How the Market Is Betraying Advanced Economies


April 16,2016

How the Market Is Betraying Advanced Economies

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As lifestyles in the world’s developing economies improve drastically, many in the advanced economies are seeing their well being deteriorate – a trend that automation will only exacerbate. Without fundamental change in the framework of public policymaking, it is difficult to imagine a prosperous future in these societies.

 

CAMBRIDGE – Despite ever-improving conditions for millions of people around the world – documented by entities like the University of Oxford’s Our World in Data and highlighted by scholars like Steven Pinker – popular discontent is on the rise in many places. The reason is simple: whereas the first trend is being driven by low- and middle-income countries, the second is concentrated in high-income countries.

Apr 9, 2019 Joseph E. Stiglitz thinks it’s his attacks on the truth-seeking institutions that underpin economic prosperity.

Throughout the developed world, conditions for many workers are deteriorating, with no recovery in sight. Income inequality is near historic highs, wealth inequality is even higher, and economic insecurity is widespread.As the United Kingdom tears itself apart politically and constitutionally over Brexit, many of its citizens struggle with low-quality jobs, inadequate housing, and poverty so severe that they rely on food banks. France’s Yellow Vest protests have been hijacked by violent extremists, but they reflect real grievances about the growing challenge of maintaining living standards. In the United States, the Economic Report of the President touts the supposed elimination of poverty, but life expectancy does not decline in a prosperous country.In short, the post-World War II social contract in many of today’s developed economies is breaking down. And even more uncertainty and insecurity are on the way, as new technologies such as artificial intelligence and robotics take root.Though the pace and scope of the next wave of automation is impossible to predict with precision, the impact will be profound. Like other digital technologies, AI and robotics will boost the value of some skills while reducing the value of others. And, by , extensive algorithmic decision-making risks amplifying existing inequalities further.It is impossible to uninvent technology. But we should not fall into the trap of technological determinism. The forces that drive structural economic change are always refracted through policy decisions, which can help ensure that technological innovations contribute to a more prosperous future.

Given the depth of the transformation ahead, however, it is not just the policies themselves that must change, but the very framework on which they are based. This means abandoning the idea – which has shaped public policy for more than a generation – that the “market” must be the organizing principle for collective decision-making.

The market, in this sense, is an abstraction – one that has little to do with actual markets, which are social institutions as varied and multitudinous as Leo Tolstoy’s unhappy families. It embodies the assumption that, overall, we secure the best economic outcomes if producers compete to respond to the desires of individual consumers (in line with their purchasing power). And its performance is measured according to the number of contemporaneous exchanges taking place.This is to be the best metric. For one thing, it does not account for the depreciation of assets, from houses in California destroyed by wildfires to insect species at risk of extinction. It also fails to account for the fact that a growing proportion of exchanges in the digital economy involve “public goods,” consumption of which is non-rivalrous (the good can be shared by any number of people without being depleted).But there is an even more fundamental problem with assessing an economy’s welfare according to the satisfaction of individual choices. As the late William Baumol pointed out, if you assume that economic agents are independent, you will conclude that independent choices maximize their well being. This is circular reasoning.In fact, economic agents are not as independent as the conventional wisdom would have us believe. People’s consumption preferences are not discovered through introspection and then upheld permanently; they are shaped socially and change over time. In the age of social media “influencers,” this may be truer than ever, with turbocharged network effects amplifying the impact of one individual’s choices on others.Likewise, in production, there is far-reaching potential for economies of scope and scale – potential that grows even larger in high-tech domains. This means that one firm’s production decisions affect production by others in the same market.The conceptual underpinnings of policymaking need to be updated to reflect this economic reality. For starters, governments need to recognize that their decisions shape the structure of production, and develop strategies to support particular strengths in production (through innovation policies or procurement frameworks) or to address weaknesses (in areas such as skills). Economists like Dani Rodrik and have led the way in proposing ways to think about modern industrial strategy.Governments must also improve the opportunities available to those left behind in today’s fast-changing economy. This means ensuring that all citizens have access to quality public education, public transportation and broadband infrastructure, adequate health care, and decent housing. Such basic services are more important than income subsidies, because they are public goods, which the market – where decisions are made by aggregating individual demand – will not provide.The organization of millions of interdependent individuals in a technologically complex society will always be difficult to manage. With productivity flat-lining and public anger growing, it is clear that existing policies are not up to the challenge. Without a new approach, it is difficult to imagine a prosperous future for Western societies.

 

  • WmC Mantis  

    Is Diane Coyle trying to tell us that economic policymakers should be doing more to ensure a continually rising mean household quality of life? If so, she could have done it in fewer words.

 

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Trump’s Most Worrisome Legacy


April 13, 2019

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Trump’s Most Worrisome Legacy

The US president’s attacks on America’s truth-seeking institutions jeopardize its continued prosperity and very ability to function as a democracy. As corporate giants capture the institutions that are supposed to protect ordinary citizens, a dystopia once imagined only by science fiction writers is emerging before our eyes.

