquire nuclear capability, even a military attack could not stop it permanently. Nothing short of a full military oc-cupation could prevent a nuclear-armed Iran.

Iran has consistently denied that it is developing a nuclear weapons program. But so did the Soviets deny developing any nucle-ar program in Cuba. Ironically, as long as U.S. foreign policy toward Iran continues to consist solely of threats, preconditions and ulti-matums, not only will Iran not be deterred from its nuclear program, it may also even be convinced that possessing nuclear weapons is es-sential.

Right now, U.S. policy seems to be continuing to delay dialogue with the Iranian government. Yet the U.S. should be treating Iran more like a nuclear power now—

that is, treating Iran as it treated the Soviet Union. A nuclear-armed Iran would be much more difficult to negotiate with than it is now, or indeed than the Soviet Union was in 1962. The Iranian government does not have many bargaining chips. The possession of nuclear arms within Iran’s borders would be much more strategically important for its current regime than missiles in Cuba were for the Soviets. Thus, rejecting dialogue now as a method of crisis prevention will severely limit the ability to compromise later.

Diplomatic relations are neces-sary, both to contain conflict and to prevent it in the first place. The American government may toss around ultimatums and threats, but as the successes and failures of the Cuban Missile Crisis reveal, only if both parties have a conversa-tion will policymakers ever know whether the other side is listening.

U.S. policymakers sometimes claim that they are engaged in dialogue—that it is only the Iranian policymakers who are not “sin-cere,” as Secretary of State Hilary Clinton has said. But to be serious about diplomacy, the U.S. must take concrete steps. Re-opening Ameri-can embassies in both Tehran and Havana would be a good start.

coercion does not always convince the opponent to capitulate.

Instead, Castro and Khrush-chev conceived of an idea to ensure Castro’s rule for the long term. In October 1962, a U.S. reconnaissance flight over Cuba recorded the construction of Soviet nuclear missile bases. The U.S. government was caught off guard. Until then, the Cuban and Soviet governments had schemed in secret and had repeatedly de-nied the existence of a plan. The question is whether the Soviets could have snuck in had the U.S. maintained a presence on the island. The second lesson: refusal to remain in direct contact with the opponent results in a reliance on secondhand information and intelligence.

Overconfidence in tactics of intimidation and an underestima-tion of Cuban audacity set the US on a nuclear collision course with a strong superpower. At this juncture, the rules of the game changed, and the strategy was revised—Kennedy knew he could neither ignore the Russians, nor bully them into submission. He opened the lines of communica-tion and put together a compro-mise that was equally acceptable to both sides. The third lesson: dialogue can result in conflict resolution.

The Iranian Missile Crisis?

BY: Jake Karr

APOCALYPSE NOW: REDUx

Story by Jake Karr

MEMBERS ONLY

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Rio at War It’s a race to the Olympics.

Can Rio wina war with

itself?

Preparations for the 2014 World Cup and the 2016 Olympics in Rio de Janeiro are shaking up the city’s life. The city’s government is imple-menting policies and campaigns determined to end, or at least ease, the city’s main problems: violence, poverty and inequality. Projects and programs undertaken include investing in infrastructure and logistics, and the controversial paci-fication processes implemented in some of Rio’s favelas (shantytowns).

Pacification processes begin with a military takeover of the favelas. Shock units of the mili-tary police—its special operations branch (BOPE)—and navy marines conduct the takeover. Since local drug lords have access to automatic weapons and even RPGs, the mili-tary is often met with armed resis-tance. While the first pacifications were violent and controversial, a change of strategy has made the last few successful. In the new strategy,

the police warned traffickers before entering the favela, giving them the chance to escape and avoid violent confrontations. This strategy has al-lowed police forces to take over the favelas peacefully, for it becomes easier to confront and capture the fleeting criminals once they are forced out of the neighborhoods. The police then permanently install special units—the UPPs—in the favelas in order to monitor them. Finally, the local government starts to implement infrastructure and development programs.

Unofficial organizations and black market services are a part of Rio’s dynamic. But now, formerly unenforced taxes are imposed on citizens who did not previously pay them. Light, the monopoly electric company in Rio de Janeiro, now has 56,000 new paying users in the recently pacified favelas. This leaves some locals content with access to quality services, while others suffer

from unaffordable prices or higher taxes.

The UPP has also introduced new regulations into the communi-ties. Wearing a helmet when riding a motorbike is mandatory. This measure has an important impact considering that the main mode of transportation in the favelas is the popular “mototaxi.” Locals also have the right to call the police if disturbed by loud noises after 10 pm. This, however, constitutes a highly controversial rule, since street parties (known as bailes funk) and loud music in bars have been a staple feature of most fave-las. In many favelas, bailes funk have been banned because they are considered sites for drug smug-gling, public drunkenness and dis-plays of violence. While the youth find this rule of silence repressing, mothers, elderly people and chil-dren are widely glad that it is now enforced.

Pacification has brought peace to communities that have lived for decades in fear. While it is dif-ficult to get residents to approach and trust the hostile police forces, many locals are happy that they no longer hear gunshots and children can play in the streets again. Also, there is growing community inter-est in social reforms. Many local organizations and movements are promoting programs that tackle pressing issues. Rio de Janeiro’s gov-ernment is making an effort to sup-port these initiatives by sponsoring events such as Rio +20, a series of programs promoting sustainable development, health and sexual education, entrepreneurship and infrastructure. Pacified communi-ties are even attracting foreigners and tourists again, boosting the local economy.

There are downsides to this process, though, mainly in the form of rising rental prices and increases

Story by Anna Carolina Barry Laso / Photography by Jorge Tamames

in drug consumption. Rising rental prices, particularly in the southern neighborhoods that have breathtak-ing views, are forcing the poorer residents to move away to cheaper areas in the north or the margins of the city. The demand for drugs outside the favelas due to tourists in turn fuels drug consumption within

the favelas. As foreigners demand cocaine and maconha (marijuana), residents in communities are falling into crack, a cheap but extremely harmful drug that is increasingly available.

Thus Rio’s favelas face a “yin-yang” situation in which positive reforms come with downsides. On one hand, feedback from locals is positive overall. The drug lords are not greatly missed, and when asked to assess the changes, most resi-dents claim their situation has ei-ther improved or remains the same. On the other hand, many also share the fear that UPP forces, despite

having established a police station in the favelas, will be withdrawn as soon as the Olympics finish. This would leave favelas at the mercy of the drug lords once again.

Rio de Janeiro may be on the way to major improvement, but whether it is sustainable seems to depend on the continuity of the

government’s commitment to improving the favelas. By 2014, the city wants to have 40 favelas paci-fied. While this goal is commend-able, it might prove insufficent, seeing as there are 700 favelas in

the whole city. Plus, violence and inequality in Rio are issues of con-siderable magnitude and historical persistence, which leads many to question whether the preparation for the World Cup and the Olym-pics simply forces the government to pursue policies it would oth-erwise turn down. The common critique and the biggest concern is that after the Olympics the reforms

will cease. It is hard to predict if funding will continue to flow into these projects. But in spite of this uncertainty, growing human capi-tal and political empowerment are tools allowing Brazilians in gen-eral, and Cariocas in particular, to continue building a better society even after the games are over.

“Massive government investment has radically altered the favelas. But the

biggest concern is what will happen to reform when the Olympics end.”

Brazilian UPP units have played a central role pacifying the favelas. Is it government investment or invasion?

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21

Rio at War It’s a race to the Olympics.

Can Rio wina war with

itself?

Preparations for the 2014 World Cup and the 2016 Olympics in Rio de Janeiro are shaking up the city’s life. The city’s government is imple-menting policies and campaigns determined to end, or at least ease, the city’s main problems: violence, poverty and inequality. Projects and programs undertaken include investing in infrastructure and logistics, and the controversial paci-fication processes implemented in some of Rio’s favelas (shantytowns).

Pacification processes begin with a military takeover of the favelas. Shock units of the mili-tary police—its special operations branch (BOPE)—and navy marines conduct the takeover. Since local drug lords have access to automatic weapons and even RPGs, the mili-tary is often met with armed resis-tance. While the first pacifications were violent and controversial, a change of strategy has made the last few successful. In the new strategy,

the police warned traffickers before entering the favela, giving them the chance to escape and avoid violent confrontations. This strategy has al-lowed police forces to take over the favelas peacefully, for it becomes easier to confront and capture the fleeting criminals once they are forced out of the neighborhoods. The police then permanently install special units—the UPPs—in the favelas in order to monitor them. Finally, the local government starts to implement infrastructure and development programs.

