The Hill: It’s time for Congress to end the net neutrality wars

At the Consumer Electronic Show in Las Vegas last week, Federal Communications Commission (FCC) Chairman Tom Wheeler announced his intention to reclassify Internet service as a public utility in order to achieve President Obama’s laudable goal of a free and open Internet. Because this outdated “solution” has tied the FCC in knots for years, and is fraught with legal risk, it’s time for Congress to step in and lift net neutrality out of the regulatory morass.

By making equal access to the Internet the law of the land, Congress could settle this contentious issue once and for all. It should create a new source of authority to regulate the dealings between Internet service providers (ISPs) and content providers — outside the creaky confines of Title II of the 1934 Communications Act. In this way, Congress can more effectively meet the president’s net neutrality goals without recourse to outdated telecom regulations that could raise broadband prices, impede investment in the core of the network, and pull content providers and the services they offer within the ambit of archaic telephone regulations.

A bipartisan consensus is forming around the need for a legislative solution to the net neutrality problem, which has lingered for nearly a decade without resolution by the FCC. Just this week, Senate Commerce Committee ranking member Bill Nelson (D-Fla.) announced that he’s in discussions with the panel’s chairman, John Thune (R-S.D.) on a targeted, bipartisan solution. The Senate is now in a race against Wheeler to find a solution.

Continue reading at The Hill.

Wall Street Journal: A Rare Bipartisan Success for Congress

PPI President Will Marshall was quoted in Wall Street Journal piece regarding the rare showing of bipartisanship by Congress in passing the recent spending bill and whether or not the public should expect more of that moving forward.

“Most Republicans agreed…that this wasn’t the right time for them to flex their new political muscles—that will come next year when they control the entire Congress,” said Will Marshall, president of the Progressive Policy Institute, a centrist Democratic organization. “They’d rather go home for Christmas than join Ted Cruz in a crusade to shut down the government.”

Read the piece in its entirety on Wall Street Journal.

USA Today: Old rules make Internet more expensive

If the Federal Communications Commission (FCC) votes to “reclassify” the Internet as a public utility, U.S. consumers will have to dig deeper into their pockets to pay for access to the Internet.

How deep? By our estimates, broadband subscribers would have to pay about $70 annually in additional state and local fees. When you add it all up, reclassification could add a whopping $15 billion in new user fees to consumer bills.

At issue is whether Internet service providers (ISPs) — telco and cable companies — should be regulated as public utilities under Title II of the Communications Act of 1934. Activists pushing for this approach — echoed recently by President Obama — claim it is the only way to protect “net neutrality.” Critics argue that there are better ways to ensure an open Internet without subjecting ISPs to archaic regulations designed for the old Ma Bell telephone monopoly.

Missing from this debate until now is any serious assessment of what Title II regulation would cost broadband consumers. So we ran the numbers and discovered there is nothing but bad news on this front. Once Internet access service is labeled a “telecommunications service” under Title II, consumer broadband services could become subject to a whole host of new taxes and fees.

Although these fees are paid by broadband providers, history shows — and economic models of competitive markets predict — that these charges are passed along to customers, just as they are now on your phone bill.

The Internet Tax Freedom Act pending in Congress might limit the impact of some of these taxes and fees, but not all of them. And while the FCC has the power to limit the amount of the federal Universal Service Fee, recent history shows the FCC is more likely to increase USF than reduce it. Perhaps most telling — even the staunchest defenders of Title II acknowledge that various federal and state authorities could impose billions in new charges if broadband is reclassified as a utility.

Continue reading at USA Today.

 

 

CNN: We’re all culpable over CIA torture

While studiously avoiding the word “torture,” CIA Director John Brennan told reporters on Thursday that the aggressive interrogation program yielded information that helped the agency find Osama bin Laden. He also called the Senate Intelligence Committee’s damning report on CIA abuses “flawed” by partisanship, as well as “exaggerations and misrepresentations.”

