Opinion

The Great Debate

Obama: Ineffectually Challenged

President Barack Obama is in a funk. Americans are coming to see the president as ineffectual. That is a dangerous perception.

Obama’s job approval rating is at risk of dropping below 40 percent. Democrats may lose their majority in the Senate this fall. It may be difficult for the president to accomplish anything during his last two years.

In the March NBC News-Wall Street Journal poll, 42 of registered voters say they would be less likely to vote for a candidate endorsed by Obama. Only 22 percent say they would be more likely to vote for Obama’s candidate.

Why is this happening? Republicans have their answer: Obamacare.

Karl Rove, the “architect” of President George W. Bush’s two winning campaigns, said Obamacare will be worse for Democrats this year than it was in 2010, “especially incumbent Democrats in red, even purple, states and districts who voted for the monstrosity.”

Representative Todd Rokita (R-Ind.) called Obamacare “one of the most insidious laws ever created by man.” You wait. Soon a Republican will claim that Obamacare is causing climate change.

from Breakingviews:

Rob Cox: GE should put itself up for sale

By Rob Cox
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

General Electric should sell itself. If that sounds like an April Fools’ Day joke, think again. It’s a real proposal on the ballot at the industrial group’s annual meeting. Setting aside the absence of any obvious buyer for the $260 billion company, the proposition illustrates the kind of shareholder democracy gone wild that many boards, and even some regulators, would like to squelch. They have half a point.

The proposal is one of about six that investors put forward and will be up for a vote at GE’s April 23 annual meeting in Chicago. Not all are quite so extreme. One calls for senior executives to hold options for life. Another would end stock awards and bonuses. Naturally, management is opposed to each of them.

from Nicholas Wapshott:

Crimea: Too small to matter

Crimea is permanently lost to Russia.

That is implicit in President Barack Obama’s remarks about where the Ukraine crisis heads next; the terms of the Paris talks between Secretary of State John Kerry and the Russian Foreign Minister Sergey Lavrov, and the West’s rejection of military action to hurl back the occupying Russian forces.

That Crimea is gone forever is also the view of former Defense Secretary Robert Gates, who declared, “I do not believe that Crimea will slip out of Russia’s hand.”

It is now generally accepted in Washington that short of sparking a shooting war, Crimea is lost and will now always be Russian. President Vladimir Putin, presiding over an economy of $2 trillion, barely equal to California, has roundly defeated the United States and the European Union, with a combined worth of more than $34 trillion.

How GM can recover

General Motors chief executive officer Mary Barra on Tuesday and Wednesday will appear before Congress to explain why GM took more than a decade to issue a recall on a faulty ignition switch, which led to at least 13 deaths. The hearings will be a proving ground for Barra, who became CEO in December 2013, as well as for GM’s new chairman, Theodore “Tim” Solso, and the entire GM board.

Congress will question why Barra’s most recent predecessors didn’t catch the defective switch. A likely explanation is that the board and senior management were so focused on digging GM out of bankruptcy that they weren’t paying attention to what else may have been going amiss.

Of course, that excuse is insufficient, since the company needs to do both things simultaneously: avoid bankruptcy, while building safe cars. Barra, Solso and the board must convince Congress, the markets and consumers that they have identified why the faulty ignition switch went undiscovered for so long, and that they can be trusted to prevent a similar crisis from happening again.

States act on tax reform

The United States needs tax reform — and soon. Our corporate tax rate is 35 percent, while the European average is 25 percent. We are not competitive. Our individual tax code has rates too high and too many politically driven tax credits and deductions. All true. But it’s also likely that no real tax reform will move in Washington for the next three years.

Why? Because the Democrats,who control the White House veto pen, oppose any reform that does not include at least $1 trillion in higher taxes on net and the Republicans, who control the House of Representatives, will never vote for such a tax hike.

In Washington we have three years of guaranteed gridlock ahead. But in 37 of the 50 states there is unified government — the opposite of gridlock.