Unofficial organizations and black market services are a part of Rio’s dynamic. But now, formerly unenforced taxes are imposed on citizens who did not previously pay them. Light, the monopoly electric company in Rio de Janeiro, now has 56,000 new paying users in the recently pacified favelas. This leaves some locals content with access to quality services, while others suffer

from unaffordable prices or higher taxes.

The UPP has also introduced new regulations into the communi-ties. Wearing a helmet when riding a motorbike is mandatory. This measure has an important impact considering that the main mode of transportation in the favelas is the popular “mototaxi.” Locals also have the right to call the police if disturbed by loud noises after 10 pm. This, however, constitutes a highly controversial rule, since street parties (known as bailes funk) and loud music in bars have been a staple feature of most fave-las. In many favelas, bailes funk have been banned because they are considered sites for drug smug-gling, public drunkenness and dis-plays of violence. While the youth find this rule of silence repressing, mothers, elderly people and chil-dren are widely glad that it is now enforced.

Pacification has brought peace to communities that have lived for decades in fear. While it is dif-ficult to get residents to approach and trust the hostile police forces, many locals are happy that they no longer hear gunshots and children can play in the streets again. Also, there is growing community inter-est in social reforms. Many local organizations and movements are promoting programs that tackle pressing issues. Rio de Janeiro’s gov-ernment is making an effort to sup-port these initiatives by sponsoring events such as Rio +20, a series of programs promoting sustainable development, health and sexual education, entrepreneurship and infrastructure. Pacified communi-ties are even attracting foreigners and tourists again, boosting the local economy.

There are downsides to this process, though, mainly in the form of rising rental prices and increases

Story by Anna Carolina Barry Laso / Photography by Jorge Tamames

in drug consumption. Rising rental prices, particularly in the southern neighborhoods that have breathtak-ing views, are forcing the poorer residents to move away to cheaper areas in the north or the margins of the city. The demand for drugs outside the favelas due to tourists in turn fuels drug consumption within

the favelas. As foreigners demand cocaine and maconha (marijuana), residents in communities are falling into crack, a cheap but extremely harmful drug that is increasingly available.

Thus Rio’s favelas face a “yin-yang” situation in which positive reforms come with downsides. On one hand, feedback from locals is positive overall. The drug lords are not greatly missed, and when asked to assess the changes, most resi-dents claim their situation has ei-ther improved or remains the same. On the other hand, many also share the fear that UPP forces, despite

having established a police station in the favelas, will be withdrawn as soon as the Olympics finish. This would leave favelas at the mercy of the drug lords once again.

Rio de Janeiro may be on the way to major improvement, but whether it is sustainable seems to depend on the continuity of the

government’s commitment to improving the favelas. By 2014, the city wants to have 40 favelas paci-fied. While this goal is commend-able, it might prove insufficent, seeing as there are 700 favelas in

the whole city. Plus, violence and inequality in Rio are issues of con-siderable magnitude and historical persistence, which leads many to question whether the preparation for the World Cup and the Olym-pics simply forces the government to pursue policies it would oth-erwise turn down. The common critique and the biggest concern is that after the Olympics the reforms

will cease. It is hard to predict if funding will continue to flow into these projects. But in spite of this uncertainty, growing human capi-tal and political empowerment are tools allowing Brazilians in gen-eral, and Cariocas in particular, to continue building a better society even after the games are over.

“Massive government investment has radically altered the favelas. But the

biggest concern is what will happen to reform when the Olympics end.”

Brazilian UPP units have played a central role pacifying the favelas. Is it government investment or invasion?

BR

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Game

Syria is in turmoil. The in-surgents in the Free Syrian Army continue to battle President Bashar al-Assad’s regime forces for control of major cities. Scenes of wounded children, shattered homes, burning souks and armed militias appear ev-ery day on television. But the media has given less attention to another battle: the kidnappings, gunfights and protests that have spilled over into neighboring Lebanon. Why does a Lebanese kill a Lebanese over the

fate of the Syrian dictator? Does the violence stem from sectarian hatred or political expediency?

Lebanon has long been Syria’s shock absorber, buffer zone and playground. Before the 1916 Sykes-Picot agreement and the French border mandates of the 1920s, a large piece of modern Lebanon was part of Syria. Syrian forces occu-pied Lebanon from 1976 until 2005, controlling much of the country with a puppet government that killed

opposing politicians and journalists. When 2005 saw the assassination of the Prime Minister Rafic Hariri in a massive car bombing, it sparked two major demonstrations. The first took place on March 8 to thank Syria for stabilizing Lebanon and resisting Israel. The second demonstration took place on March 14 to denounce Syrian interference in Lebanon and demand its ouster. This March 14 demonstration came to be known as the Cedar Revolution, which many

SectsBloodshed is enveloping Syria.

Will Lebanon become collateral damage?

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Story by Katie Sola

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Game

Syria is in turmoil. The in-surgents in the Free Syrian Army continue to battle President Bashar al-Assad’s regime forces for control of major cities. Scenes of wounded children, shattered homes, burning souks and armed militias appear ev-ery day on television. But the media has given less attention to another battle: the kidnappings, gunfights and protests that have spilled over into neighboring Lebanon. Why does a Lebanese kill a Lebanese over the

fate of the Syrian dictator? Does the violence stem from sectarian hatred or political expediency?

Lebanon has long been Syria’s shock absorber, buffer zone and playground. Before the 1916 Sykes-Picot agreement and the French border mandates of the 1920s, a large piece of modern Lebanon was part of Syria. Syrian forces occu-pied Lebanon from 1976 until 2005, controlling much of the country with a puppet government that killed

opposing politicians and journalists. When 2005 saw the assassination of the Prime Minister Rafic Hariri in a massive car bombing, it sparked two major demonstrations. The first took place on March 8 to thank Syria for stabilizing Lebanon and resisting Israel. The second demonstration took place on March 14 to denounce Syrian interference in Lebanon and demand its ouster. This March 14 demonstration came to be known as the Cedar Revolution, which many

SectsBloodshed is enveloping Syria.

Will Lebanon become collateral damage?

BR

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N P

OLI

TIC

AL

RE

VIE

W F

EA

TU

RE

22

Story by Katie Sola

of

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25

financial support from U.S.-allied Sunni states such as Saudi Arabia.

Let us examine the situation in Syria. For forty years, the al-Assad family has ruled the country under the Socialist Ba’ath party. The al-Assads are Alawites, a secretive mi-nority offshoot of Shi’i Islam that makes up an estimated 12% of the Syrian population. The al-Assad family has placed various relatives in charge of the armed forces and branches of the economy, stunting Syria’s development. The regime is infamous for its use of torture and brutal military crackdowns on op-position movements. Memorably, the Syrian army destroyed the city of Hama after a Muslim Brother-hood Sunni uprising, killing at least 10,000.

The ongoing uprising began in 2011 with peaceful protests call-ing for Bashar al-Assad’s resigna-

tion. Now, the situation resembles a civil war. The protest movement has developed into an insurgency of many lightly armed groups known collectively as the Free Syrian Army (FSA). Regime forces and the FSA are now battling for control of Syria’s cities at the expense of its civilians, who suffer from lack of water, power and food as well as indiscriminate shelling. Over 200,000 Syrians have been displaced and 30,000 have died.

Unsurprisingly, both sides blame each other for the continued violence. Pro-regime commenta-tors downplay the popular nature of the uprising and characterize the armed opposition as foreign terrorists, bent on importing jihad and sectarian violence. According to this viewpoint, infiltrators must be crushed before the regime can enact democratic reform. The opp-

consider today a harbinger of the Arab Spring.

The Lebanese parliament is now split between the March 8 and March 14 coalitions. The March 8th coalition comprises Michel Aoun’s secular Christian Free Progres-sive Party, the Shi’ite Hezbollah, and Walid Jumblatt’s secular Druze party. The March 14 coalition brings together the Christian Lebanese Forces, Hariri’s Future Movement and other smaller parties. These party alliances are largely rooted in opposition to or support for Syria, not domestic issues—a clear illustra-tion of Syria’s primary importance in Lebanese politics.

