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    The Death of Meaningful Live Coverage in US Media

    In an important article in Foreign Affairs cited yesterday in this column, Charles King mentions a particular initiative of media manipulation that an increasingly panicked President Lyndon Johnson undertook to defuse criticism of the war he had engaged in Vietnam. King describes a game of political chess that took place between William Fulbright, head of the Senate Foreign Relations Committee from 1959 to 1974, intent on exposing the bad faith of the government, and Johnson, who was desperately seeking to manufacture consent for his war.

    Fulbright, Vietnam and the Problem of Purity in US Politics

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    The chessboard was the media and specifically, television. “If there was a moment when the White House began to lose middle America,” King writes, “the Fulbright hearings marked it. From the outset, Johnson was so worried about their impact that he pressed one television network to air I Love Lucy reruns instead of live coverage.”

    Today’s Daily Devil’s Dictionary definition:

    Live coverage:

    The last increasingly feeble attempt by the media to acknowledge the abiding importance of reality in a culture that expresses a clear preference for hyperreality

    Contextual Note 

    Live coverage has always been a risky endeavor for the media, except in sports, where people understand the rules of engagement. Live coverage of a popular sporting event happens to be the most profitable form of entertainment. “Broadcasters pay heavily for sport because it is the best live, unscripted drama they can get,” according to one media commentator.

    War in some ways resembles sports because it pits two very serious adversaries against each other. US television networks in the 1960s sensed that live coverage of an emerging war could be profitable. But, in contrast with a sporting event, it entailed four serious problems beyond the physical risk to journalists themselves.

    Embed from Getty Images

    First, broadcasting unadulterated violence might violate the reigning standards of “decency.” But that could be solved with good editing.

    A second drawback lay in the fact that programming and planning became far more complex to manage since there was no official pre-announced schedule.

    The third was even thornier. It concerned the question of truthful reporting. Being too honest about what is happening on the ground risked alienating indispensable sources inside a government that desperately wants people to applaud “our side” and perceive the noble and even glorious side of combat.

    That consideration of honesty defines the fourth problem related to live coverage: Viewers keep expecting more reality at the very moment when the people promoting war decide they should see less of it. That leaves two options for news services: either scale back their reporting or begin misrepresenting or airbrushing the truth. But in the consumer society, the problem with scaling back (for example, offering sitcom reruns instead of Senate hearings) is that consumers always want more. In the end, misrepresentation — fake news — becomes the only viable solution. The key to manufacturing consent, as Noam Chomsky and Edward Herman made clear in their book with that title, is giving consumers not only what they want to hear, but what you (the media and the government) want them to want to hear.

    The Vietnam War brought home to both the government and the media the difficulty of managing live reality. The Nixon administration that followed both intensified the war and worked on molding the public’s mindset rather than either debating critics or seeking to hide from public scrutiny. Richard Nixon introduced the notion of “the silent majority” to neutralize the voices of protest and shame the refractory media by accusing them of failing to respond to the will of the people, “real Americans.” Nixon’s war on the media eventually backfired with the Watergate scandal, leading to his resignation in 1974. But it effectively drew attention away from his policies and onto his person, something Johnson was never able to do.

    From that point on, and thanks in part to the Watergate scandal itself, the media acquired the habit of focusing on the personality of presidents and neglecting critical discussion of their policies. Suddenly, there was plenty of live coverage of the Watergate affair itself and less and less of Vietnam, Indonesia and Chile, where the kind of foreign policy Fulbright denounced was being carried out with greater and greater impunity.

    Perhaps CBS and other audio-visual media had learned that live broadcasting of the reality produced by a president’s policies was too problematic to manage safely. In contrast, live broadcasting the dramas of the president himself excited their audiences. The public lapped up the scandals the media featured about Richard Nixon, the crook, Bill Clinton, the seducer, and George W. Bush, the bumbler and gaffer who, while launching disastrous wars, so charmingly failed even to put a coherent sentence together. Ronald Reagan, the incarnation of the wisdom attributed to Nixon’s silent majority, stood as an icon of Hollywood hyperreality, where scripted fiction distracted attention from the spontaneous and often duplicitous truth hiding behind it. Barack Obama, as the first black president, was protected by his own iconic status while, at the same time, silently polarizing the fears of the silent white majority. For them, his very presence in the White House was a scandal.

    As a living and breathing fountain of permanent scandal, Donald Trump was the godsend enabling all news outlets — for and against him — to thrive during a golden age of media. For four years, the kind of rational, critical discourse aiming at achieving some perspective on reality that Fulbright was known to promote disappeared from the airwave. The very idea of letting it be heard became anathema to media producers. This was as true of Fox (Republican, conservative) as of MSNBC (Democrat, liberal). The media relished every speech and tweet that emerged from Donald Trump’s creative impulses.

    Historical Note

    One problem with the American war in Vietnam was that, despite its superficial resemblance to a contest between “our team” and “their team,” it fundamentally failed to conform to the binary model. Americans never quite understood why the South Vietnamese government should be called our team. Lyndon Johnson’s massive deployment of troops was designed partly to convince Americans that it was a war not between two Vietnamese rival organizations with a claim to governing, but between American democracy and an illegitimate enemy that had no clear defining characteristics other than an apparent belief in Marxist theory. Those who delved into the people’s history understood that the North Vietnamese were nationalists whose goal was to finally break free of French colonial rule.

    The next serious problem with the conflict was the fact that once an American war starts, unless it is quickly won, it will go on forever. No excuse ever exists for stopping it. When, in his Senate hearings, William Fulbright called to the witness stand George Kennan — a highly respected presidential foreign policy adviser, considered by many to have written the ground rules of the Cold War — Johnson reacted. Knowing that Kennan judged the intervention in Vietnam to be a mistake, Johnson put pressure on CBS to replace its programmed live coverage of the hearings by stale reruns of popular sitcoms. This immediately provoked the resignation of Fred Friendly, the head of CBS’ news division. 

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    Friendly’s reaction tells us something about how the standards for truth that once existed even in corporate news media have evolved over time. Those who take the job now are only too aware of what’s expected of them. Like an Amazon or Uber driver, they obligingly deliver. They would never consider resigning simply because of orders from the White House. In any case, presidents no longer bother to put pressure on news editors to kill a story or live coverage. They prefer to send their message straight to the corporate executives who hire the news editors.

