Uncommon Knowledge

The Budget Crisis in the Land of Lincoln

Recorded on June 10, 2017 The forty-second governor of Illinois, Bruce Rauner, joins Peter Robinson on Uncommon Knowledge to discuss Illinois’s budget crisis. With the end of the fiscal year deadline (June 30) looming ever closer Governor Rauner and House majority Democrats will have to come to an agreement to get the budget passed and prevent Illinois’s bond rating from being downgraded to junk, causing Illinois to lose investment-grade status. Peter Robinson and Governor Rauner discuss this financial crisis and Rauner’s goals for the budget. He insists that no budget will be passed unless it is a balanced budget that includes, but is not limited to, term limits, consolidating the government, and pension reform. Governor Rauner talks about why he chose to enter politics after a successful business career and how he plans on fixing the state that is his home. He details out how Illinois has historically dealt with thirty-five years of deficits and how it ended up in the current financial mess. He also discusses the difficult opposition he's facing with a Democrat-controlled state legislature. The GOP governor and the Democrat-controlled legislature have reached an impasse several times during his tenure as governor, as he refuses to pass a budget that will increase the deficit further than in 2015 and 2016. Background on the Illinois Budget Crisis: Illinois has been operating without a budget for two years now, as the state legislature has been unable to pass a budget up that will not increase the deficit and also satisfy the requirements of Governor Rauner. The Illinois legislature has managed to keep the state running through temporary stopgap measures, but as the state’s debts continue to rise to more than $150 billion, stopgap measures and the lack of budget will no longer be able to keep the state running. Illinois has been plagued with financial issues during the last several years, even being unable to provide lottery winners with their winnings. The state has been running a deficit for thirty-five years now. If a new budget isn’t passed by July 1, the start of the new fiscal year, the Illinois bond rating will be downgraded even more than it already has, and Illinois stands to lose millions of dollars in federal funding. To pass a new budget, the plan will have to be passed by a three-fifths majority vote in the Illinois House. As it stands, if Illinois’s bond rating is downgraded, Illinois will be the first state since 1970 to lose investment-grade status. (Playing time: 30:14)

The Vanishing American Adult

Recorded on June 2, 2017 Senator Benjamin Sasse joins Peter Robinson to discuss his book The Vanishing American Adult and the growing crisis in America of prolonged adolescence. Senator Sasse argues that children are growing up, entering adolescence, and becoming stuck in the transitional stage to adulthood as they fail to become financially independent from their parents. He argues that because this generation of children is growing up during a time of relative peace and prosperity, it has allowed millennials to grow up without the issues of previous generations that were raised in war time. In this era of consumption and material surplus, he argues that adolescents are leading age-segregated lives and not developing a work ethic and that both their parents have an obligation to teach their children to grow up. Furthermore, he stresses the importance of intergenerational learning by allowing children to be raised around their grandparents and other adults to help them learn that the trivial trials of youth don’t matter in the long run. Senator Sasse believes that there are certain virtues that American children have to learn to become productive and happy adults. Part of that is by teaching children the distinction between production and consumption and how to find happiness and self-worth through jobs that make one feel like a necessary part of the company/society. This, he argues, will help raise peoples’ self-worth and lead them to happiness and fulfillment in their everyday. Senator Sasse finishes by stressing the importance of building children’s identities as readers to help foster the growth of ideas and active learning over the passive activities of sitting in front of screens. He notes that sedentary life is not fulfilling and that by encouraging people to participate in production over consumption will lead to more fulfilling lives. He ends on the optimistic note, that while our youth may still need guidance, overall America’s best days still lie ahead. (Playing time: 38:10)

Area 45: The Art of Presidential Wordsmithery Featuring Peter Robinson

Today, we’re introducing Area 45, a new political podcast from the team behind Uncommon Knowledge, The Classicist, and the Libertarian. Host Bill Whalen interviews Uncommon Knowledge’s host, Peter Robinson about presidential communication in this age of shock tweets and nonstop news cycles. Presidents are defined by rhetorical moments: Reagan and Kennedy at the Berlin Wall; George W. Bush rallying the nation after the 9/11 attacks. And Donald Trump? So far his presidency hasn’t been one of major addresses. Hoover fellow Peter Robinson, author of Reagan’s famous speech at the Brandenberg Gate, discusses the art of presidential wordsmithery in this age of social media and nonstop news cycles. New episodes of Area 45 are released each week. Subscribe now on iTunes, SoundCloud, or via RSS on your favorite podcast platform. (Playing time: 55:32)