To understand Syrian influence we must also understand Lebanon as a country of minorities, home to 17 sects jockeying for power. “This is Lebanon. You can simply leave it. He who chooses to stay should play the game of sects,” said Christian leader Raymond Edde. “You have to estab-lish a movement that brings together members of your sect, in order to exert pressure to obtain your rights.”

The Lebanese understand that building alliances with other nations can bring about stability. On the other hand, alliances can backfire, turning Lebanon into a battleground for other countries’ proxy conflicts. Consider Hezbollah, the Islamic militant group closely linked to both the secular Syrian regime and the theocratic Iranian government. Iran sends millions of dollars worth of arms and cash to Hezbollah to pro-mote the Shi’i Islamic Revolution in the Levant. Syria likewise provides Hezbollah with logistical support and an overland pipeline for mis-siles from Iran. In return, these two countries use Hezbollah to pursue their outside agendas against Israel.

By contrast, the March 14 colla-tion leader Saad Hariri draws his

-osition movement, on the other hand, will not negotiate with the regime until Bashar al-Assad steps down. Iran, Russia and China stand with the regime while Amer-ica, Saudi Arabia and other Gulf states have indicated support for the uprising. All of these nations would need to cooperate in order to jumpstart negotiations between the regime and the opposition.

The impact of the Syrian conflict on Lebanon takes many forms. The FSA kidnapped a Shi’ite Lebanese man in May, claiming he was involved with Hezbollah and planning to join the regime’s fight. In retaliation, the man’s powerful clan kidnapped several Sunnis in-volved with the FSA. The humani-tarian implications are profound: Over 57,000 Syrian refugees have crossed the border into Lebanon, largely in Tripoli and the Beka’a

valley, causing a massive hu-manitarian crisis. Meanwhile, U.S. officials have accused Hezbollah of sending soldiers to fight for the Syrian regime.

September has also been a time of intense conflict within Lebanon between FSA-aligned Sunnis and the Alawites of Tripoli, supportive of the Syrian regime. In August, at least 15 people died and over 100 were wounded in clashes between the two groups. Tensions between the Alawite neighborhood of Jabal Mohsen and the Sunni Baab el-Tobbaneh area flared up after Sunni gunmen killed an Alawite man. Animosity between the two sects dates back to the Lebanese civil war, and some commentators see ominous resemblances between this year’s violence and that of the civil war. Debate continues to rage over whether the Tripoli conflict is

truly sectarian in nature. Media outlets sympathizing with the March 8 coalition such as the newspaper Al Akhbar have point-ed to the lack of opportunity in the city and the disenfranchised status of both Sunni and Alawi inhabitants as the cause of un-rest, claiming men are joining the militias in order to draw a salary and bring meaning to their stifled lives. They argue that kidnappings are the result of personal family feuds, not religious divisions, and place the blame on Lebanon’s lack of a strong centralized govern-ment and army, which they assert forces Lebanese to depend on families for physical protection.

The truth lies somewhere in between. Evidence has emerged that the Syrian regime is directly trying to promote violence in Leb-anon. In a recent exposé, Lebanese Minister of Information Michel Samaha was found conspiring with Syrian officials to bomb Sunni targets in Lebanon with the support of President Bashar al-Assad. Had the plan succeeded, it is likely that Sunni counterattacks against Shi’i and Alawi leaders would have plunged Lebanon back into civil war.

It appears likely the Syrian re-gime attempted to start a civil war in Lebanon to draw international attention away from its own civil war. Yet the violence in Lebanon is neither entirely sectarian nor en-tirely political. Rather, the fragility of the Lebanese state makes it easy for the Syrian regime to further its interests, including inciting sectarian conflict. The outcome of Syrian and Lebanese violence is uncertain. What is certain is the reminder that the Middle East is a fragile place, one not likely to become stable any time soon.

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financial support from U.S.-allied Sunni states such as Saudi Arabia.

Let us examine the situation in Syria. For forty years, the al-Assad family has ruled the country under the Socialist Ba’ath party. The al-Assads are Alawites, a secretive mi-nority offshoot of Shi’i Islam that makes up an estimated 12% of the Syrian population. The al-Assad family has placed various relatives in charge of the armed forces and branches of the economy, stunting Syria’s development. The regime is infamous for its use of torture and brutal military crackdowns on op-position movements. Memorably, the Syrian army destroyed the city of Hama after a Muslim Brother-hood Sunni uprising, killing at least 10,000.

The ongoing uprising began in 2011 with peaceful protests call-ing for Bashar al-Assad’s resigna-

tion. Now, the situation resembles a civil war. The protest movement has developed into an insurgency of many lightly armed groups known collectively as the Free Syrian Army (FSA). Regime forces and the FSA are now battling for control of Syria’s cities at the expense of its civilians, who suffer from lack of water, power and food as well as indiscriminate shelling. Over 200,000 Syrians have been displaced and 30,000 have died.

Unsurprisingly, both sides blame each other for the continued violence. Pro-regime commenta-tors downplay the popular nature of the uprising and characterize the armed opposition as foreign terrorists, bent on importing jihad and sectarian violence. According to this viewpoint, infiltrators must be crushed before the regime can enact democratic reform. The opp-

consider today a harbinger of the Arab Spring.

The Lebanese parliament is now split between the March 8 and March 14 coalitions. The March 8th coalition comprises Michel Aoun’s secular Christian Free Progres-sive Party, the Shi’ite Hezbollah, and Walid Jumblatt’s secular Druze party. The March 14 coalition brings together the Christian Lebanese Forces, Hariri’s Future Movement and other smaller parties. These party alliances are largely rooted in opposition to or support for Syria, not domestic issues—a clear illustra-tion of Syria’s primary importance in Lebanese politics.

To understand Syrian influence we must also understand Lebanon as a country of minorities, home to 17 sects jockeying for power. “This is Lebanon. You can simply leave it. He who chooses to stay should play the game of sects,” said Christian leader Raymond Edde. “You have to estab-lish a movement that brings together members of your sect, in order to exert pressure to obtain your rights.”

The Lebanese understand that building alliances with other nations can bring about stability. On the other hand, alliances can backfire, turning Lebanon into a battleground for other countries’ proxy conflicts. Consider Hezbollah, the Islamic militant group closely linked to both the secular Syrian regime and the theocratic Iranian government. Iran sends millions of dollars worth of arms and cash to Hezbollah to pro-mote the Shi’i Islamic Revolution in the Levant. Syria likewise provides Hezbollah with logistical support and an overland pipeline for mis-siles from Iran. In return, these two countries use Hezbollah to pursue their outside agendas against Israel.

By contrast, the March 14 colla-tion leader Saad Hariri draws his

-osition movement, on the other hand, will not negotiate with the regime until Bashar al-Assad steps down. Iran, Russia and China stand with the regime while Amer-ica, Saudi Arabia and other Gulf states have indicated support for the uprising. All of these nations would need to cooperate in order to jumpstart negotiations between the regime and the opposition.

The impact of the Syrian conflict on Lebanon takes many forms. The FSA kidnapped a Shi’ite Lebanese man in May, claiming he was involved with Hezbollah and planning to join the regime’s fight. In retaliation, the man’s powerful clan kidnapped several Sunnis in-volved with the FSA. The humani-tarian implications are profound: Over 57,000 Syrian refugees have crossed the border into Lebanon, largely in Tripoli and the Beka’a

valley, causing a massive hu-manitarian crisis. Meanwhile, U.S. officials have accused Hezbollah of sending soldiers to fight for the Syrian regime.

September has also been a time of intense conflict within Lebanon between FSA-aligned Sunnis and the Alawites of Tripoli, supportive of the Syrian regime. In August, at least 15 people died and over 100 were wounded in clashes between the two groups. Tensions between the Alawite neighborhood of Jabal Mohsen and the Sunni Baab el-Tobbaneh area flared up after Sunni gunmen killed an Alawite man. Animosity between the two sects dates back to the Lebanese civil war, and some commentators see ominous resemblances between this year’s violence and that of the civil war. Debate continues to rage over whether the Tripoli conflict is

truly sectarian in nature. Media outlets sympathizing with the March 8 coalition such as the newspaper Al Akhbar have point-ed to the lack of opportunity in the city and the disenfranchised status of both Sunni and Alawi inhabitants as the cause of un-rest, claiming men are joining the militias in order to draw a salary and bring meaning to their stifled lives. They argue that kidnappings are the result of personal family feuds, not religious divisions, and place the blame on Lebanon’s lack of a strong centralized govern-ment and army, which they assert forces Lebanese to depend on families for physical protection.