NEW YORK – Kirstjen Nielsen’s forced resignation as US Secretary of Homeland Security is no reason to celebrate. Yes, she presided over the forced separation of families at the US border, notoriously housing young children in wire cages. But Nielsen’s departure is not likely to bring any improvement, as President Donald Trump wants to replace her with someone who will carry out his anti-immigrant policies even more ruthlessly.

Trump’s immigration policies are appalling in almost every aspect. And yet they may not be the worst feature of his administration. Indeed, identifying its foulest aspects has become a popular American parlor game. Yes, he has called immigrants criminals, rapists, and animals. But what about his deep misogyny or his boundless vulgarity and cruelty? Or his winking support of white supremacists? Or his withdrawal from the Paris climate accord, the Iran nuclear deal, and the Intermediate-Range Nuclear Forces Treaty? And, of course, there is his war on the environment, on health care, and on the rules-based international system.

This morbid game never ends, of course, because new contenders for the title emerge almost daily. Trump is a disrupting personality, and after he’s gone, we may well reflect on how such a deranged and morally challenged person could have been elected president of the world’s most powerful country in the first place.

But what concerns me most is Trump’s disruption of the institutions that are necessary for the functioning of society. Trump’s “MAGA” (Make America Great Again) agenda is, of course, not about restoring the moral leadership of the United States. It embodies and celebrates unbridled selfishness and self-absorption. MAGA is about economics. But that forces us to ask: what is the basis of America’s wealth?

Adam Smith tried to provide an answer in his classic 1776 book The Wealth of Nations. For centuries, Smith noted, standards of living had been stagnant; then, toward the end of the eighteenth century, incomes start to soar. WhySmith himself was a leading light of the great intellectual movement known as the Scottish Enlightenment. The questioning of established authority that followed the earlier Reformation in Europe forced society to ask: How do we know the truth? How can we learn about the world around us? And how can and should we organize our society?From the search for answers to these questions arose a new epistemology, based on the empiricism and skepticism of science, which came to prevail over the forces of religion, tradition, and superstition. Over time, universities and other research institutions were established to help us judge truth and discover the nature of our world. Much of what we take for granted today – from electricity, transistors, and computers to lasers, modern medicine, and smartphones – is the result of this new disposition, undergirded by basic scientific research (most of it financed by government).

The absence of royal or ecclesiastical authority to dictate how society should be organized to ensure that things worked out well, or as well as they could, meant that society had to figure it out for itself. But devising the institutions that would ensure society’s wellbeing was a more complicated matter than discovering the truths of nature. In general, one couldn’t conduct controlled experiments.

A close study of past experience could, however, be informative. One had to rely on reasoning and discourse – recognizing that no individual had a monopoly on our understandings of social organization. Out of this process emerged an appreciation that governance institutions based on the rule of law, due process, and checks and balances, and supported by foundational values like individual liberty and justice for all, are more likely to produce good and fair decisions. These institutions may not be perfect, but they have been designed so that it is more likely that flaws will be uncovered and eventually corrected.

That process of experimentation, learning, and adaptation, however, requires a commitment to ascertaining the truth. Americans owe much of their economic success to a rich set of truth-telling, truth-discovering, and truth-verifying institutions. Central among them are freedom of expression and independent media. Like all people, journalists are fallible; but, as part of a robust system of checks and balances on those in positions of power, they have traditionally provided an essential public good.Since Smith’s day, it has been shown that a nation’s wealth depends on the creativity and productivity of its people, which can be advanced only by embracing the spirit of scientific discovery and technological innovation. And it depends on steady improvements in social, political, and economic organization, discovered through reasoned public discourse.

The attack by Trump and his administration on every one of the pillars of American society – and his especially aggressive vilification of the country’s truth-seeking institutions – jeopardizes its continued prosperity and very ability to function as a democracy. Nor do there appear to be checks on corporate giants’ efforts to capture the institutions – the courts, legislatures, regulatory agencies, and major media outlets – that are supposed to prevent them from exploiting workers and consumers. A dystopia previously imagined only by science fiction writers is emerging before our eyes. It should give us chills to think of who “wins” in this world, and who or what we might become, just in the struggle to survive.

 

Joseph E. Stiglitz, a Nobel laureate in economics, is University Professor at Columbia University and Chief Economist at the Roosevelt Institute. His latest book, People, Power, and Profits: Progressive Capitalism for an Age of Discontent, will be published in April.

POTUS His Excellency Donald J. Trump 2019 State of the Union Address


February 6, 2019

POTUS His Excellency Donald J. Trump 2019 State of the Union Address

 

President Donald Trump delivered his 2019 State of the Union address on Tuesday. Read the President’s speech as prepared for delivery and released by the White House.