Sowing the Seeds of Growth

Recorded on May 11, 2017 John Michael “Mick” Mulvaney, director of the Office of Budget and Management, sits down with Peter Robinson to discuss the complex process of budget reform by having to blend President Trump's budget proposal with the realities of dealing with Congress. Mulvaney explains the need for bipartisanship in budget negotiations within the Senate to get the budget passed, which means getting at least eight Democrats to vote for the proposed budget (to get to the magic number of sixty votes) and keeping Trump's promises to his base. Mulvaney talks about the unique opportunity for the Republicans to reform the federal budget five months ahead of schedule as a result of the Obama administration’s inability to get a twelve-month budget passed. Furthermore Republicans have been able to invoke old laws that allow them to undo many policies enacted in the late days of the previous administration. That loophole allowed them to confirm several appointments and to pass the proposed budget without the requisite sixty votes but with fifty votes. But the Republicans need sixty votes in the Senate to pass the appropriations bill. The Democrats wanted a shutdown, but the Republicans were able to move money around to satisfy the Democrats and get the votes necessary to pass the appropriations bill and avoid a shutdown. For example, there was/is no money for new bricks and mortar construction of the “Wall,” but Republicans moved money around and funded their priorities for border security via a virtual wall with money already available for technology and surveillance. Mulvaney notes that the budgeting/appropriations system is set up so the House and Senate pass twelve appropriations bills every year. Those are the spending bills, which are the end process of the budget. The budget is the start of the process, authorizations go in the middle, and appropriations go on the end, which is how money gets out to be spent. Mulvaney was in Congress for six years, in which time Congress should have approved seventy-two appropriations bills but only approved three. Mulvaney says that the system is broken because of the sixty-vote rule to approve appropriations bills in the Senate. Therefore instead of small manageable appropriation bills that Congress could negotiate and pass, Congress ends up with large unwieldy bills that no one knows what is in them and thus punts with a resolution to continue with what done earlier. Mulvaney says that the system is not even close to what the Founding Fathers created and/or what is needed for a manageable and functioning government and society. Mulvaney describes his vision for the future of the American economy, noting that the way to reduce the deficit isn't necessarily cutting spending or raising taxes but creating room in the American economy for growth. He argues that the lack of new businesses and jobs, because of regulations and taxes, has prevented the ideal three percent growth necessary to eliminate the deficit and grow the economy. He also argues that regulatory reform can have twice the impact on economic growth that tax policy can. Mulvaney ends the interview saying that he loves his job and loves going to work. The eighty-plus-hour workweeks go by in the blink of an eye because the work is engaging and invigorating and because he feels he has a golden opportunity to change things for the better and get the United States, especially the economy, on a better trajectory. Mulvaney said that he is working at the highest levels on complicated but wonderful ideas, ideals, and issues with the leader of the free world and that President Trump is a great boss. (Playing time: 38:21)

Drug Decriminalization

Released May 18, 1996 In the 1996 first ever episode of Uncommon Knowledge, Peter Robinson discusses the origins of Uncommon Knowledge before invited guests former US attorney general Edwin Meese III and former San Jose police chief Joseph McNamara. They have a spirited debate about the war on drugs and the best way to handle the drug problem in the United States. According to Peter Robinson, “Ed Meese wants to win the war on drugs; Joe McNamara wants to end it.” Twenty-one years later, we look back as Meese and McNamara debate the merits of marijuana legalization and make predictions about where the United States would be in ten years (2006). Although their predictions were not entirely accurate, their insights into the legalization debate and the war on drugs remain helpful today. They answer questions about how they believe that legalizing marijuana will increase crime and addiction rates, how to beef up educational and prevention programs, and the effect of middle-class drug use in the United States. (Playing time: 26:32)

Carly Fiorina on the Future of the United States

Recorded on March 16, 2017 Although many people have heard of Carly Fiorina, former presidential candidate and first woman to lead a Fortune 20 company as CEO of Hewlett-Packard, few have had the chance to sit down and speak with her. In this special live taping of Uncommon Knowledge, at the National Review Institute’s Idea Summit, with guest host Michael Franc, director of Hoover’s Washington, DC, Programs, Fiorina discusses the 2016 presidential election, her personal path to conservatism, and her beliefs about the future for US and global politics. She opens up about the often-brutal criticisms she received during the election, her choice to become conservative, the loss of her stepdaughter to drug addiction, and the ways in which she believes conservatives are fighting to help people help themselves by giving them the tools and resources necessary to change their own path. Fiorina goes on to analyze the current state of the union, the disenfranchised Americans she’s met, and the solutions she believes in for the future of the United States. Special Guest Host: Michael Franc is the Hoover Institution’s director of DC programs, where he oversees research and outreach initiatives to promote ideas and scholarship in our nation’s capital. He holds a dual appointment as a research fellow. Mike Franc is a longtime veteran of Washington, DC, policy making. Before joining Hoover, Franc served as policy director and counsel for House majority leader Kevin McCarthy. He also served as the vice president of government relations for the Heritage Foundation from 1997 to 2013. During that time, he managed all the think tank’s outreach with Capitol Hill and the Executive Branch. He also completed a tour of duty as communications director for former House majority leader Dick Armey (R-TX) and worked for the US Department of Education and the Office of National Drug Control Policy. He has been quoted widely in the print and broadcast media and was a regular contributor to the National Review Online and other publications. Franc has a BA from Yale University and a JD from Georgetown University. (Playing time: 40:04)