    Fulbright lived in a world that hadn’t yet fully realized that news could be entertainment and that politics and corporate interest could be seamlessly merged into a politico-media complex. In the 1960s, the idea persisted that political decisions could and should derive from rational analysis of historical context. But as President Dwight Eisenhower warned at the beginning of the decade, the military-industrial complex now occupied the government’s existential core. Its decision-making was based on cynical, irrational, profit-driven and power-hungry reasoning. William Fulbright, Walter Cronkite and Fred Friendly confronted that emerging world. They themselves belonged to a universe that no longer exists today.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Fulbright, Vietnam and the Problem of Purity in US Politics

    Though few millennials recognize his name other than as the title of a scholarship fund, Senator J. William Fulbright (1905-1995) stands as one of the most important and influential US politicians of his time. For the generation of young Americans appalled by the knee-jerk militarism coupled with an incomprehensible domino theory that culminated in the nation’s catastrophic engagement in Vietnam in the 1960s, the senator from Arkansas emerged as their champion of tolerance, rectitude and moral probity. Fulbright had demonstrated it initially in his courageous opposition to the paranoid anti-communism of Senator Joe McCarthy in the 1950s. But the message really came home with his sedulous opposition to the aggressive foreign policy of a fellow Democrat, President Lyndon Johnson, in the 1960s in Southeast Asia.

    Foreign Affairs has published an enlightening article by Charles King, a Georgetown professor of international affairs and government, bearing the title, “The Fulbright Paradox, Race and the Road to American Internationalism.” The article serves as a reminder of how different congressional politics is today in the age of Mitch McConnell and Chuck Schumer from what it was 60 years ago. It also reminds us how the two major issues that still preoccupy Americans — the role of the US as a global policeman and racial inequality — remain in the headlines as the source of serious division, despite a deep historical shift in political culture.

    France’s Electoral Abyss

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    The paradox King points to seems obvious today but was hardly shocking at the time. Fulbright “was a figure who committed his life to global understanding yet found it impossible to apply the same ideals to his homeland,” King writes. In short, the anti-militarist was a racist. For a generation ready to demonstrate in the streets and occasionally to join radical groups or even terrorist cells, Fulbright became the one politician within the halls of power to champion moral opposition to Johnson’s war. He valiantly organized Senate hearings on the origins and the conduct of a war Johnson was continually escalating. This was nearly two years before two senators, Eugene McCarthy and then Robert Kennedy, emerged as challengers to the incumbent president in the coming 1968 presidential election.

    Most people today remember the 1960s as the era of Martin Luther King’s powerful civil rights movement. But the two parallel dramas provoking massive protest against a neocolonial war abroad and endemic racial injustice at home shared the stage. King’s article highlights the fact that the enlightened, forward-looking liberal, William Fulbright, could at the same time think and act as a traditional Southern racist. He both opposed Johnson’s war and voted against the Texan president’s history-shifting civil rights act that abolished Jim Crow.

    It strains belief today to imagine that anyone at that time could have been both morally opposed to the Vietnam War and convinced that, as Fulbright’s biographer Randall Woods claims, “the blacks he knew were not equal to whites nor could they be made so by legislative decree.” 

    By the end of the 1960s, Fulbright began to adapt to the changing culture, embracing the lessons of the civil rights movement. “Later in life,” King writes, “he would claim his stance was tactical. Electoral viability in his home state of Arkansas depended on defending states’ rights and a gradualist approach to equality for Black Americans, he said.”

    Today’s Daily Devil’s Dictionary definition:

    Electoral viability:

    The strategic principle according to which all principles may be abandoned or silenced in the interest of achieving the ultimate goal: the obtention of political power that will permit the achievement of other goals not necessarily mentioned during the election campaign

    Contextual Note

    Fulbright’s influence on US culture in the 1960s was monumental. He defined a moral position that continues to inspire opponents of American overreach in its often doubtful claim to enforce the “rule of law” by aggressive measures against foreign populations, whether in the form of invasion and military occupation, debilitating sanctions or simply by propping up sanguinary dictators. His analysis of the folly of the Vietnam War holds today: “The cause of our difficulties in southeast Asia is not a deficiency of power but an excess of the wrong kind of power which results in a feeling of impotence when it fails to achieve its desired ends.”

    Embed from Getty Images

    Fulbright spent nearly 30 years in the Senate. To be reelected so many times required reassuring his electorate that he represented their interests and deepest beliefs. Arkansans clung to the old order. The majority opposed integration. In 1956, following the Supreme Court’s decision to end segregation in schools (Brown v. Board of Education), Fulbright helped to author and signed the “Southern Manifesto” that contested the constitutionality of the court’s decision. He clearly shared the majority’s basic racist view of the order of society. His political opposition to integration and not his anti-militarism made him electable.

    His position on race was more a result of lazy conformity than deep-seated racism. It evolved quickly during Richard Nixon’s presidency, to the point that The New York Times, covering the Arkansas primary contest between Fulbright and Dale Bumpers in 1974, wrote that “both are considered friendly to blacks.” In other words, like many politicians, Fulbright could follow the ineluctable trends. His intelligence permitted him to understand that Jim Crow was dead.

    Fulbright’s case illustrates a problem that has reemerged in contemporary US political culture. It takes the form of McCarthyist obsession with purity or political correctness. Politicians are judged on the basis of their absolute adhesion to a set of predefined positions by those who see themselves as guardians of the order. No deviation is tolerated. An individual who fails on any count will be rejected, shamed, exiled or excommunicated. Had this been true in the 1960s, the protesters who felt empowered by Fulbright’s resistance would have scorned him as a hypocrite.

    One example is the drama currently taking place in the Catholic hierarchy in the US. The Conference of Catholic Bishops has voted by a large majority to allow denying communion to anyone who publicly endorses a pro-choice position on abortion. Their specific target is President Joe Biden. The bishops appear more interested in taking a stance in the “more general culture war against ‘liberals,’ against Democrats, or even against Pope Francis” than they are with theological coherence. This ridiculous skirmish indicates one obvious truth: that partisan politics has overtaken religion as the dominant system of belief in the US.

    Another example is the left-wing comedian, Jimmy Dore, who in his popular podcast routinely vilifies politicians on the left who show compromise on any negotiation with the establishment. He has notably disparaged and insulted two public heroes of the progressives — Bernie Sanders and Alexandria Ocasio-Cortez — for refusing to revolt against the party’s mainstream leadership. Dore’s disappointment with their apparent pusillanimity is real. His own tactical position has its merits. But his refusal to acknowledge what may be called “electoral viability” could prevent the emergence of a politician capable of having the impact of a William Fulbright.

    Historical Note

    Charles King accurately describes William Fulbright as “the most broadly influential American internationalist of the twentieth century.” He credits him with the capacity to “stage-manage some of the most deeply civic moments of the era,” moments that helped define a moral stance regarding war and imperial reach that have left deep traces in US culture. Fulbright’s contribution was immense.

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    King reminds readers of a quote by the young John Kerry, at home just after serving in Vietnam: “How do you ask a man to be the last man to die for a mistake?” Some 40 years later, Kerry became President Barack Obama’s secretary of state. His role was to defend military operations that were initiated under George W. Bush and continued and even amplified under Obama. Soldiers are still dying for that particular foreign policy mistake. Once fully ensconced in the establishment, Kerry managed to forget Fulbright’s lessons.