How Big Pharma is slowing cancer research

In a March 27 article in the New England Journal of Medicine, a team led by physicians at Massachusetts General Hospital revealed that a new cancer drug from Novartis has shown exciting clinical results in a small trial of lung cancer patients. While additional trials are necessary before the drug can obtain approval from the Food and Drug Administration, this type of success story demonstrates why research to develop new cancer therapies is critically important.

Researchers in academia, biotech and pharmaceutical companies are making remarkable discoveries to help identify new drugs and drug targets for cancer patients. Many new compounds are under investigation — including those that inhibit the growth of cancer cells, block the blood supply to tumors and prevent tumors from evading the immune system.

Even as scientists seek to bring new cancer treatments to market, however, drug patent issues are holding back some researchers. A major hurdle is in combination drug trials that test two or more therapies at once. Pharmaceutical companies often shy away from trials that have great potential, because the drugs may not generate profits if they are used together with a generic drug or a drug patented by a different company.

America is not broke

“We’re broke.” House Speaker John Boehner (R-Ohio) and Tea Party groups have repeated that phrase so frequently that it must be true, right?

But America is not broke. Our short-term budget outlook is stable, and our long-term challenges are manageable if both sides are willing to compromise. So why would politicians falsely claim that we’re broke? To justify radical changes to our nation’s social contract that Americans would never accept any other way.

This may be surprising, given how much we hear about a looming “debt crisis.” But annual budget deficits have fallen by almost two-thirds over the past five years. The total national debt is actually projected to shrink in each of the next three years as a share of the economy.

from Compass:

Putin’s action is no surprise

Surprise is the least forgivable sin of statecraft. Yet nothing has so characterized the Ukraine crisis as the West's continuing surprise at Russia's behavior.

The past 30 days have provided almost daily reminders of the deep disconnect between Western expectations of what statecraft would -- and ought to -- look like in the 21st century, and the reality of how the Kremlin seeks to assert its interests in the world.

From the outset of this crisis, the West consistently underestimated the strategic significance of Ukraine, and Crimea, to Russia. The West also assumed that the threat, and subsequent reality, of economic sanctions would alter Russian President Vladimir Putin’s strategic calculus. One month later, Russia has irreversibly annexed a region of Ukraine and left the West divided and floundering in its response.

In Turkey, taking on West wins elections

Is Turkish leader crazy, or crazy like a fox?

Confronted by a series of revelations involving corruption, Turkey’s Prime Minister Tayyip Erdogan countered by banning Twitter by court order last Friday. He has now moved onto other social media networks — blocking YouTube on Thursday.

Though another court ordered Erdogan’s Twitter ban to be lifted this week, his repressive regime looks intent on lashing out at social media as part of a broad policy aimed at controlling the important municipal elections on Sunday.

This is all part of Erdogan’s calculated effort, as Amnesty International describes, to “silence and smear those speaking out against the government’s crackdown on the protest movement, including doctors, lawyers and journalists.” This crackdown has, not surprisingly, resulted not only in massive protests within Turkey, but exasperation from Turkey’s allies in the West.

from Anatole Kaletsky:

Forget the drama: A solution for Crimea

President Vladimir Putin has disastrously miscalculated and Russia now faces deeper isolation, tougher sanctions and greater economic hardship than at any time since the Cold War. So declared President Obama after the NATO summit in Brussels.

European leaders have sounded even tougher than Obama, though less specific. Some whose countries lie far from Russia -- for example, British Prime Minister David Cameron -- have whipped themselves into a fury reminiscent of King Lear: “I will do such things -- what they are, yet I know not, but they shall be the terrors of the earth.”

For more specificity we must turn to pundits. Geopolitical experts have predicted global anarchy because of the violation of postwar borders; economists have warned of crippling trade wars as European financial sanctions collide with Russian energy counter-measures, and eminent financial analysts have argued that investors and businesses are dangerously under-pricing enormous geopolitical risks.

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