How JetBlue Does It

Recorded on February 14, 2017 CEO Robin Hayes and Hoover Institution board member Joel Peterson talk to Peter Robinson about how JetBlue has remained successful, despite all the regulations, competition, and pitfalls of running an airline. Peterson and Hayes argue that consolidation and the limited number of airlines in the United States have allowed for sustainable operating margins. JetBlue continues to have double-digit operating margins and great customer loyalty by focusing on safety, culture, and delighting customers. JetBlue has been voted best airline for customer satisfaction by JD Power for twelve years in a row. Hayes and Peterson support the Federal Aviation Administration’s (FAA) managing the safety aspect of regulations, but they prefer that another independent entity run the operations aspect of the airline industry. Although the Airline Deregulation Act in 1978 deregulated the airline industry, the airlines are still one of the most regulated industries in the United States, with more than 13,000 pages of FAA regulations. Additionally, 21 percent of the cost of the air ticket goes to the government via taxes. Legacy airlines, like United, American, and Delta, will charge high fares until a new airline comes in; then the legacy airlines will lower their fares to try to drive out the new airline/entrant. You need a low-cost structure to compete, which JetBlue has; JetBlue has not had to go into debt to fund its airplanes. They discuss how JetBlue has become synonymous with innovation and its decision to bring JetBlue’s investment arm to the Silicon Valley to further integrate disruptive technology into their airline. JetBlue, which wants to use technology to improve customer relations and track equipment, has invested in FLYR to study how the pricing method can be disruptive and thus improve ticketing. JetBlue’s keys to success and longevity are a great culture, innovation, great products, and maintaining cost advantages. JetBlue seeks to create a culture in which all employees are empowered to improve customers’ experiences, from the time they check-in to the time they pick up their bags. (Playing time: 40:54)

The Challenges of Reforming Health Care in a Partisan Era

Recorded on March 22, 2017 In a lively debate Avik Roy and John Podhoretz discuss health care coverage and whether the American Health Care Act (AHCA), created to replace Obamacare/Affordable Care Act (ACA), will solve our health care problems. They both agree that if we could begin again we would never design a health care system like ours, but, since we cannot start over, how can we make things better. They debate whether universal health care coverage is a good idea, how to provide health care coverage to the most needy, and allow the wealthy and more capable citizens to choose and pay for their own coverage. Roy thinks the system the Affordable Care Act put in place caters too much to the wealthy and that the AHCA will just exacerbate health care inequality. Podhoretz and Roy’s debate ranges from health care to race, inequality, history, and the election of 2016. They note that the Republicans and Democrats are split/disagree on many issues and ideas. Trump voters watch different TV shows and movies, read different newspapers, and have different cultural experiences than the Clinton supporters; therefore the two parties see the world through very different lenses. They examine the changes in the Republican and Democratic Parties over time, including their involvement in the Civil Rights movement and the rise of identity politics and racism. The interview ends with a question on fatherhood and how it shapes both Podhoretz's and Roy's thinking as journalists and public intellectuals. Podhoretz does not want to foist his feelings and views on his children but notes that the media no longer make it possible for children to keep their innocence. Roy dreads sending his children to public schools and discusses some of the problems facing parents and children today. Roy says that parents can choose the environment in which they will raise their children and that there is no need to turn their children over to popular culture.

The Historical Benefits of Trade

Recorded on December 2, 2016 Professor Douglas Irwin defends the benefits of free trade and explains why protectionism, high tariffs, and currency wars could cause economic problems. Irwin explains the misconceptions around trade surpluses and deficits and the historical consequences and benefits of trade. He talks about an absolute versus comparative advantage with trade and why and how a trade deficit with China still benefits the United States. Irwin refers to Adam Smith’s view of trade in explaining the absolute advantage of trade. Smith argued for unregulated foreign trade, reasoning that if one country can produce a good, for example, steel, at lower costs than another country, and if a different country can produce another good, for example, an iPhone, at lower costs, then it is beneficial to both parties/countries to exchange those goods. This has become known as the absolute advantage argument for both international and domestic trade. Irwin notes that trade still benefits the United States enormously and that striking back at other countries by imposing new barriers to trade and/or ripping up existing agreements would be self-destructive. Finally, Irwin talks about problems within the American economy, how too many people are not working, which cannot be blamed entirely on the trade deficits. Some reasons people cannot find jobs are mechanization, efficiency, productivity, technology, and skills. Irwin discusses a few options for helping people with limited education and few skills survive, including paying a basic wage, improving our educational system, and reducing regulations so the costs of hiring an employee are not as steep.

Senator Tom Cotton, Immigration Reform, and the RAISE Act

Senator Tom Cotton of Arkansas joins Peter Robinson to discuss the Reforming American Immigration for Strong Employment (RAISE) Act, an immigration reformation bill he is cosponsoring. He notes that American workers have been getting a raw deal since the immigration laws were changed in 1965. The American workers’ wages have not gone up but income inequality has. Senator Cotton thinks this is largely due to flooding the labor market with millions of low-skilled, low-wage workers. In rethinking our immigration policies we need to look at whether our laws are serving the American people.