Hannah Arendt Center for Politics and Humanities
3Jan/130

Shadow Dance of the Fiscal Cliff

The Hannah Arendt Center has followed the shadow dance of the fiscal cliff less for its fiscal than for its political lessons. While a deal was struck, it is hard not to be impressed by the breakdown of our political class. Like the Europeans, we are now officially kicking the can down the road, refusing to address our meaningful problems. There is, in short, no political will and no political leadership with the courage and willingness to act in ways that might help us imagine a new way out of our predicament.

One could say it is the fault of voters. But there is a funny thing happening in politics. The House of Representatives, which is supposed to be the most populist of the major branches of government, is the one branch of government that is calling loudly for painful spending cuts and resisting the rise of our out-of-control debt. True the House is calling for tax cuts, but so too did the Senate and the President. What distinguishes the House now is its insistence on cutting spending. The Senate and President—imagined to be more protected from popular will—are instead combining now to cut taxes, increase spending, and keep the gravy train of government-subsidized stimulus flowing. In a strange way, it is the political body most responsive to voters that is at least calling for change—even if the House Republicans refuse to be honest about what those changes would be or what they would mean. Why or how has this political inversion happened?

One of the few Senators who voted against the compromise is Michael Bennett, the Democratic Senator from Colorado who was supposed to be cliff jumping in Vail (it’s nice here!) but stayed in Washington to vote “No.” Interviewed by Maureen Dowd in The New York Times, Bennett says: “Going over the cliff is a lousy choice and continuing to ignore the fiscal realities that we face is a lousy choice.” Bennett, a free thinking Democrat, knows that things have to change.

"The burden of proof has to shift from the people who want to change the system to the people who want to keep it the same,” he said. “I think if we can get people focused to do what we need to do to keep our kids from being stuck with this debt that they didn’t accrue, you might be surprised at how far we can move this conversation.

But what is it about the system that needs to change? Some see this as simply a matter of policy. Nouriel Roubini, writing today in the Financial Times, thinks taxes need to go up for all Americans to help support a welfare state that is drastically underfunded and yet ever-so necessary:

Neither Democrats nor Republicans recognise that maintaining a basic welfare state, which is right and necessary in our age of globalisation, rapid technological change and demographic pressure, implies higher taxes for the middle class as well as for the rich. A deal that extends unsustainable tax cuts for 98 per cent of Americans is therefore a pyrrhic victory for Mr. Obama.

Roubini may very well be right. But as he himself recognizes, the political will to exercise this transformation is simply not there. What that means policy wise, I do not know.

-RB

The Hannah Arendt Center
The Hannah Arendt Center at Bard is a unique institution, offering a marriage of non-partisan politics and the humanities. It serves as an intellectual incubator for engaged thinking and public discussion of the nation's most pressing political and ethical challenges.
22May/120

Rethinking the Unsustainable

There is probably no presidential speech more quoted in Academic circles than Dwight D. Eisenhower's 1961 farewell speech, on the final day of his presidency. It was in that speech that Eisenhower warned of the danger of a military-industrial complex.

The need for a permanent army and a permanent arms industry creates, he writes, a gargantuan defense establishment that would wield an irresistible economic, political, and spiritual influence. In the face of this military-industrial complex, we as a nation must remain vigilant.

In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.

Eisenhower's speech was prescient. Particularly academics love to point to his speech to criticize bloated defense spending and point to the need to critically resist the military demands for more weapons and more soldiers. They are undoubtedly right to do so.

This is true even as today the military may be the one significant institution in American life where top leaders are arguing that America's world preeminence is not sustainable. In Edward Luce's excellent new book Time to Start Thinking, he describes how military leaders are convinced that the U.S. "should sharply reduced its "global footprint" by winding up all wars, notably in Afghanistan, and by closing peacetime military bases in Germany, South Korea, the UK, and elsewhere." The military leaders Luce spoke to also said that the US must learn to live with a nuclear Iran and "stop spending so much time and resources on the war against Al-Qaeda." Military leaders, Luce reports, are upset that "In this country 'shared sacrifice' means putting a yellow ribbon around the oak tree and then going shopping." Many military people seem to share Admiral Michael Mullen's view that the US national debt is the "country's number one threat—greater than that posed by terrorism, by weapons of mass destruction, and by global warming." One must think hard about the fact that military leaders see the need for "shared sacrifice" that will shrink the military-industrial complex while Americans and their elected leaders still speak about tax cuts and stimulus.

