Let’s Move More Federal Agencies Out of Washington

When Agriculture Secretary Sonny Perdue announced plans last year to move some department jobs out of the nation’s capital, employees weren’t happy. Tensions flared up last week when U.S. Department of Agriculture (USDA) employees turned their backs to the cabinet secretary to protest the decision to move a few hundred USDA workers from Washington, D.C., to Kansas City. Employee objections aside, the idea of moving federal agencies to the heartland is a smart idea, and more agencies should follow the USDA’s lead.

The proposal on the table involves moving two federal research agencies, the Economic Research Service and the National Institute of Food and Agriculture, from their current offices to the greater Kansas City area (as of now it’s not clear which side of the Kansas City-Missouri border). Roughly 550 jobs would move.

The USDA’s cost-benefit analysis found that shifting these two agencies to Kansas City would reduce costs by 11.3 percent, saving taxpayers roughly $300 million (in nominal terms) over the next 15 years. These savings stem primarily from the fact that Kansas City has dramatically cheaper real estate than D.C., as well as marginally lower cost of living. The USDA’s report noted that the median sale price of a home (a major factor in determining cost of living for employees) in Kansas City is $205,400, compared to $420,000 in D.C.

Lower real estate costs benefit federal agencies themselves, as well as their employees. According to a report from the Government Accountability Office, the feds spend almost $1.7 billion a year on operating and maintenance costs on underutilized or unused buildings.

Furthermore, as Vox columnist Matthew Yglesias wrote in 2016, there’s isn’t much reason to keep a lot of government agencies in or near Washington. It makes sense to keep groups involved with “day-to-day politics” or policymaking, like the diplomatic corps, close to the capital. But many agencies are research organizations, and there’s no clear purpose in keeping them near the seat of power. For example, the Centers for Disease Control and Prevention (CDC) is headquartered in Atlanta, Georgia, and there aren’t many concerns that this distance from Washington impedes the agency’s mission.

In the case of these USDA agencies, it might even make a little more sense for them to move to the Midwest. Kansas City is much closer to the heart of American agriculture than D.C. is, and there are already 4,000 USDA employees in Kansas and Missouri, along with universities and companies more focused on farming and animal breeding than their D.C. counterparts.

Moving agencies out of D.C. and into Kansas City will help both cities’ economies. The nation’s capital is inordinately expensive, in no small part due to zoning regulations that prevent the supply of housing from keeping up with demand. Meanwhile, many Midwestern cities have lost population and suffered economically from de-industrialization. 

Similarly, bringing thousands of government workers to the Midwest would bring hundreds of millions of dollars in consumer spending to the local economy, not to mention new jobs. As Yglesias noted, Rust Belt cities that have suffered from post-industrial population decline still have some of the infrastructure necessary to absorb new people without seriously increasing the cost of living.

In fairness to the protesting workers, it’s not easy to uproot and move to a different part of the country—especially if one has a family—though the USDA estimates that the relocation packages it will offer to current workers will equal $50,000 per employee. Still, as a matter of public policy, shifting federal agencies out of D.C. is a win-win. If shifting merely 550 jobs can reduce government spending by $20 million a year, consider the possible savings from shifting hundreds of thousands of federal employees into lower-cost states. 

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Campus Radicals Against Free Speech

Reason‘s Robby Soave has been writing about culture, free speech, due process, and moral outrage on campus since joining the magazine in 2014. His first book, Panic Attack: Young Radicals in the Age of Trump, which will be released tomorrow, examines the ascendancy of the intersectional left and the identitarian right.

Soave was one of the first reporters to question the veracity of a Rolling Stone article that accused several fraternity brothers of a horrific gang rape at the University of Virginia—a story that the magazine later retracted because of insufficient evidence. Earlier this year, when a clip of MAGA-hat-wearing high school students appearing to intimidate a Native American man went viral, Soave was one of the first journalists to carefully scrutinize the raw video, discovering that the interaction was more complicated than the initial reports had claimed. Major media organizations later looped back to acknowledge that they had erred in their reporting.

Reason‘s Zach Weissmueller sat down with Soave to talk about his experience reporting and writing the book, today’s political climate on campus, and why he thinks the college activists’ emphasis on identity is misplaced.

Interview by Zach Weissmueller. Camera by Alexis Garcia, Paul Detrick, and Justin Monticello. Edited by Ian Keyser and Alexis Garcia. Intro by Alexis Garcia.

Photo credits:

Paul Christian Gordon/ZUMA Press/Newscom

Pacific Press/Sipa USA/Newscom

Mark Reinstein/ZUMA Press/Newscom

SMG/ZUMA Press/Newscom

Michael Nigro/Sipa USA/Newscom

Chris Sweda/TNS/Newscom

Ralph Barrera/TNS/Newscom

Erik McGregor / Pacific Press/Newscom

Jeremy Hogan/Polaris/Newscom

Michael Nigro/Sipa USA/Newscom

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Campus Radicals Against Free Speech

Reason‘s Robby Soave has been writing about culture, free speech, due process, and moral outrage on campus since joining the magazine in 2014. His first book, Panic Attack: Young Radicals in the Age of Trump, which will be released tomorrow, examines the ascendancy of the intersectional left and the identitarian right.