Brennan’s comments are certain to pour oil on the already raging debate over what constitutes torture, how effective it is and who authorized what in the chaotic days and months after the 9/11 attacks. They also put the Obama administration squarely in the crossfire between Democrats defending the committee’s handiwork and Republicans and former CIA chiefs trashing it.

The culmination of a six-year investigation, the committee Democrats’ report was intended to provide a moment of moral reckoning for America. Instead, it has underscored Washington’s inability to rise above partisan truths and forge a common view on how to defend the country from terrorist attacks.

As an exercise in political accountability, a comprehensive report on the CIA’s detention and interrogation of terrorist suspects after 9/11 is overdue. In its otherwise commendable zeal to avert further terrorist attacks, the agency sometimes overstepped the bounds of decency.

Continue reading at CNN.

Holding out hope on Iran

Not much has gone right in the Middle East during President Obama’s second term. The White House has been hoping that a nuclear deal with Iran would yield the foreign policy success Washington badly needs after a string of reverses across the region.

But after a weekend of last-ditch diplomacy in Vienna, the deadline for striking such a deal expired yesterday. The anticlimactic result was an agreement to keep talking.

Even that is too much for hardline skeptics, here and abroad, who believe Iran is stringing the world along and has no intention of giving up its nuclear program. In their view, extending the talks another seven months grants Tehran unearned relief from economic sanctions as well as immunity from military strikes to destroy its nuclear facilities.

Continue reading at the Hill.

PPI Statement on President Obama’s Endorsement of Title II Regulation

PPI President Will Marshall released the following statement today after President Obama’s announcement urging the Federal Communication Commission (FCC) to regulate broadband Internet as a public utility under its Title II authority:

“’I hear you,’ President Obama assured voters in his post-midterm press conference last week. But his endorsement today of subjecting the Internet to heavy-handed regulation suggests otherwise.

“In fact, the president’s statement is exactly the wrong reaction to the election. It endorses a backward-looking policy that would apply the brakes to the most dynamic sector of America’s economy.

“The shellacking the president and his party suffered last week was largely about the economy. In exit polls, 70 percent of voters said they were mostly concerned about the economy, and an overwhelming majority of them described economic conditions as ‘not so good’ or poor.

“If the election yields any lesson, it is that Democrats need to offer the public a more convincing plan for accelerating economic growth and restoring shared prosperity. Such a plan should begin by building on America’s comparative advantages in digital innovation and entrepreneurship.

“Imposing public utility-style regulation on the Internet points in the opposite direction. It would very likely reduce private investment in broadband, which as PPI has documented in a series of policy reports, is a prime catalyst for job and business creation in the United States.

“It is also inconsistent with the Democratic Party’s legacy. After all, the Internet took off in the 1990s, thanks in significant degree to the ‘light touch’ approach to regulation adopted by the Clinton-Gore Administration.

“We hope President Obama will reflect on that legacy of pro-growth progressivism and reconsider his endorsement of Title II regulation of the Internet.”

How Democrats Can Recover

Electoral defeats are painful, but clarifying. As Democrats survey the damage left by a larger-than-expected Republican wave, it’s possible to discern four signposts on the road to a progressive recovery.

First, the party needs to start working on a post-Obama agenda.

Anti-Obama sentiment engulfed Democratic candidates everywhere, dragging red-state senators underwater and nearly drowning seemingly safe incumbents in purple or blue states, like Sens. Mark Warner of Virginia and Jeanne Shaheen of New Hampshire. The main “issue” in all these campaigns was the Democratic candidates’ supposed fidelity to Barack Obama. Only in this sense did Republicans succeed in nationalizing the midterm, but it was enough.

In his press conference Wednesday, a rather clueless President Obama took no responsibility for the wipeout and conveyed no urgency about making course corrections. This suggests that while Obama will be the main bulwark against GOP hubris and extremism over the next two years, Democrats will have to look elsewhere for the new ideas and arguments they need to regain the political initiative and rebuild support for progressive goals.

Second, those ideas won’t come from the party’s current congressional leadership, either.

Speaker Nancy Pelosi and Majority Leader Harry Reid are able legislative tacticians, tough partisan warriors, and world-class fundraisers. The charge now being leveled against them by some on the left—that they haven’t been aggressive enough in confronting Republicans—is ludicrous.