    Fulbright once said: “We have the power to do any damn fool thing we want to do, and we seem to do it about every 10 minutes.” That includes everything that is being done today, especially by Republicans, to restrict voting rights, clearly seeking a return to Jim Crow. Were Fulbright alive today, his principles would probably guide him to oppose such initiatives with the same vehemence he demonstrated against Joe McCarthy.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    France’s Electoral Abyss

    Across the globe, democracy appears to be in a curious state. One of the main indicators of the health or pathology of democracy is the turnout in elections. Some might claim that the high turnout for the Biden-Trump face-off last year was a sign of health for US democracy.

    But the aftermath — marked by the “stop the steal” movement, a riotous occupation of the Capitol building and a continued spirit of revolt by a significant proportion of the citizenry as well as some prominent politicians — reveals that the spectacular numbers achieved by both candidates in the presidential election were a sign of high fever in the body politic rather than healthy democratic engagement. Many commentators noticed that voting against a particular candidate — Hillary Clinton in 2016, Donald Trump in 2020 — rather than voting for a preferred candidate may have been the determining factor in those two elections.

    The Sad Reality of US Dealmaking

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    Iran’s presidential election on June 18 was notable for its low turnout. But that is what everyone expected. Iran’s centrally controlled electoral system, emanating from a strictly hierarchical governmental structure in which the power of the president is extremely restricted, produces elections that are more accurately referred to as “selections.”

    Though the two-party system in the US, sometimes referred to as a “duopoly,” leaves itself open to a similar critique, Western democracies still hold onto the idea that elections are expressions of vox populi, reflecting the will of the people. The general trend noted in recent years and in many democratic nations toward levels of abstention that often dip below 50% indicates that belief in democracy as a viable representative form of government may be far less solid than politicians and educators like to affirm.

    France set a record on June 20 for its combined departmental and regional elections, two distinct opportunities to vote on the same day in the same place. With nearly 33.3% showing up to vote, two-thirds of the electorate simply didn’t bother. The only worse showing was in a referendum in 2000, where only 30% of the electorate bothered to vote on shortening the length of a presidential term. On Sunday, the abstention figure was dramatic enough, in any case, for President Emmanuel Macron’s press secretary to term it “abyssale” (abysmal).

    Today’s Daily Devil’s Dictionary definition:

    Abyssale:

    A French adjective, usually translated in English as “abysmal,” but with a more literal meaning that serves to compare what is being described to a literal abyss, something most French people also consider to be an appropriate characterization of the level of competence and efficacy of the current French government and more generally of the political class

    Contextual Note

    Macron’s government has every reason to deem the result of this first round abysmal. Occurring less than a year before the 2022 presidential election in which Macron hopes to break the recent trend of one-term presidents (Nicolas Sarkozy and Francois Hollande), the media and the pollsters regarded these local elections primarily as an indicator of what to expect in next May’s contest. The majority party — itself a “bricolage,” an assemblage cobbled together after Macron’s freak parting of the Red Sea in 2017 — performed particularly badly, not even attaining the 10% required to remain in the running for the second round in five of the 13 regions. 

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    For most of his term, Macron has had low approval ratings. He has never earned the admiration of the masses that presidents of the Fifth Republic once managed to achieve, though there have been moments when the French were willing to respect his apparent competence. This was especially true after his initial response to the COVID-19 pandemic. But there are other moments, far more frequent, in which his popularity has not only faded, but Macron himself has become an object of public scorn. The yellow vest movement that raged in 2018 and 2019 is the closest thing in modern times to the kind of popular revolt immortalized during the French Revolution that more than two centuries ago, at least provisionally, abolished the monarchy.

    The commentators were even more surprised by the unexpectedly low score of Marine Le Pen’s right-wing populist party, the National Rally, formerly the National Front. The media have been building up the idea that the second round of next year’s presidential election will inevitably be a remake of 2017, with a rising Le Pen challenging a fading Macron, a recipe for anguished suspense among those less tempted by fascism. Over the next week, and immediately following the second-round results, the pundits will begin drawing conclusions about what this tells us about who will actually be present in the second round next year and how they may fare. 

    The same pundits may even decide that it means nothing at all, given the rate of abstention. Prognostication has suddenly become a more difficult exercise. The manifest indifference of the electorate to everything that politicians believe is important does, however, tell us something about the state of democracy in France in what may be the waning years of the Fifth Republic. L’Obs, a left-center weekly, cites what it calls “fatigue démocratique,” a weariness with the very rituals of democracy.

    Historical Note

    The one dramatic indicator early commentators have highlighted is the apparent victory of the traditional right that had formerly been humiliated, finding itself in a no-man’s-land between Emmanuel Macron’s increasingly right-wing neoliberal center and Marine Le Pen’s xenophobic right-wing nationalism. Some see it as a sign of rejuvenation for the Gaullist tradition. The leader of Les Républicains, Xavier Bertrand, has been trying to resist Macron’s sedulous attempt to laminate the traditional right by adopting not only its policy themes, but also the demagogic Islamophobia of Le Pen’s party.

    President Macron, the self-declared centrist, was counting on using his status as incumbent to position himself in a way that would make him attractive to a full range of voters on the right, while assuming that in his contest with Le Pen in the second round, he would also pick up most of the voters on the left who would be afraid to abstain. This could be compared on some points with Joe Biden’s successful strategy in the 2020 US presidential election.

    Les Républicains appear as the real winners for the moment, if only because they have thrown a wrench into Macron’s 2022 strategy. There now may be a stronger likelihood that Bertrand will reach the second round opposite Macron, or possibly even opposite Le Pen. This is a cause of deep embarrassment, if not consternation. The combination of Le Pen’s low score and the Républicains’ success means that the traditional right — whose continuity dates back to Jacques Chirac and, ultimately, Charles De Gaulle, the founder of the Fifth Republic — may have recovered its mojo that so suddenly faded in 2017 following the scandals of its leading candidate, Francois Fillon, and its most recent president, Nicolas Sarkozy. The latter was recently convicted for electoral fraud and has been sentenced to six months in prison.

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    The media hasn’t begun asking the real historical question that underlies this curious drama. The parties are one thing, but what about the French people? What do they think, and what do they want at this historical “inflection point,” to quote Biden? The yellow vest spirit is still floating in the air, maybe even permeating the atmosphere.

    The only candidate to have dared to talk about the eventuality of a Sixth Republic is Jean-Luc Melenchon, the left-wing populist candidate who fared honorably in the first round of the 2017 election at a moment when the once conquering Socialist Party imploded. The French media refuse to take Melenchon seriously, except as a foil to the legitimate pretenders. He has been cast in the role of the French Jeremy Corbyn or Bernie Sanders, with a stronger intelligence, a more marked strain of rebelliousness against the establishment, but less charisma. Though he could never win a presidential election, he is still the strongest political personality on the left.

