The Art Of Telling The Truth

Getting political journalism to focus on fact checking is appealing in principle. It is disappointing – even futile – in practice.

You can understand why people find fact checking seductive. Our politicians pander to prejudices, fudge policy details, vilify their opponents, and exaggerate their own virtues for votes.

But as good democrats we put the winners of this squalid electoral contest in charge of the levers of government. So it would be nice to know which politician lies least.

And there’s clearly frustration with journalism as it is practiced today: why not make its new duty to judge political untruths?

Fact checking was a feature of the 2012 Presidential campaign. One frustrated Mitt Romney advisor said he wouldn’t “let our campaign be dictated by fact-checkers”.

But, in a column over the weekend, Australia’s Laurie Oakes unintentionally demonstrated how faddish and illusory the fact checking idea really is.

Writing that he expected fact checking to become a central part of Australian journalism, Oakes identified two recent falsehoods: Julia Gillard’s “there will be no carbon tax under a government I lead”, and Tony Abbott’s claims about the future economic cost of that tax.

If only it were so clear.

Did Julia Gillard lie about the carbon tax on 16 August 2010? Well, yes. And no.

She probably thought she wouldn’t introduce a “carbon tax” in the next term of government. But that didn’t mean she wouldn’t introduce an emissions trading scheme. And what we call a carbon tax in 2012 is actually the latter with an initial fixed price.

Yet free market economists have long insisted that, contrary to popular wisdom, there’s not a big conceptual difference between a tax and a trading scheme. They both price carbon. A tax could be described as a “market mechanism” too.

The point is these are terms of art, not science.

The idea that a journalist – or scientist, or economist, or philosopher – would be able to provide anything near a definitive statement of whether Julia Gillard was being factually accurate is nonsense.

Anyway, how on earth could the press gallery fact check a prediction? Tony Abbott’s claims about the carbon tax’s economic impact are almost entirely rhetorical. Yes, he understates how much of recent electricity price rises have been due to the changes in the energy industry – an understatement which is regularly pointed out in parliament and the press. But as to the carbon tax’s real cost?

Models of future economic costs merely reflect the assumptions they’re built upon. We don’t know how much a policy hurts until long afterwards. Even then it’s still quite hard to tell. Fact checking of such predictions is just arguing the toss.

This problem is clearly illustrated in the latest piece on The Washington Post’s Fact Checkerblog. Run by a veteran correspondent, Glenn Kessler, Fact Checker is apparently the gold standard in the field.

The story goes like this. Republicans have been citing an Ernst & Young study saying tax increases on the rich would “destroy nearly 700,000 jobs”.

Kessler notes that a) the jobs are lost over a decade or more, b) 700,000 jobs is only a tiny fraction of total employment, c) the study ignores the benefits of reducing the deficit, and d) there’s a different study that says otherwise.

For their “misleading” analysis, he awarded the Republicans three out of four Pinocchios.

But who is being misleading here? The Republicans aren’t wrong. At best they are guilty of an ungenerous presentation of the evidence. The Ernst & Young study says 700,000 jobs will be lost – just not immediately. You can’t refute rhetorical excess.

What Kessler isn’t doing isn’t fact checking, really. It’s just more argument. Which is fine, but let’s not pretend that more argument is a journalism revolution. And it’s definitely not new.
Even apparently clear falsehoods – for instance, Mitt Romney’s ad saying Barack Obama “sold Chrysler to Italians who are going to build Jeeps in China” – are more subtle than they’ve been presented. In a confusingly worded Bloomberg article, Chrysler was reported to be considering exactly that.

Kessler gave Romney four Pinnochios for his Chrysler ad, but his actual conclusion was more modest.

The ad was “a series of statements that individually might be factually defensible, but the overall impression is misleading”.

In the hands of partisans this has become a classic Romney ‘lie’.

Certainly, Romney had confused the Chrysler issue in an earlier speech in Ohio. But senior politicians are usually very clever with their words. They don’t lie. They dissemble.
Kessler to his credit is relatively even-handed. He goes after both left and right.

Such non-discrimination is unusual. Fact checking is more common as a political attack than journalistic technique. Hacks of all sides push their own fact checkers. It’s just another weapon in the partisan’s armoury. Smugly purporting to be on the side of ‘reality’ is a fashionable way to hit your opponent.

There’s a more critical problem with the fact checking fad. Political journalism is a business of generalists not experts. The best reporters know a little about a lot, not a lot about a little.

That, indeed, is why the ‘he-said, she-said’ model of journalism was developed. He-said, she-said has a bad reputation these days – it is often used unthinkingly – but it exists for a reason. It reflects a modesty that generalists cannot rule definitively on all issues. Sometimes you need to call a specialist. If something is controversial, you may need to call two.

Political rhetoric is rarely true or false. When an issue is simple, politicians will fudge it. When an issue is complicated, it requires experts to unpack.

Either way, self-conscious and self-satisfied ‘fact checking’ is no magic bullet.

Grandstanding about mobiles won’t reduce the road toll

It’s an old principle of policing – if you can’t enforce the laws on the books, demand more laws.

More than 55,000 people in Victoria were booked for using their mobile phones while driving last year. That’s around 150 people a day.

So on Monday, the front page of the Herald Sun reported that Victoria’s chief highway patrol cop wanted the government to force drivers to switch their phone off in cars.
Never mind that a ban on phones in cars would be completely unenforceable.