The truth lies somewhere in between. Evidence has emerged that the Syrian regime is directly trying to promote violence in Leb-anon. In a recent exposé, Lebanese Minister of Information Michel Samaha was found conspiring with Syrian officials to bomb Sunni targets in Lebanon with the support of President Bashar al-Assad. Had the plan succeeded, it is likely that Sunni counterattacks against Shi’i and Alawi leaders would have plunged Lebanon back into civil war.

It appears likely the Syrian re-gime attempted to start a civil war in Lebanon to draw international attention away from its own civil war. Yet the violence in Lebanon is neither entirely sectarian nor en-tirely political. Rather, the fragility of the Lebanese state makes it easy for the Syrian regime to further its interests, including inciting sectarian conflict. The outcome of Syrian and Lebanese violence is uncertain. What is certain is the reminder that the Middle East is a fragile place, one not likely to become stable any time soon.

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Campaigns strategize endlessly, and then brag that candidate X has a “presence.” Where is that line between art and science in political consulting?

I’m a fan of Drew’s work, and he understands that political messaging is not just pinball. That’s part of Romney’s problem: his poll data says, “Say this about taxes, national security and abortion.” And he says all those things, hitting each pinball just right try-ing to ring up the points. But it doesn’t add up to a coherent story, and it doesn’t have emotional pop.

I’m a big believer in narrative. And our strategy told a story of who this man is. His entire record fits a narrative of a guy who really doesn’t understand how good he’s got it, and how rough others have it. He really thinks the way to improve the country is to focus all the rewards on a few people who just hap-pen to be exactly like him. It’s amazing. Will the future GOP be more or less conservative?Someone has to break the fever. I think Clinton did that for Democrats, who stood up and said, “We’ve moved too far left.” I bet you a six-pack of beer if Romney loses, the lesson Republicans will take is, “We should’ve nominated Paul Ryan.” That’s exactly the wrong lesson. The Republicans need a Clinton. And I don’t know where that person will come from.What was one thing you couldn’t know about working in the White House until you did it?Just how difficult it is to prioritize, because every-thing is a 10. JFK said, “To govern is to choose.” That’s one of the most powerful things that I expe-rienced. Everything that gets to the White House is there because some other agency couldn’t do it itself.

How has blogging changed the delivery of news?

I’m somebody who doesn’t think polarization is the problem per say. It’s regrettable, but you can have a political system that works with polarization. The problem right now is that our system doesn’t work in the context of polarization, and we’re not doing anything to make it work better. So essentially, you have polarization gumming up the works, particularly in Congress.

So what could we do to make our system work within polarization, as you say?

Blogging has now become part of the news. It used to be sort of an amateur thing—outsiders who were pissed off, and it had that style of writing. That still remains, but now we have people in newspapers and longtime reporters who have begun blogging. So the blog has become just another form of writing and the blog medium can accept all kinds of different writing, amateur, professional, short, long-form. So in that way, in part it changed things but also has been changed itself. Now it’s one of many tools writers have to carry their work, and that’s as it should be.

Your story is remarkable, creating your own blog straight out of college and building your own notoriety. Rachel Maddow called it a victory for all nerd-dom. What kind of advice do you have for students who want your kind of job?It’s not the easiest time in the world to be graduating. But for college-educated folk, the unemployment rate is only 4 or 3 percent, and Brown is even lower than that. So first, don’t walk out of there too depressed.

Second, the key thing young people have over old people is the willingness to work really hard. Malcolm Gladwell recently wrote an article about competitiveness. His point is that the cycle of life in the world is one where people achieve these exalted positions and they kind of stop working as hard. And that’s evolutionarily important for the system, because it is a failure that allows young people to establish themselves and rise up.

The one thing I would really advise people is to follow work as opposed to prestige. Try as hard as you can to find the thing you want to be doing-as opposed to jobs that at the outset have the most money or security. Because generally speaking, people aren’t very good at jobs they don’t like doing.

You’ve written about the polarization now grip-ping Washington. What explains that?

You’ve written about the nightmare of advising the Kerry campaign. Are the Kerry-Romney campaign comparisons accurate?2004 was a wartime election, and the Democrats nominated a war hero. What did Bush do? He destroyed Kerry’s appeal as a war hero, dishonestly but effectively. I think this is the same thing. It’s an economic-based election and the Republicans said, we have a CEO in an economic crisis—let’s run him. The problem is, we’ve done a pretty effective job exposing Romney. So he can’t run on his business record anymore. He rarely mentions it.

So the Bain ads are analogous to Karl Rove’s Swift Boat attacks?I know Karl, and I think it’s too much to say we based it on him. Taking away your opponent’s great-est strength is always a strategic imperative. It was obvious with Mitt Romney. That’s how Senator Ken-nedy beat Romney in 1994. And before he passed, I spent a long time with Kennedy talking about what he learned running against Romney. Kennedy has guided me a lot more than Rove.

You advise the President’s SuperPAC. What do you think of Citizens United?I believe the Declaration is correct: we’re endowed by God. Corporations are not created by God, they’re not people. I think it’s terrible. I would like to live in a world without SuperPACs, to work myself out of a job. Unlimited money is not good for the system.

So the imperative for the SuperPAC is that the President needs it? Could he win without it?Look, I want live in a world without SuperPACs, but I want live in a world without nuclear weapons, too. I don’t think America having more accurate nuclear weapons is a bad thing. The fact is, we’ve been suc-cessful with a lot less money, because money is not always outcome-determinative. Our messaging has worked because it’s been accurate, emotional, and targeted.

As a broad point, I think that a basic rule of American thought is that majorities are able to effectively govern. That makes sense for a basic mode of accountability. We elect these people because they told us they were going to do something, and two, four or six years later we judge them on whether they have done that. In a world where we elect parties into power who can’t do anything because minorities have control of the Senate or for whatever reason—that basic mode of accountability breaks down. We’re not giving ourselves what we were promised, and not because the majorities aren’t delivering, but because they have been blocked by the minority. If I were to start anywhere, I would just get rid of the filibuster tomorrow. I don’t think there’s anything wrong with having majority rule in the Senate. I would much rather a world in which, if Americans didn’t like what was being done by a political party, they voted them out. This as opposed to a world where political parties can’t do anything, which is more or less the world we are in now. As a general rule, I don’t think it’s a good thing that a typical majority cannot effectively govern.

Paul Begala managed the Clinton ‘92 campaign, hosted CNN’s Crossfire and

now advises Obama’s SuperPAC. The Newsweek writer sits down with BPR.

The WonkBlog made Klein one the most prolific political columnists in America. The Washington Post writer writer and MSNBC analyst discusses polarization and the evolution of news with BPR’s Chris Wilbur.

PAUL BEGALA EZRA KLEIN

What about consultant Drew Westen’s approach of placing undecided voters inside fMRI machines?

It’s a blend. Like cooking or architecture, if you don’t have the science right, you can’t do it. But without art, that sense of poetry, you won’t either. James Car-ville is a student of the game, very intellectual, yet has the best gut I’ve ever seen. He can hear some-thing and immediately know it’s going to resonate.

See all extended interviews at BrownPoliticalReview.org

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Campaigns strategize endlessly, and then brag that candidate X has a “presence.” Where is that line between art and science in political consulting?

I’m a fan of Drew’s work, and he understands that political messaging is not just pinball. That’s part of Romney’s problem: his poll data says, “Say this about taxes, national security and abortion.” And he says all those things, hitting each pinball just right try-ing to ring up the points. But it doesn’t add up to a coherent story, and it doesn’t have emotional pop.

I’m a big believer in narrative. And our strategy told a story of who this man is. His entire record fits a narrative of a guy who really doesn’t understand how good he’s got it, and how rough others have it. He really thinks the way to improve the country is to focus all the rewards on a few people who just hap-pen to be exactly like him. It’s amazing. Will the future GOP be more or less conservative?Someone has to break the fever. I think Clinton did that for Democrats, who stood up and said, “We’ve moved too far left.” I bet you a six-pack of beer if Romney loses, the lesson Republicans will take is, “We should’ve nominated Paul Ryan.” That’s exactly the wrong lesson. The Republicans need a Clinton. And I don’t know where that person will come from.What was one thing you couldn’t know about working in the White House until you did it?Just how difficult it is to prioritize, because every-thing is a 10. JFK said, “To govern is to choose.” That’s one of the most powerful things that I expe-rienced. Everything that gets to the White House is there because some other agency couldn’t do it itself.