But agile tactics and fighting spirit aren’t enough, especially if voters think they are mainly in the service of expanding benefits for favored party constituencies. What Democrats need is a larger vision for restoring shared prosperity that can unite the interests of core partisans with those of moderate and independent voters. The current leadership has discouraged creative thinking by party pragmatists about ways to speed up economic growth, improve the regulatory environment for innovation, or make government work better. Instead, they’ve enforced conformity to focus-grouped “messages” tailored narrowly to different slices of the electorate.

Yes, I know that raising the minimum wage is popular. But it didn’t lift Democrats last Tuesday, and neither did alarmist rhetoric about a “war on women.” Next time around, Democrats will need to offer voters something more inspiring than a tired pastiche of messages aimed at bribing or scaring voters. It’s time to replace the current team with a younger crop of rising leaders open to bigger, bolder ideas for tackling America’s big problems.

Continue reading at The Daily Beast.

 

 

Wall Street Journal: Sullen Voters Set to Deliver Another Demand for Change

PPI President Will Marshall was quoted in a Wall Street Journal article on public dissatisfaction facing both parties, examining how the trend of “change elections” reflects growing discontent among American voters.

Will Marshall, president of the Progressive Policy Institute, a centrist Democratic research group, predicts that public frustration with politics will only intensify after the midterms, and will be a central issue for both parties in 2016.

“There will be tremendous pressure on the presidential candidates,” said Mr. Marshall, “to say how they are going to get out of this impasse and break the stalemate.”

Read the rest of the article at Wall Street Journal.

The Hill: Midterms confirm political stalemate

Although Republicans won a more sweeping victory than expected in yesterday’s midterm elections, the results tell us surprisingly little about what Americans expect of their political leaders.

Instead, the outcome confirms a new pattern of alternating partisan victories every two years, as Republicans dominate midterm elections and Democrats marshal superior electoral strength in presidential elections. The pressing political question today is how to break that pattern, which otherwise augurs deepening polarization and paralysis in Washington.

Exultant Republicans, of course, are hailing their sweep as a repudiation of President Obama. That’s true, up to a point. Midterm elections always are partly a barometer of public attitudes toward the sitting president, and there was no mistaking yesterday’s thumbs down verdict.

But if voters are dissatisfied with Obama’s performance, there’s little evidence they have fallen for Republicans or want the country to take a sharp right turn. On the contrary, exit polls found that voters disapprove of the Republican Party even more than Obama. Strikingly, 61 percent said they are dissatisfied or even angry with Republican leaders in Congress, even as they propelled GOP victories across the board.

Continue reading at The Hill.

The Hill: Why Red-State Democrats Matter

Washington’s political handicappers have spoken: Tonight will be a massacre—a Night of the Long Knives for red-state Democrats.

Let’s hope they are wrong, and not just for partisan reasons. It’s always a small but delectable victory for democracy when the voters humble the political seers and entrail-readers. We’re reminded that running for office is more art than science, and that the people really are in charge after all.

What’s more, a Republican Senate takeover would almost certainly harden the political stalemate that has brought the U.S. government to a screeching halt. It would purge states that voted for Mitt Romney in 2012 of high-profile Democrats, more perfectly aligning ideological and party allegiances across the widening chasm between red and blue America.

The problem is, while such ideological and partisan “cleansing” might be making our politics more homogenous from a philosophical and regional point of view, it is also making our country ungovernable.

Democrats would be doubly damaged by the lopping off of a major part of their pragmatic wing. They’d lose not only control of the Senate, but also political figures who know how to appeal to moderate and independent voters and thus help keep the party centered. Without such talented pragmatists as Mary Landrieu (La.), Kay Hagan (N.C.), Mark Begich (Alaska), Jeanne Shaheen (N.H.), and Mark Pryor (Ark.), and Mark Udall (Colo.), Democrats would be a more orthodox—and less interesting—party.