Victorian road rules are clear. The Road Safety Act bans mobile phone use while a car is running. The only exception is receiving calls or using navigation functions with a commercially fitted holder. Even then, the driver cannot touch the phone at any time. The fine is $300 and three demerit points. New South Wales enacted similar laws last week.

Yet one survey suggests around 60 per cent of Victorians still use their phone while driving. That 55,000 people booked isn’t a lot, considering more than two million of the state’s 3.7 million licensed drivers are breaking the rules.

The Herald Sun article said “thousands of rogue motorists flout the law”. No – millions do.

First things first: it is incredibly stupid to use a mobile phone while travelling at speed. Driving is a complex task. Sending a text message on a phone increases the risk of accident up to 23 times. That much is easy to demonstrate in simulations and in-car experiments.

But things get less certain from there.

The “while driving” data is a bit misleading. They include a lot of circumstances we wouldn’t usually call driving – like checking your phone while stopped at a traffic light. But if the engine is running, it counts.

The NSW government commissioned a study into the extent of the problem earlier this year as part of a parliamentary inquiry. The results were striking and counterintuitive.

Seven per cent of accidents in NSW in the last decade involved driver distraction. And within that 7 per cent, only 1 per cent involved a handheld phone.

Don’t get too hung up on the specific numbers. There are many complicated definitional issues. There’s a large body of academic research on driver distraction but it’s not all comparable. And, obviously, the ideal number of accidents is zero, whether related to phones or anything else.

Yet it still remains that mobile phones are extremely small proportion of the causes of distracted driving involved in accidents. The majority of distractions come from outside the car. Then there are those within the car – like fellow passengers, grooming, or eating and drinking.

There are even three times as many accidents involving police pursuit as mobile phones.

The overwhelming majority of accidents involve exactly what you’d expect: speed, fatigue, and drink. Mobile phones hardly rate.

But you wouldn’t know that from the press. Phones dominate the popular discussion of car accidents. Using a phone while driving seems to be the ultimate in recklessness. It is terrifying to imagine there are people speeding down the freeway while tapping out text messages.

Smart phones are a novelty, and novelty makes news. Stories about how mobile phones cause accidents has all the characteristics of a moral panic – a disproportionate reaction to a small problem. Drivers face worse distractions. There are more disconcerting risks on the road.

For instance, one 2005 study found in-car entertainment systems are a far bigger real-world distraction than phones. You have to take your eyes off the road to change a CD or radio station. Handheld phones are problematic not because they impair drivers physically, but because talking while driving takes extra mental effort. It’s the conversation which is dangerous, not the phone. (This explains why some studies have found hands-free phone systems are no safer than hand-held ones.)

These are uncomfortable findings. No politician wants to challenge the right of drivers to chat with passengers or listen to the radio. Anyway, that’s why we have careless driving laws, and take recklessness and negligence into account in criminal accident proceedings.

Nevertheless, there has been a remarkable decline in car fatalities over the past few decades. The Commonwealth government has been tracking road deaths since 1925. Deaths have reduced from 30 per 100,000 population in 1970, to seven in 2008. If anything, that understates the decline: we’re driving twice as much as we did 40 years ago. And the death toll is still going down, even as more people buy more complicated phones.

A society should try not to have too many unenforceable laws. They breed contempt for the law as an institution. If people get used to disobeying one law, they may become comfortable with disobeying others.

As the American writer Radley Balko has argued, calls to increase restrictions on mobile phones in cars aren’t about safety; they’re about symbolism.

It’s already illegal to use phones in the car. Lots of people do it anyway. But political grandstanding about mobiles is not the same as reducing the road toll.

In praise of ticket scalping, horse eating and trading in human organs

Should we be able to buy horse meat at restaurants or for home cooking? It is not as if horses are a protected species. We already export them for human consumption. Australian food markets sell goat, kangaroo, camel, buffalo, crocodile, even wallaby and alpaca. Why not horse?

Yet when a Perth butcher and a Melbourne chef tried to introduce horse meat two years ago, they were met with a storm of protest, and had to withdraw it from sale.

If horse meat seems a bit banal, then what about pets? How would you feel if somebody slaughtered their family dog and sold the meat? Disgust? More likely repugnance.

These odd questions are among the valuable contributions to humanity by the 2012 co-winner of the economics Nobel Prize, Alvin E. Roth.

Roth won for devising a system where donor organs are matched with patients. There is a global shortage of organ donors. One Australian dies every week waiting for a transplant. A strategy to help deserves all the recognition it gets.

So where does repugnance come in? We already have a great way to harmonise organ supply and organ demand – markets. If donors were able to charge for their kidneys, there would be more kidneys available. People respond to incentives. And a legal, regulated, safe market for organs would be better than today’s dangerous illegal market. Yet it is unlawful to compensate someone for donating a kidney. We are relying on altruism to meet our transplant demand.

Roth devised an algorithm to efficiently allocate what little organ supply there is with some of those who need transplants – given that legislators have decided it is immoral for people to trade organs for money.

The Nobel committee described this anti-market bias as ”ethical grounds”. Some ethics. By limiting the amount of organs available, those ethical grounds are killing people.

Roth published an influential paper in 2007, Repugnance as a Constraint on Markets, in the Journal of Economic Perspectives. We find all sorts of things repugnant. And we do so instinctively, not rationally.

