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Be critical of the current president
Before
any votes were cast, when Donald Trump was the theoretical
front-runner, the optimists preached patience. Just wait, they said.
This will blow over. He’s a clown, a huckster, a TV personality. There’s
no way he can win. It’s just not possible.
Well, it’s not only possible – it’s likely.
Trump won again in Nevada on Tuesday night, by a massive margin, and he may well sweep the Super Tuesday
states. If that happens, and it’s the most probable outcome at this
point, the race is effectively over. Trump will have won the nomination
of one our two major parties, and he’ll have done it with extraordinary
ease.
I hate to have to say it, but the conclusion stares us in
the face: We’re a stupid country, full of loud, illiterate and credulous
people. Trump has marched straight to the nomination without offering
anything like a platform or a plan. With a vocabulary of roughly a dozen
words – wall, Mexicans, low-energy, loser, Muslims, stupid, China,
negotiate, deals, America, great, again – he’s bamboozled millions of
Americans. And it’s not just splenetic conservatives supporting Trump or
your garden-variety bigots (although that’s the center of his
coalition), it’s also independents, pro-choice Republicans, and a subset of Reagan Democrats.
This
says something profoundly uncomfortable about our country and our
process. A majority of Americans appear wholly uninterested in the
actual business of government; they don’t understand it and don’t want
to. They have vague feelings about undefined issues and they surrender
their votes on emotional grounds to whoever approximates their rage.
This has always been true to some extent, but Trump is a
rubicon-crossing moment for the nation.
Trump’s wager was simple:
Pretend to be stupidand angry because that’s what stupid and angry
people like. He’s held up a mirror to the country, shown us how blind
and apish we are. He knew how undiscerning the populace would be, how
little they cared about details and facts. In Nevada,
for instance, 70 percent of Trump voters said they preferred an
“anti-establishment” candidate to one with any “experience in politics.”
Essentially, that means they don’t care if he understands how
government works or if he has the requisite skills to do the job. It’s a
protest vote, born of rage, not deliberation.
In no other domain
of life would this make any sense at all. If your attorney drops the
ball, you don’t hire a plumber to replace him. And yet millions of
Trumpites say they don’t care if Trump has ever worked at any level of
government or if he knows anything about foreign policy or the law or
the Constitution. It’s enough that he greets them at their level,
panders to their lowest instincts.
He even brazenly condescends to
his supporters, as the opening quote illustrates, and they fail to
notice it. Trump, a billionaire trust fund baby who inherited $40
million from his father, has convinced hordes of working-class white
people that he’s just like them, that he feels their pain and knows
their struggle. He’s made marks of them all.
So I've been working on the history of incomeand wealth distribution for the past 15 years,and one of the interesting lessonscoming from this historical evidenceis indeed that, in the long run,there is a tendency for
the rate of return of capitalto exceed the economy's growth rate,and this tends to lead to
high concentration of wealth.Not infinite concentration of wealth,but the higher the gap between r and g,the higher the level of inequality of wealthtowards which society tends to converge.
So this is a key force that
I'm going to talk about today,but let me say right awaythat this is not the only important forcein the dynamics of income
and wealth distribution,and there are many other forces that playan important role in the long-run dynamicsof income and wealth distribution.Also there is a lot of datathat still needs to be collected.We know a little bit more todaythan we used to know,
but we still know too little,and certainly there are
many different processes —economic, social, political —that need to be studied more.And so I'm going to focus today on this simple force,but that doesn't mean that other important forcesdo not exist.
So most of the data I'm going to presentcomes from this databasethat's available online:the World Top Incomes Database.So this is the largest existinghistorical database on inequality,and this comes from the effortof over 30 scholars from several dozen countries.So let me show you a couple of factscoming from this database,and then we'll return to r bigger than g.So fact number one is that there has beena big reversal in the ordering of income inequalitybetween the United States and Europeover the past century.So back in 1900, 1910, income inequality was actuallymuch higher in Europe than in the United States,whereas today, it is a lot higher in the United States.So let me be very clear:The main explanation for this is not r bigger than g.It has more to do with changing supply and demandfor skill, the race between education and technology,globalization, probably more unequal accessto skills in the U.S.,where you have very good, very top universitiesbut where the bottom part of the educational systemis not as good,so very unequal access to skills,and also an unprecedented riseof top managerial compensation of the United States,which is difficult to account for
just on the basis of education.So there is more going on here,but I'm not going to talk too much about this today,because I want to focus on wealth inequality.
