Wednesday, August 19, 2015

Blaming others for the Failures of Democracy

Richard W. Rahn who is usually a level-headed man could not help but be an authentic American on this issue. He joined the chorus of people – which is most Americans – who tend to blame others (that would be foreign countries) for the failures of America's democracy.

For example, the Americans have a national drug problem, and have a long running war on drugs that is going nowhere. So what do they do? They tell the nations from where the drugs come that American drug enforcement agents cannot do what is necessary to stamp out the problem because the laws of democracy forbid them from acting in a certain way. Therefore, they want the other countries to help reduce the supply of drugs because they cannot reduce the demand for them in America. Another similar problem the Americans have is what's known as the rendition scandal.

What Richard Rahn is saying now (hinting actually) is that Iran and the world must be punished with the rejection by Congress of the Iran nuclear deal because America's laws on trade and commerce have put America's companies at a disadvantage when it comes to doing business with Iran. Not only that, but while this situation is enforced on the Americans, it turns out that companies from other countries are free to do as much business as they want with Iran.

You think I'm making this up, don't you? Well, I'm not; and you can verify it for yourself because Rahn put down his thoughts in black and white. He wrote an article under the title: “The Iran deal means game over for U.S business” and the subtitle: “Other nations can cash in, but not American companies.” It was published on August 17, 2015 in The Washington Times.

He begins the article with a clearly stated opinion: “If you need a reason to oppose the Iran nuclear deal, the administration has provided it.” He then explains what that is by asking a question: “Why would the U.S. government put American businesses at a disadvantage.” After expanding on that thought, he makes a suggestion: “at a minimum, U.S. businesses should be placed on a level playing field with their foreign competitors when it comes to access to the Iranian market.”

Now a puzzling question: Why would someone like Richard Rahn who is Chairman of the Institute for Global Growth, contemplate even for a minute, punishing the world … and in so doing, deprive it of the growth it badly needs just because America cannot get its house in order? Well, the rest of the article provides the answer to that question. It is that he has grown frustrated at his own country, and the system under which it is governed.

He tells of exceptions to the prohibition of doing business with Iran under the now established rules. They include commercial aircraft, for example, but not consumer goods such as household appliances. These are laws that only Congress can change. In addition, there is the fact that American businesses wishing to export to Iran could not use U.S. banks to facilitate the transaction; another restriction that only Congress can remove.

So you ask: What's the problem? And the answer is that the Congress seems dead set against the nuclear deal with Iran. Thus, even if the deal goes into effect because the Congress could not override the President's veto, that Congress will not make it easy for Americans to compete against foreigners, by changing the pertinent laws.

This is what motivates Rahn to now shift his position. Instead of advocating the rejection of the nuclear deal, he spins the issue to advocate its passage by the Congress. Here is what he says: “U.S. security is not enhanced by putting U.S. business at a disadvantage for goods and services that the Iranians can obtain elsewhere … the sanctions were dead by the time the agreement was announced because [others] have been negotiating deals with Iran – leaving the United States as an impotent bystander.”

But, lest the readers believe he is turning his political coat to embrace another ideology, he ends the article by saying the things that assures the world he remains who he is. He does it this way: “The distasteful reality is that the nuclear genie is out of the bottle – the Iranians are going to do what they want … the Obama administration has thrown away effective financial sanctions. We have lost most of whatever ability we had to control the destiny of others. But we can still control our destiny by strengthening our economy and modernizing our military.” All of which means: Praise the Lord of business and feed the military industrial complex.