Soave was one of the first reporters to question the veracity of a Rolling Stone article that accused several fraternity brothers of a horrific gang rape at the University of Virginia—a story that the magazine later retracted because of insufficient evidence. Earlier this year, when a clip of MAGA-hat-wearing high school students appearing to intimidate a Native American man went viral, Soave was one of the first journalists to carefully scrutinize the raw video, discovering that the interaction was more complicated than the initial reports had claimed. Major media organizations later looped back to acknowledge that they had erred in their reporting.

Reason‘s Zach Weissmueller sat down with Soave to talk about his experience reporting and writing the book, today’s political climate on campus, and why he thinks the college activists’ emphasis on identity is misplaced.

Interview by Zach Weissmueller. Camera by Alexis Garcia, Paul Detrick, and Justin Monticello. Edited by Ian Keyser and Alexis Garcia. Intro by Alexis Garcia.

Photo credits:

Paul Christian Gordon/ZUMA Press/Newscom

Pacific Press/Sipa USA/Newscom

Mark Reinstein/ZUMA Press/Newscom

SMG/ZUMA Press/Newscom

Michael Nigro/Sipa USA/Newscom

Chris Sweda/TNS/Newscom

Ralph Barrera/TNS/Newscom

Erik McGregor / Pacific Press/Newscom

Jeremy Hogan/Polaris/Newscom

Michael Nigro/Sipa USA/Newscom

Subscribe to our YouTube channel.

Like us on Facebook.

Follow us on Twitter.

Subscribe to our podcast at iTunes.

 

 

 

 

 

 

 

 

 

 

 

 

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Is the Chevron Doctrine Really Such a Problem?

There is widespread – and well-justified – concern about the size, scope and intrusiveness of the administrative state. Many feel that the accumulation of regulatory authority within administrative agencies undermines democratic accountability and self-government.

Many critics of the administrative state focus on the Chevron doctrine, and suggest its requirement that courts sometimes defer to reasonable agency interpretations of ambiguous statutory provisions lies at the heard of administrative overreach. For reasons I explain in the new issue of National Review (and have previously noted here),I think the focus on Chevron is misplaced.

While it is certainly true that, in the hand of some judges, Chevron has allowed some agencies to run rampant, faithfully applied within its proper domain, Chevron itself is not much of a problem. As Justice Kennedy noted in one of his final opinions on the Court, some courts grant agencies “reflexive deference” after only “cursory” examinations of the relevant statutory text. This is a problem, but it’s one of application, not of the underlying doctrine itself.

Further, insofar as some are (rightfully) concerned about the broad degree of interpretive authority and policy discretion agencies exercise under Chevron, the real blame lies with Congress, not the courts. As I note in NR:

The problem . . . is less that courts sometimes defer to federal-agency interpretations of ambiguous statutes through which Congress delegates regulatory authority and more that the legislature is so profligate with its delegations. . . .

The abdication taking place is less on the federal bench than in the halls of Congress, where our legislators have forgotten that it is their job, first and foremost, to enact the laws that govern the nation.

Unless and until courts are willing to enforce meaningful limits on the delegation of authority to federal agencies — a far heavier lift than constraining Chevron — the underlying problem will remain. If we want Chevron and other deference doctrines to be less important, Congress needs to stop providing so many opportunities for these doctrines to apply, both by drafting legislation more carefully and by regularly revisiting older statutes that might otherwise be used as new sources of agency authority.

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Is the Indian System Strong Enough to Survive Modi?

Both my native country, India, and my adopted country, America, are liberal democracies that are right now in the thrall of right-wing populist demagogues—Prime Minister Narendra Modi in India’s case and President Donald Trump in America’s. Few would deny that between the two, Trump is the crazier one—a showboat with impulse control issues. Modi, by contrast, a humble tea stall owner once, is a veritable picture of discipline and restraint.

Yet Modi, who got re-elected by a landslide last month, is potentially more dangerous because Indian democracy lacks strong institutional checks on his illiberal ambitions. In America, however, multiple resistance points—courts, Congress, opposition both from outside and even within the GOP and states—have managed to thwart Trump’s worst instincts.

For all of Trump’s bluster and bravado, the fact is that beyond tax cuts, he hasn’t accomplished much of his signature agenda. Even though his party controlled all three branches of government for the first two years, Obamacare stands—albeit considerably weakened—and his wall doesn’t.

Where Trump has made his real mark is on trade and immigration. By abusing his authority under the National Security Act, he picked unnecessary trade wars. And on immigration, he’s used the vast enforcement discretion that Congress has foolishly relinquished to crack down on immigrants far beyond what a majority of Americans support. And he has used administrative means to cut legal immigration even after Congress pointedly refused to do so.