 

Madam Speaker, Mr. Vice President, Members of Congress, the First Lady of the United States, and my fellow Americans:
We meet tonight at a moment of unlimited potential. As we begin a new Congress, I stand here ready to work with you to achieve historic breakthroughs for all Americans.
Millions of our fellow citizens are watching us now, gathered in this great chamber, hoping that we will govern not as two parties but as one Nation.
The agenda I will lay out this evening is not a Republican agenda or a Democrat agenda. It is the agenda of the American people.
Many of us campaigned on the same core promises: to defend American jobs and demand fair trade for American workers; to rebuild and revitalize our Nation’s infrastructure; to reduce the price of healthcare and prescription drugs; to create an immigration system that is safe, lawful, modern and secure; and to pursue a foreign policy that puts America’s interests first.
There is a new opportunity in American politics, if only we have the courage to seize it. Victory is not winning for our party. Victory is winning for our country.
This year, America will recognize two important anniversaries that show us the majesty of America’s mission, and the power of American pride.
In June, we mark 75 years since the start of what General Dwight D. Eisenhower called the Great Crusade — the Allied liberation of Europe in World War II. On D-Day, June 6, 1944, 15,000 young American men jumped from the sky, and 60,000 more stormed in from the sea, to save our civilization from tyranny. Here with us tonight are three of those heroes: Private First Class Joseph Reilly, Staff Sergeant Irving Locker, and Sergeant Herman Zeitchik. Gentlemen, we salute you.
In 2019, we also celebrate 50 years since brave young pilots flew a quarter of a million miles through space to plant the American flag on the face of the moon. Half a century later, we are joined by one of the Apollo 11 astronauts who planted that flag: Buzz Aldrin. This year, American astronauts will go back to space on American rockets.
In the 20th century, America saved freedom, transformed science, and redefined the middle class standard of living for the entire world to see. Now, we must step boldly and bravely into the next chapter of this great American adventure, and we must create a new standard of living for the 21st century. An amazing quality of life for all of our citizens is within our reach.
We can make our communities safer, our families stronger, our culture richer, our faith deeper, and our middle class bigger and more prosperous than ever before.
But we must reject the politics of revenge, resistance, and retribution — and embrace the boundless potential of cooperation, compromise, and the common good.
Together, we can break decades of political stalemate. We can bridge old divisions, heal old wounds, build new coalitions, forge new solutions, and unlock the extraordinary promise of America’s future. The decision is ours to make.
We must choose between greatness or gridlock, results or resistance,vision or vengeance, incredible progress or pointless destruction.
Tonight, I ask you to choose greatness.
Over the last 2 years, my Administration has moved with urgency and historic speed to confront problems neglected by leaders of both parties over many decades.
In just over 2 years since the election, we have launched an unprecedented economic boom — a boom that has rarely been seen before. We have created 5.3 million new jobs and importantly added 600,000 new manufacturing jobs — something which almost everyone said was impossible to do, but the fact is, we are just getting started.
Wages are rising at the fastest pace in decades, and growing for blue collar workers, who I promised to fight for, faster than anyone else. Nearly 5 million Americans have been lifted off food stamps. The United States economy is growing almost twice as fast today as when I took office, and we are considered far and away the hottest economy anywhere in the world. Unemployment has reached the lowest rate in half a century. African-American, Hispanic-American and Asian-American unemployment have all reached their lowest levels ever recorded. Unemployment for Americans with disabilities has also reached an all-time low. More people are working now than at any time in our history — 157 million.
We passed a massive tax cut for working families and doubled the child tax credit.We virtually ended the estate, or death, tax on small businesses, ranches, and family farms.
We eliminated the very unpopular Obamacare individual mandate penalty — and to give critically ill patients access to life-saving cures, we passed right to try.
My Administration has cut more regulations in a short time than any other administration during its entire tenure. Companies are coming back to our country in large numbers thanks to historic reductions in taxes and regulations.
We have unleashed a revolution in American energy — the United States is now the number one producer of oil and natural gas in the world. And now, for the first time in 65 years, we are a net exporter of energy.
After 24 months of rapid progress, our economy is the envy of the world, our military is the most powerful on earth, and America is winning each and every day. Members of Congress: the State of our Union is strong. Our country is vibrant and our economy is thriving like never before.
On Friday, it was announced that we added another 304,000 jobs last month alone — almost double what was expected. An economic miracle is taking place in the United States — and the only thing that can stop it are foolish wars, politics, or ridiculous partisan investigations.
If there is going to be peace and legislation, there cannot be war and investigation. It just doesn’t work that way!
We must be united at home to defeat our adversaries abroad. This new era of cooperation can start with finally confirming the more than 300 highly qualified nominees who are still stuck in the Senate — some after years of waiting. The Senate has failed to act on these nominations, which is unfair to the nominees and to our country.