Too frequently forgotten in Eisenhower's speech, or even simply overlooked, is the fact that Eisenhower follows his discussion of the military-industrial complex with a similar warning about the dangers of a "revolution in the conduct of research."  Parallel to the military-industrial complex is the danger of a university-government complex. (Hat Tip, Tom Billings (see comments)).  Eisenhower writes:

Akin to, and largely responsible for the sweeping changes in our industrial-military posture, has been the technological revolution during recent decades. In this revolution, research has become central; it also becomes more formalized, complex, and costly. A steadily increasing share is conducted for, by, or at the direction of, the Federal government.

Today, the solitary inventor, tinkering in his shop, has been overshadowed by task forces of scientists in laboratories and testing fields. In the same fashion, the free university, historically the fountainhead of free ideas and scientific discovery, has experienced a revolution in the conduct of research. Partly because of the huge costs involved, a government contract becomes virtually a substitute for intellectual curiosity. For every old blackboard there are now hundreds of new electronic computers.

Just as modern warfare demands a huge and constant arms industry, so too does the technological revolution demand a huge and constant army of researchers and scientists. This army can only be organized and funded by government largesse. There is a danger, Eisenhower warns, that the university-government complex will take on a life of its own, manufacturing unreal needs (e.g. a Bachelor of Arts degree in order to manage an assembly line) and liberally funding research with little regards to quality, meaning, or need. While the university-government complex is not nearly as expensive or dangerous as the military-industrial complex, there is little doubt that it exists.

Eisenhower warns of a double threat of this university-government complex. First, the nation's scholars could be dominated by Federal employment, and gear their research to fit with governmental mandates. And second, the opposite danger, that "public policy could itself become the captive of a scientific-technological elite."

The existence and power of just such a scientific-technological elite is undeniable today. On the one side are the free-market idealogues, those acolytes of Friedman, Hayek, and Coase, who insist that policy be geared towards rational, self-regulating, economic actors. That real people do not conform to theories of rational behavior is a problem with the people, not the theories.

On the other side are the welfare-state adherents, who insist on governmental support for not only the poor, but also the working classes, the bankers, and corporations. The sad fact that 50 years of anti-poverty programs have not alleviated poverty or that record amounts of money spent on education has seen educational attainment decrease rather than increase is seen to be no argument for the failure of technocratic-governmental solutions. It just means more money and more technical know-how are needed.

It is simply amazing that people in academia can actually defend the current system that we are part of. Of course there are good schools and fine teachers and serious students. But we all know the system is a failure. Graduate students are without prospects; faculty spend so much time publishing articles and books that no one reads; administrators make ever more - sometimes twelve times as much as full professors-and come more and more to serve as the lifeblood of universities; and it is the rare student who amidst the large classes, absent faculty, and social and financial pressures, somehow makes college an intellectual experience.

The idea and practice of college needs to be re-imagined and re-thought. Entrenched interests will oppose this. But at this point the system is so broken that it simply cannot survive. On a financial level, large numbers of universities are being kept afloat on the largesse of federal student loans. If those loans were to disappear or dry up, many colleges would disappear or at the least shrink greatly. This should not happen. And yet, putting our young people $1 trillion in debt is not an answer. For too long we have been paying for our lifestyles with borrowed money. We are now used to our inflated lifestyles and unwilling to give them up. Something will have to give.

The current cost of a college education is unsustainable except for the very top schools that attract the very richest students who then fund endowments that allow those schools to subsidize economic, national, and racial diversity. For schools that cannot attract the wealthiest or do not have endowments that protect them from market forces, change will have to come. This will mean, in many instances, faculty salaries will decrease and costs will have to come down. In other colleges, costs will rise and university education will be ever less accessible. Either way, the conviction that everyone needs a liberal arts degree will probably be revised.

I have no crystal ball showing where this will all lead. But there are better and worse ways that the change will come, and I for one hope that if we turn to honestly thinking about it in the present, the future will be more palatable. This is the debate we need to have.

-RB

The Hannah Arendt Center
The Hannah Arendt Center at Bard is a unique institution, offering a marriage of non-partisan politics and the humanities. It serves as an intellectual incubator for engaged thinking and public discussion of the nation's most pressing political and ethical challenges.