So let me just show you a very simple indicatorabout the income inequality part.So this is the share of total incomegoing to the top 10 percent.So you can see that one century ago,it was between 45 and 50 percent in Europeand a little bit above 40 percent in the U.S.,so there was more inequality in Europe.Then there was a sharp declineduring the first half of the 20th century,and in the recent decade, you can see thatthe U.S. has become more unequal than Europe,and this is the first fact I just talked about.Now, the second fact is more about wealth inequality,and here the central fact is that wealth inequalityis always a lot higher than income inequality,and also that wealth inequality,although it has also increased in recent decades,is still less extreme todaythan what it was a century ago,although the total quantity of wealthrelative to income has now recoveredfrom the very large shockscaused by World War I, the Great Depression,World War II.
So let me show you two graphsillustrating fact number two and fact number three.So first, if you look at the level of wealth inequality,this is the share of total wealthgoing to the top 10 percent of wealth holders,so you can see the same kind of reversalbetween the U.S. and Europe that we had beforefor income inequality.So wealth concentration was higherin Europe than in the U.S. a century ago,and now it is the opposite.But you can also show two things:First, the general level of wealth inequalityis always higher than income inequality.So remember, for income inequality,the share going to the top 10 percentwas between 30 and 50 percent of total income,whereas for wealth, the share is alwaysbetween 60 and 90 percent.Okay, so that's fact number one,and that's very important for what follows.Wealth concentration is alwaysa lot higher than income concentration.
Fact number two is that the risein wealth inequality in recent decadesis still not enough to get us back to 1910.So the big difference today,wealth inequality is still very large,with 60, 70 percent of total wealth for the top 10,but the good news is that it's actuallybetter than one century ago,where you had 90 percent in
Europe going to the top 10.So today what you haveis what I call the middle 40 percent,the people who are not in the top 10and who are not in the bottom 50,and what you can view as the wealth middle classthat owns 20 to 30 percentof total wealth, national wealth,whereas they used to be poor, a century ago,when there was basically no wealth middle class.So this is an important change,and it's interesting to see that wealth inequalityhas not fully recovered to pre-World War I levels,although the total quantity of wealth has recovered.
Okay? So this is the total valueof wealth relative to income,and you can see that in particular in Europe,we are almost back to the pre-World War I level.So there are really twodifferent parts of the story here.One has to do withthe total quantity of wealth that we accumulate,and there is nothing bad per se, of course,in accumulating a lot of wealth,and in particular if it is more diffuseand less concentrated.So what we really want to focus onis the long-run evolution of wealth inequality,and what's going to happen in the future.How can we account for the fact thatuntil World War I, wealth inequality was so highand, if anything, was rising to even higher levels,and how can we think about the future?
future.Let me first say thatprobably the best model to explainwhy wealth is so muchmore concentrated than incomeis a dynamic, dynastic modelwhere individuals have a long horizonand accumulate wealth for all sorts of reasons.If people were accumulating wealthonly for life cycle reasons,you know, to be able to consumewhen they are old,then the level of wealth inequalityshould be more or less in linewith the level of income inequality.But it will be very difficult to explainwhy you have so much more wealth inequalitythan income inequalitywith a pure life cycle model,so you need a storywhere people also careabout wealth accumulation for other reasons.So typically, they want to transmitwealth to the next generation, to their children,or sometimes they want to accumulate wealthbecause of the prestige, the
power that goes with wealth.So there must be other reasonsfor accumulating wealth than just life cycleto explain what we see in the data.Now, in a large class of dynamic modelsof wealth accumulationwith such dynastic motive for accumulating wealth,you will have all sorts of random,multiplicative shocks.So for instance, some familieshave a very large number of children,so the wealth will be divided.Some families have fewer children.You also have shocks to rates of return.Some families make huge capital gains.Some made bad investments.So you will always have some mobilityin the wealth process.Some people will move up,
some people will move down.The important point is that,in any such model,for a given variance of such shocks,the equilibrium level of wealth inequalitywill be a steeply rising function of r minus g.And intuitively, the reason why the differencebetween the rate of return to wealthand the growth rate is importantis that initial wealth inequalitieswill be amplified at a faster pacewith a bigger r minus g.So take a simple example,with r equals five percent and g equals one percent,wealth holders only need to reinvestone fifth of their capital income to ensurethat their wealth rises as fastas the size of the economy.So this makes it easierto build and perpetuate large fortunesbecause you can consume four fifths,assuming zero tax,and you can just reinvest one fifth.So of course some families
will consume more than that,some will consume less, so there will besome mobility in the distribution,but on average, they only need to reinvest one fifth,so this allows high wealth inequalities to be sustained.
