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The Green-Zoning of America (NYTimes.com)
By PAUL KRUGMAN
Published: February 5, 2007
One of the best of the many recent books about the Iraq debacle is Rajiv Chandrasekaran’s “Imperial Life in the Emerald City.” The book tells a tale of hopes squandered in the name of politicization and privatization: key jobs in Baghdad’s Green Zone were assigned on the basis of loyalty rather than know-how, while key functions were outsourced to private contractors.
Two recent reports in The New York Times serve as a reminder that the Bush administration has brought the same corruption of governance to the home front. Call it the Green-Zoning of America.
In the first article, The Times reported that a new executive order requires that each agency contain a “regulatory policy office run by a political appointee,” a change that “strengthens the hand of the White House in shaping rules that have, in the past, often been generated by civil servants and scientific experts.” Yesterday, The Times turned to the rapid growth of federal contracting, fed “by a philosophy that encourages outsourcing almost everything government does.”
These are two different pieces of the same story: under the guise of promoting a conservative agenda, the Bush administration has created a supersized version of the 19th-century spoils system.
The blueprint for Bush-era governance was laid out in a January 2001 manifesto from the Heritage Foundation, titled “Taking Charge of Federal Personnel.” The manifesto’s message, in brief, was that the professional civil service should be regarded as the enemy of the new administration’s conservative agenda. And there’s no question that Heritage’s thinking reflected that of many people on the Bush team.
How should the civil service be defeated? First and foremost, Heritage demanded that politics take precedence over know-how: the new administration “must make appointment decisions based on loyalty first and expertise second.”
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Labels: Contracting, Iraq, Krugman, New York Times
Helping the Poor, the British Way (NYTimes.com)
By PAUL KRUGMAN
Published: December 25, 2006
It’s the season for charitable giving. And far too many Americans, particularly children, need that charity.
Scenes of a devastated New Orleans reminded us that many of our fellow citizens remain poor, four decades after L.B.J. declared war on poverty. But I’m not sure whether people understand how little progress we’ve made. In 1969, fewer than one in every seven American children lived below the poverty line. Last year, although the country was far wealthier, more than one in every six American children were poor.
And there’s no excuse for our lack of progress. Just look at what the British government has accomplished over the last decade.
Although Tony Blair has been President Bush’s obedient manservant when it comes to Iraq, Mr. Blair’s domestic policies are nothing like Mr. Bush’s. Where Mr. Bush has sought to privatize the social safety net, Mr. Blair’s Labor government has defended and strengthened it. Where Mr. Bush and his allies accuse anyone who mentions income distribution of “class warfare,” the Blair government has made a major effort to reverse the surge in inequality and poverty that took place during the Thatcher years.
And Britain’s poverty rate, if measured American-style — that is, in terms of a fixed poverty line, not a moving target that rises as the nation grows richer — has been cut in half since Labor came to power in 1997.
Britain’s war on poverty has been led by Gordon Brown, the chancellor of the exchequer and Mr. Blair’s heir apparent. There’s nothing exotic about his policies, many of which are inspired by American models. But in Britain, these policies are carried out with much more determination.
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Labels: economy, Krugman, New York Times, Opinion
Democrats and the Deficit (NYTimes.com)
By PAUL KRUGMAN
Published: December 22, 2006
Now that the Democrats have regained some power, they have to decide what to do. One of the biggest questions is whether the party should return to Rubinomics — the doctrine, associated with former Treasury Secretary Robert Rubin, that placed a very high priority on reducing the budget deficit.
The answer, I believe, is no. Mr. Rubin was one of the ablest Treasury secretaries in American history. But it’s now clear that while Rubinomics made sense in terms of pure economics, it failed to take account of the ugly realities of contemporary American politics.
And the lesson of the last six years is that the Democrats shouldn’t spend political capital trying to bring the deficit down. They should refrain from actions that make the deficit worse. But given a choice between cutting the deficit and spending more on good things like health care reform, they should choose the spending.
In a saner political environment, the economic logic behind Rubinomics would have been compelling. Basic fiscal principles tell us that the government should run budget deficits only when it faces unusually high expenses, mainly during wartime. In other periods it should try to run a surplus, paying down its debt.
Since the 1990s were an era of peace, prosperity and favorable demographics (the baby boomers were still in the work force, not collecting Social Security and Medicare), it should have been a good time to put the federal budget in the black. And under Mr. Rubin, the huge deficits of the Reagan-Bush years were transformed into an impressive surplus.
But the realities of American politics ensured that it was all for naught. The second President Bush quickly squandered the surplus on tax cuts that heavily favored the wealthy, then plunged the budget deep into deficit by cutting taxes on dividends and capital gains even as he took the country into a disastrous war. And you can even argue that Mr. Rubin’s surplus was a bad thing, because it greased the rails for Mr. Bush’s irresponsibility.
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Labels: Deficit, Krugman, New York Times, Opinion
Outsourcer in Chief (NYTimes.com)
By PAUL KRUGMAN
Published: December 11, 2006
According to U.S. News & World Report, President Bush has told aides that he won’t respond in detail to the Iraq Study Group’s report because he doesn’t want to “outsource” the role of commander in chief.
That’s pretty ironic. You see, outsourcing of the government’s responsibilities — not to panels of supposed wise men, but to private companies with the right connections — has been one of the hallmarks of his administration. And privatization through outsourcing is one reason the administration has failed on so many fronts.