Still, the courts have either watered down (the Muslim travel ban) or stalled (scrapping the Obama-era Deferred Action for Childhood Arrivals program that hands temporary protected status to those who were brought to the country as kids) or outright stopped (defunding sanctuary cities) a good portion of his immigration agenda.

Although Trump has remade the GOP in his own image with remarkable speed—forcing it to abandon its long-standing commitment to entitlement reform, fiscal responsibility, and free trade to embrace profligacy and protectionism instead—there are still limits to how far he can push his party. Indeed, one reason he backed down from his latest threat to impose stiff tariffs on Mexico was to avoid an all-out revolt by incensed Republicans. Moreover, with the House falling into Democratic hands after the 2018 midterms, Trump’s grandiose ambitions are pretty much on ice for now.

Contrast this with what Modi got away with in his first term.

One Sunday evening about three years ago, without notice or forewarning, he declared on national TV that close to 90 percent of the nation’s currency was null and void, effective immediately, and would be replaced with new bills. The ostensive purpose of this so-called demonetization was to cure the scourge of “black money”—the illicit cash that rich Indians horde to avoid paying taxes. But the scheme badly backfired as India’s wealthy classes managed to use their connections with corrupt bank officials to swap much of their black money while small businessmen and day laborers got wiped out.

In America, Trump could never have pulled off a stunt like this because he simply doesn’t have the authority. And if he’d tried, he likely would have been impeached.

But Modi got the Reserve Bank of India (RBI), whose board members serve at the prime minister’s pleasure, to rubber stamp his harebrained scheme hours before he announced it. How did he accomplish that?

When the parliament is not in session, Indian ministries (the equivalent of executive agencies) can issue ordinances that they have six months to get ratified by the parliament. Given that the Indian parliament is in session only about 60 days out of the year, this gives ministries lots of time to push all kinds of ordinances. Moreover, when a bill concerns matters of money, which the demonetization one did, they only need to get it ratified in the lower house or Lok Sabha (where Modi enjoyed a big majority when he pushed demonetization and an even bigger one now after the recent elections), and not the upper house (where he didn’t).

This meant that once the RBI issued the demonetization order, the only possible pushback in parliament could come from members of Modi’s own party, the Bharatiya Janata Party (BJP). But there was no chance of that—not only because the BJP is too cowed by Modi but also because an anti-defection law that India embraced in 1985 gave party bosses, who are in Modi’s pocket, untold powers to thwart dissent and crush resistance.

The alleged purpose of the anti-defection bill was to boost government stability. In parliamentary systems, the party that wins the most seats in the lower house gets to pick the prime minister who forms the government. However, if the prime minister enjoys only a narrow majority, a few members can hold the threat of voting with the opposition to make unreasonable demands or, worse, switch sides and bring down the government, a genuine problem in India. The anti-defection law gives the party whip the power to strip the seats of members of parliament (MPs) who vote against the party on a bill or motion.

This obviously ruled out even the possibility of a successful no-confidence motion—the equivalent of impeachment—against Modi for foisting such a radical scheme on 1.3 billion people. But there was not even the hint of dissent in the BJP, although it can hardly be the case that not a single BJP MP had any qualms given the massive disruptions Modi’s brain malarkey caused constituents. In fact, the BJP-controlled Lok Sabha meekly introduced and passed the bill ratifying the scheme in a few hours.

Nor are Indian courts in any position to stop someone like Modi, even if they were so inclined, which they are increasingly not. In the demonetization case, their hands were more or less tied because the RBI has sweeping powers to write monetary policy. But even on non-monetary issues, the executive and legislative functions are too conjoined in India for effective judicial oversight. Unlike in England and America where there is a tradition of the parliament writing long and detailed laws precisely to hem in the discretion of the executive, Indian laws tend to be very short and imprecise, laying out some vague policy direction and letting the executive fill in the details as he or she sees fit. This means that there isn’t a clear legislative intent that courts can refer to when a prime minister chooses to interpret a law in a self-serving way.

But even if the laws were clearer, the courts would still be reluctant to call out the prime minister or his agencies, notes State University of New York’s Shruti Rajagopalan, a constitutional economist and a keen observer of the Indian judiciary. In contrast to America, where Supreme Court justices get lifetime appointments, in India they are required to retire by 65, after which they typically seek plum government jobs. Opining against a sitting prime minister isn’t a smart career move.

But if governmental checks-and-balances on Modi are weak, external checks are weaker still.

Modi started trashing the Indian media as “paid news” when Trump was still hosting The Apprentice. He accuses the press of a liberal bias and serving the near-dead Congress Party and its politics of minority appeasement—”fake secularism” as he calls it. This has been a remarkably effective narrative that discredits the media, the opposition, liberalism, and secularism all at once.

Trump merely fantasizes about starting a government channel to counter “biased” CNN coverage. Modi has been there, done that. For the duration of the elections, the BJP launched—and private cable operators dutifully carried—the NaMo channel whose express purpose was to broadcast pro-Modi propaganda 24/7. This was a clear abuse of power for partisan ends, but India’s election commission, fearful of Modi, refused to intervene despite howls of protest from the opposition. Indeed, so insulated is Modi from scrutiny that he maintains his squeaky clean image even though 116 out of the 303 BJP MPs elected this time have pending criminal cases against them, including a Hindu militant accused of involvement in an anti-Muslim terrorist attack that killed six people.