Now is the time for bipartisan action. Believe it or not, we have already proven that it is possible.
In the last Congress, both parties came together to pass unprecedented legislation to confront the opioid crisis, a sweeping new Farm Bill, historic VA reforms, and after four decades of rejection, we passed VA Accountability so we can finally terminate those who mistreat our wonderful veterans.
And just weeks ago, both parties united for groundbreaking criminal justice reform. Last year, I heard through friends the story of Alice Johnson. I was deeply moved. In 1997, Alice was sentenced to life in prison as a first-time non-violent drug offender. Over the next two decades, she became a prison minister, inspiring others to choose a better path. She had a big impact on that prison population — and far beyond.
Alice’s story underscores the disparities and unfairness that can exist in criminal sentencing — and the need to remedy this injustice. She served almost 22 years and had expected to be in prison for the rest of her life.
In June, I commuted Alice’s sentence — and she is here with us tonight. Alice, thank you for reminding us that we always have the power to shape our own destiny.
When I saw Alice’s beautiful family greet her at the prison gates, hugging and kissing and crying and laughing, I knew I did the right thing.
Inspired by stories like Alice’s, my Administration worked closely with members of both parties to sign the First Step Act into law. This legislation reformed sentencing laws that have wrongly and disproportionately harmed the African-American community. The First Step Act gives non-violent offenders the chance to re-enter society as productive, law-abiding citizens. Now, States across the country are following our lead. America is a Nation that believes in redemption.
We are also joined tonight by Matthew Charles from Tennessee. In 1996, at age 30, Matthew was sentenced to 35 years for selling drugs and related offenses. Over the next two decades, he completed more than 30 Bible studies, became a law clerk, and mentored fellow inmates. Now, Matthew is the very first person to be released from prison under the First Step Act. Matthew, on behalf of all Americans: welcome home.
As we have seen, when we are united, we can make astonishing strides for our country. Now, Republicans and Democrats must join forces again to confront an urgent national crisis.
The Congress has 10 days left to pass a bill that will fund our Government, protect our homeland, and secure our southern border.
Now is the time for the Congress to show the world that America is committed to ending illegal immigration and putting the ruthless coyotes, cartels, drug dealers, and human traffickers out of business.
As we speak, large, organized caravans are on the march to the United States. We have just heard that Mexican cities, in order to remove the illegal immigrants from their communities, are getting trucks and buses to bring them up to our country in areas where there is little border protection. I have ordered another 3,750 troops to our southern border to prepare for the tremendous onslaught.
This is a moral issue. The lawless state of our southern border is a threat to the safety, security, and financial well‑being of all Americans. We have a moral duty to create an immigration system that protects the lives and jobs of our citizens. This includes our obligation to the millions of immigrants living here today, who followed the rules and respected our laws. Legal immigrants enrich our Nation and strengthen our society in countless ways. I want people to come into our country, but they have to come in legally.
Tonight, I am asking you to defend our very dangerous southern border out of love and devotion to our fellow citizens and to our country.
No issue better illustrates the divide between America’s working class and America’s political class than illegal immigration. Wealthy politicians and donors push for open borders while living their lives behind walls and gates and guards.
Meanwhile, working class Americans are left to pay the price for mass illegal migration — reduced jobs, lower wages, overburdened schools and hospitals, increased crime, and a depleted social safety net.
Tolerance for illegal immigration is not compassionate — it is cruel. One in three women is sexually assaulted on the long journey north. Smugglers use migrant children as human pawns to exploit our laws and gain access to our country.
Human traffickers and sex traffickers take advantage of the wide open areas between our ports of entry to smuggle thousands of young girls and women into the United States and to sell them into prostitution and modern-day slavery.
Tens of thousands of innocent Americans are killed by lethal drugs that cross our border and flood into our cities — including meth, heroin, cocaine, and fentanyl.
The savage gang, MS-13, now operates in 20 different American States, and they almost all come through our southern border. Just yesterday, an MS-13 gang member was taken into custody for a fatal shooting on a subway platform in New York City. We are removing these gang members by the thousands, but until we secure our border they’re going to keep streaming back in. Year after year, countless Americans are murdered by criminal illegal aliens. I’ve gotten to know many wonderful Angel Moms, Dads, and families — no one should ever have to suffer the horrible heartache they have endured.
Here tonight is Debra Bissell. Just three weeks ago, Debra’s parents, Gerald and Sharon, were burglarized and shot to death in their Reno, Nevada, home by an illegal alien. They were in their eighties and are survived by four children, 11 grandchildren, and 20 great-grandchildren. Also here tonight are Gerald and Sharon’s granddaughter, Heather, and great‑granddaughter, Madison.
To Debra, Heather, Madison, please stand: few can understand your pain. But I will never forget, and I will fight for the memory of Gerald and Sharon, that it should never happen again. Not one more American life should be lost because our Nation failed to control its very dangerous border.