And, most galling of all, a GOP sweep tonight would reward conservative Obama-haters and put firebrands like Sens. Ted Cruz in the driver’s seat.

It’s a progressive nightmare, and Democrats are searching for explanations. The media is serving up a simple story-line: It’s all Obama’s fault.

That’s not entirely wrong. With his job approval scraping rock bottom (40 percent), the president has become something of a millstone around the necks of red- and purple-state Democrats. That’s why we’ve seen more of Bill and Hillary Clinton than Barack Obama on the hustings in the battleground states. Six years into his presidency, and despite a rebounding economy, 70 percent of the public believe the country is on the wrong track. Some key voter groups that swooned over Obama in 2008 have soured on his cool and disengaged approach to leadership.

So the president will have to take his lumps, but let’s not go overboard. Congressional Democrats are even less popular, and Republicans even less so. This suggests that deeper structural forces are also at work.

Continue reading at the Hill.

 

Marshall: Making America Work Again

As the midterm election draws near, Democrats and Republicans are locked in a race to the bottom of the public’s esteem. A majority of voters (51%) take an unfavorable view of Democrats – the party’s lowest rating since 1984, according to a new ABC News poll. Meanwhile, President Obama’s job approval has fallen to a nadir of 40%.

Republicans are even less popular, but their midterm prospects look better because their voters – older, white and married – seem more motivated to turn out on election day. The poll shows that likely voters give GOP the edge on key issues like the economy, immigration, the deficit and security. Since Republicans have done little to earn such confidence, it seems reasonable to conclude that the voters’ mood is more anti-incumbent – i.e., President Obama — than pro-GOP.

That’s usually the case six years into any President’s tenure, and the media has called the poll bad news for Obama and the Democrats.

No doubt, but what really stands out is growing public revulsion with the nation’s political leadership, regardless of party. Despite an improving economy, 71% of voters say the country is on the wrong track. And a whopping 83% are dissatisfied with the way the U.S. political system is working. Here again the Republicans get an undeserved pass, as likely midterm voters divide about equally when asked which party is more to blame for political deadlock.

In any case, the poll’s big takeaway is the public’s profound antipathy toward the hyper-partisan and dogmatic approach to politics that has come to characterize what I’ve called the Polarized States of America. The politics of polarization has been good for ideologues, uber-rich activists and narrowly focused pressure groups, but it’s been a colossal bust with the American people.

Republicans have led the charge toward ideological purity and extremism, but some Democrats seem anxious to follow suit. They want the party to embrace a polarizing populism centered on top-down redistribution, knee-jerk hostility to the private sector and class grievance. But matching the GOP’s right-wing populism with a left-wing populism is a dead end for Democrats. It would repel the moderate voters Democrats must have to build electoral majorities, and perpetuate the partisan stalemate in Washington.

As I argued recently in an essay for Politico Magazine, what today’s partisan holy warriors don’t understand is that the U.S. political system is biased toward pragmatism. By creating a government of separated and divided powers, the Constitution’s architects made it exceedingly difficult for one faction or party to dominate national politics. Unlike a parliamentary system, where the victorious side wins all the marbles and can enact its agenda, America’s political operating system is geared power-sharing and compromise. Our country is best governed from the pragmatic center, not the polar extremes.

For all their frustration with Washington, Americans ultimately are pragmatists — they want a government that works. The party that can make the most convincing case for restoring our political system’s ability to solve problems will have the upper hand going into 2016. And that’s why progressives should spend the next two years crafting a strategy for breaking the paralyzing grip of polarization and getting America moving forward again.

Politico Magazine: How to Seize Back the Political Center

For all the roller coaster drama of the battle to control the Senate, the midterm elections won’t really change much. No matter which party ends up with a majority, Americans will still wake up on Nov. 5 to a seemingly immutable stalemate in Washington. But pragmatic progressives should take heart. Over the next two years they have an historic opportunity: to build a broad center-left majority that can break the paralyzing grip of polarization and get America moving forward again.