The only remaining check on Modi is the Rajya Sabha or the upper house where the opposition still has a slight edge. Modi has blamed it of obstructing his agenda, although the truth is that he hasn’t even seriously tried to reach out because he lacks both the temperament and the skills to win over detractors and build consensus. However, it is widely expected that he’ll conquer this last frontier, too, next year when many states that have become BJP strongholds in recent years will hold state assembly (legislative) elections.

The great hope of Modi is that he’ll use his awesome powers to finally deliver much-needed but difficult pro-growth reforms that he promised when he was first elected. That is not outside the realm of possibility, but demonetization shows that Modi is also capable of great harm. If he chooses to advance his long-standing Hindu nationalist agenda, he has the power to do it.

It’s already a foregone conclusion that he’ll use his second term to push divisive issues such as weakening constitutional accommodations for the practices of religious minorities. The big question is whether he’ll also push issues like constructing a temple on the site of a historic mosque that Hindu militants razed in 1992. The fact that he has done nothing to control the epidemic of lynchings by Hindu nationalists of Muslims suspected of consuming beef does not bode well. He talked about winning the trust of India’s religious minorities during his inauguration speech. But rather than outlining steps to beef up (so to speak) their security, he redoubled his accusation against the “fake secularism” of the bloodied and maimed opposition. The BJP head, Amit Shah, also an avowed Hindu nationalist who is Modi’s trusted lieutenant, had already included such controversial “reforms” in the BJP’s election manifesto. And, ominously, Modi just made Shah his home minister—the equivalent of Department of Homeland Security secretary—the second most powerful position after his own.

Modi is a loaded gun. It is possible that he won’t go off. But there is no institution left in India to disarm him for the next five years. India’s opposition is decimated, internal party resistance neutralized, the legislative branch neutered, the courts compliant, and the media vanquished.

Trump is manifestly unfit for office. The capacity of America’s institutions to resist and stop him is not inexhaustible—and the longer he stays, the weaker they’ll get given that he is on a constant collision course with them. For now, however, Americans should be grateful that they are not at the mercy of just one man.

This column originally appeared in The Week.

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Is the Chevron Doctrine Really Such a Problem?

There is widespread – and well-justified – concern about the size, scope and intrusiveness of the administrative state. Many feel that the accumulation of regulatory authority within administrative agencies undermines democratic accountability and self-government.

Many critics of the administrative state focus on the Chevron doctrine, and suggest its requirement that courts sometimes defer to reasonable agency interpretations of ambiguous statutory provisions lies at the heard of administrative overreach. For reasons I explain in the new issue of National Review (and have previously noted here),I think the focus on Chevron is misplaced.

While it is certainly true that, in the hand of some judges, Chevron has allowed some agencies to run rampant, faithfully applied within its proper domain, Chevron itself is not much of a problem. As Justice Kennedy noted in one of his final opinions on the Court, some courts grant agencies “reflexive deference” after only “cursory” examinations of the relevant statutory text. This is a problem, but it’s one of application, not of the underlying doctrine itself.

Further, insofar as some are (rightfully) concerned about the broad degree of interpretive authority and policy discretion agencies exercise under Chevron, the real blame lies with Congress, not the courts. As I note in NR:

The problem . . . is less that courts sometimes defer to federal-agency interpretations of ambiguous statutes through which Congress delegates regulatory authority and more that the legislature is so profligate with its delegations. . . .

The abdication taking place is less on the federal bench than in the halls of Congress, where our legislators have forgotten that it is their job, first and foremost, to enact the laws that govern the nation.

Unless and until courts are willing to enforce meaningful limits on the delegation of authority to federal agencies — a far heavier lift than constraining Chevron — the underlying problem will remain. If we want Chevron and other deference doctrines to be less important, Congress needs to stop providing so many opportunities for these doctrines to apply, both by drafting legislation more carefully and by regularly revisiting older statutes that might otherwise be used as new sources of agency authority.

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Is the Indian System Strong Enough to Survive Modi?

Both my native country, India, and my adopted country, America, are liberal democracies that are right now in the thrall of right-wing populist demagogues—Prime Minister Narendra Modi in India’s case and President Donald Trump in America’s. Few would deny that between the two, Trump is the crazier one—a showboat with impulse control issues. Modi, by contrast, a humble tea stall owner once, is a veritable picture of discipline and restraint.

Yet Modi, who got re-elected by a landslide last month, is potentially more dangerous because Indian democracy lacks strong institutional checks on his illiberal ambitions. In America, however, multiple resistance points—courts, Congress, opposition both from outside and even within the GOP and states—have managed to thwart Trump’s worst instincts.

For all of Trump’s bluster and bravado, the fact is that beyond tax cuts, he hasn’t accomplished much of his signature agenda. Even though his party controlled all three branches of government for the first two years, Obamacare stands—albeit considerably weakened—and his wall doesn’t.