Now, you should not be surprisedby the statement that r can be bigger than g forever,because, in fact, this is what happenedduring most of the history of mankind.And this was in a way very obvious to everybodyfor a simple reason, which is that growthwas close to zero percentduring most of the history of mankind.Growth was maybe 0.1, 0.2, 0.3 percent,but very slow growth of populationand output per capita,whereas the rate of return on capitalof course was not zero percent.It was, for land assets, which wasthe traditional formof assets in preindustrial societies,it was typically five percent.Any reader of Jane Austen would know that.If you want an annual income of 1,000 pounds,you should have a capital valueof 20,000 pounds so thatfive percent of 20,000 is 1,000.And in a way, this wasthe very foundation of society,because r bigger than gwas what allowed holders of wealth and assetsto live off their capital incomeand to do something else in lifethan just to care about their own survival.
Now, one important conclusionof my historical research is thatmodern industrial growth did not changethis basic fact as much as one might have expected.Of course, the growth ratefollowing the Industrial Revolutionrose, typically from zero to one to two percent,but at the same time, the rate of returnto capital also roseso that the gap between the twodid not really change.So during the 20th century,you had a very unique combination of events.First, a very low rate of returndue to the 1914 and 1945 war shocks,destruction of wealth, inflation,bankruptcy during the Great Depression,and all of this reducedthe private rate of return to wealthto unusually low levelsbetween 1914 and 1945.And then, in the postwar period,you had unusually high growth rate,partly due to the reconstruction.You know, in Germany, in France, in Japan,you had five percent growth ratebetween 1950 and 1980largely due to reconstruction,and also due to very large demographic growth,the Baby Boom Cohort effect.Now, apparently that's not going to last for very long,or at least the population growthis supposed to decline in the future,and the best projections we have is thatthe long-run growth is going to be closerto one to two percentrather than four to five percent.So if you look at this,these are the best estimates we haveof world GDP growthand rate of return on capital,average rates of return on capital,so you can see that during mostof the history of mankind,the growth rate was very small,much lower than the rate of return,and then during the 20th century,it is really the population growth,very high in the postwar period,and the reconstruction processthat brought growthto a smaller gap with the rate of return.Here I use the United Nations population projections,so of course they are uncertain.It could be that we all starthaving a lot of children in the future,and the growth rates are going to be higher,but from now on,these are the best projections we have,and this will make global growthdecline and the gap betweenthe rate of return go up.
Now, the other unusual eventduring the 20th centurywas, as I said,destruction, taxation of capital,so this is the pre-tax rate of return.This is the after-tax rate of return,and after destruction,and this is what broughtthe average rate of returnafter tax, after destruction,below the growth rate during a long time period.But without the destruction,without the taxation, this
would not have happened.So let me say that the balance betweenreturns on capital and growthdepends on many different factorsthat are very difficult to predict:technology and the developmentof capital-intensive techniques.So right now, the most capital-intensive sectorsin the economy are the real estate sector, housing,the energy sector, but it could be in the futurethat we have a lot more robots in a number of sectorsand that this would be a bigger shareof the total capital stock that it is today.Well, we are very far from this,and from now, what's going onin the real estate sector, the energy sector,is much more important for the total capital stockand capital share.
The other important issueis that there are scale effects
in portfolio management,together with financial complexity,financial deregulation,that make it easier to get higher rates of returnfor a large portfolio,and this seems to be particularly strongfor billionaires, large capital endowments.Just to give you one example,this comes from the Forbes billionaire rankingsover the 1987-2013 period,and you can see the very top wealth holdershave been going up at six, seven percent per yearin real terms above inflation,whereas average income in the world,average wealth in the world,have increased at only two percent per year.And you find the samefor large university endowments —the bigger the initial endowments,the bigger the rate of return.
Now, what could be done?The first thing is that I think we needmore financial transparency.We know too little about global wealth dynamics,so we need international transmissionof bank information.We need a global registry of financial assets,more coordination on wealth taxation,and even wealth tax with a small tax ratewill be a way to produce informationso that then we can adapt our policiesto whatever we observe.And to some extent, the fightagainst tax havensand automatic transmission of informationis pushing us in this direction.Now, there are other ways to redistribute wealth,which it can be tempting to use.Inflation:it's much easier to print moneythan to write a tax code, so that's very tempting,but sometimes you don't know
what you do with the money.This is a problem.Expropriation is very tempting.Just when you feel some people get too wealthy,you just expropriate them.But this is not a very efficient wayto organize a regulation of wealth dynamics.So war is an even less efficient way,so I tend to prefer progressive taxation,but of course, history — (Laughter) —history will invent its own best ways,and it will probably involvea combination of all of these.
Thank you.
(Applause)
Bruno Giussani: Thomas Piketty. Thank you.
Thomas, I want to ask you two or three questions,because it's impressive how you're
in command of your data, of course,but basically what you suggest isgrowing wealth concentration is kind ofa natural tendency of capitalism,and if we leave it to its own devices,it may threaten the system itself,so you're suggesting that we need to actto implement policies that redistribute wealth,including the ones we just saw:progressive taxation, etc.In the current political context,how realistic are those?How likely do you think that it isthat they will be implemented?
