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HOOVER DIGEST RESEARCH + OPINION ON PUBLIC POLICY SPRING 2019 NO. 2 THE HOOVER INSTITUTION • STANFORD UNIVERSITY The Hoover Institution on War, Revolution and Peace was established at Stanford University in 1919 by Herbert Hoover, a member of Stanford’s pioneer graduating class of 1895 and the thirty-first president of the United States. Created as a library and repository of documents, the Institution approaches its centennial with a dual identity: an active public policy research center and an internationally recognized library and archives. The Institution’s overarching goals are to: » Understand the causes and consequences of economic, political, and social change » Analyze the effects of government actions and public policies » Use reasoned argument and intellectual rigor to generate ideas that nurture the formation of public policy and benefit society Herbert Hoover’s 1959 statement to the Board of Trustees of Stanford University continues to guide and define the Institution’s mission in the twenty-first century: This Institution supports the Constitution of the United States, its Bill of Rights, and its method of representative government. Both our social and economic sys- tems are based on private enterprise, from which springs initiative and ingenuity. Ours is a system where the Federal Government should undertake no govern- mental, social, or economic action, except where local government, or the people, cannot undertake it for themselves. The overall mission of this Institution is, from its records, to recall the voice of experience against the making of war, and by the study of these records and their publication to recall man’s endeavors to make and preserve peace, and to sustain for America the safeguards of the American way of life. This Institution is not, and must not be, a mere library. But with these purposes as its goal, the Institution itself must constantly and dynamically point the road to peace, to personal freedom, and to the safeguards of the American system. By collecting knowledge and generating ideas, the Hoover Institution seeks to improve the hu- man condition with ideas that promote opportunity and prosperity, limit government intrusion into the lives of individuals, and secure and safeguard peace for all. The Hoover Institution is supported by donations from individuals, foundations, corporations, and partnerships. If you are interested in supporting the research programs of the Hoover Institution or the Hoover Library and Archives, please contact the Office of Development, telephone 650.725.6715 or fax 650.723.1952. Gifts to the Hoover Institution are tax deductible under applicable rules. The Hoover Institution is part of Stanford University’s tax-exempt status as a Section 501(c)(3) “public charity.” Confirming documentation is available upon request. HOOVER DIGEST RESEARCH + OPINION ON PUBLIC POLICY SPRING 2019 • HOOVERDIGEST.ORG THE HOOVER INSTITUTION STANFORD UNIVERSITY HOOVER DIGEST RESEARCH + OPINION ON PUBLIC POLICY SPRING 2019 • HOOVERDIGEST.ORG The Hoover Digest explores politics, economics, and history, guided by the HOOVER scholars and researchers of the Hoover Institution, the public policy research DIGEST center at Stanford University. The opinions expressed in the Hoover Digest are those of the authors and PETER ROBINSON Editor do not necessarily reflect the opinions of the Hoover Institution, Stanford University, or their supporters. As a journal for the work of the scholars and CHARLES LINDSEY researchers affiliated with the Hoover Institution, the Hoover Digest does not Managing Editor accept unsolicited manuscripts. BARBARA ARELLANO The Hoover Digest (ISSN 1088-5161) is published quarterly by the Hoover Senior Publications Manager, Institution on War, Revolution and Peace, Stanford University, Stanford CA Hoover Institution Press 94305-6003. Periodicals Postage Paid at Palo Alto CA and additional mailing offices. HOOVER POSTMASTER: Send address changes to the Hoover Digest, Hoover Press, Stanford University, Stanford CA 94305-6003. INSTITUTION © 2019 by the Board of Trustees of the Leland Stanford Junior University JOEL C. PETERSON Chair, Board of Overseers CONTACT INFORMATION SUBSCRIPTION INFORMATION Comments and suggestions: $30 a year to US and Canada PAUL LEWIS “LEW” DAVIES III MARY MYERS KAUPPILA [email protected] (international rates higher). Vice Chairs, Board of Overseers (650) 723-1471 http://hvr.co/subscribe THOMAS W. GILLIGAN Reprints: Phone: (877) 705-1878 Tad and Dianne Taube Director [email protected] (toll free in US, Canada) (650) 498-7880 or (773) 753-3347 (international) ERIC WAKIN Deputy Director, Write: Hoover Digest, Robert H. Malott Director Subscription Fulfillment, of Library & Archives PO Box 37005, Chicago, IL 60637 ASSOCIATE ON THE COVER DIRECTORS A piece of Belgian lace from the Lou CHRISTOPHER S. DAUER Henry Hoover Collection highlights DENISE ELSON the American eagle. During World COLIN STEWART War I, a remarkable agreement ERYN WITCHER TILLMAN between the Allies and the Central (Bechtel Director of Public