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Archive for September 7th, 2011

Thomas Friedman of the New York Times has it Right–Blame George W. Bush

New York Times, Op-Ed Columnist
The Whole Truth and Nothing But
By THOMAS L. FRIEDMAN
Published: September 6, 2011

Kishore Mahbubani, a retired Singaporean diplomat, published a provocative essay in The Financial Times on Monday that began like this: “Dictators are falling. Democracies are failing. A curious coincidence? Or is it, perhaps, a sign that something fundamental has changed in the grain of human history. I believe so. How do dictators survive? They tell lies. Muammar Gaddafi was one of the biggest liars of all time. He claimed that his people loved him. He also controlled the flow of information to his people to prevent any alternative narrative taking hold. Then the simple cellphone enabled people to connect. The truth spread widely to drown out all the lies that the colonel broadcast over the airwaves.

“So why are democracies failing at the same time? The simple answer: democracies have also been telling lies.”

Mahbubani noted that “the eurozone project was created on a big lie” that countries could have monetary union and fiscal independence — without pain. Meanwhile, in America, added Mahbubani, now the dean of the Lee Kuan Yew School of Public Policy at the National University of Singapore, “No U.S. leaders dare to tell the truth to the people. All their pronouncements rest on a mythical assumption that ‘recovery’ is around the corner. Implicitly, they say this is a normal recession. But this is no normal recession. There will be no painless solution. ‘Sacrifice’ will be needed, and the American people know this. But no American politician dares utter the word ‘sacrifice.’ Painful truths cannot be told.”

Of course, there is a big difference between America and Libya. We can vote out our liars, unlike certain Arab — and Asian — countries. Still, Mahbubani’s comparison warrants some reflection this week, which coincides with the 10th anniversary of 9/11 and the president’s jobs speech. It is a great week for truth-telling.

Can you remember the last time you felt a national leader looked us in the eye and told us there is no easy solution to our major problems, that we’ve gotten into this mess by being self-indulgent or ideologically fixated over two decades and that now we need to spend the next five years rolling up our sleeves, possibly accepting a lower living standard and making up for our excesses?

For me, this is the most important thing to say both on the anniversary of 9/11 and on the eve of President Obama’s jobs speech. After all, they are intertwined. Why has this been a lost decade? An answer can be found in one simple comparison: How Dwight Eisenhower and his successors used the cold war and how George W. Bush used 9/11. America had to face down the Russians in the cold war. America had to respond to 9/11 and the threat of Al Qaeda. But the critical difference between the two was this: Beginning with Eisenhower and continuing to some degree with every cold war president, we used the cold war and the Russian threat as a reason and motivator to do big, hard things together at home — to do nation-building in America. We used it to build the interstate highway system, put a man on the moon, push out the boundaries of science, teach new languages, maintain fiscal discipline and, when needed, raise taxes. We won the cold war with collective action.

George W. Bush did the opposite. He used 9/11 as an excuse to lower taxes, to start two wars that — for the first time in our history — were not paid for by tax increases, and to create a costly new entitlement in Medicare prescription drugs. Imagine where we’d be today if on the morning of 9/12 Bush had announced (as some of us advocated) a “Patriot Tax” of $1 per gallon of gas to pay for education, infrastructure and government research, to help finance our wars and to slash our dependence on Middle East oil. Gasoline in the U.S. on Sept. 11, 2001, averaged $1.66 a gallon.

But rather than use 9/11 to summon us to nation-building at home, Bush used it as an excuse to party — to double down on a radical tax-cutting agenda for the rich that not only did not spur rising living standards for most Americans but has now left us with a huge ball and chain around our ankle. And later, rather than asking each of us to contribute something to the war, he outsourced it to one-half of one-percent of the American people. Everyone else — y’all have fun.

We used the cold war to reach the moon and spawn new industries. We used 9/11 to create better body scanners and more T.S.A. agents. It will be remembered as one of the greatest lost opportunities of any presidency — ever.

My fervent hope is that on Thursday Mr. Obama will set an example and tell the cold, hard truth — to parents and kids. I know. Honesty, we are told, is suicidal in politics. But as long as every solution that is hard is off the table, then our slow national decline will remain on the table. The public is ready for more than Michele Bachmann’s fairy-dust promise that she can restore $2 a gallon gasoline.

For once, Mr. President, let’s start a debate with the truth. Tell us what you really think will be required to get us out of this stagnation, what kind of collective action and shared sacrifice will be needed and why that can lead not just to muddling through, not just to being O.K., but to restoring American greatness.

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Below is the results of a study. Read on and then let your president, congress people and senators, like Ron Wyden know how you feel.

The more progressive a tax system — where higher tax brackets have higher tax rates — the more likely people are to report feeling they live the “best possible life,” according to a new study comparing 54 nations.

“The more progressive the tax policy is, the happier the citizens are,” said University of Virginia psychologist Shigehiro Oishi, the lead author of the study.

The study analyzed a total of 59,634 people surveyed by the Gallup Organization in 2007 and found those living in the nations with the most progressive taxation evaluated their own quality of life higher than those living in nations with flatter taxation.

That happiness, according to Oishi, was “explained by a greater degree of satisfaction with the public goods, such as housing, education, and public transportation.”

“If the goal of societies is to make citizens happy, tax policy matters,” he said. “Certain policies, like tax progressivity, seem to be more conducive to the happiness of the people.”

Surprisingly, even though people’s quality of life was associated with their satisfaction with state-funded services, higher government spending did not yield greater happiness.

“That data is kind of weird,” Oishi said. He theorized that this result may be because some nations spend their money more effectively than others, noting that the U.S. spends more on education and health care than other developed countries, yet has a lower international standing in those areas.

Oishi’s study will be published in the next issue of the peer-reviewed journal Psychological Science. It was co-authored by Ulrich Schimmack of the University of Toronto at Mississauga and Ed Diener of the University of Illinois.

The study followed up on a previous study conducted by Oishi that analyzed 48,000 respondents over 37 years and found income disparity in the U.S. was associated with unhappiness — except for the richest 20 percent.

“Income disparity has grown a lot in the U.S., especially since the 1980s,” he explained. “With that, we’ve seen a marked drop in life satisfaction and happiness.”

Both studies show only correlations and not causation, meaning the connection between economics and personal satisfaction is unclear. Other factors could have contributed to the differences in self-reported quality of life.

Nevertheless, Oishi concluded: “If we care about the happiness of most people, we need to do something about income inequality.”

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