Opinion

The Great Debate

Shutdown: A fight with no room for compromise

To end the government shutdown, all Speaker John Boehner (R-Ohio) needs to do is let the House of Representatives vote on a budget. It would pass within 30 minutes. Virtually all 200 House Democrats would vote to keep the government open, as would as many as 50 Republicans. An easy majority.

But no. Boehner and other Republican leaders refuse to do that because they are in thrall to Tea Party conservatives. Hard-line conservatives number about 50 out of 232 House Republicans. But those conservatives are threatening to lead an insurrection against party leaders if they dare to allow a vote. Other Republican members are terrified that they will face a tough primary challenge from the right if they don’t go along with the Tea Party.

So what have we got? Minority government.

It’s outrageous when you think about it. Hard-line conservatives are blocking majority rule so they can get their way. They insist they are taking a stand on principle. Why? “Because we’re right, simply because we’re right,” one of them told the New York Times.

What principle? The principle that the Affordable Care Act is an unconstitutional expansion of government power and that President Barack Obama is not a legitimate president.

But didn’t the Supreme Court rule back in June that Obamacare is constitutional? It did. A Tea Party activist protested at the time, “Just because the Supreme Court says something is constitutional doesn’t mean it is.”

from The Great Debate UK:

48 hours to save Syria’s children

--By Justin Forsyth, CEO of Save the Children. The opinions expressed are his own.--

The pictures of Syrian children lined up dead and others writhing in agony, foaming at the mouth as they struggled to breathe, shocked us all to the core. These horrific chemical attacks were crimes against humanity. That is why we should all welcome the UNSC resolution passed in New York.

But the children of Syria desperately need the same level of action that we have seen on chemical weapons to ensure humanitarian access – food and urgent medical care - to the millions still suffering and cut off.

Forging ahead with free trade

The recent focus on what divides world leaders, from Syria to the euro zone, has obscured the significant agreements reached at the Group of 20 meeting in St. Petersburg earlier this month. One of the most important was support for free trade and opposition to protectionism.

We can now build on this momentum, as well as other trade liberalization efforts, to achieve meaningful progress at the World Trade Organization ministerial meeting in Bali in December.

Though critics describe the G20 as ineffective, it has been key in fostering economic cooperation among the world’s largest countries and helping to stave off the worst economic catastrophe since the Great Depression. With the economic stresses of the past five years potentially triggering protectionism, it’s noteworthy that G20 members have steadfastly supported free trade.

Does bad publicity kill merger plans — and should it?

Last week Fairfax Financial Holdings chief executive officer Prem Watsa insisted that he would not walk away from a BlackBerry deal. “We’ve never renegotiated,” he said. “Over 28 years our reputation is stellar on that front. We just don’t do that.” Watsa’s statement followed a 6 percent loss in share price. The firm was in a tough spot. Reporters covered the market’s lack of enthusiasm and the deal looked like it could be a goner.

What Watsa does is anyone’s guess. But a new paper in the Journal of Financial Economics that examines the media’s role in acquisitions sheds light on the complexities of Watsa’s bad press amid falling share prices. Baixiao Liu of Florida State University and John McConnell of Purdue University found that a CEO was more likely to shelve a bad deal if reporting in the New York Times, the Wall Street Journal and Dow Jones News Service was negative, not necessarily because of its merits, but because of its effect on managers. The authors conclude that news reporting can be a force of good in corporate governance, even when managers act in their interest.

Liu and McConnell examined 636 acquisition attempts by 537 firms between 1990 and 2010 valued at more than $100 million. Of the 636 acquisition attempts, 121, or 19 percent, were abandoned. Annual rates were evenly distributed over time and industries. Between 1990 and 1999, 20 percent were abandoned and from 2000 to 2010, 7 percent were. They controlled for stock ownership, companies in heavily-regulated industries, and other variables that might nudge an acquisition toward the trash heap.

from David Rohde:

The key stumbling blocks U.S. and Iran face

A historic phone call Friday between the presidents of the United States and Iran could mark the end of 34 years of enmity.

Or it could be another missed opportunity.

In the weeks ahead, clear signs will emerge whether a diplomatic breakthrough is possible. Here are several key areas that could determine success or failure:

Enrichment in Iran?