Take gambling. Many find sports betting obnoxious, as if it undermines the purity of sport. Calling for a ban on internet betting, Nick Xenophon once complained cricket had been ”reduced to just another event to have a punt on”. Likewise, some political professionals believe that gambling on an election is highly distasteful.

When, in 2003, a team of Pentagon economists tried to set up prediction markets – that is, using betting to predict the likelihood of future events – for terrorist attacks, they were pounced upon. One congressman described the program as trading in death. ”There is something very sick about it,” said Senator Barbara Boxer.

Just ”something”. Sure, betting on future terrorist attack probabilities is unorthodox. But it might have worked. The purpose was to predict attacks and stop them. Yet for those politicians, it felt wrong. The program was quickly shut down.

What we think is repugnant is determined by our culture. Historically, lending money at interest has been unacceptable. This makes some strange sense. Lenders who charge for the privilege of borrowing money seem a bit heartless – it is not like idle money is being used. And why should people get rich just for sitting around?

Ticket scalping is another repugnant market. It somehow seems unfair to pay more than the cover price for concerts. But a basic lesson of economics is that markets allocate goods to those who value them the most (that is, those who are most willing to pay). Scalping is a good thing.

Ticket scalping also shows how special interests can use repugnance as cover for their own private gain. Ticket sellers want governments to stamp out the secondary ticket trade. They don’t like the competition.

Yet anti-scalping laws make it harder to get tickets to popular events, not easier. Just like outlawing the organ market makes it harder for sick people to get transplants. Or banning horse meat restricts the availability of tasty horse meat.

It is fine for individuals to object to certain practices. If you don’t want to be compensated for your organ donation, you don’t have to charge. And nobody is forcing you to bet on future terrorism.

But it is a real problem when feelings obtain the force of law. That gut reaction – ”there is something very sick about it” – can sometimes cause real harm.

Don’t believe the Asian century hype

The Government’s Asian century white paper finally reveals the conceptual poverty of the Asian Century idea.

Certainly, Asia will continue to grow prosperous and come to dominate the global economy.

But Ken Henry’s white paper demonstrates that the concept of an “Asian century” offers almost nothing to guide Australian public policy in 2012.

Don’t believe the hype. The Asian century is not the stuff of wonky earnestness. It is a political story.

A simple reorganisation greatly diminishes the whole project. We can group the proposals – sorry, “pathways”, a horrible word that the Government uses to conflate policies with goals – of the white paper into two categories.

The first category is things that are true no matter which continent dominates the next 100 years. The white paper wants Australia to be one of the top ten richest countries by 2025. Fair enough. But this holds regardless of whether there will be an Asian century, or an American century, or a New Zealand century. Most of the white paper is like this.

One sentence reads: “A world-class school system is essential to Australia’s success in the Asian century.” What do the last four words contribute? The government will create “a long-term national infrastructure strategy”. It will establish a Tax Studies Institute. There will be a National Plan for School Improvement. We ought to expand our trade with the rest of the world. The Asian century conceit adds nothing to these ideas.

The white paper even plugs Closing the Gap. Ending Indigenous disadvantage is extremely important, but what on earth does it have to do with Asia?

In the second category are proposals specifically designed to deal with rising Asian economies. There aren’t many in this category. And they’re all pretty minor – even token.

Of these, increased Asian language teaching is the most significant. I’ve criticised this idea in the past, and Benjamin Herscovitch from the Centre of Independent Studies has done so recently at length. Yet even if more Asian language teaching was necessary, it’s an oddly trivial hook for this ambitious white paper. Is offering Chinese at more schools really the pivot on which our nation will turn?

The quality of proposals declines sharply from there. The white paper says that one-third of board members of Australia’s top companies should have deep knowledge of Asia. This is a pretty gimmicky idea. Anyway, why is intellectual composition of the boards of private firms any business of the Commonwealth government?

One welcome proposal is to boost the numbers of tourism and working visas from Asia (you could ask: why not boost visas from everywhere?). Yet in the mid-year budget just last week the government significantly raised the cost of visas for foreign workers.

Asian century boosters have always struggled to link their statement of the obvious (Asia is growing) to concrete proposals. This white paper is most ambitious attempt yet. If Ken Henry can’t make it work, nobody can. But it fails.

Apart from continuing to strive to be productive and educated and rich – good things whether our neighbours are rising or declining – it’s not obvious that Australia needs to do anything special about the rise of Asia.

Indeed, that may be the point.

The white paper mostly just reiterates existing Gillard government policies. Far from jolting us out of our complacency, the paper encourages it … well, as long as we stick with Labor and its NBN and its schools plan and its carbon tax.

The Asian century paper is a political document. It’s a theme for the Government now that most of the Rudd-era ambitions have been squared away; a fresh “Labor vision” for the party of Keating and Whitlam. It doesn’t have to be particularly coherent or convincing. It just has to be plausible.

And, to be fair, it is. The white paper exudes seriousness. It is ridiculously Big Picture. The Asian century is intellectually flattering: everybody feels smarter when they talk about it. In the last 48 hours almost every special interest in the country has claimed their pet issues are the key to surviving the new Eastern paradigm.

Given that the Asian century is above all a political idea, it seems significant that the Opposition has been caught off-foot. First the Coalition welcomed it, said it lacked detail, then said it lacked funding. By Monday Tony Abbott had described it as “laughable, frankly”. Then he moved on to Peter Slipper.