    With other crises brewing — a pandemic still dragging on, hints of a possible new global financial crisis, a deepening climate crisis, exacerbated European instability, complemented by shaky leadership in the US — the French may simply be wondering how voting for anyone promises to accomplish anything worthwhile.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    The Sad Reality of US Dealmaking

    The fallout from US President Joe Biden’s week in Europe has just begun. There was no dramatic moment that sums it up, though the media vaguely hoped the one-on-one with Russian President Vladimir Putin might produce something akin to the jabs, uppercuts and right crosses of Rocky Balboa vs. Ivan Drago in their opening round. But there was nothing to see. The fight wasn’t televised and Biden carefully avoided the risk of seeing both on stage in a joint press conference.

    Though no spectacular shift in US–Russia relations will likely appear in the months ahead as a result of the encounter, some aspects of Biden’s performance concerning the posture and attitude of the US on the world stage may prove pivotal. Biden’s actions and rhetoric in Europe have contributed in significant ways both to defining his presidential legacy and clarifying the shifting vocation of the US in a world that has become far more complex than the one previous presidents had to deal with.

    Biden’s Optimism vs. the Media’s Pessimism

    READ MORE

    Biden seems to realize it as he frequently refers to this moment of history as an “inflection point.” He’s right, though he seems to have seriously misjudged the nature of the tectonic shift the world is undergoing. Biden defines such inflection points as “moments in time when we’ve made hard decisions about who we are.” But the era in which presidential decisions in themselves constituted historical inflection points probably ended in March 2003, when the US, under George W. Bush, invaded Iraq. Forces were then unleashed that no longer await presidential decisions. Powerful undercurrents of history, the economy and of nature itself — all beyond any politician’s control — have been fueling the largely unmanageable force behind today’s inflection.

    Jonathan Lemire and Aamer Madhani are the authors of an AP article that focuses on Biden as America’s pitchman to the rest of the world. The title of the article is: “Biden Abroad: Pitching America to Welcoming If Wary Allies.” Reduced to its essence, Biden’s pitch consisted of reassuring his allies that he can be trusted simply because he is not Donald Trump, even though his policies have shown little indication of breaking with the former president’s innovations.

    Embed from Getty Images

    The world remembers Biden’s previous boss, Barack Obama, who before his election in 2008 claimed to represent a radical shift away from everything that Bush stood for. He even convinced the Nobel committee he was a prince of peace. Once in office, Obama prolonged most of Bush’s policies, including foreign wars, reinforcing the surveillance state and maintaining tax cuts for the wealthy, all of which imperiled the economy itself, leading to the 2008 financial crisis that he was tasked with solving.

    Lemire and Madhani note that whilst the allies in the G7 appeared relieved by the feeling that there was now “a steady hand at the wheel,” they were far from convinced that the US was permanently back on an even keel. They did end up agreeing to the general drift of Biden’s campaign to highlight the opposition between democracy (the West) and autocracy (China and Russia). 

    At the same time, the authors remarked that “Germany, Italy and the representatives for the European Union [were] reluctant to call out China, a valuable trading partner, too harshly.” More significantly, they noted that there was “a wariness in some European capitals that it was Biden, rather than Trump, who was the aberration to American foreign policy and that the United States could soon fall back into a transactional, largely inward-looking approach.”

    Today’s Daily Devil’s Dictionary definition:

    Transactional:

    An adjective that describes not only the willingness to make deals with others, but also the refusal to recognize the existence of anything other than calculation of individual interest in the conduct of one’s affairs and relationships even with permanent partners and allies.

    Contextual Note

    After his meeting with Putin, Biden declared: “This is not about trust. This is about self-interest and verification of self-interest.” He needed to reassure the American electorate that, unlike Trump, he had nothing but mistrust for Putin. But he may have been signaling what most Americans always want to hear: that nobody should be trusted, because all relationships begin — and most end — with the assertion of self-interest. America’s European allies have understood that, despite protestations of solid alliances, special relationships and undying friendship, Trump’s approach of reducing everything to a transactional deal was a true description of the reality of US policy under every recent president.

    The language used by the media demonstrates this reality with some clarity. The AP journalists already described Biden’s action as “pitching America.” In an article with the title, “Biden Struggles to Sell Democracy Abroad When It Faces Challenges at Home,” The Washington Post described Biden’s behavior in Europe to that of a street barker. “But then, like any good pitchman, Biden quickly regained his footing,” the Post reports. Diplomacy always involves self-interest and always contains an agenda, but when it consistently appears as a pitch, potential customers begin to doubt the sincerity. The authors of the AP article make it clear that, however persuasive the pitch, Biden has not yet closed any deal. They even seem to doubt one is likely.

    Historical Note

    Writing for Spectator World, historian Andrew Bacevich commented that Joe Biden’s premise concerning US leadership of democratically-inclined allies sounds like a desire to return to an imagined status quo that, following the collapse of the Soviet Union, appeared to be heralding what George H.W. Bush called “a new world order.” But in this century, history has moved on in ways Biden and most American politicians appear either not to have noticed or persist in willingly ignoring. “The idea that a US-led bloc of Western nations will determine the future of the planet will become increasingly implausible,” Bacevich explains.

    The historian puts in perspective Biden’s insistence on managing an inflection point: “While repeatedly insisting that history had reached ‘an inflection point’, he simultaneously reiterated the claim made by every US president since Harry Truman (Trump excepted) that ‘the partnership between Europe and the United States’ will determine the fate of humankind.”

    The G7 is that partnership, which now includes Japan. But the fate of humankind will rely on the interplay of forces that no single nation or group of nations controls. If there were a way of getting humankind itself into the picture through, say, a global democratic revolution that respects the classic democratic dictum of one man, one vote, the combat to promote democracy over autocracy might make some sense. But that is on no one’s agenda. The degree of inequality between nations and within nations may now have reached a point of no return.

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    Trump’s presidency taught the Europeans about the dangers of getting on board with grand US-led projects. They are beyond risky. The Joint Comprehensive Plan of Action (JCPOA), even more than the Paris climate accord, provides a perfect example. At a truly interesting historical moment marked by the election this weekend of a new president in Iran, the US actually has an opportunity to push toward a solution that would involve reconciling a number of competing interests stretching across a wide expanse of the globe.

    The New York Times believes that the election of Ebrahim Raisi as Iran’s new president may be the perfect opportunity for Biden. Its reasoning makes sense. If Raisi makes the concessions necessary to remove US sanctions, Iranians will have the hope of returning to a prosperous economy. Still, the heritage of Donald Trump has seriously weakened US credibility. “The Iranians have demanded a written commitment that no future American government could scrap the deal as Mr. Trump did,” the Times reports. “They want something permanent — ‘a reasonable-sounding demand,’ in the words of one senior American official, ‘that no real democracy can make.’”

    What the official means is that a real democracy could make that “reasonable-sounding demand,” but not the US version of democracy. The Times explains: “Mr. Biden, like President Barack Obama before him, could never have gotten the consent of two-thirds of the U.S. Senate. So it is termed an ‘executive agreement’ that any future president could reverse, just as Mr. Trump did.”