Thomas Piketty: Well, you know, I thinkif you look back through time,the history of income, wealth and taxationis full of surprise.So I am not terribly impressedby those who know in advancewhat will or will not happen.I think one century ago,many people would have saidthat progressive income taxation would never happenand then it happened.And even five years ago,many people would have said that bank secrecywill be with us forever in Switzerland,that Switzerland was too powerfulfor the rest of the world,and then suddenly it took a few U.S. sanctionsagainst Swiss banks for a big change to happen,and now we are moving towardmore financial transparency.So I think it's not that difficultto better coordinate politically.We are going to have a treatywith half of the world GDP around the tablewith the U.S. and the European Union,so if half of the world GDP is not enoughto make progress on financial transparencyand minimal tax for multinational corporate profits,what does it take?So I think these are not technical difficulties.I think we can make progressif we have a more pragmatic
approach to these questionsand we have the proper sanctionson those who benefit from financial opacity.
BG: One of the argumentsagainst your point of viewis that economic inequalityis not only a feature of capitalism
but is actually one of its engines.So we take measures to lower inequality,and at the same time we lower growth, potentially.What do you answer to that?
TP: Yeah, I think inequalityis not a problem per se.I think inequality up to a pointcan actually be useful for innovation and growth.The problem is, it's a question of degree.When inequality gets too extreme,then it becomes useless for growthand it can even become badbecause it tends to lead to high perpetuationof inequality over timeand low mobility.And for instance, the kind of wealth concentrationsthat we had in the 19th centuryand pretty much until World War Iin every European countrywas, I think, not useful for growth.This was destroyed by a combinationof tragic events and policy changes,and this did not prevent growth from happening.And also, extreme inequality can be badfor our democratic institutionsif it creates very unequal access to political voice,and the influence of private moneyin U.S. politics, I think,is a matter of concern right now.So we don't want to return to that kind of extreme,pre-World War I inequality.Having a decent share of the national wealthfor the middle class is not bad for growth.It is actually usefulboth for equity and efficiency reasons.
BG: I said at the beginningthat your book has been criticized.Some of your data has been criticized.Some of your choice of data sets has been criticized.You have been accused of cherry-picking datato make your case. What do you answer to that?
TP: Well, I answer that I am very happythat this book is stimulating debate.This is part of what it is intended for.Look, the reason why I put all the data onlinewith all of the detailed computationis so that we can have
an open and transparentdebate about this.So I have responded point by pointto every concern.Let me say that if I was to rewrite the book today,I would actually concludethat the rise in wealth inequality,particularly in the United States,has been actually higher
than what I report in my book.There is a recent study by Saez and Zucmanshowing, with new datawhich I didn't have at the time of the book,that wealth concentration in the U.S. has riseneven more than what I report.And there will be other data in the future.Some of it will go in different directions.Look, we put online almost every weeknew, updated series on the
World Top Income Databaseand we will keep doing so in the future,in particular in emerging countries,and I welcome all of those who want to contributeto this data collection process.In fact, I certainly agreethat there is not enoughtransparency about wealth dynamics,and a good way to have better datawould be to have a wealth taxwith a small tax rate to begin withso that we can all agreeabout this important evolutionand adapt our policies to whatever we observe.So taxation is a source of knowledge,and that's what we need the most right now.
The Obama administration has tentatively approved Shell’s plans
to begin oil extraction off the Alaskan coast this summer. Federal
scientists estimate the Arctic region contains up to 15 billion barrels
of oil, and Shell has long fought to drill in the icy waters of the
Chukchi Sea. Environmentalists warn Arctic drilling will pose a risk to
local wildlife and exacerbate climate change. They fear that a drilling
accident in the icy Arctic Ocean waters could prove far more devastating
than the deadly 2010 Gulf of Mexico spill since any rescue operations
could be delayed for months by harsh weather conditions. We speak to
Subhankar Banerjee. He is a renowned photographer, writer and activist
who has spent the past 15 years working for the conservation of the
Arctic and raising awareness about indigenous human rights and climate
change. He is editor of the anthology, "Arctic Voices: Resistance at the
Tipping Point."
Transcript
This is a rush transcript. Copy may not be in its final form.
NERMEENSHAIKH:
The Obama administration has tentatively approved Shell’s plans to
begin oil extraction off the Alaskan coast this summer. Federal
scientists estimate the Arctic region contains up to 15 billion barrels
of oil, and Shell has long fought to drill in the icy waters of the
Chukchi Sea.