This is probably not wise.

The Asian century looks like Julia Gillard’s election strategy. It’s a lot better than Moving Forward. But like so many political visions, it’s seems more profound than it is. We should not confuse narrative for substance.

The puritanical public health movement

For eight weeks in 2011, four public health researchers – three from the Cancer Council, one from the University of Western Australia – watched 792 music videos aired on Australian television. They recorded all the mentions of alcohol, tobacco or illegal drugs.

The results were published in the journal Alcohol and Alcoholism in September this year. About one-third of the music videos referenced drugs. The vast majority of those references were to alcohol.

Here the full horror is unveiled: “references to alcohol generally associated it with fun and humour”. Only 7 per cent of the music videos that referred to booze presented alcohol in a neutral or negative light.

The paper argued music videos mentioning alcohol positively should be classified differently and regulated out of the morning timeslot.

But more broadly, the implicit claim of this research is there is something wrong with our culture: not just “the culture of drinking”, but culture in general.

Society associates alcohol consumption with fun, humour and celebration. According to the researchers, that association is “insidious”. One might add: pretty accurate.

This minor paper tells us a lot about the spreading ambition of public health activism.

The modern field of public health started with campaigns against ignorance. Educational programs were designed to inform the citizenry of the health consequences of their choices. The messages were simple. Smoking is bad for you. Keep fit. Eat more vegetables.

Such benign information provision is a thing of the past. Now public health is a great social project. It desires nothing more than a complete rewiring of our preferences and a rewiring of the culture which it assumes formed them.

It’s not just that the study of public health is deeply paternalistic and patronising. Nanny state accusations have pursued the field for decades. And no wonder: the Rudd government’s Preventative Health Taskforce even recommended the Government regulate the portion size of restaurant food.

But nanny state doesn’t quite capture it. Public health is an imperial discipline, dragging in everything from cultural studies to urban planning. And it does so all in the service of an increasingly ambitious program to reshape society and prioritise health above all other moral values.

Take the most fashionable adjective in public health right now: “obesogenic”. This pseudo-medical term describes an environment – usually physical, but sometimes social and cultural – which encourages over-eating and under-exercising.

Under the obesogenic flag, public health activists seek to colonise debates over housing sprawl, economic policy, public transport, childcare, house size, telecommuting, infrastructure spending, consumerism, and sustainability. Even law and order has been dragged into the public health domain: high crime rates mean parents don’t let their child walk to school which means those children get fat.

Here public health becomes less a medical concern and more an umbrella social critique. As one book, Obesogenic Environments, puts it, obesity is first and foremost a social problem. Certain obesity-encouraging practices have become culturally embedded. We eat out more. We drive instead of walk. It is the self-appointed task of public health activists to change those embedded practices; that is, “promote healthier choices”. Town planning has to change. Tax policy has to change. Infrastructure spending has to be reprioritised. Our preferences have to be redirected.
With its grand social crusade, the public health movement has come full circle.

Temperance activists in the late nineteenth and twentieth century talked as much about social practices as alcohol consumption. The major American temperance lobby was called the Anti-Saloon League. Saloons weren’t just bad because they were where the drinking happened. They kept men away from their families, and encouraged other sinful behaviour.

In Australia temperance activists lashed out at everything. In 1896 the South Australian politician King O’Malley described barmaids as “the polished fangs of the stagger-juice rattlesnake… angels of mercy luring men to their own destruction”. Several states banned barmaids. One major avenue for female employment – and the economic independence it brought – was closed. Poor old barmaids were merely collateral damage for the monomaniacs obsessed with stamping out booze.

In the same way, today’s public health movement is willing to jettison many other values in its quest to rewire society.

The hard-won conveniences of modern life – cars, restaurants – are obstacles to a better world. Popular culture is “insidious”, simply because it reflects our own beliefs back at us. Choosing what we eat and drink is not a right, it is a prison.

Public health is groping towards a full-blown political philosophy. Sure, it speaks the language of medicine. But it is more ambitious and vague than that modest field. The paper on music videos is a ham-fisted attempt to give cultural studies a scientific patina.

Like the puritans of the past, the public health movement is flailing against a society and economy it believes is deeply unwell.

Why Cling On To An Outdated Refugee Convention?

The United Nations 1951 Convention Relating to the Status of Refugees is not fit for purpose.

The 60-year-old convention was designed for an era we no longer live in; an era where the causes and trajectories of global migration were quite different to today.

Yet the convention still dominates our understanding of migration, with its archaic and artificial distinction between legitimate and illegitimate irregular migrants.

The problems go deeper than historical quirks of drafting. The convention deeply distorts our understanding of 21st-century immigration. It makes humanitarian approaches to refugees harder, not easier. Australia should withdraw from it.

The refugee convention was developed in response to the World War II refugee crisis. Between 20 to 30 million people were displaced in Europe alone – “one of the greatest population movements of history” as one US State Department report described it at the end of the war.

But that was in 1945. Six years later, the idea of coordinated global action on those refugees was already anachronistic. Half a billion (mostly American) dollars had been spent resettling the majority of those who had been displaced, save a problematic ‘hard core’ of 400,000. The United States did not want sole responsibility for all refugees in the future, so the convention placed the burden on countries which the refugees themselves approached.