For example, an article in Saturday’s New York Times describes how the Coast Guard has run a $17 billion modernization program: “Instead of managing the project itself, the Coast Guard hired Lockheed Martin and Northrop Grumman, two of the nation’s largest military contractors, to plan, supervise and deliver the new vessels and helicopters.”
The result? Expensive ships that aren’t seaworthy. The Coast Guard ignored “repeated warnings from its own engineers that the boats and ships were poorly designed and perhaps unsafe,” while “the contractors failed to fulfill their obligation to make sure the government got the best price, frequently steering work to their subsidiaries or business partners instead of competitors.”
In Afghanistan, the job of training a new police force was outsourced to DynCorp International, a private contractor, under very loose supervision: when conducting a recent review, auditors couldn’t even find a copy of DynCorp’s contract to see what it called for. And $1.1 billion later, Afghanistan still doesn’t have an effective police training program.
In July 2004, Government Executive magazine published an article titled “Outsourcing Iraq,” documenting how the U.S. occupation authorities had transferred responsibility for reconstruction to private contractors, with hardly any oversight. “The only plan,” it said, “appears to have been to let the private sector manage nation-building, mostly on their own.” We all know how that turned out.
On the home front, the Bush administration outsourced many responsibilities of the Federal Emergency Management Agency. For example, the job of evacuating people from disaster areas was given to a trucking logistics firm, Landstar Express America. When Hurricane Katrina struck, Landstar didn’t even know where to get buses. According to Carey Limousine, which was eventually hired, Landstar “found us on the Web site.”
It’s now clear that there’s a fundamental error in the antigovernment ideology embraced by today’s conservative movement. Conservatives look at the virtues of market competition and leap to the conclusion that private ownership, in itself, is some kind of magic elixir. But there’s no reason to assume that a private company hired to perform a public service will do better than people employed directly by the government.
In fact, the private company will almost surely do a worse job if its political connections insulate it from accountability — which has, of course, consistently been the case under Mr. Bush. The inspectors’ report on Afghanistan’s police conspicuously avoided assessing DynCorp’s performance; even as government auditors found fault with Landstar, the company received a plaque from the Department of Transportation honoring its hurricane relief efforts.
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Labels: Krugman, New York Times, Opinion
The Great Revulsion (NYTimes.com)
By PAUL KRUGMAN
Published: November 10, 2006
I’m not feeling giddy as much as greatly relieved. O.K., maybe a little giddy. Give ’em hell, Harry and Nancy!
Here’s what I wrote more than three years ago, in the introduction to my column collection “The Great Unraveling”: “I have a vision — maybe just a hope — of a great revulsion: a moment in which the American people look at what is happening, realize how their good will and patriotism have been abused, and put a stop to this drive to destroy much of what is best in our country.”
At the time, the right was still celebrating the illusion of victory in Iraq, and the bizarre Bush personality cult was still in full flower. But now the great revulsion has arrived.
Tuesday’s election was a truly stunning victory for the Democrats. Candidates planning to caucus with the Democrats took 24 of the 33 Senate seats at stake this year, winning seven million more votes than Republicans. In House races, Democrats received about 53 percent of the two-party vote, giving them a margin more than twice as large as the 2.5-percentage-point lead that Mr. Bush claimed as a “mandate” two years ago — and the margin would have been even bigger if many Democrats hadn’t been running unopposed.
The election wasn’t just the end of the road for Mr. Bush’s reign of error. It was also the end of the 12-year Republican dominance of Congress. The Democrats will now hold a majority in the House that is about as big as the Republicans ever achieved during that era of dominance.
Moreover, the new Democratic majority may well be much more effective than the majority the party lost in 1994. Thanks to a great regional realignment, in which a solid Northeast has replaced the solid South, Democratic control no longer depends on a bloc of Dixiecrats whose ideological sympathies were often with the other side of the aisle.
Now, I don’t expect or want a permanent Democratic lock on power. But I do hope and believe that this election marks the beginning of the end for the conservative movement that has taken over the Republican Party.
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Labels: 2006 election, Krugman, New York Times, Opinion
As Bechtel Goes (NYTimes.com)
By PAUL KRUGMAN
Published: November 3, 2006
Bechtel, the giant engineering company, is leaving Iraq. Its mission — to rebuild power, water and sewage plants — wasn’t accomplished: Baghdad received less than six hours a day of electricity last month, and much of Iraq’s population lives with untreated sewage and without clean water. But Bechtel, having received $2.3 billion of taxpayers’ money and having lost the lives of 52 employees, has come to the end of its last government contract.
As Bechtel goes, so goes the whole reconstruction effort. Whatever our leaders may say about their determination to stay the course complete the mission, when it comes to rebuilding Iraq they’ve already cut and run. The $21 billion allocated for reconstruction over the last three years has been spent, much of it on security rather than its intended purpose, and there’s no more money in the pipeline.
The failure of reconstruction in Iraq raises three questions. First, how much did that failure contribute to the overall failure of the war? Second, how was it that America, the great can-do nation, in this case couldn’t and didn’t? Finally, if we’ve given up on rebuilding Iraq, what are our troops dying for?
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Labels: Iraq, Krugman, New York Times, Opinion