Throughout his New York “charm offensive,” Iranian President Hassan Rouhani made one demand clear: Tehran will rebuff any agreement that does not allow it to enrich some uranium.

Ted Cruz: Blackmailer

On October 28, Senator Ted Cruz (R-Tex.) and his supporters may wish to commemorate the feast day of Saint Jude. Jude is the patron saint of hopeless causes. Because if ever there was a hopeless cause, it is killing the Affordable Care Act.

Fighting for hopeless causes is not uncommon in politics. Think of the nearly two centuries it took to abolish slavery and segregation in the United States. Fighting for a hopeless cause can raise public consciousness about an issue and advance the career of the advocate.

But it has to be seen as a noble effort. Cruz’s effort is anything but noble.

The postsecondary education investment

Any examination of postsecondary education begins with the students. What careers do they seek? What kind of education and skills will enable them to pursue their dreams? How do we design and deliver education in a way that meets them where they are in their personal lives and careers? While students determine their own futures, institutions have a responsibility to deliver education in the most effective, efficient way possible — especially considering the federal government’s investment in making college available to all Americans. Today that investment is over $175 billion, including student loans, grants and tax benefits.

Our country continues to slog through a multi-year jobless economic recovery, while employers increasingly demand mid-level skills in their employees. As a result, we have entered a period where postsecondary education is imperative for global competitiveness and economic growth, but it needs to be an education that prepares students for success in the workplace.

Despite the sluggish jobs recovery, employment projections for the future give us hope. By 2020, there will be 55 million new job openings in the United States. Twenty-three million of these openings will be for jobs that don’t even exist today, while 32 million will replace retiring baby boomers. Sixty-five percent of all jobs will require some level of postsecondary education and training.

Amid environmental destruction, China is battling to protect wildlife

Recently my family and I went through photos we had taken in Scotland. These images brought back memories of my fascination with the pristine Scottish natural environment. There are the breathtaking highlands, the sparkling lochs, the magnificent glens and the abundant wildlife. All these reminded me of Liaoning, my home province.

I spent my childhood in Liaoning in northeast China. It resembles Scotland in many ways. It is a vast landscape with spectacular mountains and rivers. Equally well-known is its abundant wildlife. Roe deer and hares are a common sight. Unfortunately, in recent years some wild animals have become a rarity, in some areas, due to overdevelopment and depletion of natural resources.

However, when I was on home leave back in Liaoning earlier this month I was delighted, and greatly encouraged, by the vigorous efforts of local government and people to create a sustainable environment.

Holder follows GOP lead in easing harsh drug laws

Attorney General Eric Holder issued a directive last week, instructing all U.S. Attorneys to revisit current drug cases involving low-level, non-violent offenders and waive harsh mandatory sentencing requirements where appropriate.

In doing so, the White House is turning its attention to one issue — criminal justice reform — where Democrats and Republicans have actually found common ground.

Though crime levels have been falling for the last 20 years, incarceration rates and prison costs have sharply increased. It is the states, particularly those under Republican control, that are leading the way here — enacting reforms that have cut incarceration rates and costs and led to significant taxpayer savings.

IAEA and Iran: Resolving the nuclear impasse

President Hassan Rouhani generated a positive buzz yesterday with his United Nations General Assembly statements about Iran’s determination to resolve the nuclear impasse with the international community. Though he argued Tehran was not prepared to give up its enrichment program, the new president declared “nuclear weapons and other weapons of mass destruction have no place in Iran’s security,” adding that his government was now committed to “time-bound and result-oriented talks to build mutual confidence and removal of mutual uncertainties with full transparency” to resolve any doubts.

While this lays the basis for the resumption of negotiations with the United States and its allies, we need not await the results to test Rouhani’s sincerity. That can begin Friday, September 27, when Iranian and International Atomic Energy Agency officials sit down in Vienna in a long-scheduled meeting to break the protracted deadlock over unanswered questions about the breadth of Tehran’s nuclear enterprise.

Director General Yukiya Amano summed up the stakes in his September 9 statement to the IAEA’s board of governors: “The agency has not been able to begin substantive work with Iran on resolving outstanding issues, including those related to possible military dimensions on Iran’s nuclear programme.” The Vienna talks now provide the best opportunity to make progress.

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