The American People and American Interventions →

The question of whether the US should, or can, sustain a foreign policy that is increasingly out of synch with the views of the people is one that should be taken seriously in a democratic country. If the American people have no appetite for further intervention, then that should be a major consideration for any president or policy maker. If those leaders believe the policy is essential for US interests or security it is their responsibility to build public support for that policy. A failure to build that support is a failure of leadership and ultimately of democracy as well.

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Will We Have Another Election with No Discussion of Jobs? →

It is obviously in the interest of the American people for jobs to be at the center of the upcoming presidential election. If both candidates, and parties, focused on job creation during the campaign, offering competing visions to address the issue of job creation, than the issue that dominates the lives and outlook of many Americans would get the attention it deserves. A campaign in which joblessness is viewed as a central problem that needs to be addressed is not likely because, while it may be what the people want and need, it does not help either of the major parties, or their likely, and in the case of the Democrats, all but certain, nominees.

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2009 Annus Horriblus or the Year We Stopped Digging

Obama’s first year in office, while far from a foreign policy failure, has not brought resolution to any of the major challenges facing the U.S. Wars continue in Afghanistan and Iraq; peace remains more elusive than ever in the Middle East; Iran is still on the brink of developing nuclear weapons; significant parts of Eastern Europe and the former Soviet Union remain concerned about renewed Russian power in that region and the global economic downturn has raised the possibility of political instability in much of the world. This was the capstone year of a decade that has included the terrorist attack on September 11th, 2001, a conflict in Iraq that has lasted considerably longer than the U.S. involvement in World War II, plummeting U.S. popularity abroad, the stalling, or even reversal, of the spread of democracy, and rising military, political and economic threats to the U.S. from Teheran to Beijing and from Moscow to Caracas.

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The Crisis of No Crisis: The Post-Recession Blues

The celebration of the recovery is a little premature, but it reflects the reality that most financial pundits and reporters have only two settings regardless of the economic conditions. One might be called the Jim Cramer setting, where we are told that talk of recession is nonsense and that we should keep buying. The second might be called the Nouriel Roubini setting, where we are told that things are much worse than we think. Accordingly, first the recession itself, and later the overstated claims about how bad it was going to be, have discredited most of the financial punditry.

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Talking About Recovery, Talking About Recession →

During an appearance on Face the Nation this past Sunday, Lawrence Summers, economic advisor to President Obama, remarked "Six months ago, when the president took office, we were talking about whether recession would become depression...Today we are talking about when recession is going to end." These comments only make sense if taken in the most literal sense. Summers is right. The administration is certainly speaking about the economy differently than it was six months ago. This statement, unfortunately, reveals more about what the government is saying, rather than what the economy is doing.

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Why AIG and Jim Cramer Matter →

In the last months, because of the economic crisis a number of stories about the nature of American business have been brought to the attention of many Americans. These anecdotes include not only banks using bailout money for spas, travel and redecorating, CEOs of automobile companies flying on private jets to come to the Washington to ask for bailout money, and the current story of the AIG paying bonuses to top executives while being bailed out by the US government, but also stranger stories such as the ongoing silliness, to be generous, of business journalism and the bizarre television feud between Jim Cramer and Jon Stewart.

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Managing Expectation and Understanding the Financial Crisis →

The expectations calculation is not so simple for Obama because the tone coming from the White House is viewed as having an effect on the country's economic performance. So, if the economy only improves slightly in the next 18-20 months, during a period when Obama carefully reduces expectations for a recovery, many will undoubtedly blame the tepid recovery on the failure of Obama to instill confidence in markets or consumers, leading to reduced support for Obama which will make it increasingly difficult for the administration to pass additional legislation. If Obama becomes a cheerleader for the economy, there is a chance that this will have some short term impact on confidence of investors and consumers and begin a short term economic recovery, but it will also have the added effect of raising expectations to a level which the recovery will almost certainly not meet. So, from a partisan strategic angle, it is not clear what the best course for the president should be.

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