AMYGOODMAN:
Environmentalists warn Arctic drilling will pose a risk to local
wildlife and exacerbate climate change. They fear a drilling accident in
the icy Arctic Ocean waters could prove far more devastating than the
deadly 2010 Gulf of Mexico spill, since any rescue operations could be
delayed for months by harsh weather conditions. Speaking to KTUU, Lois Epstein of The Wilderness Society denounced the government’s decision to greenlight oil exploration.
LOISEPSTEIN:
Their record from 2012 drilling in the Arctic Ocean was a disaster, by
anyone’s measure. One of their of drill rigs grounded near Kodiak. There
were fires. There were criminal penalties for air pollution violations.
AMYGOODMAN:
For more, we go to Washington, D.C.—Washington state, where we’re
joined by Subhankar Banerjee. He’s a renowned photographer, writer and
activist who’s spent the past 15 years working for the conservation of
the Arctic and raising awareness about indigenous human rights and
climate change, editor of the anthology, Arctic Voices: Resistance at the Tipping Point. His recent piece for TomDispatch
is called "To Drill or Not to Drill, That is the Question." In 2012, he
won a Cultural Freedom Award from the Lannan Foundation.
Subhankar Banerjee, welcome back to Democracy Now! Can you talk about the Obama administration decision and what this means for the Arctic?
SUBHANKARBANERJEE:
The decision is both irresponsible and reckless. But let me clarify
something at the beginning. What the administration has approved now is
the exploration plans for Shell to drill this summer, starting from July
to October. But this is not the—this is the most significant permit
that Shell needs, but not all of the permits. So Shell still needs more
permits from, like, NOAA, Fish and Wildlife
Service and other federal agencies. So that’s why the activists are
working very hard to make sure that some are—some of these permits are
not granted, because it’s a reckless decision, as you mentioned, for
multiple reasons, the primary ones being a spill in the Arctic Ocean
would be far more devastating than what happened in the Gulf of Mexico.
And the administration has finally acknowledged, after losing in two
federal courts—one in 2010 and one in 2014—that there is a 75 percent
chance of one or more major spills if exploration leads to production.
So a spill is inevitable.
And if a spill does happen, as you mentioned,
that, let’s say, a spill happens late in the season, like in October,
then that oil will have to be left in place for like nine months,
because the sea ice gets covered, covers the Arctic Sea, until the ice
melts the following year, when effective cleanup can begin. But even if
the spill happens in the summertime, it is a real problem, because the
Arctic Sea always has constant dangers of large ice flows—and Shell
already encountered that in their 2012 drilling season—as well as deep
fog that severely restricts visibility, and the storms have become more
violent and more intense. You combine that with the fact that there is
absolutely no deep water port in U.S. Arctic—the nearest Coast Guard
station is a thousand miles away—and there is no infrastructure in
place. Like in your previous segment, you were talking about
infrastructure. There is absolutely no infrastructure in place to
respond to a large spill. So that’s the spill site.
The second site that we need to understand,
that Arctic is what is called the integrator of world’s climate systems,
both atmospheric and oceanic. Just to give you a couple of examples,
what happens in the Arctic affects not just the Arctic, but the whole
planet. The severe—recent years, severe winter weather in the Northeast
of U.S. as well as the severe ongoing drought in California both have
now been linked by recent scientific studies to slowing down of the
Arctic jet stream, because the Arctic is warming at a much faster rate
than the lower latitudes. And the second one is the Gulf Stream, where
you have the warm water from the Gulf of Mexico and the southern
latitudes go up to the Arctic, goes down into the deep ocean, gets cold
and comes back. It’s called the Gulf Stream, that maintains, again, our
oceanic and atmospheric process. That, too, is slowing down. And its
impacts are not yet very well understood, but one thing is that it will
further contribute to the increase of the sea level. So what happens in
the Arctic affects us all, but also to the indigenous people up there.
And you mentioned the ecology of the region. If the American public knew
what is in those Arctic seas of America—Beaufort and the Chukchi—they
will not allow drilling there, because it is truly a national and an
international ecological treasure.
NERMEENSHAIKH: Well, according to this ad by Shell, the oil company has developed unprecedented Arctic oil spill response contingency plans.
SHELL AD: Shell’s Alaska
exploration program is defined by its remoteness, and Shell has gone to
great lengths to make sure a worst-case scenario, such as an oil spill,
never takes place. But in the unlikely event that one did, Shell’s
on-site oil spill response assets would be deployed and recovering oil
within one hour. The recovery effort would be aided by nearshore
response equipment and onshore oil spill response equipment. This kind
of 24/7 response capability is unprecedented.
NERMEENSHAIKH: Subhankar, could you comment on what the Shell ad says and also tell us a little about Shell’s record in the Arctic region?
