Political Review

Volume 1, Issue 3 - Spring 2009 TheVanderbilt Political Review Featuring: Matt Orton, Dr. Stephen Buckles, Kenneth Colonel, Cedric Koraoglan, Aniket Rali, Andrea Clabough, Bob Youngerman, Dr. Klint Alexander, Matthew Sen, Jesse Jones, and Catherine Spaulding Spring 2009 Thank You! VPRStaff A Letter from the VPR Staff President This third issue of The Vanderbilt Political Review was funded Jadzia Butler by donations of $25 or less from our family and friends. Without their love, support, and encouragement, the continuation of VPR would not have been possible, at a time when political discourse and civic engagement are more crucial than ever. We thank them Vice President all profusely, and promise to use this journal to encourage all mem- Sean Tierney bers of the Vanderbilt Community to collaboratively discuss and analyze the global issues we are now facing. During these difficult times, our efforts may not lead to actual solutions. However, in- Director of Affairs creased political awareness on this campus will most certainly lead Elizabeth Lopez to progress. Thus, all of their small contributions are making a big difference, and we could not be more grateful. Sincerely, Treasurer The VPR Staff Matthew Orton On the Cover Director of Promotions Angelica Ibezim Naveed Nanjee Director of Layout Matthew Taylor Editors Dan de Wit Alanna Dillon Mike Guberman Brittany Jen Dean Mengaziol Spencer Montalvo Emily Morgenstern Political cartoon designed by Guy Kopsumbut, Computer Engineering, Michelle Peck Class of 2010. Lauren Ashley Rollins Opinions expressed in the Vanderbilt Political Review are those of the au- Casey Simmons thors and do not reflect the opinion of the Vanderbilt Political Review staff as a whole. This includes any letters from the board, articles, or cartoons contained Paul Yeh in this publication. 2 VanderbiltPoliticalReview.com | Spring 2009 ContentsVanderbilt Political Review Page 4 Page 8 Page 12 From the Board Healthcare Payment Ten Billion Dollars, Free Trade has not past Reform a necessity Zero Results: its Expiration Date Aniket Rali Pakistan in Danger of Be- coming a Failed State Matt Orton Page 9 Matthew Sen Tibet, China, and Page 4 American Foreign Policy in the Eco- Page 13 A Professor’s nomic Crisis Perspective Andrea Clabough No Compromise with The State of the Economy the Taliban Professor Stephen Buckles Jesse Jones Page 10 Page 6 Effectiveness, Rel- Page 14 evance of UN is Open Will the Stimulus Act to Debate A Hand Out is Not a Change What You Be- Bob Youngerman Hand Up lieve In? Catherine Spaulding Kenneth Colonel Page 11 Page 7 CLOSING AMERICA’S GULAG: THE AFTERMATH OF In Defense of Fiscal THE GUANTANAMO DE- Conservativism TENTION CASES AND THE A look at the Reagan LIMITS OF THE CONSTI- Economic Record TUTION’S REACH TO PRO- Cedric Karaoglan TECT HUMAN RIGHTS Dr. Klint Alexander For more information on the Vanderbilt Political Review, as well as a look at past issues, visit www.vanderbiltpoliticalreview.com The Vanderbilt Political Review 3 We have learned lessons from the past one cause.” I like to think of it as more From the Board on the consequences of closing our ports of a “perfect storm.” We had a boom in Free Trade has not during times of global economic tur- the late-1990s in the stock market. The past its Expiration moil. The recessionary consequences of stock market collapsed, we went into a the Smoot-Hawley tariff, though a more recession in 2001, and then 9/11 hap- Date radical example, certainly highlight the pened right at the end of that recession. Matt Orton potential problems we could face. So the Federal Reserve stimulated the Treasurer, The Vanderbilt Political The importance of free trade in our economy with very low interest rates Review current economy cannot be overstated. and rapid growth of the money supply. Free trade is about beating poverty and People turned to buying houses instead s we approach the midpoint of expanding economic opportunity. Today, of stocks. The low interest rates contrib- 2009, much in American trade poli- the $12 trillion U.S. economy is bolstered uted to a housing boom. The rest of the ticsA has that old, familiar ring. The trade by free trade, a pillar of America’s vital- world was experiencing a savings glut. A deficit has reached new heights: US buy- ity. While working through policy legis- safe place to put that money was in the ers import, incredibly, more than $9 in lation this year, Congress will have the US. When it came here, much went into goods for every $5 they sell overseas. opportunity to advocate free trade and to mortgages. It made it even easier to buy Members of both parties were targeting help America and the world reap the