How has blogging changed the delivery of news?

I’m somebody who doesn’t think polarization is the problem per say. It’s regrettable, but you can have a political system that works with polarization. The problem right now is that our system doesn’t work in the context of polarization, and we’re not doing anything to make it work better. So essentially, you have polarization gumming up the works, particularly in Congress.

So what could we do to make our system work within polarization, as you say?

Blogging has now become part of the news. It used to be sort of an amateur thing—outsiders who were pissed off, and it had that style of writing. That still remains, but now we have people in newspapers and longtime reporters who have begun blogging. So the blog has become just another form of writing and the blog medium can accept all kinds of different writing, amateur, professional, short, long-form. So in that way, in part it changed things but also has been changed itself. Now it’s one of many tools writers have to carry their work, and that’s as it should be.

Your story is remarkable, creating your own blog straight out of college and building your own notoriety. Rachel Maddow called it a victory for all nerd-dom. What kind of advice do you have for students who want your kind of job?It’s not the easiest time in the world to be graduating. But for college-educated folk, the unemployment rate is only 4 or 3 percent, and Brown is even lower than that. So first, don’t walk out of there too depressed.

Second, the key thing young people have over old people is the willingness to work really hard. Malcolm Gladwell recently wrote an article about competitiveness. His point is that the cycle of life in the world is one where people achieve these exalted positions and they kind of stop working as hard. And that’s evolutionarily important for the system, because it is a failure that allows young people to establish themselves and rise up.

The one thing I would really advise people is to follow work as opposed to prestige. Try as hard as you can to find the thing you want to be doing-as opposed to jobs that at the outset have the most money or security. Because generally speaking, people aren’t very good at jobs they don’t like doing.

You’ve written about the polarization now grip-ping Washington. What explains that?

You’ve written about the nightmare of advising the Kerry campaign. Are the Kerry-Romney campaign comparisons accurate?2004 was a wartime election, and the Democrats nominated a war hero. What did Bush do? He destroyed Kerry’s appeal as a war hero, dishonestly but effectively. I think this is the same thing. It’s an economic-based election and the Republicans said, we have a CEO in an economic crisis—let’s run him. The problem is, we’ve done a pretty effective job exposing Romney. So he can’t run on his business record anymore. He rarely mentions it.

So the Bain ads are analogous to Karl Rove’s Swift Boat attacks?I know Karl, and I think it’s too much to say we based it on him. Taking away your opponent’s great-est strength is always a strategic imperative. It was obvious with Mitt Romney. That’s how Senator Ken-nedy beat Romney in 1994. And before he passed, I spent a long time with Kennedy talking about what he learned running against Romney. Kennedy has guided me a lot more than Rove.

You advise the President’s SuperPAC. What do you think of Citizens United?I believe the Declaration is correct: we’re endowed by God. Corporations are not created by God, they’re not people. I think it’s terrible. I would like to live in a world without SuperPACs, to work myself out of a job. Unlimited money is not good for the system.

So the imperative for the SuperPAC is that the President needs it? Could he win without it?Look, I want live in a world without SuperPACs, but I want live in a world without nuclear weapons, too. I don’t think America having more accurate nuclear weapons is a bad thing. The fact is, we’ve been suc-cessful with a lot less money, because money is not always outcome-determinative. Our messaging has worked because it’s been accurate, emotional, and targeted.

As a broad point, I think that a basic rule of American thought is that majorities are able to effectively govern. That makes sense for a basic mode of accountability. We elect these people because they told us they were going to do something, and two, four or six years later we judge them on whether they have done that. In a world where we elect parties into power who can’t do anything because minorities have control of the Senate or for whatever reason—that basic mode of accountability breaks down. We’re not giving ourselves what we were promised, and not because the majorities aren’t delivering, but because they have been blocked by the minority. If I were to start anywhere, I would just get rid of the filibuster tomorrow. I don’t think there’s anything wrong with having majority rule in the Senate. I would much rather a world in which, if Americans didn’t like what was being done by a political party, they voted them out. This as opposed to a world where political parties can’t do anything, which is more or less the world we are in now. As a general rule, I don’t think it’s a good thing that a typical majority cannot effectively govern.

Paul Begala managed the Clinton ‘92 campaign, hosted CNN’s Crossfire and

now advises Obama’s SuperPAC. The Newsweek writer sits down with BPR.

The WonkBlog made Klein one the most prolific political columnists in America. The Washington Post writer writer and MSNBC analyst discusses polarization and the evolution of news with BPR’s Chris Wilbur.

PAUL BEGALA EZRA KLEIN

What about consultant Drew Westen’s approach of placing undecided voters inside fMRI machines?

It’s a blend. Like cooking or architecture, if you don’t have the science right, you can’t do it. But without art, that sense of poetry, you won’t either. James Car-ville is a student of the game, very intellectual, yet has the best gut I’ve ever seen. He can hear some-thing and immediately know it’s going to resonate.

See all extended interviews at BrownPoliticalReview.org

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You recently called Brown and Princeton the most innovative institutions because they were run by women. What did you mean?

Our insurance market is no worse than others and better than some. The academics and insurance companies like the mandate, but the truth is, it’s not necessary. All it did was piss off a whole lot of Americans that would otherwise be supportive of the health care bill…There is also nothing in this bill which would have contained costs, because the only way to contain costs is to stop fee-for-service payments. So there’s no cost control in any of these bills, but the individual mandate has nothing to do with it.

You’re saying there was nothing to control costs. So reform was fiscally reckless?

Ruth Simmons and Shirley Tilghman did a tremen-dous amount. Brown is the most progressive Ivy in terms of freedom for students, and I think Princeton introduced tuition policies essential for keeping the Ivy League competitive. It’s interesting that they’re both headed by women, and I see women playing a far greater leadership role this next century. I also think if you did gender-blind admissions, 70% of undergrads in the Ivy League would be women.Has Obama been aggressive enough regulating Wall Street?No, and Dodd-Frank barely touches the surface. We need to go back to Glass-Steagall, break up banks and end “too big to fail.” Friedrich von Hayek said that failure has to be the penalty for mistakes in capitalism. Well, I agree. Both parties have taken a lot of money from Wall Street, and both parties have served Wall Street’s interests and put them higher than the country. That puts us at tremendous risk.

You’ve said that the individual mandate was foolish, and that you wished the Supreme Court struck it down. Why?

No. You’ve got to do something, and this something is better than nothing. It will evolve. We’ve made the commitment to keeping health care in the private sector. We might as well take advantage of private sector’s ability to use ingenuity to affect the cost curve. And I think the private sector will do that.

Speaking of tremendous risk, the fiscal cliff is coming at the end of the year. What should we expect?I think we’re going to go over the fiscal cliff, and I think that’s a very good thing. Everybody’s postur-ing about taxes and cuts—you need both. First of all, [the cliff] will throw us into recession, but only for two quarters and with positive growth at the end. That’s a price the country is going to pay, but it cuts the deficit in half. Secondly, we’ll return to the Clinton tax rates. Thirdly, it cuts defense, and finally, we’ll make some entitlement cuts. I do think every-body needs to sacrifice, but not just poor and old people, which is what Republicans seem to prefer.

The Obama campaign’s attacks on Bain were rated false by groups like Politifact. Is that fair?There’s this notion that you have to be equally tough on both sides. The fact is that the right wing tells the truth hardly ever. The problem with Politifact is they try to be even-handed, and in doing so lean over backwards to please the right, unintentionally. What Bain did was buy companies, take as many fees as they possibly could, and run up debt. In the zeal to appear even-handed, newspapers and fact-checkers often are part of the problem.

What keeps you optimistic about our generation, and where are we weak?You have an empowerment tool that far outstrips anything of multinational corporations and govern-ments with the internet. The obvious example is Congress failing to pass SOPA/PIPA. I think the fre-quent shortcoming is lack of persistence. But in the end, I have a very high opinion of your generation. Change has become a moral value for your genera-tion, I think that’s terribly important.

It’s totally unnecessary. [In Vermont,] we force insur-ance companies to cover everybody and we don’t have a mandate.

The former Governor of Vermont, presi-dential candidate and DNC Chairman

discusses Obama, Bain and healthcare.

