Pell Center for International Relations and Public Policy

Robert Whitcomb: How to Speed Up Infrastructure Repair

  An irritated citizenry has blocked a bid by the Pawtucket Red Sox, employing very few people and with a mostly seasonal business, to grab valuable public land and erect, with lots of public money, a stadium in downtown Providence, on Route 195- relocation land. The plan would have involved massive tax breaks for the rich PawSox folks that would have been offset by mostly poorer people’s taxes.

The public is belatedly becoming more skeptical about subsidizing individual businesses. (Now if only they were more skeptical about casinos’ “economic- development’’ claims. Look at the research.)

Perhaps Lifespan will sell its Victory Plating tract to the PawSox. And maybe a for-profit (Tenet?) or “nonprofit’’ (Partners?) hospital chain will buy Lifespan, which faces many challenges. Capitalism churns on!

In any event, the stadium experience is a reminder that we must improve our physical infrastructure, in downtown Providence and around America.

Improved infrastructure will be key to a very promising proposal by a team comprising Baltimore’s Wexford Science & Technology and Boston’s CV Properties LLC for a life-sciences park on some Route 195-relocation acres. This could mean a total of hundreds of well-paying, year-round jobs in Providence at many companies. Tax incentives for this idea have merit. (I’d also rather fill the land slated for a park in the 195 area with other job-and-tax-producing businesses, but that’s politically incorrect.)

The proximity of the Alpert Medical School at Brown University, the Brown School of Public Health, hospitals and a nursing school is a big lure. Also attractive is that Providence costs are lower than in such bio-tech centers as Boston-Cambridge and that the site is on the East Coast’s main street (Route 95, Amtrak and an easy-to-access airport).

Rhode Island’s decrepit bridges and roads are not a lure. Governor Raimondo’s proposal for tolls on trucks (which do 90 percent of the damage to our roads and bridges) to help pay for their repair, and in some cases replacement, should have been enacted last spring. It’s an emergency.

It takes far too long to fix infrastructure, be it transportation, electricity, water supply or other key things. The main impediment is red tape, of which the U.S. has more than other developed nations. That’s why their infrastructure is in much better shape than ours.

Common Good sent me a report detailing the vast cost of the delays in fixing our infrastructure and giving proposals on what to do. It has received bi-partisan applause. But will officials act?

The study focuses on federal regulation, but has much resonance for state policies, too. And, of course, many big projects, including the Route 195-relocation one, heavily involve state and federal laws and regulations.

Among the report’s suggestions:

* Solicit public comment on projects before (my emphasis) formal plans are announced as well as through the review process to cut down on the need to revise so much at the end, but keep windy public meetings to a minimum.

* Designate one (my emphasis) environmental official to determine the scope and adequacy of an environmental review in order to slice away at the extreme layering of the review process. Keep the reports at fewer than 300 pages. The review “should focus on material issues of impact and possible alternatives, not endless details.’’ Most importantly, “Net overall (my emphasis) impact should be the most important finding.’’

* Require all claims challenging a project to be brought within 90 days of issuing federal permits.

* Replace multiple permitting with a “one-stop shop.’’ We desperately need to consolidate the approval process.

Amidst the migrants flooding Europe will be a few ISIS types. That there are far too many migrants for border officials to do thorough background checks on is scary.

Fall’s earlier nightfalls remind us of speeding time. When you’re young, three decades seem close to infinity, now it seems yesterday and tomorrow. I grew up in a house built in 1930, but it seemed ancient. (My four siblings and I did a lot of damage!) Yet in 1960, when I was 13, the full onset of the Depression was only 30 years before. The telescoping of time.

 

Robert Whitcomb: Small-college blues

  “Sweet Briar’s planned orderly retreat starts to look more like a mad dash for the door.’’

 

-- Travis LaCouter, in “Sweet Briar Fails to Keep Up,’’ March 13 Philanthropy Daily

 

That fiscally anxious Sweet Briar College, in rural Virginia, will close demonstrates the challenges facing liberal (in the nonpolitical sense) higher education in our harsher, more competitive times.

Of course, every college has different strengths and challenges (thus avoid the promiscuously misleading U.S. News & World Report rankings); colleges can’t be compared with precision.