    Bacevich is right. The US, even with Europe, cannot “determine the future of the planet.” It can’t even define a line of policy that will hold for more than four years. The most powerful nation in the world is also the most powerless.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

  • in

    Biden’s Optimism vs. the Media’s Pessimism

    Media commentators initially gave good ratings to US President Joe Biden after his meeting with Russian President Vladimir Putin. They expressed a sense of relief, in large part due to the contrast in tone with Donald Trump’s performance in similar situations, guaranteed to produce a sense of unexpected drama. Biden confirmed his image of a seasoned diplomat capable of engaging in civil dialogue, setting the stage for eventual problem-solving.

    But the event left US media with mixed emotions. Calm problem-solving may be good in the abstract, but isn’t Russia the evil empire? Isn’t a president’s mission the humiliation of the enemy? The New York Times, for example, has recently been praising Biden as a transformative president. But the Gray Lady has also been locked in a pattern of blaming Russia for every bit of unwelcome news affecting the US, from cybercrime and UFOs to directed energy attacks and more.

    Biden’s Binary Battle Against Putin

    READ MORE

    Prior to the summit, the Times and other outlets prepared their public to expect Biden to charge Putin with a litany of accusations he could not deny. Though no serious journalist expected the script of the meeting to result in a first-round knockout, followed by Putin’s emotional confession of all the crimes he has shamelessly committed against American democracy, they clearly were interested in counting the punches Biden might land to make the Russian leader wince.

    That clearly didn’t happen. Less obsessed by the Russian bugbear, Axios coolly analyzed what it called “Biden’s two-step negotiating process,“ highlighting the fact that his “approach with Putin followed his approach to Congress: try to take the most optimistic path, give it some time and be prepared to march ahead with consequences.”

    CNN and The New York Times showed the kind of impatience outlets obsessed with prosecuting Russia for its endless crimes feel obliged to display. Kaitlin Collins, a reporter at CNN, accused Biden to his face of being “confident” Putin would “change his behavior,” clearly unnerving the president. Michael D. Shea, the White House correspondent at the Times, made a point of expressing that impatience when he wrote: “Mr. Biden’s response to his Russian adversary underscored a persistent feature of his presidency: a stubborn optimism that critics say borders on worrisome naïveté and that allies insist is an essential ingredient to making progress.”

    Today’s Daily Devil’s Dictionary definition:

    Stubborn optimism:

    The only kind of optimism pessimists recognize

    Contextual Note

    Some attribute to P.T. Barnum the phrase, “Never give a sucker an even break.” Barnum did say, “There’s a sucker born every minute.” The idea that they never deserve an even break has become the equivalent of a wise saying for many Americans in the world of business.

    The US owes its position as the world’s dominant economy to its ruthlessly competitive business culture. But this harsh reality sits alongside a deep-seated belief in popular democracy and the rosy fantasy of the power of the people. This contrast has spawned an interesting divide within society itself. The capitalists — the makers and doers — in the business world tend to be pessimists. Believers in democracy are optimists. Successful capitalists with a true competitive spirit see most other people — competitors and customers alike — as suckers who deserve to be taken advantage of. This pessimistic disdain for other people is sometimes highlighted as the virtue of assertiveness.

    Embed from Getty Images

    In contrast, the conviction that democracy is the true model of social relations correlates with optimism and trust. For many, this sums up the distinction between the culture associated with Republicans and Democrats. Individualistic Republicans celebrate the assertive winners, whose winning takes place at the expense of the losers, the suckers. Democrats pity the losers, believing they should be encouraged to succeed. Success is most satisfying when it is shared.

    Biden will always play the role of optimist. But that doesn’t imply that he always thinks like an optimist. To be successful during a long career usually requires applying the lessons of pessimism. The “liberal media” in the US — which includes The New York Times, The Washington Post, MSNBC, CNN and others — must pay lip service to optimism. But to achieve the success they have achieved, they must also be ready to criticize the optimists and even accuse them of naivety. And when it comes to Russia, everyone has been taught to be a pessimist.

    Explaining his diplomatic approach, Biden seems to be saying: I start as an optimist and then shift to pessimism when things start to become serious. It is a well-worn strategy in the American tradition. The problem for media like the Times or CNN is that they have designated Russia as the arch-villain in the story. True heroes must never be indulgent with the dragons they are on a mission to kill.

    Historical Note

    During Joe Biden’s jaunt to Europe, the media focused on deciphering his attitude not only toward the enemy, Vladimir Putin, but also to his allies at the G7 summit. None showed an interest in the clues Biden provided of his thinking about the rest of the world. At his June 13 press conference in Cornwall, Biden’s improvised remarks tell a subtle but sad story about his vision of the world. It is fundamentally that of the leader of an increasingly rudderless empire posing as an enlightened democracy.

    Biden began by defining the role of the US and the G7 in these most condescending terms: “Everyone at the table understood and understands both the seriousness and the challenges that we’re up against, and the responsibility of our proud democracies to step up and deliver for the rest of the world.” Perhaps Biden thinks of himself as the equivalent of Jeff Bezos, whose mission is to deliver goods to the rest of the world at a profit.

    The president follows that with this syntactically broken train of thought: “The fact is that we — the U.S. contribution is the foundation — the foundation to work out how we’re going to deal with the 100 nations that are poor and having trouble finding vaccines and having trouble dealing with reviving their economies if they were, in the first place, in good shape.” On one side, there is “the foundation,” the US. On the other, there are 100 helpless, nameless struggling nations. This is Biden’s polite version of Donald Trump’s standard motif: We are the winner and everyone else is a loser.

    He then embarrassingly explains the importance of what he repeatedly calls the “COVID project,” having apparently confused the disease with COVAX, the international program to distribute vaccines to low and middle-income countries. In its transcript, the White House discreetly added COVAX after each mention of “COVID.”

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    Perhaps the most rational and realistic — but at the same time troubling — thing Biden had to say in his speech was what sounds like his promise that “there will be future pandemics.” In other words, he looks forward to new occasions where the US will “step up and deliver for the rest of the world.” He even repeats the promise a few lines later: “And there will be others.”

    After applauding his own effort to impose a 15% tax on corporate profits — which may even lead to more inequality among nations — Biden lauds his Build Back Better World Partnership (B3W) designed to counter China’s Belt and Road Initiative. To anyone familiar with the history of US marketing, it sounds a lot like Pepsi seeking to dethrone Coca-Cola. At least Biden has his acronym and maybe will soon have a logo.

    In the most embarrassingly stupid moment, which should make professional marketers cringe, Biden describes the B3W strategy: “By harassing the full potential of those who are harassing, we’re going to have to try and change things.” Apart from the difficulty of harassing someone else’s “full potential,” we are left wondering how he could think he is doing a service to needy countries by proposing a policy of harassment. It may be better than a military invasion and decades of drone warfare, but if that’s the best the US has to offer the developing world, it might be better just to stay at home and focus on America’s own infrastructure needs.