SUBHANKARBANERJEE:
What you just mentioned, Nermeen, is nothing new. It is sugarcoating on
an old rhetoric that Shell has been peddling for the last few years. In
2010, Shell spent millions of dollars on an ad campaign called "Let’s
Go" to pressure the Obama administration to grant them the various
permits, and then towards the—and also another ad called "We have the
technology—Let’s go." So Shell has been saying this for the last at
least five years now. Nothing has changed. All of the things I just
mentioned previously has not changed. The government acknowledges it,
that there would be a major spill. And if it does a spill happen, this
whole idea of "We have the technology" is nothing but a PR campaign with
no truth behind it, as industry and government would acknowledge, that
if a spill does happen in the icy waters, the cleanup would be very
ineffective compared to the Gulf of Mexico.
And then I forgot the second part of the
question—oh, Shell’s record in the Arctic. So Shell went up there with,
again, a conditional permit from the Obama administration in 2012,
conditional because they were not allowed to drill all the way to the
oil-bearing zone, only a top hole drilling to prepare for the following
season. And what ended up happening? The very first day they started
drilling, they encountered an ice flow the size of Manhattan, 30 miles
by 10 miles long, and had to immediately halt operation and disconnect
from the sea floor anchor. When they were coming—while they were going
up to the Arctic, their drill ship, Noble Discoverer, almost ran aground off of the Dutch Harbor in Southwest Alaska. And then, while coming back, the Noble Discoverer caught fire, and the engine suffered damage, while the other drill ship, Kulluk, was grounded in the Gulf of Alaska, near Sitkalidak Island. And the reason they were bringing the Kulluk
back was—actually, to the Seattle waters, Puget Sound water—is because
Shell tried to avoid Alaska taxes. So it all goes back to the fact that
right now the price of oil is low. And it is truly incredibly
irresponsible, when price is—price of oil is low, and the technologies
don’t exist, the infrastructure don’t exist, to send Shell up there,
because Shell will try to cut costs, as they did in 2012. And the
company and its subcontractor, Noble Drilling, was fined a total of $12
million, Noble Drilling, and $2 million to Shell, for violating numerous
environment laws, including the Clean Air Act, as well as the Clean
Water Act.
By Markus Feldenkirchen, Christoph Reuter and Holger Stark Source: Der Spiegel Obama has spent much of his term withdrawing the US from
quagmires abroad. But now, in the battle against Islamic State
extremists, he has a war of his own. His plan of attack, though, is
filled with uncertainties and America's ultimate goal remains unclear.
The City of Rabbits. That is the bucolic alias once attached to the Syrian
town of Marea. But it is no longer in use. Now, one of the most
important frontlines in the war in northern Syria runs through the town.
Some 5,000 rebels have established themselves in the potato fields
surrounding Marea in an effort to stop Islamic State jihadists from continuing their advance on Aleppo.
Thus far, they have been successful -- thanks largely to assistance from
the US. In Marea, an American-supported rebel command center
coordinates the rebels' defense. The entire front is divided into
sectors, which are each under the control of a single group. They have
names like "Defenders of the Faith," "Islamic Front" and "Nureddin Senki
Brigade" and are fairly obscure. Even so, they now have satellite
images, ammunition for Kalashnikovs and larger caliber weapons,
night-vision devices and provisions. A few anti-tank rockets also
arrived a few months ago.
All of the materiel was provided to the fighters by the US. The CIA
has established a military operations center in the Turkish border town
of Reyhanli which it uses to support Syrian rebels. Those given a green
rating by the CIA receive both arms and a salary. Those coded yellow
receive help but no weapons. Those marked red receive nothing. Nine
groups with a total of around 10,000 fighters are now said to be
operating north of Aleppo to stop the march of the Islamic State.
Witnesses who have visited the operations center and who work with
the US. have described a curious alliance -- the cast of characters
ranges from bearded Islamists to defected army officers. The fighters
aren't radical. They aren't exactly secular either. Above all, they
aren't corrupt; they are disciplined and capable.
Waiting for Air Strikes
"We are holding our lines, but we aren't going to attack," says one
of the Syrian rebel commanders who just came to Turkey for two days. The
fighters have plenty of arms and ammunition, he said, but also have a
fear of the Islamic State and its extreme brutality. "To advance against
the Islamic State, we need heavy weaponry, artillery and rocket
launchers." He says that the Americans need to provide Syrian fighters
with the kind of weapons that the Islamic State has been able to plunder
from the Iraqi army. "We are now waiting for US airstrikes," the
commander says. "Nothing will happen before that."
On the eve of the 13th anniversary of the Sept. 11, 2001 terror attacks, US President Barack Obama
announced that such airstrikes were on the way, in a speech that was
designed to demonstrate America's power and determination. Standing in
the White House, the president informed his fellow Americans of a war
against the Islamic State that could take years to achieve its goals.