In the last 2 years, our brave ICE officers made 266,000 arrests of criminal aliens, including those charged or convicted of nearly 100,000 assaults, 30,000 sex crimes, and 4,000 killings.
We are joined tonight by one of those law enforcement heroes: ICE Special Agent Elvin Hernandez. When Elvin was a boy, he and his family legally immigrated to the United States from the Dominican Republic. At the age of eight, Elvin told his dad he wanted to become a Special Agent.
Today, he leads investigations into the scourge of international sex trafficking. Elvin says: “If I can make sure these young girls get their justice, I’ve done my job.” Thanks to his work and that of his colleagues, more than 300 women and girls have been rescued from horror and more than 1,500 sadistic traffickers have been put behind bars in the last year.
Special Agent Hernandez, please stand: We will always support the brave men and women of Law Enforcement — and I pledge to you tonight that we will never abolish our heroes from ICE.
My Administration has sent to the Congress a commonsense proposal to end the crisis on our southern border.
It includes humanitarian assistance, more law enforcement, drug detection at our ports, closing loopholes that enable child smuggling, and plans for a new physical barrier, or wall, to secure the vast areas between our ports of entry. In the past, most of the people in this room voted for a wall — but the proper wall never got built. I’ll get it built.
This is a smart, strategic, see-through steel barrier — not just a simple concrete wall. It will be deployed in the areas identified by border agents as having the greatest need, and as these agents will tell you, where walls go up, illegal crossings go way down.
San Diego used to have the most illegal border crossings in the country. In response, and at the request of San Diego residents and political leaders, a strong security wall was put in place. This powerful barrier almost completely ended illegal crossings.
The border city of El Paso, Texas, used to have extremely high rates of violent crime — one of the highest in the country, and considered one of our Nation’s most dangerous cities. Now, with a powerful barrier in place, El Paso is one of our safest cities.
Simply put, walls work and walls save lives. So let’s work together, compromise, and reach a deal that will truly make America safe.
As we work to defend our people’s safety, we must also ensure our economic resurgence continues at a rapid pace.
No one has benefited more from our thriving economy than women, who have filled 58 percent of the new jobs created in the last year. All Americans can be proud that we have more women in the workforce than ever before — and exactly one century after the Congress passed the Constitutional amendment giving women the right to vote, we also have more women serving in the Congress than ever before.
As part of our commitment to improving opportunity for women everywhere, this Thursday we are launching the first ever Government-wide initiative focused on economic empowerment for women in developing countries
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To build on our incredible economic success, one priority is paramount — reversing decades of calamitous trade policies.
We are now making it clear to China that after years of targeting our industries, and stealing our intellectual property, the theft of American jobs and wealth has come to an end.
Therefore, we recently imposed tariffs on $250 billion of Chinese goods — and now our Treasury is receiving billions of dollars a month from a country that never gave us a dime. But I don’t blame China for taking advantage of us — I blame our leaders and representatives for allowing this travesty to happen. I have great respect for President Xi, and we are now working on a new trade deal with China. But it must include real, structural change to end unfair trade practices, reduce our chronic trade deficit, and protect American jobs.
Another historic trade blunder was the catastrophe known as NAFTA.
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I have met the men and women of Michigan, Ohio, Pennsylvania, Indiana, New Hampshire, and many other States whose dreams were shattered by NAFTA. For years, politicians promised them they would negotiate for a better deal. But no one ever tried — until now.
Our new U.S.-Mexico-Canada Agreement — or USMCA — will replace NAFTA and deliver for American workers: bringing back our manufacturing jobs, expanding American agriculture, protecting intellectual property, and ensuring that more cars are proudly stamped with four beautiful words: made in the USA.
Tonight, I am also asking you to pass the United States Reciprocal Trade Act, so that if another country places an unfair tariff on an American product, we can charge them the exact same tariff on the same product that they sell to us.
Both parties should be able to unite for a great rebuilding of America’s crumbling infrastructure.
I know that the Congress is eager to pass an infrastructure bill — and I am eager to work with you on legislation to deliver new and important infrastructure investment, including investments in the cutting edge industries of the future. This is not an option. This is a necessity.
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The next major priority for me, and for all of us, should be to lower the cost of healthcare and prescription drugs — and to protect patients with pre-existing conditions.
Already, as a result of my Administration’s efforts, in 2018 drug prices experienced their single largest decline in 46 years.
But we must do more. It is unacceptable that Americans pay vastly more than people in other countries for the exact same drugs, often made in the exact same place. This is wrong, unfair, and together we can stop it.
I am asking the Congress to pass legislation that finally takes on the problem of global freeloading and delivers fairness and price transparency for American patients. We should also require drug companies, insurance companies, and hospitals to disclose real prices to foster competition and bring costs down.