And by this time, refugee questions had already been subsumed into Cold War politics. The new wave of European migrants was mostly comprised of those fleeing communism. The Soviet Bloc did not help draft the refugee convention. It did not want to help “traitors who are refusing to return home to serve their country”.

As a consequence, the convention defined a “refugee” as someone who had a “well-founded fear of being persecuted”. This is the formula our Immigration Department and Refugee Review Tribunal apply to contemporary asylum cases in 2011. But it’s clearly a formula specifically designed for the Cold War. Communist states actively persecuted returning citizens. The consequences of sending such refugees back across the Iron Curtain was unambiguous.

While convention was designed to handle those who could not return home for political reasons, our contemporary requirements are vastly different. The bulk of today’s refugees are displaced not because of politics, but because of economic hardship or conflict. They do not flee totalitarianism but poverty and insecurity.

By any layperson’s definition, virtually all those who reside in 21st-century refugee camps would be considered “refugees” but it has been estimated the bulk would not fit the convention’s “well-founded fear of being persecuted” standard.

The decisions of Australia’s Refugee Review Tribunal record the often farcical attempts by migration lawyers and judges to shoehorn the complex reasons someone may migrate into this frame.

The convention did not even work as intended during the Cold War. Gil Loescher’s The UNHCR And World Politics documents how the USA sidelined the United Nations High Commission on Refugees and built a parallel system to attract refugees from the Soviet bloc.

Of the 233,436 refugees admitted into the United States between 1956 and 1968, only 925 were from non-communist countries. They were accepted into the West not because of the dictates of international law but as part of the great geopolitical game. Contrast America’s embrace of Cuban refugees with its relatively cold shoulder to those from Haiti.

The end of the Cold War undermined the political foundations of the refugee framework. We have now almost no genuinely totalitarian dictatorships persecuting their citizens, but we also have more refugees than at any time in the last half century. The distinction the Refugee Convention makes between political refugees and the rest no longer makes any sense.

In fact, it’s worse than that. Today even people fleeing totalitarianism typically believe they are doing so for economic reasons, not political ones.

North Korea is the most politically repressive state in the modern world. Yet according to a survey of refugees in the recent book Witness To Transformation: Refugee Insights Into North Korea, fully 95 per cent of North Koreans said they left the Hermit Kingdom because of poverty. Only 2 per cent cited political persecution. Absolutely, if a Korean refugee turned up in Australia, they’d change their views after five minutes with a refugee lawyer. But their initial beliefs are indicative.

The convention’s archaic distinction badly distorts the popular understanding of refugee issues.

The denigration of “economic refugees” – so widespread in the Australian press – is particularly absurd. Few realise the concept of legitimate refugee they rely on was formulated primarily to embarrass Joseph Stalin.

Our views on what is a moral approach to refugees also diverge sharply from those implied by the convention.

As Michael Pearce pointed out in The Age in September, Australians feel obligation to those in the far away refugee camp “queue” more than those who arrive in our country. The Malaysia Solution pivoted on this feeling. But that is an almost exact reversal of the convention’s approach, which is silent on the queue, and concerns only those who land on our doorstep.

One argument for the convention is that it acts to restrain the political response to asylum seekers – keeping things at least reasonably humane. Yet it’s not clear it does. Other signatory countries are no more rigorous than Australia at complying with the convention. Non-signatory countries host the majority of refugees. Here, as around the world, domestic policy is set by domestic politics, not international law.

Yet the biggest problem is not merely how it defines “refugee”, but how the refugee convention distorts our understanding of the entire immigration issue.

Rather than viewing refugees as a subset of general global migration, the convention requires us to see them as a separate thing entirely.

It’s a false dichotomy. Migration is not either forced or unforced. There are many degrees of voluntariness in modern migration. But it’s a dichotomy on which our political parties rely. The Greens support asylum seekers but wish to limit skilled migrants. The Coalition and now Labor want to stop the boats yet invite more foreign workers.

Immigration is shaping up to be the big issue of the 21st-century, in the way that trade was the big issue of the 20th. There’s nothing wrong with trying to migrate to find work and a better life. We should, indeed, encourage that. However, we will not be able to come to terms with the age of migration if our policymakers cling to the obsolete refugee convention.

What’s The Crisis In The Cuban Missile Crisis?

Fifty years ago, on the morning of October 16, 1962, the CIA delivered to John F Kennedy aerial reconnaissance photos revealing Soviet missile sites in Cuba.

Shortly after the CIA briefing, Kennedy showed the photos to his advisor Kenneth O’Donnell.

The president was alarmed. “You’d better believe it,” he told O’Donnell, coming to terms with the missiles’ significance. “We’ve just elected Capehart in Indiana and Ken Keating will probably be the next president of the United States”.

The Cuban Missile Crisis has become an icon of 20th century history: the closest the Cold War came to a hot war, two great superpowers playing a game of brinkmanship that could have slipped into Armageddon.

But it was more a domestic crisis than a foreign policy crisis. Fear of the November 1962 midterm elections loomed larger than fear of nuclear war.

There’s a lot of mythology about those 13 days in October. It didn’t take long for the tale of an heroic president pulling the world back from the precipice to take root. But that mythology massively overstates the severity of the Cuban Missile Crisis, and, as a consequence, the likelihood of apocalyptic nuclear war at any time in the 20th century.