The appearance marked a complete reversal for Obama. He is now no longer
the president who only brings wars to an end; he has now become a war
president himself. As Obama announced the operation's aim, he sounded
eerily reminiscent of George W. Bush, his predecessor: "We will degrade,
and ultimately destroy, ISIL," Obama said, using one of the many
acronyms used to refer to the Islamic State.
For Obama, there is something almost tragic about this moment. A
rapid withdrawal from Iraq was once one of his central campaign
promises, and now he is in danger of leaving his successor a country
deeply mired in an intransigent conflict not unlike the ones he
inherited from Bush.
Unclear Goals
That speech marked the moment Obama gave up on his "lead from behind"
doctrine, which imagined a superpower pulling the strings backstage
rather leading the charge. The about-face became necessary in part
because of the West's earlier hesitation to get involved in the Syrian
civil war, a delay which allowed the jihadists to gain strength.
The risks associated with the new operation, which Obama has sought
to sell as an anti-terrorism campaign, are immense. And important
questions remain unanswered. What, for example, does Obama seek to
achieve? Is the US only interested in the destruction of the terror
group to prevent it from being able to carry out possible terror strikes
in the US? Or is Washington also tempted by regime change in Syria?
The bombs, after all, won't be targeting the cause of the Islamic
State's rise -- Syrian dictator Bashar al-Assad is leading a destructive
war in his effort to cling to power. Attacking the Islamic State helps
Assad, but it also, more than anything, helps rebel groups in Syria.
"Nobody knows what our strategy really looks like in Syria," says
former CIA analyst Kenneth Pollack of the Brookings Institution. "The
strategy in Iraq is clearly a military one, with the Iraqi army as a
partner. In Syria, it sounds like a counterterrorism mission like those
in Yemen and Somalia." In those places, though, drone attacks have done
little to weaken Islamist groups. On the contrary. And experts agree
that airstrikes are not enough to destroy a well-organized pseudo-army
like the one belonging to the Islamic State.
The Assad Question
It also remains unclear how the US intends to fly bombing raids in
Syria without cooperating with Assad's regime. In Iraq, the government
explicitly requested American assistance, but Obama has ruled out
working together with the Syrian government. Assad maintains effective
anti-aircraft systems, though Pollack believes that Assad would not fire
at US fighters and drones. "The last thing that Assad wants is an
additional fight with the US," he says. But it isn't a certainty.
Russia has been vociferous in its criticism of Obama's plans, with
the Foreign Ministry in Moscow saying in a statement that airstrikes
would be "an act of aggression" and that such a step, "in absence of a
UN Security Council decision, would be ... a gross violation of
international law" and would further increase tensions.
Should it come under attack, the US may then feel forced to destroy
Syrian airports, fighter jets and anti-aircraft batteries, which would
end Syrian control of airspace over large areas now under rebel control.
Assad's Syria would shrink to a small strip from Damascus to the coast.
It is more likely that the Assad regime will silently tolerate US
airstrikes. Indeed, Western diplomats and intelligence personnel in
southern Turkey say that the US has been secretly negotiating with
Damascus in recent weeks in the hopes of getting the green light for air
raids.
Damascus is eager to win the US as an ally. Syrian Foreign Minister
Walid al-Muallem has said that any airstrikes must be carefully
coordinated -- though there are large differences between Washington and
Damascus's notions of who exactly the enemy is.
Rebels Caught in the Middle
When Islamic State fighters began shelling rebel-controlled Marea
from three sides in August, the Syrian air force flew several air raids.
But their bombs didn't hit the Islamic State. They instead struck
exactly the rebels that are receiving support from the US.
Yassir al-Haji, head of the political opposition in Marea, says two
girls died in the town late last week, one after being struck by an
Islamic State tank shell and the other as a result of a regime
airstrike. "Both sides are shooting at us. Assad's air force is flying
sorties against us every day. At the same time, more than 1,000 Islamic
State fighters are just five kilometers away -- and are not being
bombed," Haji says.
The Islamic State was long a useful enemy for the regime in Damascus,
with the jihadist group's brutality making Assad look like the lesser
of two evils. Indeed, the Syrian air force refrained from attacking
Islamist State positions at all until mid-June. In return, the Islamists
focused their fight on other opposition groups -- and financed
themselves through oil deals with Damascus. Both Assad and the Islamic
State were apparently trying to use each other.
Rise of the Islamic State
But suddenly, the Islamic State became much more powerful than
expected. The CIA recently estimated that the group may have as many as
30,000 fighters. Since the jihadists began attacking regime positions in
the east, the Syrian air force has been attacking them there. But only
there.