No force in history has done more to advance the human condition than American freedom. In recent years we have made remarkable progress in the fight against HIV and AIDS. Scientific breakthroughs have brought a once-distant dream within reach. My budget will ask Democrats and Republicans to make the needed commitment to eliminate the HIV epidemic in the United States within 10 years. Together, we will defeat AIDS in America.
Tonight, I am also asking you to join me in another fight that all Americans can get behind: the fight against childhood cancer.
Joining Melania in the gallery this evening is a very brave 10-year-old girl, Grace Eline. Every birthday since she was 4, Grace asked her friends to donate to St. Jude Children’s Research Hospital. She did not know that one day she might be a patient herself. Last year, Grace was diagnosed with brain cancer. Immediately, she began radiation treatment. At the same time, she rallied her community and raised more than $40,000 for the fight against cancer. When Grace completed treatment last fall, her doctors and nurses cheered with tears in their eyes as she hung up a poster that read: “Last Day of Chemo.” Grace — you are an inspiration to us all.
Many childhood cancers have not seen new therapies in decades. My budget will ask the Congress for $500 million over the next 10 years to fund this critical life-saving research.
To help support working parents, the time has come to pass school choice for America’s children. I am also proud to be the first President to include in my budget a plan for nationwide paid family leave — so that every new parent has the chance to bond with their newborn child.
There could be no greater contrast to the beautiful image of a mother holding her infant child than the chilling displays our Nation saw in recent days. Lawmakers in New York cheered with delight upon the passage of legislation that would allow a baby to be ripped from the mother’s womb moments before birth. These are living, feeling, beautiful babies who will never get the chance to share their love and dreams with the world. And then, we had the case of the Governor of Virginia where he basically stated he would execute a baby after birth.
To defend the dignity of every person, I am asking the Congress to pass legislation to prohibit the late-term abortion of children who can feel pain in the mother’s womb.
Let us work together to build a culture that cherishes innocent life. And let us reaffirm a fundamental truth: all children — born and unborn — are made in the holy image of God.
The final part of my agenda is to protect America’s National Security. Over the last 2 years, we have begun to fully rebuild the United States Military — with $700 billion last year and $716 billion this year. We are also getting other nations to pay their fair share. For years, the United States was being treated very unfairly by NATO — but now we have secured a $100 billion increase in defense spending from NATO allies.
As part of our military build-up, the United States is developing a state-of-the-art Missile Defense System.
Under my Administration, we will never apologize for advancing America’s interests.
For example, decades ago the United States entered into a treaty with Russia in which we agreed to limit and reduce our missile capabilities. While we followed the agreement to the letter, Russia repeatedly violated its terms. That is why I announced that the United States is officially withdrawing from the Intermediate-Range Nuclear Forces Treaty, or INF Treaty.
Perhaps we can negotiate a different agreement, adding China and others, or perhaps we can’t — in which case, we will outspend and out-innovate all others by far.
As part of a bold new diplomacy, we continue our historic push for peace on the Korean Peninsula. Our hostages have come home, nuclear testing has stopped, and there has not been a missile launch in 15 months. If I had not been elected President of the United States, we would right now, in my opinion, be in a major war with North Korea with potentially millions of people killed. Much work remains to be done, but my relationship with Kim Jong Un is a good one. And Chairman Kim and I will meet again on February 27 and 28 in Vietnam.
Two weeks ago, the United States officially recognized the legitimate government of Venezuela, and its new interim President, Juan Guaido.
We stand with the Venezuelan people in their noble quest for freedom — and we condemn the brutality of the Maduro regime, whose socialist policies have turned that nation from being the wealthiest in South America into a state of abject poverty and despair.
Here, in the United States, we are alarmed by new calls to adopt socialism in our country. America was founded on liberty and independence — not government coercion, domination, and control. We are born free, and we will stay free. Tonight, we renew our resolve that America will never be a socialist country.
One of the most complex set of challenges we face is in the Middle East.
Our approach is based on principled realism — not discredited theories that have failed for decades to yield progress. For this reason, my Administration recognized the true capital of Israel — and proudly opened the American Embassy in Jerusalem.
Our brave troops have now been fighting in the Middle East for almost 19 years. In Afghanistan and Iraq, nearly 7,000 American heroes have given their lives. More than 52,000 Americans have been badly wounded. We have spent more than $7 trillion in the Middle East.
As a candidate for President, I pledged a new approach. Great nations do not fight endless wars. When I took office, ISIS controlled more than 20,000 square miles in Iraq and Syria. Today, we have liberated virtually all of that territory from the grip of these bloodthirsty killers.
Now, as we work with our allies to destroy the remnants of ISIS, it is time to give our brave warriors in Syria a warm welcome home.
I have also accelerated our negotiations to reach a political settlement in Afghanistan. Our troops have fought with unmatched valor — and thanks to their bravery, we are now able to pursue a political solution to this long and bloody conflict.