    From that point on, his speech, Biden’s syntax and train of thought become even more incoherent, but there is too much to highlight in this short article. More to come next week.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Biden’s Binary Battle Against Putin

    Well before his trip to Europe, Joe Biden’s team worked out the strategy for its messaging that would color everything connected to foreign policy. Vox summed up the drift with this title: “Biden sees his presidency as proving democracy — not authoritarianism — right for the world.” It is now common for pundits to lament that democracy appears to be under threat, though few agree on the nature of that threat.

    Just as during the Cold War, the US understands the marketing advantage of casting its global mission in binary terms. But this time, instead of communism vs. capitalism, the contrast is between democracy and authoritarianism. The average political consumer will immediately see it as a real and significant choice. In reality, there will always be a third and fourth choice, but deliberating on those choices requires serious thinking. The third choice is neither, which means rejecting both as insufficient. The fourth is something in between, which is what most European nations chose following World War II.

    NATO’s New Challenge in East Asia

    READ MORE

    Faced with the binary choice, nearly everyone besides autocrats themselves will spontaneously choose democracy. But choosing the side that calls itself democratic doesn’t mean that one has chosen democracy. It means one has chosen the side that claims to represent democracy. Like any set of ideas, democracy can be a coherent philosophy accompanied by an ethical system of thought or a mere slogan. In the land of P.T. Barnum and Edward Bernays, the father of public relations, one can never be absolutely sure.

    The Biden administration has clearly understood the advantages of the binary strategy. It is even more compelling in the light of the ostentatious assault on democracy conducted by President Biden’s predecessor, Donald Trump. The Trump loyalists who complain of a stolen election are clearly a minority, but they remain a significant minority, capable of doing extensive damage. They further weaken the already fragile belief that the US electoral system embodies true democratic values. They offer a glaring example to the rest of the world of virulently anti-democratic behavior. They confirm the image many people have of a culture so obsessed with winning that it could never tolerate the give-and-take that democracy implies.

    Following Biden’s arrival in England for the G7 conference, The New York Times reported that the US president “has made challenging a rising China and a disruptive Russia the centerpiece of a foreign policy designed to build up democracies around the world as a bulwark against spreading authoritarianism.”

    Today’s Daily Devil’s Dictionary definition:

    Authoritarianism:

    The epithet commonly attributed by one political authority, whose power derives from a sense of obedience to a particular group of interests, to another political authority who responds to a different group of interests

    Contextual Note

    In today’s remake of the Cold War — which, in many ways, resembles more the facades of a Hollywood set than it does the decades-long historical standoff between the US and the Soviet Union — Biden desperately needed to define a similar ideological split, even though the entire world had fallen into the global political and economic culture imposed by the US. Guided by his political marketers, the 78-year-old could appreciate that the winning formula from the 1950s and 1960s might still resonate with his countrymen. After all, Trump earned his victory in 2016 by exploiting the implicit nostalgia for the post-war years of prosperity with his motto, “Make America Great Again.” Americans have been conditioned to think of the 1950s as their golden age.

    Embed from Getty Images

    This idea has been brewing in the Biden administration for some time as the president’s way of defining his mission in the world. As the Times remarks, “Mr. Biden has argued that the world is at an ‘inflection point,’ with an existential battle underway between democracy and autocracy.” What was once capitalism vs. communism has become democracy vs. autocracy. 

    It may seem paradoxical that following his meeting with Russian President Vladimir Putin in Geneva on June 16, Biden described Putin’s state of mind in these terms: “The last thing he wants now is a Cold War.” This sounds reassuring. Could it mean that the new cold war is over? It is more likely that, once back on terra firma in the US, Biden will return to his theme of the Russian threat, warning that you can never trust Russian leaders. He will certainly boast of his diplomatic accomplishment, lowering the temperature, while seizing on the first occasion that presents itself to accuse Russia of not keeping its promises.

    For the moment, the vibes produced by the Geneva summit appear positive, positive enough in any case to leave The New York Times unsure of how to characterize the meeting. The Times journalists highlight Putin’s assertions of good intentions, but they leave considerable space for doubt about any concrete future outcome when they write: “Mr. Putin said he was ready for talks with the United States, and he voiced unusual optimism about the possibility of achieving results.” “Unusual” was the required epithet, meaning that any hope of actually achieving results should, in the readers’ minds, remain doubtful. The fact that dialogue exists, nevertheless, stands as a very real victory for Biden, if only as a contrast with Trump’s confrontational approach to diplomacy.

    The article concludes by highlighting Putin’s literary culture, who cited Leo Tolstoy to sum up the outcome of the summit. “There is no happiness in life — there are only glimmers of it.” For Americans, who believe in their absolute right to the “pursuit of happiness,” this will be seen as a typical example of Russian fatalistic pessimism, something that Americans, whose culture celebrates optimism, will never accept. It has its literary charm, but it lacks the pizazz of Yankee ambition.

    Historical Note

    Most serious observers today are aware of a deep crisis of Western democracy, a more than two-century-old experiment that sought to demonstrate the possibility of creating and maintaining a government responsive to the people rather than as the privileged tool of a ruling class. The US and other Western countries have recently been faced with the confusion associated with the rise of populism, both on the left and the right.

    Populist movements are suspicious of those who have assumed the habit of governing, whatever their declared political orientation. Not only do they appear self-interested, but they are also seen as the hypocritical puppets of an obscurely perceived oligarchical class. The populists are right to suppose that there is more to the exercise of power than appears in the discourse of the power-wielding politicians. They call it the “deep state” and imagine it as a kind of dark well whose depth is unknown but can only be speculated about.

    Today’s version of capitalism is less industrial than purely financial. That means that power will always be measured by the ability of those who exercise or influence power to pay for what they want. In such a system, can democracy as 18th-century Enlightenment thinkers imagined it still have any meaning? A famous Princeton study published in 2014 describes the reality of decision-making today and calls the political system an oligarchy. “In the United States, our findings indicate, the majority does not rule.” It notes that “policymaking is dominated by powerful business organizations and a small number of affluent Americans.” It concludes that “America’s claims to being a democratic society are seriously threatened.”

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    The Balance website characterizes oligarchy in these terms: “Oligarchs only associate with others who share those same traits. They become an organized minority, while average citizens remain an unorganized majority. The oligarchs groom protégés who share their values and goals. It becomes more difficult for the average person to break into the group of elites.” That would appear to be a more accurate description of US politics today than the romantic idea of Jeffersonian democracy or Abraham Lincoln’s “government of the people, by the people and for the people.”