The Islamic State is like a parasite and has taken advantage of the
weaknesses displayed by its hosts, Syria and Iraq. The terror group is
not only made up of fanatics, but also of strategists who prefer
eye-catching brutalities to staging provocative attacks in the West.
Indeed, this dearth of large-scale attacks abroad led many experts to
believe until recently that the Islamic State didn't play in the
terrorist big leagues. In January, even Barack Obama compared the group
to a high-school's second-tier ("JV") basketball team. What they all
missed was that the Islamic State had turned al-Qaeda's concept on its
head: Instead of starting off with global terror, the Islamic State was
first focusing on conquering territory from which to operate.
In early August, though, Islamic State leaders made a crucial mistake
that set off a chain reaction: They attacked the Yazidi and Christian
communities in northern Iraq. The fate of the minority groups was
greeted with international outrage, and led the US to bomb Islamic State
positions in Iraq -- a development the jihadists had seemingly not
expected.
The terrorists then beheaded two American journalists in an effort to
intimidate the United States. This, too, was not a clever move: Since
mid-June, popular US approval for military operations against IS has
skyrocketed, with almost three quarters of Americans now in favor.
Suddenly, the Islamic State is confronted with a significant opponent.
The Islamic State is made vulnerable by the fact that it behaves like
an army instead of a terror organization; captured Humvees, artillery
pieces and tanks are clearly identifiable military targets. Many of them
have been destroyed by the over 150 sorties thus far flown in Iraq by
the US. The Islamic State is much more difficult to fight in urban areas
and no cities controlled by the group have been retaken yet.
'Enemies of America'
It is still difficult to predict the effect the American air attacks
will have in Syria. Much will depend on who exactly they will be
targeting. If Washington adheres to its terror list, it will also have
to attack the al-Nusra Front, whose leader once pledged his loyalty to
al-Qaida. Nusra's fighters are almost all Syrians -- and most are
embittered enemies of the Islamic State. "An attack on Nusra would be
the biggest favor that Washington could do to the Islamic State," warns
one of the most knowledgeable experts on the Syrian opposition. "It
would turn many Sunnis into enemies of America."
More than anything, though, the US need local support, given that
Obama is reluctant to send ground troops. But the Syrian opposition has
been worn down by fighting a two-front war against Assad and the Islamic
State and is disillusioned about the West due to its apathy. Thousands
of rebels have died while others have fled from the country with their
families. The Free Syrian Army has fallen apart, old brigades have been
dissolved and new ones have been founded under different names. The rich
Syrian exiles that have long financed the opposition are cash-strapped
after years of war, leading many fighters to cross over to Nusra or the
Islamic State.
If Obama wants to convince the Syrians that he is serious, he will
also have to present a political strategy. This would mean abandoning
the course it has followed thus far -- that of trying to force both
sides to come to a negotiated solution. The secret negotiations in
Switzerland earlier this year did succeed in bringing them closer
together, but the talks fell apart over one crucial point: Assad's hold
on power. A best-case scenario would see Washington's new strategy
result in a decisive breakthrough.
'Explicit Pro-American'
But the operation's success will be especially dependent on the
"Coalition of the Willing" that Obama is now currently assembling.
France's President Francois Hollande declared himself ready this past
Friday to attack targets in Iraq from the air. British Prime Minister
David Cameron has not fundamentally ruled out military participation in
Syria. Only the German government doesn't want to get directly involved
in the fight against the Islamic State. "But the last thing that the US
wants is a new crusade of the West in the Middle East," says Brookings
expert Kenneth Pollack. "The coalition against the Islamic State needs
to be regionally anchored."
It is precisely this alliance that Washington has formed in the past
weeks -- an alliance that, until recently, nobody would have thought
possible: between the Kurds, Saudi Arabia, the Gulf States, Egypt,
Jordan, Lebanon and Iraq. They are to block the Islamic State's flow of
money, allow the use of military bases, control borders and provide
humanitarian assistance. Even Iran supports the offensive against the
Islamic State -- even though it is simultaneously helping Assad. The
Saudis, meanwhile, want to topple Assad and destroy the Islamic State --
but doesn't want to support their Shiite archenemies in Iraq. And
crucially Turkey, the country through which most Jihadists make their
way to Syria and Iraq, is not on-board.
It will soon become clear the degree to which the world is prepared
to follow the US. The war in the Middle East will be a central topic at
the UN General Assembly in September. Obama will give another keynote
address and lead the meeting of the Security Council. Should he receive
Security Council backing, it would mark a significant foreign policy
success.
His strategy could also help Democrats in seven weeks, when
Congressional elections are held. Even Newt Gingrich, a Republican
detractor of the president's, was impressed last week. "This speech," he
said, "is the most explicit pro-American speech he ever made."