Obama on Syria

President Barack Obama meets in the Situation Room with his national security advisors to discuss strategy in Syria, Saturday, Aug. 31, 2013. © Pete Souza | WhiteHouse.gov

Two cheers for President Obama! On his performance leading up to his speech yesterday in the Rose Garden. See video below.

Great that he is going to Congress. I hope this sets a precedent, making it harder in the future for Presidents unilaterally, and contrary to the constitution, to go to war. No guarantee this will be the case, but it is very much worth the effort, notable here because it is far from clear that the President will get the support he seeks.

Cheer two: I am pleased that he is standing against chemical warfare. Too many of my friends on the left are missing this point. In their generalized criticism about American power in the world (thus, for example, America now is “waging war on Syria”), they seem to not understand, even seem to purposively ignore, that the Assad regime in Syria has engaged in a horrific act, one of the few times since WWI that chemical weapons have been used so openly.

I know this is not the only time. I know that the U.S. was silent when Iraq used such weapons against Iran. I know that the U.S. has used chemicals in Vietnam and Iraq, and I know that Israel has used chemicals in Gaza. But Assad used chemical weapons for the sole purpose of indiscriminately killing people, his fellow citizens, actually his subjects. It was state terror, pure and simple. There are those who point to the less than certain evidence, but I think a pretty clear case has been made by the White House, and those who still doubt that Assad is a butcher do so out of willful ignorance, powered by ideology, close to home, a blind anti-Americanism. To the contrary, I believe that sometimes, there is something worse than American power, and sometimes, the U.S. does the right thing. As an expert on East and Central Europe, I especially appreciate this.

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Tighten or Stimulate? British v. American Economics

Broken Piggy Bank © 401(K) 2013 | flickr

In the ongoing American and British debates on the financial crisis and the best ways to bring the economy out of the woods, two opposite views repeatedly collide – the one represented by those who prioritize deficit reduction, the other by those who argue for recapitalizing the economy. The case of the United Kingdom shows that drastic cuts – if not supported by stimulus packages – instead of tackling the debt may actually inflate it. The American policy record on the other hand, proves that even substantial stimulus packages do not always lead to economic revival. It’s not enough to throw some extra money into the pool – equally important is what these resources actually fund and whether they are accompanied by structural reforms.

British clamps

Moody’s decision to downgrade UK’s rating from AAA to AA1 announced at the end of February was a serious blow to David Cameron’s government as it undermined the whole austerity program Conservatives embarked on precisely to regain the trust of both financial markets and rating agencies. Nonetheless, in a speech delivered on March 7th Prime Minister announced he would keep on the chosen course since – as his famous predecessor once asserted – for this policy “there is no alternative.”

Many British economists do, however, see an alternative, and their number grows as it becomes clear that the spending cuts introduced so far, instead of reducing the debt, have increased it (from 600 billion in 2008 to 1.1 trillion four years later to be precise). How is it possible to cut down on expenses and inflate the debt at the same time? Excessive savings lead to economic contraction, which in turn reduces state revenues and forces the government to continue on borrowing. “What truly is incredible” – argued Martin Wolf in his “Financial Times” column – “is that Mr. Cameron cannot understand that, if an entity that spends close to half of gross domestic product retrenches as the private sector is also retrenching, the decline in overall output may be so large that its finances end up worse than when . . .

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