HOWARD DEAN

Bob Woodward’s new book paints a hazy picture of the debt ceiling crisis. Who’s to blame?I don’t have the access that Woodward does. My question is, why is there a debt ceiling? It seems like an absurd instrument of government in the first place. In every other democracy, when the legislature approves spending levels higher than tax levels, it’s just presumed the executive has authority to borrow the difference. We wouldn’t have these intermittent crises if we didn’t have the ceiling. It’s a way in which practices of the US government have been fossilized to the detriment of the economy and common sense.

You’ve written that the cultural and economic mar-riage in the GOP is unsustainable. Is a Romney loss the kind of wake-up call the party needs?There will be a lot of self-questioning in the Republi-can world whether Romney was too extreme endors-ing the Ryan plan or not extreme enough. The old model where social conservatives were extremists and economic conservatives the moderates has really been called into question the past four years. We’ve seen economic issues become the basis for extrem-ism, too. The job of the Republican party is to cham-pion policies that are pro-enterprise, that allow for business growth, that respect private markets. Build-ing in a way that is culturally modern is the challenge after 2012, whether Romney wins or loses.

What’s the legacy of Iraq as we approach the ten-year anniversary of the War?It’s a mixed record. It was much more difficult than expected and led to results much less conclusive, and we have the difficulty of embarrassment that Iraqi WMDs have proven unfound. But Iraq has emerged as a very different kind of country. It does have representative institutions, without the human rights atrocities under Hussein. It’s no longer a threat to its neighbors and it’s returning to world oil markets.What should the President should do regarding Iran? What do you make of Netanyahu’s public pressure?I have total sympathy for Netanyahu. If your country is a declared target of a nuclear program, you’re go-ing to rouse the world to act. Netanyahu has shown himself a responsible leader and eloquent spokes-man for an embattled and endangered democracy threatened by extinction. Still, I am cautious. You have to plan a strike on Iran as the prelude to a big war. I think the Bush and Obama approach is better, tightening sanctions and effective sabotage.

And the president’s relationship with Netanyahu?While the President delivers some support to Israel, he does so late and grudgingly. Sanctions were per-ceived as so important, but the President resisted and resisted the Kirk-Menendez bill. When the measures were finally put in place, he was hesitant applying them. He allowed himself to have a personally bad relationship with Netanyahu, culminating at the UN in September where Netanyahu was publicly refused a meeting. That should never happen.

Frum is a former Bush speechwriter, found-er of FrumForum, and current columnist for the Daily Beast. The author of “Patriots,” a political novel, sat down with Henry Knight.

DAVID fRUM

You called Iraq, Iran and North Korea an ‘axis of evil’ in 2002. Do you regret that phrase?I think that phrase was a very powerful descrip-tion of a reality in 2002 that now in 2012 is a simple matter of fact. In 2002, the existence of the AQ Khan network from Pakistan sharing nuclear technology was a highly guarded secret. That’s now established fact. In 2002, we heard that Sunni and Shiite groups never cooperate. The whole world now knows that Iran is the major bankroller of Hamas.

Is there a conservative figure to take the party in the direction you’ve written about?The most important question to ask isn’t “Who?”, but rather “What?” When the party is in thrall to false, impractical or extremist beliefs, then even a middle-of-the-road candidate like Mitt Romney ends up remade in the image of this extremist agenda. So we need to fix the agenda. Then we find a candidate.

The question to ask is, do those people who rejected the phrase now feel silly that everything President Bush said in 2002 has been corroborated?

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You recently called Brown and Princeton the most innovative institutions because they were run by women. What did you mean?

Our insurance market is no worse than others and better than some. The academics and insurance companies like the mandate, but the truth is, it’s not necessary. All it did was piss off a whole lot of Americans that would otherwise be supportive of the health care bill…There is also nothing in this bill which would have contained costs, because the only way to contain costs is to stop fee-for-service payments. So there’s no cost control in any of these bills, but the individual mandate has nothing to do with it.

You’re saying there was nothing to control costs. So reform was fiscally reckless?

Ruth Simmons and Shirley Tilghman did a tremen-dous amount. Brown is the most progressive Ivy in terms of freedom for students, and I think Princeton introduced tuition policies essential for keeping the Ivy League competitive. It’s interesting that they’re both headed by women, and I see women playing a far greater leadership role this next century. I also think if you did gender-blind admissions, 70% of undergrads in the Ivy League would be women.Has Obama been aggressive enough regulating Wall Street?No, and Dodd-Frank barely touches the surface. We need to go back to Glass-Steagall, break up banks and end “too big to fail.” Friedrich von Hayek said that failure has to be the penalty for mistakes in capitalism. Well, I agree. Both parties have taken a lot of money from Wall Street, and both parties have served Wall Street’s interests and put them higher than the country. That puts us at tremendous risk.

You’ve said that the individual mandate was foolish, and that you wished the Supreme Court struck it down. Why?

No. You’ve got to do something, and this something is better than nothing. It will evolve. We’ve made the commitment to keeping health care in the private sector. We might as well take advantage of private sector’s ability to use ingenuity to affect the cost curve. And I think the private sector will do that.

Speaking of tremendous risk, the fiscal cliff is coming at the end of the year. What should we expect?I think we’re going to go over the fiscal cliff, and I think that’s a very good thing. Everybody’s postur-ing about taxes and cuts—you need both. First of all, [the cliff] will throw us into recession, but only for two quarters and with positive growth at the end. That’s a price the country is going to pay, but it cuts the deficit in half. Secondly, we’ll return to the Clinton tax rates. Thirdly, it cuts defense, and finally, we’ll make some entitlement cuts. I do think every-body needs to sacrifice, but not just poor and old people, which is what Republicans seem to prefer.

The Obama campaign’s attacks on Bain were rated false by groups like Politifact. Is that fair?There’s this notion that you have to be equally tough on both sides. The fact is that the right wing tells the truth hardly ever. The problem with Politifact is they try to be even-handed, and in doing so lean over backwards to please the right, unintentionally. What Bain did was buy companies, take as many fees as they possibly could, and run up debt. In the zeal to appear even-handed, newspapers and fact-checkers often are part of the problem.

What keeps you optimistic about our generation, and where are we weak?You have an empowerment tool that far outstrips anything of multinational corporations and govern-ments with the internet. The obvious example is Congress failing to pass SOPA/PIPA. I think the fre-quent shortcoming is lack of persistence. But in the end, I have a very high opinion of your generation. Change has become a moral value for your genera-tion, I think that’s terribly important.

It’s totally unnecessary. [In Vermont,] we force insur-ance companies to cover everybody and we don’t have a mandate.

The former Governor of Vermont, presi-dential candidate and DNC Chairman

discusses Obama, Bain and healthcare.

HOWARD DEAN

Bob Woodward’s new book paints a hazy picture of the debt ceiling crisis. Who’s to blame?I don’t have the access that Woodward does. My question is, why is there a debt ceiling? It seems like an absurd instrument of government in the first place. In every other democracy, when the legislature approves spending levels higher than tax levels, it’s just presumed the executive has authority to borrow the difference. We wouldn’t have these intermittent crises if we didn’t have the ceiling. It’s a way in which practices of the US government have been fossilized to the detriment of the economy and common sense.

You’ve written that the cultural and economic mar-riage in the GOP is unsustainable. Is a Romney loss the kind of wake-up call the party needs?There will be a lot of self-questioning in the Republi-can world whether Romney was too extreme endors-ing the Ryan plan or not extreme enough. The old model where social conservatives were extremists and economic conservatives the moderates has really been called into question the past four years. We’ve seen economic issues become the basis for extrem-ism, too. The job of the Republican party is to cham-pion policies that are pro-enterprise, that allow for business growth, that respect private markets. Build-ing in a way that is culturally modern is the challenge after 2012, whether Romney wins or loses.

What’s the legacy of Iraq as we approach the ten-year anniversary of the War?It’s a mixed record. It was much more difficult than expected and led to results much less conclusive, and we have the difficulty of embarrassment that Iraqi WMDs have proven unfound. But Iraq has emerged as a very different kind of country. It does have representative institutions, without the human rights atrocities under Hussein. It’s no longer a threat to its neighbors and it’s returning to world oil markets.What should the President should do regarding Iran? What do you make of Netanyahu’s public pressure?I have total sympathy for Netanyahu. If your country is a declared target of a nuclear program, you’re go-ing to rouse the world to act. Netanyahu has shown himself a responsible leader and eloquent spokes-man for an embattled and endangered democracy threatened by extinction. Still, I am cautious. You have to plan a strike on Iran as the prelude to a big war. I think the Bush and Obama approach is better, tightening sanctions and effective sabotage.

