NSA Violations Undermine the US Abroad: Is this Obama's Legacy?

After the American Century

This is the 400th blog entry for After the American Century.

More revelations about the NSA's snooping are being discussed in the world press, and it is increasingly clear that the NSA has undermined US relations with allies. How much distrust it has created cannot be quantified, but every Danish person I have discussed this with dislikes what the NSA is doing, including colleagues, teenagers, pensioners, students, neighbors, and taxi drivers. All can see that some spying is needed for national security, but hoovering up all the data available seems not just expensive, not just overkill, not just excessive, but the actions of a rather paranoid international bully.  Sorry, my American readers, but this is the bad news the domestic press is not saying too much about.

Because the underlying reputation of the United States in the world has been adversely affected, news is beginning to appear about American businesses losing contracts abroad because of fears of NSA surveillance, fears that trade secrets are being stolen, fears that negotiations and bidding on lucrative contracts are being spied on, and so on. Many foreign businesses want to avoid saving data on US systems, because of these fears. Some estimates suggest that the IT industry alone may lose $180 billion in foreign business because of the NSA revelations. Little wonder that the largest technology companies wrote an open letter to President Obama protesting the NSA's over-reach.

Likewise, many ordinary people abroad wish they could stop using American-owned sites, such as Google, Facebook, Twitter, and all the rest, because the newspapers have confirmed that all these corporations are compromised. In the end, it matters little whether they intentionally shared date with the NSA or were hacked by the NSA. The lack of privacy is more than disturbing; it is driving a wedge of distrust between the US and the rest of the world.

The average person assumes that if the German Prime Minister is not safe from NSA snooping, if the Israeli Defense Minister is not safe, if the diplomats of the EU are not safe, then of course no one else is safe either. The assurances that  information gathered is not shared with other government agencies rings rather hollow. After all, Mr. Snowdon was able to obtain huge amounts of information about all sorts of things. There appear to be thousands of others with the same security clearance. Have none of these men and women ties to other US government agencies? Are all of them able to resist pressure to help out a friend in another government agency? Are none of them corrupt? Who can seriously believe that the federal access to information is limited to NSA?

Unhappily, this ongoing scandal may become what President Obama is remembered for. On the one hand, he spent hundreds of billions on a global paranoia project to gather more information on more people than ever before in history. On the other hand, he did not allocate sufficient funds or find sufficient expertise to put Obamacare into working order. This is bad leadership.

The conclusion I reached in June still seems valid. Then I wrote that "The problems of the Obama Administration are to a considerable degree of its own making. Presidential second terms are often difficult, and this one seems to be no exception. Think of Lyndon Johnson after his re-election, when antiwar protests dogged his every step. Think of Richard Nixon's second term, engulfed by Watergate. Think of Reagan's second term, and Irangate. Think of Bill Clinton's scandal-ridden second term and the attempted impeachment. And finally, think of George W. Bush's second term, when his approval ratings sank below 25%. Since 1963, not one  president found a way to escape controversy and unpopularity in a second term. Obama unfortunately seems headed toward a similar fate." President Obama's popularity rating has sunk by more than ten points since this time last year. Recent second-term presidents have often had ratings around 50% at the end of their fifth year. Obama's rating is 43% according to CBS, but only 40% according to Gallup.

What an irony it will be if the American economic recovery is compromised by the NSA and Obama's slow correction of its excesses. How ironic that a president who began his term with tremendous good will abroad has squandered it.

The sad spectacle seems to justify the title of this Blog itself. The American Century perhaps could be dated from 1918, when the US emerged from World War I as the wealthiest power, with the world's largest industrial plant. The US reached the apogee of its economic power in the early Cold War, but its hegemonic position has gradually eroded as a percentage of the world's economy since then. To some extent this was unavoidable, as other nations industrialized and digitized. But there is also a purely internal decline into dysfunctionality that is not primarily due to external foes. No outside power eviscerated public education. No foreign government forced the US to have unworkable immigration laws. No international agency failed to monitor and control its banks. No nefarious outsiders are responsible for the foolish tax policies of the Bush years or the problems created by the "sequester." No outsiders force Americans to purchase ever more weapons for personal use. These egregious and unnecessary errors are just part of a catalog of mistakes that would drag down any nation, if persisted in long enough. The United States seems intent on undermining and defeating itself. The excesses of the NSA are part of that pattern.

Make Corporations Full Citizens

After the American Century #207

In American law the idea developed that corporations ought to be considered individuals – or persons. This idea makes a certain sense if narrowly interpreted. For example, a corporation, like a person, can be governed by the same laws regarding contracts. The corporate “person” could also be sued for liable. But in a revolutionary ruling last week, the United States Supreme Court decided that corporations also have the right to free speech and are protected by the Bill of Rights. The Court might have ruled far more narrowly but instead went out of its way to declare that corporations may advertise freely and directly in political campaigns. (Logically, the Court should also have given corporations the right to vote in elections, but perhaps it is saving that decision for another time.)

In the interest of making corporations into better fellow citizens, here are specific proposals to help them achieve a fuller humanity, since that is what the Court clearly desires.

1. Slavery being outlawed by the Constitution, it therefore should be illegal for one corporation to own another corporation. Holding companies clearly are a modern form of slavery that must be eliminated.

2. Hostile corporate takeovers must henceforth be regarded as acts of aggression that are punishable as crimes. A hostile takeover of a corporation must be considered a form of kidnapping, in some cases followed by murder, and punished accordingly.

3. Corporations that close down should be subjected to the same laws of taxation as the estates of deceased individuals. As it is now, companies can more resources around, closing down one company and opening a new one as often as they wish, without being subject to the taxation (and in effect the audit) imposed on a human being’s estate.

4. Since human beings are not immortal, it seems only fair that corporations be declared legally dead every 60 years (this being the maximum length of most person’s adult life). This death could be followed immediately be corporate rebirth, but only after paying the estate taxes.

5. Corporations should be punished for murder in the same way that people are. If they want to be considered persons, then they cannot pick and choose which legal obligations they want to assume. At present, when a corporation pollutes the air or water and as a matter of statistical certainty, makes some people ill and causes others to die, the “normal” practice is to fine them and to force them to pay compensation to the victims. This is not right, as it allows a wealthy “person” to substitute a cash payment for imprisonment. Real people cannot do that, why should corporations be allowed to get off? The people who give themselves those big corporate bonuses and stock options must also now be held criminally liable for the corporation’s behavior if they accept the payments.

6. The old idea of the corporation included the provision that people who invested in them had limited liability. That is, they could lose only the money originally invested, but had no personal responsibility in case the corporation ran up huge debts. In the nineteenth century, when corporations first were becoming a common way of organizing a business, many ordinary people protested. It seemed unfair that an ordinary grocer or carpenter was fully liable for his actions, while a vast corporation that owned many grocery stores or built many houses had limited liability. Clearly, now that the Court in its infinite wisdom has ruled by a vote of 5-4 that corporations have political rights, it follows that they can no longer claim limited liability. If they want to claim the rights of people, then they muse assume the obligations of people. Alternately, one would have to extend the same right of “limited liability” to all Americans, not just corporate Americans.

Now that the Court has ordered us to welcome corporations into full membership in political and civil society, the essential thing is to make sure that they take on ALL the obligations of citizenship.