Not so long ago, U.S. politicians who robotically toed the party line were considered shameless hacks. And ideologues were seen as wingnuts—self-righteous cranks unable to cope with life’s complexities. Today, such people dominate our national politics. How are they doing? If the measure is simplifying and sharpening dueling political narratives, they are doing a fine job. If it is governing, they are failing miserably.

The more polarized our politics, it seems, the less productive our government. In this sense, polarization serves conservative rather than progressive ends. If you hate government, you probably don’t mind that Washington has degenerated into Fight Club. Conservatives come to fight liberal schemes to enlarge government; liberals come to fight conservative schemes to succor the rich and screw everyone else. And the fight is what matters, not getting things done, because the fight is how you raise money, energize supporters and get media attention. Compared with the give and take of governing, partisan combat is easy, because you never have to think independently, face inconvenient facts or accomplish anything more than keep the other side down. Plus, you get to pose as a paragon of deep conviction.

 In this Manichean hothouse, the battle lines are clear and everyone knows their place. To break ranks on any major issue is treason, to see merit in the other side’s point of view is heresy, to compromise is to sell out and to engage in political horse-trading is corrupt. Finding common ground? That’s so 20th century. Don’t bore us with intellectual honesty, nuance or shades of grey—just pick a side, slug it out and let the best team win.

Such are the new rules of political competition in the Polarized States of America. There’s just one hitch: They clash with the basic design of our democracy. Winner-take-all outcomes are better suited to parliamentary systems. When a party wins a parliamentary majority, it is expected to enact its platform unilaterally or with minor party partners. America’s political operating system is different: With three separate and distinct branches of government, our constitutional frame is rife with divided powers, checks and balances and constraints on majority rule.

Our system is intended, in other words, to thwart just what today’s polarizers dream of: imposing their philosophy in all its undiluted glory on the nation. The Founders, who really were wise in these matters, didn’t trust what they called political “factions” to wield that much power. “Great innovations,” warned Thomas Jefferson, “should not be forced on slender majorities.” Our political system isn’t supposed to produce ideological coherence; it’s geared to yield outcomes that balance competing values and interests, and in consequence are broadly accepted as fair and legitimate. Our system is built for pragmatists. And absent the pragmatist’s values—power-sharing, the willingness to compromise, regard for minority rights and some measure of comity between the branches and parties—our democracy doesn’t work very well.

The Affordable Care Act (ACA) is an exception that proves the rule. In 2010, Democrats resorted to an unusual legislative tactic, budget reconciliation, to pass the law without a single Republican vote. Since then the GOP has waged an obsessive campaign to demonize “Obamacare” as a naked partisan power grab—even though their mean-spirited refusal to offer a serious alternative for covering the uninsured forced the majority’s hand. So while the ACA is a landmark achievement, as a strictly partisan one it rests on a wobbly political foundation. Most voters say they oppose the law, and conservative legal challenges are working their way through the courts. Should they win a Senate majority this year, Republicans say they’ll exact payback by using reconciliation to kill or nullify the law.

The GOP’s implacable hatred of Obamacare also underscores an oft-noted fact about polarization: It is asymmetrical. Surveys confirm what impartial observers of U.S. politics can readily observe: Republicans are more ideologically extreme and more stridently partisan than Democrats. Conservatives also are significantly less interested than liberals in political compromise. Under the sway of a new breed of anti-government zealots, the GOP is chiefly responsible for blocking action on some of the most pressing issues we face, from tax and fiscal reform to immigration and climate change.

The Democrats aren’t blameless. Many liberals, for example, are just as theologically opposed to modernizing entitlements as conservatives are to raising taxes. The result of this demagogic stance is anything but progressive. It means Washington will continue to direct a growing share of the country’s resources to seniors while starving investment in children and families and future growth.

In any case, Democrats have been moving steadily to the left, about as fast but not nearly as far as Republicans have shifted rightwards. The share of Democrats holding consistently liberal views, for example, has quadrupled from 5 percent in 1994 to 23 percent today. This leftward movement is a big problem for the party. If Democrats follow the GOP into the fever swamps of ideological purity, the nation’s political crisis will only grow deeper. Absent a fundamental and highly improbable revamping of our constitutional system, America can’t be governed from either ideological pole. Only by leading from the pragmatic center can Democrats capitalize on GOP extremism and rally broad public support behind new ideas for breaking the partisan log jam in Washington.