Affairs) Powers allowed Belgian women to ASSISTANT continue making traditional lace amid DIRECTORS the warfare devastating northern Europe, keeping open a key economic SHANA FARLEY lifeline. Grateful for US intercession, MARY GINGELL the lace makers of Belgium sent thou- JEFFREY M. JONES SARA MYERS sands of examples of their work to the CHARNETTE RICHARD Americans who had helped save them KAREN WEISS from starvation. See story, page 191. MICHAEL FRANC VISIT HOOVER INSTITUTION ONLINE | www.hoover.org Director of Washington, DC, Programs FOLLOW US ON SOCIAL MEDIA DOWNLOAD OUR APP TWITTER @HooverInst Stay up to date on the latest FACEBOOK www.facebook.com/HooverInstStanford analysis, commentary, and news YOUTUBE www.youtube.com/HooverInstitution from the Hoover Institution. ITUNES itunes.apple.com/us/itunes-u/hoover-institution Find daily articles, op-eds, blogs, INSTAGRAM https://instagram.com/hooverinstitution audio, and video in one app. Spring 2019 HOOVER DIGEST THE ECONOMY 9 The Case Against Higher Taxes “Deadweight loss” is just as bad as it sounds, just as inefficient, just as unfair. By David R. Henderson 16 Perilous Pensions Social Security is still heading for a fall. Not even the rising number of new workers can postpone this reckoning. By Charles Blahous AMERICAN VALUES 21 Conservatism for the People When society and politics become degraded, when American communities crumble, merely “conserving” isn’t enough. Conservatism must restore. By Peter Berkowitz SOCIALISM 25 Children of Entitlement Young leaders who preach socialism and other fantasies demonstrate an astonishing disregard for facts—maybe because they’ve never been forced to face any facts. By Bruce S. Thornton 32 A Manifesto of Misery Socialism has never succeeded in any way—except in surviving in credulous minds. By Charles Calomiris HOOVER DIGEST • Spring 2019 3 REGULATION 37 When Deregulation Really Took Off Airline deregulation remains one of the triumphs of sound economic thinking. But for a while it was touch and go . By David R. Henderson EDUCATION 44 “End of History” Lessons The big education battles seem to have settled down, but history suggests they won’t stay settled. It’s time to consolidate gains and push the next wave of education ideas. By Michael J. Petrilli HEALTH CARE 48 No Free Lunch—Or Health Care “Medicare for all” promises nothing but crippling expense, inefficiency, and delays. By Scott W. Atlas POLITICS 53 Inconvenient Billionaires We can never keep money out of politics. But there is a solution to the problem of hugely expensive campaigns: eliminate the spoils of office. By Richard A. Epstein 4 HOOVER DIGEST • Spring 2019 60 Robespierre for President? The Jacobins of the left wing, like those of revolutionary France, hunger for power—no matter what it costs, no matter whose heads will roll. By Victor Davis Hanson LAW 66 Discrimination and the Ivory Tower The Supreme Court may finally get to clean up the mess that race-based admissions have created at our universities. By John Yoo and James C. Phillips IMMIGRATION 76 Gimme Shelter The definition of a “refugee” dates back decades and has outlived its usefulness. Nations now need a much more rigorous idea of just who deserves refuge. By Ayaan Hirsi Ali NATIONAL SECURITY 80 Tech in the Trenches Silicon Valley has shown a remarkable indifference to national defense, depriving the Pentagon of both brains and technological brawn. By Amy B. Zegart and Kevin Childs JOURNALISM 88 Fake Newsies This just in: journalists are people, too—sometimes very dishonest people. The story of a German journalist who told his readers a pack of lies about the United States. By Josef Joffe HOOVER DIGEST • Spring 2019 5 EUROPE 91 Europe Does Not Exist Brexit is just one vivid symptom of the Continent’s failure to produce a true union. By Josef Joffe ASIA 102 Competence and Confidence “Strategic patience” in Asia has run its course. Now we and our allies must prepare for whatever comes next. By H. R. McMaster CHINA 109 The Empire Strikes Back Determined to hold all power, China is forcing its minority Uighurs into re-education camps and attacking their very culture. The Uighurs will not go quietly. By Michael R. Auslin 114 “Covert, Coercive, or Corrupting” Beijing has declared war—an information war. A team of Hoover researchers sounds the alarm. By Orville Schell and Larry Diamond 119 Stop, Thieves “Trade war” is the wrong description for our clash with China. Instead, it’s a campaign to halt the stealing of American technology. By Martin Feldstein 6 HOOVER DIGEST • Spring 2019 122 The Door Is Already Open A strong China can be a peaceable China. By Elizabeth Cobbs THE MIDDLE EAST 126 The Road from Damascus The Trump administration’s timing may be questionable, but the pullout of US forces from Syria is not. By Thomas H. Henriksen 130 Ancient Animosities Christians in the Holy Land need allies. Their hostility toward the Jews doesn’t help. By Samuel Tadros CALIFORNIA 139 Scorched Earth Wildfires last year destroyed thousands of homes and cost dozens of lives, and California’s environmental policies bear some of the responsibility.