Put simply, the world never came to “the brink”.

In his excellent 2010 book, Atomic Obsessions, the political scientist John Mueller demonstrates neither Kennedy nor Nikita Khrushchev had any intention of escalating to nuclear hostilities.
The Soviet premier, for all his bluster, was scarred by his experience of World War II. One of the cables he sent Kennedy wrote of his fear of the “death and destruction” of total war.

Explaining himself later, Khrushchev said “I’m not a Czarist officer who has to kill himself if I fart at a masked ball. It’s better to back down than to go to war.”

It’s now clear Khrushchev placed the missiles in Cuba to deter an American invasion – that is, not in an offensive capacity. But even then, some historians have suggested there was agreement in the Soviet leadership to withdraw the weapons if the US responded with military force.

The USSR never even went on a general alert.

The Americans were even less eager for conflict. Put aside the warmongering General Curtis LeMay, who was nowhere near the decision-making team and exasperated Kennedy. David Welch and James Blight, two historians who have worked closest with the tapes of White House meetings, say the odds the Americans would have escalated hostilities were “next to zero”.

And the gambit that ended the crisis – Kennedy’s secret promise to Khrushchev that he would remove American missiles from Turkey – wasn’t much of a gambit at all. The tapes reveal the president vowing “I don’t want to go to war anyhow, but I am certainly not going to war over worthless missiles in Turkey”.

Keeping the deal secret was just good domestic politics.

Of course, neither side knew of the other’s true position. But half a dozen times during October each side made missteps which, had the world been truly on the brink, would have pushed them off. A U-2 was shot down trying to get a closer look at the missile sites. Neither superpower budged. Another U-2 strayed into Russian territory and was chased out by Soviet fighters. Neither superpower budged.

Nobody wanted war. And as Henry Kissinger once said, “despite popular myths, large military units do not fight by accident.”

So what was the crisis in the Cuban Missile Crisis?

As usual, domestic politics drove foreign policy.

Kennedy had beaten Richard Nixon in 1960 by outflanking him as a hawk – charging that the Republicans had no plan to topple Fidel Castro and stoking fears of Soviet nuclear superiority.

But after the 1961 Bay of Pigs debacle – where US backed Cuban exiles were routed in an invasion attempt – Cuba suddenly became Kennedy’s political problem. Cuba looked like it was going to be a big issue in November, and maybe even in the 1964 presidential race.

Two Republican senators in particular attacked him furiously over Cuba: Ken Keating, a New Yorker with White House ambitions, and Homer Capehart, from Indiana.

These attacks had hurt. Kennedy wanted to reassert his hawkish credentials. The most fateful event of the Cuban Missile Crisis occurred, not in October, but in a press conference a month earlier. On September 13 Kennedy declared bombastically that “if Cuba should possess a capacity to carry out offensive action against the United States … the United States would act.”

Kennedy didn’t know missiles were already on their way. This September ultimatum was for a domestic audience – to counter Republican claims he was soft on communism – but it seriously constrained his choices in October. He’d promised action.

Throughout the crisis, Kennedy regretted his September chest-beating: “I should have said that we don’t care”. But it was too late. He’d ruled diplomacy out. Blockading Cuba was the least warlike thing the administration could think of.

Kennedy famously declared on television that the missiles were an explicit threat to American security.

Privately however the administration thought different. “It is generally agreed,” said Kennedy’s advisor Ted Sorensen on October 17, “that these missiles, even when fully operational, do not significantly alter the balance of power – that is, they do not significantly increase the potential mega-tonnage capable of being unleashed on American soil.”

Defense secretary Robert McNamara was more direct. “I don’t think there is a military problem here.”

The successful resolution of the crisis on October 28 blunted the Republican attacks. The midterm election was only a week away. The Democrats picked up four seats in the Senate, one of which was Homer Capehart’s.

October 1962 has become central to the JFK mystique. It was quickly integrated into the legend of Camelot.

Not only that, but the episode defined how we think of nuclear politics; as if we are, at all times, minutes away from global war.

But if the Cuban Missile Crisis is the closest the world has ever come to a nuclear exchange, then we’ve never come very close at all.

Rose-Coloured Glasses Make For Sentimental Fools

TLabor used to say John Howard had a shameful nostalgia for the 1950s. The ALP is sentimental, too. But Labor’s nostalgia is entirely about itself.

That’s the lesson from two recent books: Politics with Purpose by former finance minister Lindsay Tanner and Speechless: A Year in my Father’s Business by James Button (a former Age journalist and son of John Button, a minister in the Hawke and Keating governments).

Tanner writes of the end of ”labourism”, a pragmatic, union-centred philosophy that dominated the 20th century. Labourism had broad community appeal. Labourism, Tanner argues, is gone now.
Button writes of his failure to recapture what drew his father to the ALP: a world of political combat and idealism and Trades Hall.

Labor’s soul-searching about whether the party has values, a base, a purpose, is essentially about the past. It’s odd for a progressive party to be so weighed down by its own sense of history. Yet it is. Just before Gough Whitlam staked his own claim to Labor mythology, he, too, was rueing the ALP’s decline. Even in the 1890s there were Labor people certain that their movement had abandoned its earlier principles.

You can understand why. The Light on the Hill, the Tree of Knowledge, the turn-of-the-century strikes – how could anybody live up to these poetic legends? They’ve been so built up they’re weaknesses, not strengths.