In Afghanistan, my Administration is holding constructive talks with a number of Afghan groups, including the Taliban. As we make progress in these negotiations, we will be able to reduce our troop presence and focus on counter-terrorism. We do not know whether we will achieve an agreement — but we do know that after two decades of war, the hour has come to at least try for peace.
Above all, friend and foe alike must never doubt this Nation’s power and will to defend our people. Eighteen years ago, terrorists attacked the USS Cole — and last month American forces killed one of the leaders of the attack.
We are honored to be joined tonight by Tom Wibberley, whose son, Navy Seaman Craig Wibberley, was one of the 17 sailors we tragically lost. Tom: we vow to always remember the heroes of the USS Cole.
My Administration has acted decisively to confront the world’s leading state sponsor of terror: the radical regime in Iran.
To ensure this corrupt dictatorship never acquires nuclear weapons, I withdrew the United States from the disastrous Iran nuclear deal. And last fall, we put in place the toughest sanctions ever imposed on a country.
We will not avert our eyes from a regime that chants death to America and threatens genocide against the Jewish people. We must never ignore the vile poison of anti-Semitism, or those who spread its venomous creed. With one voice, we must confront this hatred anywhere and everywhere it occurs.
Just months ago, 11 Jewish-Americans were viciously murdered in an anti-semitic attack on the Tree of Life Synagogue in Pittsburgh. SWAT Officer Timothy Matson raced into the gunfire and was shot seven times chasing down the killer. Timothy has just had his 12th surgery — but he made the trip to be here with us tonight. Officer Matson: we are forever grateful for your courage in the face of evil.
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Tonight, we are also joined by Pittsburgh survivor Judah Samet. He arrived at the synagogue as the massacre began. But not only did Judah narrowly escape death last fall — more than seven decades ago, he narrowly survived the Nazi concentration camps. Today is Judah’s 81st birthday. Judah says he can still remember the exact moment, nearly 75 years ago, after 10 months in a concentration camp, when he and his family were put on a train, and told they were going to another camp. Suddenly the train screeched to a halt. A soldier appeared. Judah’s family braced for the worst. Then, his father cried out with joy: “It’s the Americans.”
A second Holocaust survivor who is here tonight, Joshua Kaufman, was a prisoner at Dachau Concentration Camp. He remembers watching through a hole in the wall of a cattle car as American soldiers rolled in with tanks. “To me,” Joshua recalls, “the American soldiers were proof that God exists, and they came down from the sky.”
I began this evening by honoring three soldiers who fought on D-Day in the Second World War. One of them was Herman Zeitchik. But there is more to Herman’s story. A year after he stormed the beaches of Normandy, Herman was one of those American soldiers who helped liberate Dachau. He was one of the Americans who helped rescue Joshua from that hell on earth. Almost 75 years later, Herman and Joshua are both together in the gallery tonight — seated side-by-side, here in the home of American freedom. Herman and Joshua: your presence this evening honors and uplifts our entire Nation.
When American soldiers set out beneath the dark skies over the English Channel in the early hours of D-Day, 1944, they were just young men of 18 and 19, hurtling on fragile landing craft toward the most momentous battle in the history of war.
They did not know if they would survive the hour. They did not know if they would grow old. But they knew that America had to prevail. Their cause was this Nation, and generations yet unborn.
Why did they do it? They did it for America — they did it for us. Everything that has come since — our triumph over communism, our giant leaps of science and discovery, our unrivaled progress toward equality and justice — all of it is possible thanks to the blood and tears and courage and vision of the Americans who came before.
Think of this Capitol — think of this very chamber, where lawmakers before you voted to end slavery, to build the railroads and the highways, to defeat fascism, to secure civil rights, to face down an evil empire.
Here tonight, we have legislators from across this magnificent republic. You have come from the rocky shores of Maine and the volcanic peaks of Hawaii; from the snowy woods of Wisconsin and the red deserts of Arizona; from the green farms of Kentucky and the golden beaches of California. Together, we represent the most extraordinary Nation in all of history.
What will we do with this moment? How will we be remembered? I ask the men and women of this Congress: Look at the opportunities before us! Our most thrilling achievements are still ahead. Our most exciting journeys still await. Our biggest victories are still to come. We have not yet begun to dream.
We must choose whether we are defined by our differences — or whether we dare to transcend them.
We must choose whether we will squander our inheritance — or whether we will proudly declare that we are Americans. We do the incredible. We defy the impossible. We conquer the unknown.
This is the time to re-ignite the American imagination. This is the time to search for the tallest summit, and set our sights on the brightest star. This is the time to rekindle the bonds of love and loyalty and memory that link us together as citizens, as neighbors, as patriots.
This is our future — our fate — and our choice to make. I am asking you to choose greatness. No matter the trials we face, no matter the challenges to come, we must go forward together.
We must keep America first in our hearts. We must keep freedom alive in our souls. And we must always keep faith in America’s destiny — that one Nation, under God, must be the hope and the promise and the light and the glory among all the nations of the world!