Where Trump has made his real mark is on trade and immigration. By abusing his authority under the National Security Act, he picked unnecessary trade wars. And on immigration, he’s used the vast enforcement discretion that Congress has foolishly relinquished to crack down on immigrants far beyond what a majority of Americans support. And he has used administrative means to cut legal immigration even after Congress pointedly refused to do so.

Still, the courts have either watered down (the Muslim travel ban) or stalled (scrapping the Obama-era Deferred Action for Childhood Arrivals program that hands temporary protected status to those who were brought to the country as kids) or outright stopped (defunding sanctuary cities) a good portion of his immigration agenda.

Although Trump has remade the GOP in his own image with remarkable speed—forcing it to abandon its long-standing commitment to entitlement reform, fiscal responsibility, and free trade to embrace profligacy and protectionism instead—there are still limits to how far he can push his party. Indeed, one reason he backed down from his latest threat to impose stiff tariffs on Mexico was to avoid an all-out revolt by incensed Republicans. Moreover, with the House falling into Democratic hands after the 2018 midterms, Trump’s grandiose ambitions are pretty much on ice for now.

Contrast this with what Modi got away with in his first term.

One Sunday evening about three years ago, without notice or forewarning, he declared on national TV that close to 90 percent of the nation’s currency was null and void, effective immediately, and would be replaced with new bills. The ostensive purpose of this so-called demonetization was to cure the scourge of “black money”—the illicit cash that rich Indians horde to avoid paying taxes. But the scheme badly backfired as India’s wealthy classes managed to use their connections with corrupt bank officials to swap much of their black money while small businessmen and day laborers got wiped out.

In America, Trump could never have pulled off a stunt like this because he simply doesn’t have the authority. And if he’d tried, he likely would have been impeached.

But Modi got the Reserve Bank of India (RBI), whose board members serve at the prime minister’s pleasure, to rubber stamp his harebrained scheme hours before he announced it. How did he accomplish that?

When the parliament is not in session, Indian ministries (the equivalent of executive agencies) can issue ordinances that they have six months to get ratified by the parliament. Given that the Indian parliament is in session only about 60 days out of the year, this gives ministries lots of time to push all kinds of ordinances. Moreover, when a bill concerns matters of money, which the demonetization one did, they only need to get it ratified in the lower house or Lok Sabha (where Modi enjoyed a big majority when he pushed demonetization and an even bigger one now after the recent elections), and not the upper house (where he didn’t).

This meant that once the RBI issued the demonetization order, the only possible pushback in parliament could come from members of Modi’s own party, the Bharatiya Janata Party (BJP). But there was no chance of that—not only because the BJP is too cowed by Modi but also because an anti-defection law that India embraced in 1985 gave party bosses, who are in Modi’s pocket, untold powers to thwart dissent and crush resistance.

The alleged purpose of the anti-defection bill was to boost government stability. In parliamentary systems, the party that wins the most seats in the lower house gets to pick the prime minister who forms the government. However, if the prime minister enjoys only a narrow majority, a few members can hold the threat of voting with the opposition to make unreasonable demands or, worse, switch sides and bring down the government, a genuine problem in India. The anti-defection law gives the party whip the power to strip the seats of members of parliament (MPs) who vote against the party on a bill or motion.

This obviously ruled out even the possibility of a successful no-confidence motion—the equivalent of impeachment—against Modi for foisting such a radical scheme on 1.3 billion people. But there was not even the hint of dissent in the BJP, although it can hardly be the case that not a single BJP MP had any qualms given the massive disruptions Modi’s brain malarkey caused constituents. In fact, the BJP-controlled Lok Sabha meekly introduced and passed the bill ratifying the scheme in a few hours.

Nor are Indian courts in any position to stop someone like Modi, even if they were so inclined, which they are increasingly not. In the demonetization case, their hands were more or less tied because the RBI has sweeping powers to write monetary policy. But even on non-monetary issues, the executive and legislative functions are too conjoined in India for effective judicial oversight. Unlike in England and America where there is a tradition of the parliament writing long and detailed laws precisely to hem in the discretion of the executive, Indian laws tend to be very short and imprecise, laying out some vague policy direction and letting the executive fill in the details as he or she sees fit. This means that there isn’t a clear legislative intent that courts can refer to when a prime minister chooses to interpret a law in a self-serving way.

But even if the laws were clearer, the courts would still be reluctant to call out the prime minister or his agencies, notes State University of New York’s Shruti Rajagopalan, a constitutional economist and a keen observer of the Indian judiciary. In contrast to America, where Supreme Court justices get lifetime appointments, in India they are required to retire by 65, after which they typically seek plum government jobs. Opining against a sitting prime minister isn’t a smart career move.

But if governmental checks-and-balances on Modi are weak, external checks are weaker still.