Liberals fret about their history, too. Malcolm Fraser’s ghost haunted the Howard years. No Coalition government wants to squib market reform like the Fraser government did.

Neither major party looks as it did half a century ago. They’re no longer ”mass” parties at all. Membership is shrinking. Branches are closing. Nearly 200,000 people were members of the Liberal Party in 1950. It’s now less than half of that. Across the aisle, the 2010 review by John Faulkner, Bob Carr and Steve Bracks showed Labor membership had declined by a quarter since the 2007 election.

Only about 1 per cent of Australians are members of any party. Labor feels the pain strongest. It thinks of itself as a movement. A movement without people isn’t very impressive.

The conservatives are more stoic about their shrinking membership. A review by Peter Reith on Liberal Party reform was produced with much less fanfare than the Faulkner-Carr-Bracks attempt.

But both reviews came up with the same ideas. Parties have to give the rank and file more influence over policy. They should experiment with American-style primary elections. In his book, Tanner proposed expanding the ALP’s national conference to accommodate some of the lowly branch members.

Many people claim primaries will counter the rising power of party machines. Yet those machines have probably never been less powerful than now. In recent leadership ballots the ALP factions have split every which way. No longer is Australian politics controlled by anonymous warlords. The faceless men are now publicity hounds. They run internal campaigns on Sky News. They taunt their opponents on Twitter.

It isn’t lost values or machine politics or a desire for empowerment behind the decline of the mass-member party. It’s that the mass party doesn’t make a lot of sense.

In the 1950s, Australians didn’t have much choice: if they were interested in politics they would have to go to a local branch meeting. We are better off. We can watch Lateline and 24-hour news and argue forever on the internet. For political types, party gatherings were once the best entertainment around. Now, surely, they are the worst.

Parties are vehicles to shepherd politicians into seats and form governments. Why do they also have to be debating societies, ideas factories, or social movements?

But there’s a deeper issue. Sectarianism is passe. Choosing a political identity is not a matter of picking one side or another side. We prefer to join lots of causes rather than one team. We tend to take bits and pieces from everywhere, and resent parties that fail to live up to our highly specific preferences. This is healthy – Australia is a nation of individuals, not tribes – but it is a hostile environment for a mass political party.

When federal Transport Minister Anthony Albanese said earlier this year he just wanted to ”fight Tories” it struck a weird note. There is nobody who thinks of Australia in such sectarian terms – nobody outside the tiny, declining fraction of the population who are party members. But that’s the dead-end of political nostalgia. Pity those who still think like that.

Stay tuned for the red underpants theory of bad TV

Occasionally, usually by accident (sometimes if they think nobody is listening) politicians say what they really believe.

“I have unfettered legal power,” Communications Minister Stephen Conroy told an obscure conference in New York in September. “If I say to everyone in this room, ‘If you want to bid in our spectrum auction you’d better wear red underpants on your head’, I’ve got some news for you. You’ll be wearing them on your head.”

Conroy was clearly having a bit of fun. But he’s right. He has complete, arbitrary and absolute control over who broadcasts on the airwaves and the circumstances in which they broadcast, and that control has been disastrous for television consumers.

Let’s call this the ”red underpants” theory of why Australian TV is so bad. Australia seems to have completely missed the great television renaissance. In the US and Britain, audiences are being treated to some of the most brilliant high-quality television the world has ever seen – think of everything from Mad Men to Breaking Bad to The Thick of It.

But Australian commercial TV is languishing. The networks are producing nothing comparable to what’s being made overseas. Their biggest problem is how quickly they can show foreign programs before everybody downloads them. This week Channel Ten announced both a full-year loss and voluntary redundancies. Channel Nine is buried in debt and flirting with receivership.

It’s easy to feel sympathy for those whose livelihoods are threatened. It’s hard to feel sympathy for the networks. The television broadcasting industry is probably Australia’s last, greatest vestige of crony capitalism.

Mr Conroy’s unfettered red underpants power – and that of the communications ministers who’ve gone before him – has been used to protect broadcasters from competition, lock out new technologies and entrench tired business models.

Basic economics tells us that when you deliberately limit competition you lower quality. Basic politics tells us when governments and corporations get into bed, consumers lose.

Broadcasting was a protected industry from day one. In 1905 the Commonwealth government took absolute control over the airwaves with the Wireless Telegraphy Act. The government had delayed passing the legislation for a few years. It was worried that the new wireless technology would be a competitive threat to the existing telegraph cable companies.

From then on, anybody who wanted to broadcast had to apply to the government for permission.

Throughout the 20th century, politicians forged close relationships with media moguls. Each scratched the other’s back. Politicians who played ball were treated kindly by the broadcasters. In return, governments kept away competition and protected advertising revenue. As one broadcasting regulator said in the 1970s, all decisions about the airwaves were ”very substantially influenced by political considerations”.

The number of radio and television stations has been strictly limited. It is extraordinary that in 2012 we still do not have a fourth television network.

New technologies were deliberately held back. The US had FM radio in the 1940s. There were experiments with FM transmission in Australia in 1947. But AM broadcasters didn’t want the competition. The government only licensed FM stations in 1974.