And the president’s relationship with Netanyahu?While the President delivers some support to Israel, he does so late and grudgingly. Sanctions were per-ceived as so important, but the President resisted and resisted the Kirk-Menendez bill. When the measures were finally put in place, he was hesitant applying them. He allowed himself to have a personally bad relationship with Netanyahu, culminating at the UN in September where Netanyahu was publicly refused a meeting. That should never happen.

Frum is a former Bush speechwriter, found-er of FrumForum, and current columnist for the Daily Beast. The author of “Patriots,” a political novel, sat down with Henry Knight.

DAVID fRUM

You called Iraq, Iran and North Korea an ‘axis of evil’ in 2002. Do you regret that phrase?I think that phrase was a very powerful descrip-tion of a reality in 2002 that now in 2012 is a simple matter of fact. In 2002, the existence of the AQ Khan network from Pakistan sharing nuclear technology was a highly guarded secret. That’s now established fact. In 2002, we heard that Sunni and Shiite groups never cooperate. The whole world now knows that Iran is the major bankroller of Hamas.

Is there a conservative figure to take the party in the direction you’ve written about?The most important question to ask isn’t “Who?”, but rather “What?” When the party is in thrall to false, impractical or extremist beliefs, then even a middle-of-the-road candidate like Mitt Romney ends up remade in the image of this extremist agenda. So we need to fix the agenda. Then we find a candidate.

The question to ask is, do those people who rejected the phrase now feel silly that everything President Bush said in 2002 has been corroborated?

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I think the Republican Party is in a significantly stronger position than the modern Democratic Party. Who then, if Romney isn’t the nominee in four years? Throw a dart at the map. Around the country there are a number of Republican governors who govern competently and well, unlike Democrats. Twenty-four states have Republican governors and legisla-tures. Eleven states have Democratic governors and legislatures. The twenty-four states are succeeding while those eleven states are failing. The Republican Party’s future is written in the success of governors.

Simpson Bowles is a commitment to take federal taxation from 18.5% of GDP to 21%. Over the next decade, that’s a five trillion dollar tax increase. So it’s a non-starter; it’s a unicorn, it’s not there. Remember that Obama said, “Yeah, I like Simpson-Bowles,” and a few weeks later his budget included nothing from Simpson Bowles. Nothing! Which spending savings from S-B is the President for? None of them. The six Republicans and Democrats in favor of Simpson-Bowles never put it in legislative form, where it would be clear how little the spending reduction is and how big the tax increases are. If they thought it was a good idea, it would have been put in writing. They didn’t, and it hasn’t been scored by the CBO.

70% favor a “balanced” deficit reduction approach, and many say your No-Tax Pledge partly created the Debt Ceiling fiasco. Don’t you bear some re-sponsibility for Congress’s inability to compromise?No. Lets go back to the 70% assertion. Scott Rasmus-sen in The Peoples Money goes through all the polls. The American people quite explicitly want spending cuts and not tax increases. You look at polling data, and if you say “Would you like a balanced approach?” then of course people say yes. But, if you ask them “Do you want your taxes raised?” No! “Do you want anyone’s taxes raised?” No. Because when we raised taxes in 1982, as the Democrats talked Reagan into doing, they spent every penny of it. They didn’t use it to bring down the debt.

Conservative intellectuals like David Frum, Nor-man Orstein at AEI and President H.W. Bush sug-gest the current direction of the GOP is unsustain-able. If Romney loses, do you think the GOP needs to move away from the right or more to the right?

When his No Tax Pledge ended a Grand Bargain, Harry Reid called him the “most powerful man in Washington.” Norquist discusses the future and fiscal politics with BPR’s Henry Knight and Matt Ricci.

GROVER

As a board member of the NRA, what’s your re-sponse to the increased support for gun control in the wake of many recent and tragic shootings?

-cally, more rapidly in states without. The number one city for gun control is Chicago. It is also murder central. The more honest citizens with concealed carry permits, the more violence, murder, assault, and rape go down. The data is irrefutable and puts the Democrats in a terrible position, which is why you don’t see them talking publicly about gun control.

The modern Republican Party is not just the presi-dential election; it includes the House and the Senate. Obviously Republicans have won the House, and for the next decade will hold the House, as the partywho will not raise your taxes. So it certainly is sound politics and sound policy. Norm Ornstein and Da-vid Frum are neither intellectual nor Republicans. Orstein is a left wing Democrat and David Frum is a disgruntled former Republican who whines about raising taxes all the time. Neither of them is the model for the modern Republican Party.

NORQUIST

Simpson-Bowles Commission may be the frame-work for dealing with the Fiscal Cliff. What’s wrong with Simpson-Bowles?

But who do you think is next in line to represent the modern GOP? You don’t think there’s any change needed if Romney loses this election?

Look at the expansion of concealed carry permits in each state that allowed people to have them. Violent crimes, murder, rape, assault, all declined dramati-

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The first noticeable thing is the smell. As one of the few places in Rhode Island that allow indoor smoking, Twin River Casino is in-fused with the odor of cigarettes. The casino, located in Lincoln, Rhode Island, was formerly a grey-hound racetrack known as Lincoln Park. The name was changed to Twin River in 2007, and greyhound racing ended three years later as part of an agreement to help the ca-sino emerge from bankruptcy. Twin River’s main attraction is now video lottery terminals.

This November, Rhode Island voters will decide on a ballot ques-tion whether to allow Twin River to add table games. According to the Providence Journal, Twin River has spent $1,655,564 to advocate for passage of this proposal, most visi-bly in a series of television commer-cials. For many people the gambling question is a moral one. But from a public policy perspective, is increas-ing gambling in Rhode Island good policy?

A 2009 study published in the UNLV Gaming Research & Review Journal frames debates over casi-nos as an issue of “economic boost-erism” versus “social disruption.” In other words, are the economic benefits of a casino greater than its social costs? This would seem to be a straightforward question best answered by cost-benefit analysis. Academics, however, do not agree on the answer. One article in the Journal of Contemporary Criminal Justice concludes that the introduc-tion of casinos does not increase the volume of crime. A more recent paper from the Brookings Institu-tion indicates that casinos do in fact impose negative social costs. This paper finds some economic ben-

efits from gambling, but also notes that casinos siphon off money that would be spent on other local busi-nesses.

This last point is key: despite what casino advocates might argue, gambling revenue does not fall from the sky. Consumers who gamble are choosing not to spend that money on other things. For example, an increase in casino gambling might come at the expense of the Rhode Island Lottery, which contributes a higher percentage of its revenue to the state than does Twin River. Ad-ditionally, the social costs associ-ated with gambling are often hard to quantify, and even harder to directly associate with casinos. For example, it is possible that banning gambling and driving it underground creates more social costs than legalized gambling.

According to a report from the University of Massachusetts Dart-mouth, unlike most New England casinos, Twin River’s revenue has increased during the recession. In a recent survey, only 46% of Twin River patrons were from Rhode Is-land. Most of the remaining patrons were Massachusetts residents. The report speculates that the high cost of gas and the increasing preva-lence of “staycations” have allowed Twin River to attract patrons who formerly went to more distant casi-nos, such as those in Connecticut. These trends, however, might soon work against Twin River, as Massa-chusetts legalized casino gambling last year and is developing plans for new casinos. A study commissioned by Governor Lincoln Chafee found that by 2017 Rhode Island would lose $100 million of its yearly share of gambling revenue to casino gam-bling in Massachusetts.

According to Twin River, the casino’s contribution to Rhode Is-land was around $290 million last year, which, according to local pa-per Warwick Beacon, makes it the “third largest source of state revenue behind income and sales tax.” The casino contributes about $10 mil-lion to the town of Lincoln each year. This additional revenue is sig-nificant, given that Rhode Island has been especially hard hit by the recession: the state’s unemployment rate in July was 10.8%, while the na-tion’s unemployment rate was 8.1%.