Sweet Briar, founded in 1901, is a women’s institution that has an outdated reputation as a finishing school for affluent young ladies who like horses. For many years it has strenuously sought out applicants from many backgrounds to benefit from the highly regarded, small-class teaching on its bucolic campus.

But it has found it increasingly difficult to compete with co-ed, larger, richer and mostly urban or suburban schools in general, let alone the eight Ivy League colleges, MIT, Stanford, Duke, the University of Chicago, Northwestern and perhaps a dozen other “brand-name’’ establishments, public (to wit, the very prestigious University of Virginia) and private. And Sweet Briar’s cutting its tuition (thus revenue) to try to stay competitive may have been a mistake.

Even elite schools say they worry about their fiscal futures because of free college courses on the Internet. But they’ll be okay: Their national name-dropping appeal will keeping drawing many students, especially from rich and powerful families. On their campuses students will cultivate the relationships that will keep them on top of the self-perpetuating American aristocracy/plutocracy.

Whatever the college, being “liberally educated’’ within an academic residential community is a strong foundation for an interesting and productive life. And while courses in, say, history and literature might not initially seem “practical,’’ if absorbed they can in fact be very useful – in developing critical thinking, clarity in expression and in dealing with life’s innumerable and often ambiguous issues. A more “vocational’’ course might teach you how to write software for social media that might get you a first or second job, but as with all techno courses, its value will swiftly shrink as new technology comes along amidst the corporate drive to maximize profits by laying off more people.

Someone broadly educated in the liberal arts (including what we used to call “general knowledge,’’ which seems scarce among too many of us) is well positioned to deal with what life unpredictably throws at us.

Students also benefit from being in a residential community from whose relationships they can draw lifelong career and emotional support.

Many argue that taking free or very cheap courses online offers the same value. Wrong! Actually being in the same room with a teacher and other students is a much richer experience in retention of learning and in developing long-term intellectual and social relationships. (And neurologists have shown that retention of material is considerably greater in reading on paper than on a computer screen.) The social atomization and superficiality associated with living online decays civil society.

None of this is to say that some liberal-arts colleges aren’t partly to blame for some of their own woes. They cost too much, in part because they hire far too many overpaid administrators. And too many offer stupid courses along the lines of “Transgendered Aesthetics in 1950’s Beat Culture,’’ etc., and country-club luxuries. And too many of them don’t demand that graduates demonstrate the sort of general knowledge that citizens of democracy should have.

Further, the silly idea pumped up by politicians and others that “everyone deserves the right to get a college degree’’ should be dumped. For plenty of people more vocationally focused post-high-school education is appropriate.

Still, for those with the desire to energetically participate as leaders in our society you can’t beat a good liberal-arts education. The decline of the small, intimate colleges that have been exemplars of this education is troubling. Many of those who think that a very specific vocational education will serve them better are likely to find their skills obsolescent in a surprisingly short time after graduation.

Robert Whitcomb (rwhitcomb51@gmail.com), overseer of these pages, is a partner at Cambridge Management Group, a health-care sector consultancy, and a Providence-based writer and editor.  He's also a Fellow of the Pell Center for International Relations and Public Policy, a  former finance editor of the International Herald Tribune and a former editorial-page editor of The Providence Journal.

Robert Whitcomb: Ignore 'inverson'; marina people; Tughill Plateau

Corporate “inversion’’ involves a previously U.S.-based company merging with a foreign one, reincorporating abroad and, by so doing, taking advantage of foreign corporate income-tax rates generally lower than ours. Many public companies are not paying anywhere near the 35 percent federal corporate income-tax rate because of assorted tax breaks; some companies pay no income tax because of loopholes. Still, all in all, our corporate rate is not competitive with our major foreign competitors’.

Some have called companies using inversion “unpatriotic.’’ I disagree. The senior executives and members of the boards of directors making these decisions are legally maximizing their and the company’s wealth in a partly capitalist system that, for all its faults, fuels innovation and prosperity for the entire country — over the long haul. Most individual taxpayers also try to optimize their tax situation.

And, as I have long argued, the corporate income tax is stupid, except for the lobbyists it enriches. It encourages maneuvers such as inversions. It sends jobs abroad. It supports a lobbying system in Washington that spawns corruption and makes the world’s most complicated tax system ever more complex and inefficient as corporations seek tax breaks from elected officials.