re- houses. China, whose unprecedented bilateral wards that accrue from such policies. In the late 1980’s, early 1990’s, the imbalance with the United States was fu- Free trade is clearly an important is- way we made mortgages changed. Now, eled by a relatively low currency value, sue, but it is not alone. The United States mortgage brokers make them and then until credit markets seized, spreading and the entire global community will sell them to somebody else. So the in- panic throughout the world. Meanwhile, face many other important issues re- centives aren’t there for the mortgage our commitment to free trade is falter- lating to foreign policy. The problems brokers to care as much as a bank making as “Buy American” clauses are be- caused by the current economic crisis are ing the loan about whether you, as a bor- ing surreptitiously added to economic real, Vanderbilt, including VPR, has had rower, are going to be able to make your stimulus legislation. to start scaling back (we didn’t choose mortgage payments. So we made more Yet what strikes me is not continu- this black & white paper for no reason). mortgages to people who couldn’t nec- ity but change. In the 15 years since However, we cannot overlook other essarily make the payments. Congress approved the Uruguay Round important issues. The essays contained Those mortgages were packaged to- agreements that established the World within this publication all discuss ex- gether with other mortgages and then Trade Organization, business protec- tremely polarizing and issues facing our sold to foreigners who were saving more tionism has faded, social concerns over nation and the world. Whether you agree and to people in the US who were search- globalization have grown, and partisan- or disagree with the views of these tal- ing for ways to earn a bit more on their ship on Capitol Hill has become ever ented writers, I hope at the very least you financial investments. Ratings agencies more rancorous. In January, we ushered will learn something new and keep these gave quality ratings for bonds for these in a new President that campaigned on issues in mind during class, at work, and mortgages that weren’t necessarily well the promise of change – but what sort of into the future. Enjoy! examined or well understood. Some of change can we expect to see as the eco- them were risky, but they still got high nomic crisis continues to unfold across Matt Orton ratings so people were willing to buy the world? Economics & Political Science them. People on Wall Street and invest- President Obama has not deviated Class of 2009 ment firms were looking around for from past policies on free trade. Rob- ways to increase their returns because ert Kagan wrote in the Washington Post they had just gone through this boom, March 9, 2009, that Obama’s foreign interest rates were really low, and they policy was “Bushian” because it has A Professor’s knew stocks weren’t going to go back up changed so little from George W’s time. Perspective quickly. They couldn’t earn a lot from Anthony Faiola writes in the Washing- The State of the Economy just normal interest rates so they tried ton Post on March 10 that Obama’s trade Dr. Stephen Buckles to package these loans to reduce the risk policy will emphasize global warming and earn a bit more. Just a little bit of and displacement of American workers, VPR: Can you try to explain what caused extra income meant a big difference in using social issues as a reason to promote this economic crisis? their own incomes so they purchased the or slow trade during a global economy new instruments and actually added ex- that Obama has called a “catastrophe.” It’s a challenge to say, “This is the tra risk by doing so. All of that combined 4 VanderbiltPoliticalReview.com | Spring 2009 to bid up the price of housing. Way up. recession, tax cuts are going to have a to them, they couldn’t make loans to In essence, it doubled it from the late smaller effect than an increase in gov- other people, and they couldn’t insure all 1990’s until 2001. It reached its peak in ernment spending. kinds of different activities. That, along 2006 and 2007. Then, we had the start of with other companies’ finances, put a a recession. And the story goes on. VPR: You say the stimulus needs to be lot of pressure on our whole financial bigger. Is that politically possible? system. That’s why we’re trying to help VPR: Do the prescriptions of both Demo- them out. Yes, the politics are messy and crats and Republicans have merit, or is one I don’t know if it’s politically pos- it’s not whether you’re Republican or plan more detrimental than the other? sible right now.

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