Twin River is a dark and drea-ry place. Everyone would prob-ably rather see signs of recovery in the construction of new high-rises rather than in smoky rooms filled with poker tables. But these feel-ings do not change the reality of the situation. Twin River is already an established and growing institution in Rhode Island, and an important source of revenue for the town of Lincoln and for the state. Also con-sider that in Nevada in 1998, only one-third of gambling revenue came from table games. While this is an imperfect comparison, it suggests that introducing table games at Twin River will not lead to an explosion of gambling in Rhode Island, but might allow Twin River to compete with the coming Massachusetts casi-nos. This reality, combined with the fact that evidence of social disrup-tion caused by casinos is ambiguous at best, suggests that voters should approve the ballot question permit-ting table games at Twin River.

Matthew McCabe is a featured columnist for “Facts and Factions,” one of four columns constantly keep-ing up with the latest in politics at BrownPoliticalReview.org.

FROM THE WEBGAMBLING ON RHODE

ISLAND’S FUTUREMATTHEWMCCABE

See all our featured columnsat BrownPoliticalReview.org

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I think the Republican Party is in a significantly stronger position than the modern Democratic Party. Who then, if Romney isn’t the nominee in four years? Throw a dart at the map. Around the country there are a number of Republican governors who govern competently and well, unlike Democrats. Twenty-four states have Republican governors and legisla-tures. Eleven states have Democratic governors and legislatures. The twenty-four states are succeeding while those eleven states are failing. The Republican Party’s future is written in the success of governors.

Simpson Bowles is a commitment to take federal taxation from 18.5% of GDP to 21%. Over the next decade, that’s a five trillion dollar tax increase. So it’s a non-starter; it’s a unicorn, it’s not there. Remember that Obama said, “Yeah, I like Simpson-Bowles,” and a few weeks later his budget included nothing from Simpson Bowles. Nothing! Which spending savings from S-B is the President for? None of them. The six Republicans and Democrats in favor of Simpson-Bowles never put it in legislative form, where it would be clear how little the spending reduction is and how big the tax increases are. If they thought it was a good idea, it would have been put in writing. They didn’t, and it hasn’t been scored by the CBO.

70% favor a “balanced” deficit reduction approach, and many say your No-Tax Pledge partly created the Debt Ceiling fiasco. Don’t you bear some re-sponsibility for Congress’s inability to compromise?No. Lets go back to the 70% assertion. Scott Rasmus-sen in The Peoples Money goes through all the polls. The American people quite explicitly want spending cuts and not tax increases. You look at polling data, and if you say “Would you like a balanced approach?” then of course people say yes. But, if you ask them “Do you want your taxes raised?” No! “Do you want anyone’s taxes raised?” No. Because when we raised taxes in 1982, as the Democrats talked Reagan into doing, they spent every penny of it. They didn’t use it to bring down the debt.

Conservative intellectuals like David Frum, Nor-man Orstein at AEI and President H.W. Bush sug-gest the current direction of the GOP is unsustain-able. If Romney loses, do you think the GOP needs to move away from the right or more to the right?

When his No Tax Pledge ended a Grand Bargain, Harry Reid called him the “most powerful man in Washington.” Norquist discusses the future and fiscal politics with BPR’s Henry Knight and Matt Ricci.

GROVER

As a board member of the NRA, what’s your re-sponse to the increased support for gun control in the wake of many recent and tragic shootings?

-cally, more rapidly in states without. The number one city for gun control is Chicago. It is also murder central. The more honest citizens with concealed carry permits, the more violence, murder, assault, and rape go down. The data is irrefutable and puts the Democrats in a terrible position, which is why you don’t see them talking publicly about gun control.

The modern Republican Party is not just the presi-dential election; it includes the House and the Senate. Obviously Republicans have won the House, and for the next decade will hold the House, as the partywho will not raise your taxes. So it certainly is sound politics and sound policy. Norm Ornstein and Da-vid Frum are neither intellectual nor Republicans. Orstein is a left wing Democrat and David Frum is a disgruntled former Republican who whines about raising taxes all the time. Neither of them is the model for the modern Republican Party.

NORQUIST

Simpson-Bowles Commission may be the frame-work for dealing with the Fiscal Cliff. What’s wrong with Simpson-Bowles?

But who do you think is next in line to represent the modern GOP? You don’t think there’s any change needed if Romney loses this election?

Look at the expansion of concealed carry permits in each state that allowed people to have them. Violent crimes, murder, rape, assault, all declined dramati-

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The first noticeable thing is the smell. As one of the few places in Rhode Island that allow indoor smoking, Twin River Casino is in-fused with the odor of cigarettes. The casino, located in Lincoln, Rhode Island, was formerly a grey-hound racetrack known as Lincoln Park. The name was changed to Twin River in 2007, and greyhound racing ended three years later as part of an agreement to help the ca-sino emerge from bankruptcy. Twin River’s main attraction is now video lottery terminals.

This November, Rhode Island voters will decide on a ballot ques-tion whether to allow Twin River to add table games. According to the Providence Journal, Twin River has spent $1,655,564 to advocate for passage of this proposal, most visi-bly in a series of television commer-cials. For many people the gambling question is a moral one. But from a public policy perspective, is increas-ing gambling in Rhode Island good policy?

A 2009 study published in the UNLV Gaming Research & Review Journal frames debates over casi-nos as an issue of “economic boost-erism” versus “social disruption.” In other words, are the economic benefits of a casino greater than its social costs? This would seem to be a straightforward question best answered by cost-benefit analysis. Academics, however, do not agree on the answer. One article in the Journal of Contemporary Criminal Justice concludes that the introduc-tion of casinos does not increase the volume of crime. A more recent paper from the Brookings Institu-tion indicates that casinos do in fact impose negative social costs. This paper finds some economic ben-

efits from gambling, but also notes that casinos siphon off money that would be spent on other local busi-nesses.

This last point is key: despite what casino advocates might argue, gambling revenue does not fall from the sky. Consumers who gamble are choosing not to spend that money on other things. For example, an increase in casino gambling might come at the expense of the Rhode Island Lottery, which contributes a higher percentage of its revenue to the state than does Twin River. Ad-ditionally, the social costs associ-ated with gambling are often hard to quantify, and even harder to directly associate with casinos. For example, it is possible that banning gambling and driving it underground creates more social costs than legalized gambling.

According to a report from the University of Massachusetts Dart-mouth, unlike most New England casinos, Twin River’s revenue has increased during the recession. In a recent survey, only 46% of Twin River patrons were from Rhode Is-land. Most of the remaining patrons were Massachusetts residents. The report speculates that the high cost of gas and the increasing preva-lence of “staycations” have allowed Twin River to attract patrons who formerly went to more distant casi-nos, such as those in Connecticut. These trends, however, might soon work against Twin River, as Massa-chusetts legalized casino gambling last year and is developing plans for new casinos. A study commissioned by Governor Lincoln Chafee found that by 2017 Rhode Island would lose $100 million of its yearly share of gambling revenue to casino gam-bling in Massachusetts.

According to Twin River, the casino’s contribution to Rhode Is-land was around $290 million last year, which, according to local pa-per Warwick Beacon, makes it the “third largest source of state revenue behind income and sales tax.” The casino contributes about $10 mil-lion to the town of Lincoln each year. This additional revenue is sig-nificant, given that Rhode Island has been especially hard hit by the recession: the state’s unemployment rate in July was 10.8%, while the na-tion’s unemployment rate was 8.1%.

Twin River is a dark and drea-ry place. Everyone would prob-ably rather see signs of recovery in the construction of new high-rises rather than in smoky rooms filled with poker tables. But these feel-ings do not change the reality of the situation. Twin River is already an established and growing institution in Rhode Island, and an important source of revenue for the town of Lincoln and for the state. Also con-sider that in Nevada in 1998, only one-third of gambling revenue came from table games. While this is an imperfect comparison, it suggests that introducing table games at Twin River will not lead to an explosion of gambling in Rhode Island, but might allow Twin River to compete with the coming Massachusetts casi-nos. This reality, combined with the fact that evidence of social disrup-tion caused by casinos is ambiguous at best, suggests that voters should approve the ballot question permit-ting table games at Twin River.

Matthew McCabe is a featured columnist for “Facts and Factions,” one of four columns constantly keep-ing up with the latest in politics at BrownPoliticalReview.org.

FROM THE WEBGAMBLING ON RHODE

ISLAND’S FUTUREMATTHEWMCCABE

See all our featured columnsat BrownPoliticalReview.org

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