    Then comes the question: Is an oligarchy authoritarian? No, because there is no single decision-maker or institution capable of defining government policy. But neither is it a democracy. If he wished to be honest, perhaps Joe Biden should characterize the combat for the future as a contest between oligarchy and autocracy. The problem: It doesn’t sound convincing to Americans, who still feel an atavistic attachment to the idea of democracy.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    NATO’s New Challenge in East Asia

    US President Joe Biden used the occasion of his trip to Europe for the G7 summit to attend his first NATO meeting. His influence on the meeting appeared unambiguously when a communiqué by the NATO alliance designated China’s influence on the world stage as a military challenge. 

    NATO was born in the aftermath of the Second World War as the West’s response to the ambitions of the Soviet Union, which controlled large portions of Eastern Europe and represented an ideology considered inimical to Western political and economic culture. This gave rise to the Cold War, framed as the rivalry between two systems of social and economic organization: capitalism (supported by democracy) and communism (the dictatorship of the proletariat).

    Does the World Need to Contain China?

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    Because humanity had entered the nuclear age, the Cold War cultivated a permanent and universal feeling of potential terror, unlike tensions and wars of the historical past. Its name, “Cold War,” has been attributed to George Orwell, who didn’t live long enough to see how it would develop. The author of “1984” imagined “two or three monstrous super-states, each possessed of a weapon by which millions of people can be wiped out in a few seconds.” In the end, there were only two major players. The laws of hyperreality, just like the laws of conventional information technology, require reducing the governing logic to a binary opposition. The age of quantum logic, which humanity is only just now discovering, had not yet begun.

    The Cold War was cold in relative terms, simply because the heat that a real nuclear war might produce would have dwarfed anything humanity had ever experienced. As soon as a nuclear war started it would be over, as no one would be left standing. This too reflected the binary logic of the time. There were exactly two choices: hot war or cold war. There could be no warm war between the two proud rivals. A cold war was clearly preferable in the eyes of anyone who wielded power. The leaders in the US understood how to profit from that preference. It justified the creation and rapid growth of a powerful military-industrial complex at the core of the American empire.

    The Cold War marked a moment of history in which military technology was undergoing its most radical paradigm change, thanks to the invention of nuclear weapons in the US and their capacity for devastation demonstrated by their operational deployment in Japan that put an exclamation point on the end of the World War. The entire world became gripped in a state of permanent fear, attenuated only by the sense that because no leader would likely be suicidal enough to engage in open conflict, the actors of the economy were free to realize their boldest ambitions.

    Embed from Getty Images

    In the West, the Cold War produced an odd cultural effect of “carpe diem,” the feeling that it was necessary to “seize the day” and have fun, because there may be no tomorrow. This feeling drove both the rapid growth of the consumer society and the cultural liberation movements we associate with beatniks and hippies. It also proved fatal for the Soviet Union’s false utopia of worker solidarity that depended on accepting austerity for the good of the collectivity.

    NATO should have become obsolete after the fall of the Soviet Union in 1989. But the camp built around the clout of the US military-industrial complex could not simply be dismantled and put to pasture. Two presidents, George H.W. Bush and Bill Clinton, had little choice but to maintain NATO because the entire US economy now revolved around the logic of the military-industrial complex.

    That militarized economy had become the key to installing a global, neocolonial system capable of replacing Europe’s colonial system that was in the decades following World War II. Because it was industrial as well as military, it spawned the technologies that began to dominate the global economy. These new technologies conveniently straddled the pragmatic (civil applications) and the political (military applications), providing a new motor for the late 20th economy that we all live under today.

    Though NATO had lost its initial geopolitical justification, it continued to operate as a pillar of the new military-economic system. It influenced the evolution of the formerly isolated regime of communist China, destined to become a major actor in the global economy. There was only one model for any large nation that wished to participate effectively in the global economy. It had to encourage capitalism and have its own military-industrial logic. China has succeeded, thanks to the global consumer market spearheaded by the US. For various reasons, India, which might have moved in that direction, failed.

    NATO now finds itself in an odd position. Contested by the mercurial Donald Trump, its members greeted with a sigh of relief the electoral victory of a conventional Cold War establishment politician, Joe Biden. For the past five years, Biden’s Democratic Party has sought to revive the ambience and ethos of the Cold War, focusing on Russia. But Russia simply isn’t a serious rival of the US. Both major US parties have designated China as the bugbear to focus on. But China falls way outside NATO’s “North Atlantic” purview.

    Nevertheless, Biden appears to have persuaded NATO to include China in its official discourse. The communiqué from this week’s meeting makes the case: “China’s stated ambitions and assertive behaviour present systemic challenges to the rules-based international order and to areas relevant to Alliance security.”

    Today’s Daily Devil’s Dictionary definition:

    Systemic challenge:

    A politically correct euphemism for “serious threat,” applied to anything that calls into question the weaknesses and vices of an existing system, especially when that system’s weaknesses and vices have become dramatically visible

    Contextual Note

    The unresolved pandemic that has been raging for nearly a year and a half and the growing crisis of climate change have created a situation in which the system now being challenged has been found seriously wanting. Defending the status quo has become an ungratifying task. All lucid observers agree that the political and economic system inherited from the 20th century needs either to evolve radically or be replaced by something new. 

    It is equally clear that Beijing has no alternative system to propose. This is partly because China’s success is due largely to its adaptation to and integration within the system being challenged, but equally because the Chinese system of autocratic communism is a failed model itself and the Chinese themselves know it.

    NATO worries about China’s “stated ambitions and assertive behaviour.” But in reality, its ambitions appear modest and the behavior, while certainly assertive, cannot compare with the historically aggressive behavior of the US, so clearly demonstrated in Korea, Vietnam and the Middle East.

    Historical Note

    As for the “systemic challenges to the rules-based international order,” the rules that existed at the time of the creation of the United Nations and the establishment of the Bretton Woods system have long been challenged by the Western powers, to the point of being distorted beyond recognition.

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    Even the reference to “areas relevant to Alliance security” needs to be put in historical perspective. NATO is nominally focused on one area in the world: the North Atlantic. But for the past two decades, it has ventured further and further, not only into Eastern Europe, but also Afghanistan, presumably turning Central Asia into an area of “Alliance security.” With the political turmoil that emerged in 2016 in both the US (Donald Trump) and Europe (Brexit), there should be enough to feel insecure about within NATO’s traditional sector of the North Atlantic. Reaching out to China’s area of influence would be a real stretch.

    It’s true that China’s Belt and Road Initiative (BRI) seeks to extend its influence across both Asia and Europe. This could be interpreted as potentially encroaching on the North Atlantic military fiefdom. But the BRI’s character is economic and clearly not military. It is soft power rather than hard power.

    Most lucid observers in the West, conscious of the current system’s growing incapacity to deal with any global problem — whether it’s a pandemic, war, migration, domestic tranquility or climate change — find themselves looking for something that could be called a “systemic challenge” to the current unproductive and often unjust system of doing things. At the end of the day, the systemic challenge at home will likely have more impact than China’s.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Should Billionaires Be Taxed Differently?