Anyway, in the end companies’ customers, employees and shareholders pay the corporate income tax. Companies just pass along the cost.

We need to end the corporate tax and enact a value-added (consumption-based) tax. We should also put personal earned income and capital gains on a more equal tax basis and maintain substantial estate taxes. The aim should be to help streamline and detoxify our tax system, encourage economic growth and at least mildly mitigate the growth of a permanent plutocracy based on inheritance.

 

* * *

Automation and information technology are now rapidly wiping out well-paying jobs. They’ve long been wiping out low-paying ones. Indeed, those automatic store checkout machines are starting to make inroads into one of the last few fallbacks for those with only a high-school education.

The line is that somehow the economy, blessed by ever-increasing productivity, will create a whole new wave of well-paying jobs to replace the ones killed. We’re still waiting.

Even upper-middle-class jobs are in peril. Consider lawyers, much of whose routine work can be done through computers and low-paid (by our standards) people, in, say, India. And medical equipment, nurse practitioners and ever-better prescription drugs will undermine physicians’ affluence.

Then there’s finance. Many college undergraduates, especially at elite institutions, career plan as if Wall Street were the only sure way to fortune. But they may be guessing wrong. Just because finance was the big thing in the last three decades doesn’t mean that it will be in the next 20. Many young people could find their Wall Street jobs as redundant as many jobs in manufacturing became in the ’70s. We tend to fight the last war.

Some futurists suggest plausibly that such service jobs as plumbers, electricians, gardeners and maids, along with home health-care and social workers and other counselors, may have the best chance of survival. In some fields, even the middle class will still demand personal service.

To reduce social disorder, will the government eventually establish a minimum income for those millions who truly can’t find work?

 

* * *

I just visited the gorgeous Thousand Islands, on the St. Lawrence River. We cruised for parts of two days in our host’s powerboat, which he keeps in a roofed marina in Clayton, N.Y., another one of those small Northeast towns whose downtowns seem to be regaining a bit of their old energy as big-box stores lose some allure to an aging population.

The vast majority of boats remained in their slips, rather than being taken out on the river, on a beautiful summer weekend. This can be explained in part by fuel costs but more, I think, by the marina’s social role. Most of these boat owners, whose age generally ranges from 50 to 80, primarily see the marina as their summer colony, with the boats (most with sleeping space for from two to eight people) as their summer bungalows.

During the short North Country season, they relentlessly schmooze with their neighbors and derive some meaning from endless boat maintenance. They live in a cozy waterborne village. What most of these people would not have liked back home — living cheek-by-jowl — they thrive in for a few weeks every summer.

 

* * *

We drove home through upstate New York’s Tughill Plateau, which has hundreds of wind turbines. The white wind turbines and the vivid green of the countryside, with its view of the Adirondacks, create a spectacular, if a bit eerie, landscape. Most of the farms are far better kept up than I remembered from years before — because of the fees paid to them by the utilities. A very green cash crop and no cash paid to the Mideast!

 

Robert Whitcomb (rwhitcomb51@gmail.com) oversees New England Diary. He is also a senior adviser and partner at Cambridge Management Group (www.cmg625.com), a health-care consultancy,  a former finance editor of the International Herald Tribune, a former editor at The Wall Street Journal, a former  editorial-page editor and vice president at The Providence Journal and  currently a Fellow of the Pell Center for International Relations and Public Policy.

Blame Russia for Russian aggression

By ROBERT WHITCOMB (rwhitcomb51@gmail.com)

Some denounce the United States for Russia’s reversion to brutal expansionism into its “Near Abroad” because we encouraged certain Central and Eastern European countries to join the North Atlantic Treaty Organization. The argument is that NATO’s expansion led “Holy Russia” to fear that it was being “encircled.” (A brief look at a map of Eurasia would suggest the imprecision of that word.)

In other words, it’s all our fault. If we had just kept the aforementioned victims of past Russian and Soviet expansionism out of the Western Alliance, Russia wouldn’t have, for example, attacked Georgia and Ukraine. If only everyone had looked into Vladimir Putin’s eyes and decided to trust him.