Modi started trashing the Indian media as “paid news” when Trump was still hosting The Apprentice. He accuses the press of a liberal bias and serving the near-dead Congress Party and its politics of minority appeasement—”fake secularism” as he calls it. This has been a remarkably effective narrative that discredits the media, the opposition, liberalism, and secularism all at once.

Trump merely fantasizes about starting a government channel to counter “biased” CNN coverage. Modi has been there, done that. For the duration of the elections, the BJP launched—and private cable operators dutifully carried—the NaMo channel whose express purpose was to broadcast pro-Modi propaganda 24/7. This was a clear abuse of power for partisan ends, but India’s election commission, fearful of Modi, refused to intervene despite howls of protest from the opposition. Indeed, so insulated is Modi from scrutiny that he maintains his squeaky clean image even though 116 out of the 303 BJP MPs elected this time have pending criminal cases against them, including a Hindu militant accused of involvement in an anti-Muslim terrorist attack that killed six people.

The only remaining check on Modi is the Rajya Sabha or the upper house where the opposition still has a slight edge. Modi has blamed it of obstructing his agenda, although the truth is that he hasn’t even seriously tried to reach out because he lacks both the temperament and the skills to win over detractors and build consensus. However, it is widely expected that he’ll conquer this last frontier, too, next year when many states that have become BJP strongholds in recent years will hold state assembly (legislative) elections.

The great hope of Modi is that he’ll use his awesome powers to finally deliver much-needed but difficult pro-growth reforms that he promised when he was first elected. That is not outside the realm of possibility, but demonetization shows that Modi is also capable of great harm. If he chooses to advance his long-standing Hindu nationalist agenda, he has the power to do it.

It’s already a foregone conclusion that he’ll use his second term to push divisive issues such as weakening constitutional accommodations for the practices of religious minorities. The big question is whether he’ll also push issues like constructing a temple on the site of a historic mosque that Hindu militants razed in 1992. The fact that he has done nothing to control the epidemic of lynchings by Hindu nationalists of Muslims suspected of consuming beef does not bode well. He talked about winning the trust of India’s religious minorities during his inauguration speech. But rather than outlining steps to beef up (so to speak) their security, he redoubled his accusation against the “fake secularism” of the bloodied and maimed opposition. The BJP head, Amit Shah, also an avowed Hindu nationalist who is Modi’s trusted lieutenant, had already included such controversial “reforms” in the BJP’s election manifesto. And, ominously, Modi just made Shah his home minister—the equivalent of Department of Homeland Security secretary—the second most powerful position after his own.

Modi is a loaded gun. It is possible that he won’t go off. But there is no institution left in India to disarm him for the next five years. India’s opposition is decimated, internal party resistance neutralized, the legislative branch neutered, the courts compliant, and the media vanquished.

Trump is manifestly unfit for office. The capacity of America’s institutions to resist and stop him is not inexhaustible—and the longer he stays, the weaker they’ll get given that he is on a constant collision course with them. For now, however, Americans should be grateful that they are not at the mercy of just one man.

This column originally appeared in The Week.

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Iran Will Exceed Nuclear Stockpile Limit in Response to U.S. Sanctions

Iranian officials announced their uranium stockpiles will soon exceed the limits the country agreed to as part of the 2015 nuclear agreement.

President Trump withdrew from the agreement last year and brought sanctions against Iran.

“If Iran feels that the sanctions have been reinstated or not lifted, Iran has the right to partly or on the whole suspend its commitments,” said Behrouz Kamalvandi, Iran’s Atomic Energy spokesperson.

This news follows several days of escalating tensions between the U.S. and Iran. The Trump administration has accused Tehran of damaging two oil tankers in the Gulf of Oman. Secretary of State Mike Pompeo said, “there is no doubt,” that Iran was responsible, and that “the intelligence community has lots of data, lots of evidence,” which is not completely reassuring, for obvious reasons. The oil tanker’s Japanese owner maintains that the ship was struck by a “flying object,” not a mine. Nevertheless, Sen. Tom Cotton (R–Ark.) is agitating for conflict and told PBS that two military strikes would be enough to incapacitate the country. In reality, of course, a full-blown war with Iran—a country three times larger than Iraq—would necessitate the involvement of tens of thousands of ground troops.

Given its unfeasibility, the military option should be virtually off the table. No one should want—let alone be actively working toward—a war. Trump has previously claimed that U.S. involvement in Iraq and Libya was a mistake. He should apply those lessons to his own administration’s Iran policy, and work out a diplomatic solution.

FREE MINDS

Conservatives are rejoicing after a jury awarded $33 million in punitive damages to a bakery that had sued Oberlin College for defamation. Student activists had falsely accused Gibson’s Bakery of racism, and internal emails showed that Oberlin administrators actively coordinated with and supported the students. According to The New York Times:

The dispute began on Nov. 9, 2016, when an Oberlin student tried to pay for a bottle of wine with a fake ID, and the store clerk noticed that the student had hidden two more bottles of wine under his coat, according to court papers.