The delayed introduction of pay television was just as scandalous. There were several proposals to offer Australians pay TV services in the 1970s, but it wasn’t until the early 1990s the government relented. Even then it banned pay-TV advertising for the first few years – just to keep existing free-to-air broadcasters happy. Free-to-air television is still protected by laws that give it first dibs on the best sporting content. Don’t imagine this is done for the public’s benefit.

When the government finally got around to introducing digital television – a technology that allows the broadcast of dozens more channels on the same limited spectrum – the spectrum was offered exclusively to the three existing commercial networks. This is effectively a gift of hundreds of millions of dollars to a broadcasting cartel.

In 1959, Nobel Prize winning economist Ronald Coase proposed a way to get politics out of the airwaves. Treat radio spectrum like property, he argued, and let broadcasters use and trade their property as they see fit.

Because a government with unfettered power to force people to wear underpants on their head also has unfettered power to make deals with its media mates against the interests of the public.

The Capitalist Heroes We Forget

The death of Steve Jobs has offered us a symbol which is surprisingly rare: the capitalist as a hero.

The tributes to the Apple co-founder have praised his vision, entrepreneurial drive, single-mindedness, how he defied convention, and developed a business model centred on innovation.

These attributes are not unique to Jobs. He is an icon because of our relationship to the products he developed. And Apple made a point of showcasing Jobs – he launched their new products personally.

But his death reveals a peculiar cultural blindness. We don’t often celebrate the achievements of capitalist entrepreneurs, in life or in death. Military leaders, political figures, religious and royal icons, yes, but not capitalists.

August this year saw the death of Keith Tantlinger, the American inventor and entrepreneur who, with his business partner Malcom McLean, developed, marketed and sold the modern shipping container beginning in the 1950s.

The standardised container sounds simple, but it was revolutionary.

Before the container, goods would be stuffed, manually and arbitrarily, into the irregular shaped holds of ships. This incurred enormous labour costs, theft and accidental losses. Armies of unionised longshoremen would load a ship by hand, unload it by hand, load the cargo onto trains and trucks by hand, and helped themselves to samples. The expense of all of this had to be factored into the price of consumer goods.

McLean and Tantlinger had to face down unions protecting their members from the threat of a standardised, secure, labour-saving container, and the automation those containers made possible. They had to face down regulators protecting the trucking industry from competition. Ports unsuited to the new containers confronted closure. Gone are the old ports of New York. The great ports of the world are now in Le Havre, Busan, Felixstowe and Tanjung Pelepas.

This largely unheralded story is told in a 2006 book The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger by Marc Levinson. It is not much exaggeration to say that we owe a great deal of the last half-century of globalisation to their big metal box. Thanks to the container, the cost of transporting goods is near zero. Markets which were local are now global. Manufacturing networks are spread across hemispheres.

It is that box which allows Apple to produce the iPhone and iPad at lowest cost in Shenzhen and Brazil. And that box which facilitates the production of the iPad’s competitors.

Not to diminish Steve Jobs, but there is no person on earth who hasn’t benefited from the entrepreneurial drive of Tantlinger and McLean.

Yet when these two died, they met with a tiny fraction of the acclaim we’ve seen for the Apple boss. No prime minister or president was asked to reflect on their achievements. No newspaper rejigged its cover for the inventors of the shipping container.

The news aggregator Factiva records 23,133 separate stories on Steve Jobs in the first four days after his death on Wednesday. Keith Tantlinger only received 26 stories in the entire month after his death. When Malcom McLean died in 2001, he was mentioned 41 times.

It’s not a competition. But it is a revealing comparison. Jobs is exceptional in the public eye not simply because he was an exceptional capitalist – although he undoubtedly was – but because his products are in the front of our mind.

We know we’re using an iPad; the touch, design and functionality is clear. We don’t know that the only reason we can is because someone else invented and constructed and marketed and sold a container to bring it to us. The achievements of McLean and Tantlinger are entirely in the background. Virtually every single mass-produced item in the world finds itself in one of their boxes at some stage during the manufacturing and distribution process.

Jobs has breached the unwritten rule that only statesmen, or intellectuals, or others who spurn profit can be true heroes. Even though it is capitalists more than anyone else who have built the world.

Indeed, the idea of a hero entrepreneur is almost entirely absent in popular culture.

Amazon.com lists 33,000 biographies of political, military, and royal figures – nearly 50,000 if you include religious leaders. It lists only 3,000 biographies of business leaders.

Extraordinarily few films depict business people in a positive light. Two biopics stand out: Martin Scorsese’s The Aviator is one of the rare pro-capitalist genre, as is the largely forgotten Tucker: The Man and His Dream, the Francis Ford Coppola film based on the automobile innovator Preston Tucker. They offer portraits of individuals who were both heroic and tragic. Howard Hughes and Preston Tucker were innovative risk-takers whose success rested on filling the demands of their consumers.

And in both of these films, the dramatic obstacle they have to surmount is not just commercial but political. Competitors allied with governments tried repeatedly to frustrate both Hughes and Tucker by raising the regulatory barriers to innovative entrants. The same happened with McLean and Tantlinger. Any truly great innovation necessarily upsets the interests of the status quo.

Steve Jobs’ achievements were substantial. Anybody who brings a product to market that so many consumers want is worth celebrating. But there are many other stories of capitalists and entrepreneurs who have shaped our social and economic lives. In light of the huge reaction to Jobs death, we might think about broadening our search for heroic icons to the profit-making world.