Thank you. God Bless You, God Bless America, and good night!

Bersatu’s inexorable move to becoming a sanitized, immunized and Bersih UMNO Terbaru 3.0


January 3, 2019

Bersatu’s inexorable move to becoming a sanitized, immunized and Bersih UMNO Terbaru 3.0

Opinion  | By P. Gunasegaram

Published:  |  Modified:

  QUESTION TIME | If anything, Bersatu’s recent annual general assembly starkly shows one thing – that it is merely an extension of the old UMNO (Baru,) and will use the model of Malay supremacy,ty and put back in place corruption via patronage politics.

The only way to check that unfortunate retrograde policy is for the other Pakatan Harapan partners, especially those who have three to four times the number of MPs Bersatu has, to exert their combined muscle to rightfully regain more influence in the coalition and restore the original reform agenda pre-GE14.

At the AGM, Bersatu vice-President Abdul Rashid Abdul Rahman, also a former Election Commission (EC) chairperson, termed pushbacks against delegates’ demands to be given government resources to help the party retain power as “stupid”.

Bad enough that you have the former EC chairperson advocating breaking laws but this same person was shockingly appointed in August last year to head a Putrajaya committee that will make recommendations on electoral law reform in two years time.

This same Abdul Rashid had been heavily criticised by both PKR and DAP, the dominant parties in Harapan, over his tenure from 2000 to 2008 as the EC chairperson. This continues a tendency for Prime Minister Dr Mahathir Mohamad to appoint tainted,controversial and/or discredited people to important positions.

This includes Daim Zainuddin to head the Council of Eminent Persons; former Inspector-General of Police Abdul Rahim Noor (who brutally assaulted Anwar Ibrahim and gave him a black eye while in Police detention) to negotiate security arrangements with Thailand and former discredited aAtorneys-General to important positions.

Abdul Rashid’s comments at the Bersatu assembly are particularly galling and provocative and advocate extra-judicial measures to keep and extend Bersatu’s hold on power. These are clearly against the law but Abdul Rashid (photo) received a misplaced standing ovation from Bersatu delegates.

“Looking at the situation now, we cannot defend our position as the governing party because the division chiefs are being left out. It is lucky that the Prime Minister gave me a job with a big salary so that I can support my division,” said Abdul Rashid, apparently referring to his appointment to the government’s election reform committee.

“But the others, we don’t need to be arrogant by saying we shouldn’t give them jobs, that we would be taking away the jobs of others, that we should not take this or that. That opinion, to me, irresponsible. In the election, we must win by hook or by crook,” he said.

He added that although he did not like the idea of using government resources, it had to be done.

“All division chiefs should be given activities so that they can have the opportunity to defend their divisions,” he said.

Abdul Rashid also urged the government to restore the parallel village chief system practised by the previous BN government. “And our people must occupy these positions,” he said.

Village chiefs are traditionally appointed by the state government but the previous BN government appointed parallel village chiefs in states not under its control. The Harapan administration has abolished this parallel system.

“All development projects should be channeled to these (parallel) committees and the division chiefs must benefit,” he said as the crowd cheered him on.

Blown to smithereens

It is unthinkable that this man, who clearly advocates moves against current elections laws, heads Putrajaya’s committee on electoral reform. If anything, he will probably advocate changes in the law to allow these offences to take place.

Harapan leaders should forthwith put their foot down and demand that Abdul Rashid be removed as the head of the electoral reform committee as he has clearly shown, by his words at a public gathering, that he is not a fit person to come up with electoral reforms which are up to international standards.

That he had so much support from Bersatu delegates for his views is worrying, with other leaders echoing his sentiments. While Bersatu head Mahathir has said that what Abdul Rashid says is his personal opinion, he should immediately review Abdul Rashid’s position as head of the electoral reform committee.

The original UMNO  was founded in 1946 to champion Malay rights in the lead up to independence. Its founder Onn bin Jaffar left UMNO after the party refused to open membership to non-Malays. Tunku Abdul Rahman took over the helm and became Malaysia’s first Prime Minister.

That UMNO was de-registered in 1987 after the courts declared it illegal. Then prime minister Mahathir formed UMNO Baru or UMNO 2.0 and organised members of UMNO, who supported him to join this UMNO Baru, excluding others who did not. There was a breakaway group called Semangat 46 formed, headed by Mahathir’s then opponent , Tengku Razaleigh Hamzah.

Mahathir altered the constitution of the original UMNO considerably by making it next to impossible to remove a sitting UMNO Baru President. This resulted in a progressive erosion of government accountability and transparency, eventually leading to 1MDB and its excesses. And UMNOMNO-BN’s first loss in the general election last year.

As droves of MPs start to desert UMNOo Baru, Bersatu may well become Umno 3.0 if it accepts these UMNOo MPs as members. That will irrevocably change the complexion of the coalition and alter the balance of power within Harapan.

Other coalition partners, in particular, PKR and DAP, should clearly resist this and state their irreversible opposition to such moves, simply because all UMNO and BN MPs are tainted because they knew full well of the corruption and theft within 1MDB when they decided to stand for elections.

If all of the UMNO MPs are accepted within the Bersatu fold and become Harapan members effectively and those within Bersatu who call for extrajudicial measures to remain in power are not checked, it is inevitable that Bersatu will become UMNO 3.0 and the strongest party within the Harapan coalition.

With that, the hopes of the majority of Malaysians for a fairer, more equitable country, where everybody is considered Malaysian and where corruption is a thing of the past and accountability and good governance will be practised, will be blown to smithereens.


P GUNASEGARAM says we have to guard our newfound freedom zealously instead of surrendering it back to UMNO goons and gangsters who want a return to the past. E-mail: t.p.guna@gmail.com

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.