Continue reading at Politico Magazine.

New York Daily News: Hong Kong screams, America is silent

Listening to our government’s weaselly evasions on the protests in Hong Kong makes me wish America had an Aaron Neville Doctrine. Neville is the New Orleans crooner whose soul classic, “Tell It Like It Is,” topped the charts in 1966 and has been covered more than a dozen times since.

White House and State Department officials seem unfamiliar with the concept.

Hong Kong’s students and thousands of others have taken to the streets to protest the Chinese government’s plan to curtail their democratic rights. It began more than a week ago with class boycotts. By this Wednesday, the 65th anniversary of Communist rule in China, more than 100,000 people flooded the city, many of them toting now-symbolic umbrellas.

What they want is simple and universal: the right to genuine self-determination.

Beijing says it is perfectly willing to let Hong Kong residents continue to vote to choose their own leaders — but only for its pre-approved slate of candidates. That’s a blatant violation of the 1984 agreement between China and Britain under which the British colony would revert to Beijing’s control when its 100-year lease expired in 1997.

For its part, China agreed to permit “universal suffrage” in Hong Kong under a new policy of “one country, two systems.” The United States stood as a guarantor of that agreement, which preserved Hong Kong as a little island of political freedom within a vast communist monolith.

Continue reading at the New York Daily News.

Surprising New Data on Young College Graduates

Despite falling unemployment and a recovering labor market, young college graduates continue to struggle in today’s economy.

Analysis of new data reveals the real wages of young college graduates surprisingly fell in 2013, by 1.3 percent. The decline reverses a slight uptick in 2012, and continues along a ten-year trend in which real average earnings for young college graduates has fallen by a sizeable 12 percent since 2003. The chart below shows real average annual earnings for college graduates aged 25-34 working full-time with a Bachelor’s degree only.

realearningsfallchart

This troubling trend presents significant political and economic challenges that policymakers can no longer afford to ignore. As consumers and taxpayers in their prime earning years, young college graduates represent one of the most important segments of the working population.

Politically, the continued struggle of well-educated Millennials sends a clear warning to progressives to support a more convincing growth agenda. A pro-growth agenda must be based on investment and innovation, instead of redistribution and more of the same debt-driven consumption of the last decade. Otherwise, young Americans, the vast majority of which voted overwhelmingly for Obama in 2008 and 2012, may change parties or stay home on Election Day.

Economically, falling real wages for young college graduates is resulting from what I call The Great Squeeze. That is, more young college graduates are finding themselves underemployed – taking lower skill jobs for less pay at the expense of their less educated peers. The continuation of this trend, five years after the Great Recession, suggests this problem is more than just temporary. (While this is for BA only, the trend is the same for those with a BA or higher.)

The Great Squeeze is rooted in demand-side and supply-side factors. On the demand-side, the high underemployment plaguing young college graduates is connected back to the slow-growth economy. Our education, tax, and regulatory policies have failed to adapt to the realities of a data-driven world, keeping investment and high-wage job creation on the sidelines. Here simply having a college degree is not enough to guarantee success. In fact, a recent study from the Federal Reserve found that one-quarter of college graduates earned the same amount as those with a high school diploma or GED.

And on the supply-side, colleges are failing to adequately prepare college graduates for the high-skill, high-wage jobs that are being created in fields like data analytics and tech. For example, although far more women were awarded degrees in 2013 than men, most majored in business, health-related disciplines, education, and psychology.* It is hardly surprising that more data and tech employers are turning to alternative training models to meet their workforce needs. Yet in spite of the mismatch, if anything, our federal student aid system is exacerbating the imbalance.

In short, there are two main takeaways here for policymakers: (1) we need better policies in place to encourage employers to invest and create jobs domestically, and (2) young Americans need a postsecondary education system that is better aligned with the shifting nature of the labor force.

*Author’s tabulation of 2013 IPEDS data.