    As a columnist for The Washington Post, Megan McArdle works for the Post’s owner, a man named Jeff Bezos. Over the past two decades, McArdle has had numerous other prestigious bosses. She boasts a solid career in high-level journalism, having worked for The Atlantic, Newsweek, The Economist and Bloomberg, among others. Bloomberg View’s executive editor, David Shipley, once called her “an extraordinary writer and thinker.”

    Early on, in 2001, McArdle broke onto the scene as the author of a blog, “Live from the WTC,” at a time when most people were not yet addicted to the internet and few even knew what the word blog meant. Making her mark as a blogger required one of two talents: the ability to come up regularly with remarkable scoops and cutting insights, or developing a shrill, brutally opiniated voice capable of irritating the right class of adversaries and resonating with a crowd of equally opinionated followers. McArdle long ago branded herself a libertarian. That quite naturally helped to define her as the second type of celebrated blogger. She has consistently lived up to that billing, even as an opinion writer for the revered Washington Post.

    ProPublica Reveals the US Is a Tax Haven

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    McArdle has now weighed in on ProPublica’s blockbuster scoop last week concerning the tax returns of the 25 richest Americans. New York Times editor Spencer Bokat-Lindell prudently commented: “Depending on your point of view, it was either one of the most important stories of the year or an invented scandal.” The Times author exposes the significant complications when wishing to address the issue of taxing the super-rich. He coyly conceals his own point of view. 

    In her column in The Washington Post bearing the title, “Think Twice Before Changing the Tax Rules to Soak Billionaires,” McArdle doesn’t hesitate to trumpet her point of view urbi et orbi. “Think twice” of course means: Read my article and stop complaining. She suggests that taxing the rich more would be undemocratic because it would mean treating them differently from other citizens. That would be an injustice. Her jibe, “soak billionaires,” suggests that taxing them would be torture similar to waterboarding.

    Then McArdle offers this: “We talk a lot about rich people ‘paying their fair share,’ but we’re rarely clear on what exactly we mean by that.”

    Today’s Daily Devil’s Dictionary definition:

    Fair share:

    An amount corresponding to the implicit rules of equitability that apply in any society that values solidarity, meaning that no such amount can be determined in a society with an ideological bias against solidarity

    Contextual Note

    McArdle may have been inspired by former UK Prime Minister Margaret Thatcher who, to the rhetorical question, “Who is society?” gave this response: “There is no such thing! There are individual men and women.” That means fairness is in the eye of the beholder. It also means all’s fair in love and war… and tax avoidance. In any case, the two ladies appear to share a similar train of thought. In the idea of “fair share,” it isn’t the concept of “fair” that upsets either of the ladies. It’s the idea of “share.” In McArdle’s mind, the noun “share” simply designates a unit of ownership in a corporation’s stock. Society, in this sense, is hardly different from a community of shareholders, some owning many more shares than others.

    The columnist speculates about what it would mean if the wealthy were taxed on the added value of the stocks they own. She imagines a melodramatic scenario in which “they might be forced to sell off stock of a business they spent decades building.” Shares cannot be shared, so they must be sold. That would be downright tragic because the builders might just stop building and then where would society be? But having made her melodramatic point, she doesn’t even try to imagine how such things would play out in the real world. Like Kurtz in Conrad’s “Heart of Darkness,” she simply invokes “The horror! The horror!”

    McArdle’s shock at the idea of entrepreneurs losing their life’s work makes no sense for two fairly obvious reasons. The first is theoretical, the second pragmatic. In theory, a wealthy person could be forced to sell stock to pay a percentage of capital gains. That person’s share of the company would be correspondingly diminished, but in almost all cases only slightly, since the tax would only represent a percentage of the gain in value. Owning 10% of a company valued at $1.5 billion is better than owning 12% of a company valued at $1 billion. In the long term, having to sell those more shares could end up reducing the person’s future wealth. It would not reduce their current wealth.

    Embed from Getty Images

    But because real billionaires tend to be well advised and own portfolios that allow them a wide range of options, they never make such sacrifices. Whether it is to buy a yacht or pay taxes, they rarely if ever liquefy any assets. They borrow against those assets, which has the added value of reducing their declared income on which they would normally pay taxes.

    For most people, income represents the money they must earn to survive or maintain a lifestyle. Because wealthy owners of businesses decide on their own remuneration, they avoid having a substantial taxable income by living lavishly off money they borrow from a bank and pay back with interest. The interest is the only “penalty” they pay for their prodigality. It is nowhere near what they would pay in taxes. It’s an ideal solution. Banks love lending money to the rich because there is zero risk. The wealthy avoid taxes. Their tax lawyers and accounts earn a decent fee. The society of ordinary taxpayers reaps no benefit other than whatever trickles down from the high profit margins of those who sell yachts and luxury goods.

    McArdle doesn’t want to know about such systemic truth. Instead, she returns to her imaginary vision of a system obsessed by its envy of the rich and intent on invoking the idea of fairness to constrain their freedom. She confesses that, “given a choice between letting billionaires spend fortunes reaching for the stars, or destroying those fortunes so that the rest of us don’t have to look at them, then personally, I’ll take the rockets.”

    Historical Note

    The rockets that Megan McArdle refers to are those that her boss, Jeff Bezos, is building thanks to his astronomic fortune, some of which he has invested in his space venture, Blue Origin. Is it a coincidence that she works for Bezos’ newspaper and that she uncritically assesses his personal indulgences?

    Her previous column, with the title “Why Aren’t We Talking More About UFOs?” clearly advances the interests of Blue Origin. The more concerned Americans are about alien invasions — whether from outer space, China or Russia — the more public money (provided by ordinary taxpayers) will be available to support Blue Origin, a company that is about to receive a gift offered by Congress of $10 billion to colonize the moon, even after losing out in a public bid to fellow billionaire Elon Musk’s venture, SpaceX. 

    McArdle probably thinks of Blue Origin as yet another example “of a business [Jeff Bezos] spent decades building.” His lobbyists have convinced the government to spend billions on it, while Bezos himself skirts his tax obligation. She complains that the argument demanding “‘taxes on untaxed capital gains’ is what you come up with if you just don’t think anyone should have enough money to be able to shoot themselves into space.” The “you” she refers to is ProPublica, which dared to make that case, and anyone else equally feeble-minded enough to begrudge billionaires their private pleasures. 

    Bezos’ ownership of the Post is paying off. When making the decision to buy the paper in 2013, he reasoned: “The Washington Post has an incredibly important role to play in this democracy. There’s no doubt in my mind about that.” Had he waited a year to consider the findings of a Princeton study published in 2014 with the title, “Testing Theories of American Politics: Elites, Interest Groups, and Average Citizens,” he might have more accurately explained: The Washington Post has an incredibly important role to play in this plutocracy.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More