The Atlantic‘s Conor Friedersdorf takes a more cautionary tone:

I celebrate the happy ending for the Gibsons, but not without some trepidation about the downsides of adjudicating culture-war fights or the proper administration of America’s colleges in court, where extreme cases can mean cathartic outcomes and bad law. It would be a shame if jurors intent on vindicating the wrongly maligned wound up severely chilling protected speech too.

FREE MARKETS

U.S. Commerce Secretary Wilbur Ross said Trump is “perfectly happy” to proceed with tariffs that would affect an additional $300 billion in Chinese goods. According to CNBC:

“We will eventually make a deal, but if we don’t, the president is perfectly happy with continuing the tariff movements that we’ve already announced, as well as imposing the new ones that he has temporarily suspended,” Ross said.

His comments directly echo those of Treasury Secretary Steven Mnuchin last week, indicating that the administration is unified on its plan in the event that talks fall apart.

Trump is also considering tariffs an all auto imports, including those from the European Union.

QUICK HITS

  • President Trump once again tweeted his support for an amendment to the Constitution that would prohibit burning the American flag, calling it a “no brainer.”
  • Conservative pundit Candace Owen went even further, tweeting that if she were president, she would banish flag-burners from the country. She’s quite the free speech defender, you see.
  • Pete Buttigieg, one of the 2020 presidential contenders, says he doubts he will be the first gay president because the U.S. has probably already had one. Buttigieg did not name names, though: “My gaydar even doesn’t work that well in the present, let alone retroactively. But one can only assume that’s the case.”
  • Rep. Alexandria Ocasio-Cortez (D–N.Y.) says she will “absolutely” support Joe Biden if he is the Democratic nominee for president.

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Iran Will Exceed Nuclear Stockpile Limit in Response to U.S. Sanctions

Iranian officials announced their uranium stockpiles will soon exceed the limits the country agreed to as part of the 2015 nuclear agreement.

President Trump withdrew from the agreement last year and brought sanctions against Iran.

“If Iran feels that the sanctions have been reinstated or not lifted, Iran has the right to partly or on the whole suspend its commitments,” said Behrouz Kamalvandi, Iran’s Atomic Energy spokesperson.

This news follows several days of escalating tensions between the U.S. and Iran. The Trump administration has accused Tehran of damaging two oil tankers in the Gulf of Oman. Secretary of State Mike Pompeo said, “there is no doubt,” that Iran was responsible, and that “the intelligence community has lots of data, lots of evidence,” which is not completely reassuring, for obvious reasons. The oil tanker’s Japanese owner maintains that the ship was struck by a “flying object,” not a mine. Nevertheless, Sen. Tom Cotton (R–Ark.) is agitating for conflict and told PBS that two military strikes would be enough to incapacitate the country. In reality, of course, a full-blown war with Iran—a country three times larger than Iraq—would necessitate the involvement of tens of thousands of ground troops.

Given its unfeasibility, the military option should be virtually off the table. No one should want—let alone be actively working toward—a war. Trump has previously claimed that U.S. involvement in Iraq and Libya was a mistake. He should apply those lessons to his own administration’s Iran policy, and work out a diplomatic solution.

FREE MINDS

Conservatives are rejoicing after a jury awarded $33 million in punitive damages to a bakery that had sued Oberlin College for defamation. Student activists had falsely accused Gibson’s Bakery of racism, and internal emails showed that Oberlin administrators actively coordinated with and supported the students. According to The New York Times:

The dispute began on Nov. 9, 2016, when an Oberlin student tried to pay for a bottle of wine with a fake ID, and the store clerk noticed that the student had hidden two more bottles of wine under his coat, according to court papers.

The Atlantic‘s Conor Friedersdorf takes a more cautionary tone:

I celebrate the happy ending for the Gibsons, but not without some trepidation about the downsides of adjudicating culture-war fights or the proper administration of America’s colleges in court, where extreme cases can mean cathartic outcomes and bad law. It would be a shame if jurors intent on vindicating the wrongly maligned wound up severely chilling protected speech too.

FREE MARKETS

U.S. Commerce Secretary Wilbur Ross said Trump is “perfectly happy” to proceed with tariffs that would affect an additional $300 billion in Chinese goods. According to CNBC:

“We will eventually make a deal, but if we don’t, the president is perfectly happy with continuing the tariff movements that we’ve already announced, as well as imposing the new ones that he has temporarily suspended,” Ross said.

His comments directly echo those of Treasury Secretary Steven Mnuchin last week, indicating that the administration is unified on its plan in the event that talks fall apart.

Trump is also considering tariffs an all auto imports, including those from the European Union.

QUICK HITS

  • President Trump once again tweeted his support for an amendment to the Constitution that would prohibit burning the American flag, calling it a “no brainer.”
  • Conservative pundit Candace Owen went even further, tweeting that if she were president, she would banish flag-burners from the country. She’s quite the free speech defender, you see.
  • Pete Buttigieg, one of the 2020 presidential contenders, says he doubts he will be the first gay president because the U.S. has probably already had one. Buttigieg did not name names, though: “My gaydar even doesn’t work that well in the present, let alone retroactively. But one can only assume that’s the case.”
  • Rep. Alexandria Ocasio-Cortez (D–N.Y.) says she will “absolutely” support Joe Biden if he is the Democratic nominee for president.

from Latest – Reason.com http://bit.ly/31ERmMw
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The Treasury Department Is Entrenching Trump’s Nonsense View of Trade Deficits

President Donald Trump’s basic misunderstanding of America’s trade deficits will continue to haunt American taxpayers after he leaves office thanks to changes made this year to a little-noticed Treasury Department report.