Really? Russia has had authoritarian or totalitarian expansionist regimes for hundreds of years, with only a few years’ break. How could we have necessarily done anything to end this tradition for all time after the collapse of the Soviet iteration of Russian imperialism? And should we blame Russia’s closest European neighbors for trying to protect themselves from being menaced again by their gigantic and traditionally aggressive neighbor to the east? Russia, an oriental despotism, is the author of current Russian imperialism.

Some of the Blame America rhetoric in the U.S. in the Ukraine crisis can be attributed to U.S. narcissism: the idea that everything that happens in the world is because of us. But Earth is a big, messy place with nations and cultures whose actions stem from deep history and habits that have little or nothing to do with big, self-absorbed, inward-looking America and its 5 percent of the world population. Americans' ignorance about the rest of the planet -- even about Canada! -- is staggering, especially for a "developed nation''.

And we tend to think that “personal diplomacy” and American enthusiasm and friendliness can persuade foreign leaders to be nice. Thus Franklin Roosevelt thought that he could handle “Joe Stalin” and George W. Bush could be pals with another dictator (albeit much milder) Vladimir Putin. They would, our leaders thought, be brought around by our goodwill (real or feigned).

But as a friend used to say when friends told him to “have a nice day”: “I have other plans.”

With the fall of the Soviet Empire, there was wishful thinking that the Russian Empire (of which the Soviet Empire was a version with more globalist aims) would not reappear. But Russian xenophobia, autocracy, anger and aggressiveness never went away.

Other than occupying Russia, as we did Japan and Western Germany after World War II, there wasn’t much we could do to make Russia overcome its worst impulses. (And Germany, and even Japan, had far more experience with parliamentary democracy than Russia had.) The empire ruled from the Kremlin is too big, too old, too culturally reactionary and too insular to be changed quickly into a peaceable and permanent democracy. (Yes, America is insular, too, but in different ways.)

There’s also that old American “can-do” impatience — the idea that every problem is amenable to a quick solution. For some reason, I well remember that two days after Hurricane Andrew blew through Dade County, Fla., in 1992, complaints rose to a chorus that President George H.W. Bush had not yet cleaned up most of the mess. How American!

And of course, we’re all in the centers of our own universes. Consider public speaking, which terrifies many people. We can bring to it extreme self-consciousness. But as a TV colleague once reminded me, most of the people in the audience are not fixated on you the speaker but on their own thoughts, such as on what to have for dinner that night. “And the only thing they might remember about you is the color of the tie you’re wearing.”

We Americans could use a little more fatalism about other countries.

***

James V. Wyman, a retired executive editor of The Providence Journal, was, except for his relentless devotion to getting good stories into the newspaper, the opposite of the hard-bitten newspaper editor portrayed in movies, usually barking out orders to terrified young reporters. Rather he was a kindly, thoughtful and soft-spoken (except for a booming laugh) gentleman with a capacious work ethic and powerful memory.

He died Friday at 90, another loss for the "legacy news media.''

***

My friend and former colleague George Borts died last weekend. He was a model professor — intellectually rigorous, kindly and accessible. As an economist at Brown University for 63 years (!) and as managing editor of the American Economic Review, he brought memorable scholarship and an often entertaining skepticism to his work. And he was a droll expert on the law of unintended consequences.

George wasn’t a cosseted citizen of an ivory tower. He did a lot of consulting for businesses, especially using his huge knowledge of, among other things, transportation and regulatory economics, and wrote widely for a general audience through frequent op-ed pieces. He was the sort of (unpretentious) “public intellectual” that we could use a lot more of.

***

I just read Philip K. Howard’s “The Rule of Nobody: Saving America From Dead Laws and Broken Government.” I urge all citizens to read this mortifying, entertaining and prescriptive book about how our extreme legalism and bureaucracy imperil our future. I’ll write more about the book in this space.

Robert Whitcomb (rwhitcomb51@gmail.com), a former editor of The Providence Journal's editorial pages, is a Providence-based writer and editor, former finance editor of the International Herald Tribune and a partner and senior adviser at Cambridge Management Group (cmg625.com), a consultancy for health systems, and a fellow of the Pell Center for International Relations and Public Policy.

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