The Treasury Department’s annual report to Congress on “Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States” is supposed to alert elected officials to currency manipulation conducted by governments in places where American companies do a lot of business, but as this year’s report notes, “there has been a decline in the scale and persistence” of that sort of behavior.

The Trump administration, however, has found a new way to make the study relevant. “Starting with this report,” the Treasury says it will expand its investigations “to monitor for external imbalances” in trade. Specifically, the report will scrutinize any U.S. trading partner that runs an annual trade imbalance with the United States of more than $40 billion—a list that includes not only China but also key allies like Japan, South Korea, Germany, Italy, and Ireland.

There’s nothing inherently wrong with the Treasury Department rounding up a list of America’s trading partners and noting which ones run a goods surplus of more than $40 billion, of course. But the language suggests data-gathering is not the endgame.

“The Treasury Department is working vigorously to achieve stronger growth and to ensure that trade expands in a way that helps U.S. workers and firms and protects them from unfair foreign trade practices,” Treasury Secretary Steven T. Mnuchin said in a statement accompanying the release of the report late last month. The report itself echoes that economic nationalism. “Treasury will continue to press major U.S. trading partners that have maintained large and persistent external surpluses to support stronger and more balanced global growth…while durably avoiding foreign exchange and trade policies that facilitate unfair competitive advantage,” reads part of the executive summary.

And the real problem here is that it’s all based on Trump’s faulty conviction that trade deficits matter—when they really don’t.

“By this document the Treasury is institutionalizing nuttiness,” writes John Cochrane, an economist and Senior Fellow of the Hoover Institution at Stanford University.

To understand why trade deficits don’t matter, Cochrane outlines a simple exercise. Imagine three nations trading with one another—Australia, China, and the United States. America buys $1 million in shoes from China, Australia buys $1 million in airplanes from America, and China buys $1 million in coal from Australia. All three nations are now running $1 million bilateral trade deficits with one of their partners, but all three are better off. “Bilateral trade ‘deficits’ are meaningless,” Cochrane writes. “In quotes as this is a horrible word too, implying something is deficient every time you go to the Starbucks and suffer a coffee trade ‘deficit.'”

Don Boudreaux, an economist at the Mercatus Center at George Mason University, says the report’s focus on bilateral trade deficits is “completely untethered to economic reality.” In an interview this week with Reason, he compared the Treasury Department’s scrutiny of bilateral trade deficits to astrophysicists giving serious consideration to a geocentric model of the solar system.

But such is the gravitational pull of Trump-style economic nationalism, which posits that trade deficits are proof other countries are taking advantage of the United States.

Peter Navarro, Trump’s top trade advisor, argued in a recent Wall Street Journal op-ed that lowering America’s trade deficit would boost growth. In fact, no such correlation seems to exist for other countries around the world. As I’ve previously written:

In 2017, for example, the United States recorded GDP growth of 2.22 percent and ran a trade deficit of about $502 billion. But look at other countries that had similar growth rates. France grew at 2.16 percent but had a trade deficit of $18 billion. Germany grew at 2.16 percent too, but ran a trade surplus of $274 billion.

The same is true at the higher end of the growth scale. Ireland grew by 7.22 percent and had a $101 billion trade surplus in 2017; India grew by 7.17 percent with a $72 billion trade deficit. It’s also true at the bottom. Italy’s economy grew by a mere 1.57 percent with a $60 billion trade surplus; the United Kingdom grew by 1.82 percent despite a $29 billion trade deficit.

But maybe the best evidence of faultiness of the Trump administration’s view of trade deficits comes from the very Treasury Department report that’s meant to bolster the Trump administration’s worldview.

On the first page, the report highlights how the United States’ trade deficit with China grew to a record high of $419 billion in 2018. “A key driver of this increase was a sharp decline in U.S. exports to China in the fourth quarter of 2018, a time when U.S. imports from China were sustained,” the report says.

The fourth quarter of 2018, of course, is the first full quarter after Trump imposed two rounds of tariffs on Chinese imports—the first in July and the second, larger set in August—with the expressed intent of reducing America’s trade deficit. The opposite occurred.

As developments in the trade war go, this is not an earth-shattering one. But it’s a good example of how the Trump presidency is institutionalizing a worldview that’s at odds with free trade. Like how civil liberties violations under George W. Bush paved the way for worse ones under Barack Obama, this is exactly how new ideas worm their way into the executive branch’s ongoing perception of its role in the economy and the world at large. Presidential administrations don’t end when the guy in charge exits the White House for the last time.

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