Niall Ferguson attacks Obama, poorly

The economic historian penned a cover-piece for Newsweek which doesn't show the best grasp of his subject.

Niall Ferguson has written the cover story in this week's Newsweek slating Obama for his economic performance, and forcefully arguing against the president's re-election.

Ferguson writes:

In his inaugural address, Obama promised "not only to create new jobs, but to lay a new foundation for growth." He promised to "build the roads and bridges, the electric grids, and digital lines that feed our commerce and bind us together." He promised to "restore science to its rightful place and wield technology’s wonders to raise health care’s quality and lower its cost." And he promised to "transform our schools and colleges and universities to meet the demands of a new age." Unfortunately the president’s scorecard on every single one of those bold pledges is pitiful.

But much of the article reveals that it is Ferguson himself who is pitiful. The people slating him may largely be the usual suspects, but their criticisms still hold.

Noah Smith points out that the very paragraph quoted above, the third in the entire piece, isn't quite accurate:

I'll just quickly note that the American Recovery and Reinvestment Act contained substantial funding for infrastructure. So Ferguson, when he says that Obama has not built infrastructure, is simply asserting something that is not true. In the parlance of my generation, he is "spouting BS".

Paul Krugman, for instance, argues that Ferguson offers "just a plain misrepresentation of the facts" when discussing the effect of healthcare reform.

Ferguson says:

The president pledged that health-care reform would not add a cent to the deficit. But the CBO [Congressional Budget Office, the model for our OBR] and the Joint Committee on Taxation now estimate that the insurance-coverage provisions of the ACA will have a net cost of close to $1.2 trillion over the 2012–22 period.

The passage reads as though Ferguson is saying that the CBO thinks Obamacare adds to the deficit, when in fact they say the exact opposite; the insurance-coverage provisions cost money, but they are funded by other measures in the act. It's difficult to work out whether Ferguson is deliberately misleading or just mistaken, but either way he's wrong.

Similar weirdness happens with his arguments over America's comparative performance. He writes:

The failures of leadership on economic and fiscal policy over the past four years have had geopolitical consequences. The World Bank expects the U.S. to grow by just 2 percent in 2012. China will grow four times faster than that; India three times faster. By 2017, the International Monetary Fund predicts, the GDP of China will overtake that of the United States.

Illustrated with this chart:

Both Matt Yglesias and Joe Weisenthal pointed out that it's a tad unfair to blame Obama for the fact that the BRICS are growing faster than America.

Yglesias writes:

Ferguson is implicitly making two points with this graphic and it's difficult to know which of them is more absurd—the idea that Obama is responsible for rapid economic growth in China or the idea that if he were responsible that would be blameworthy.

And Weisenthal adds:

It even hits Obama for stuff like this, which seems totally inevitable at some point, regardless of who is President.

Weisenthal also focuses on Ferguson's shoddy prior record when it comes to economic forecasting, concluding:

Bottom line: Ferguson has made some big calls about economic collapse ever since Obama took over. As he declares that Obama has been a failure, note that those own calls in recent years have been off the mark.

Of course, as Paul Cotterill wrote last week for the New Statesman, Niall Ferguson isn't actually the best economic writer around. Or really that good at all. Discussing his Newsweek article on the Indian blackouts, Cotterill concludes:

For Ferguson simply to set the long term consequences of colonialism to one side, in favour of a simplistic view of why India is where it is now - a paradox not of its own making - confirms his fall from decent historian to celebrity charlatan, interested more in soundbite opportunity than in real economics and history.

Just a week on, it seems Ferguson has proved that suspicion correct.

Update, 17:55:

Ferguson has responded to Krugman's criticism with an excuse which boils down to "I didn't lie, I deliberately mislead my readers!". 

He writes:

I very deliberately said “the insurance coverage provisions of the ACA,” not “the ACA.” There is a big difference.

Brad DeLong, at least, is not having it:

The "But" at the start of the second sentence in the quote tells readers two things: (i) that Obama has violated his pledge--that he promised that the ACA would not increase the deficit, but that it did--and (ii) that the rest of the second sentence will explain how Obama violated his pledge. . .

Now comes Ferguson to tell us that he lied.

Now comes Ferguson to tell us that his "But" at the start of the second sentence in the quote is completely, totally, and deliberately false. . .

And his only excuse--now, it's not an excuse for the lie, it's a "I can lie cleverly" boast--is: "I very deliberately said 'the insurance coverage provisions of the ACA', not 'the ACA'".

Fire his ass.

Fire his ass from Newsweek, and the Daily Beast.

Convene a committee at Harvard to examine whether he has the moral character to teach at a university.

There is a limit, somewhere. And Ferguson has gone beyond it.

Niall Ferguson's Newsweek cover

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Getty Images.
Show Hide image

Article 50: Theresa May tries to charm the EU but danger lies ahead

As the Prime Minister adopts a more conciliatory stance, she risks becoming caught between party and country. 

She may have been a "reluctant" one but a Remainer Theresa May was. The Prime Minister's first mission was to reassure her viscerally anti-EU party that Brexit meant Brexit. Today, by invoking Article 50, she has proved true to her word.

In this new arena, it is not Britain that has "taken back control" but the EU. When Brussels drew up the divorce proceedings it did so with the intention of maximising its influence. The withdrawal deal that Britain reaches must be approved by at least 72 per cent of member states, representing 65 per cent of the EU’s population. The two-year deadline for leaving can only be extended by unanimous agreement. Even the much-maligned European Parliament has a vote.

While keeping her famously regicidal party on side, May must also charm her 27 EU counterparts. In her Commons statement on Article 50, she unmistakably sought to do so. The PM spoke repeatedly of a new "deep and special partnership" between Britain and the EU, consciously eschewing the language of divorce. In contrast to Donald Trump, who pines for the EU's collapse, May declared that "perhaps now more than ever, the world needs the liberal, democratic values of Europe" (prompting guffaws and jeers from Tim Farron's party and the opposition benches). Indeed, at times, her statement echoed her pro-Remain campaign speech. 

Having previously argued that "no deal is better than a bad deal", the Prime Minister entirely ignored the possibility of failure (though in her letter to the EU she warned that security cooperation "would be weakened" without an agreement). And, as she has done too rarely, May acknowledged "the 48 per cent" who voted Remain. "I know that this is a day of celebration for some and disappointment for others," she said. "The referendum last June was divisive at times. Not everyone shared the same point of view, or voted in the same way. The arguments on both side were passionate." 

Having repeatedly intoned that "we're going to make a success" of Brexit, May showed flashes of scepticism about the path ahead. She warned of negative "consequences" for the UK: "We know that we will lose influence over the rules that affect the European economy. We know that UK companies that trade with the EU will have to align with rules agreed by institutions of which we are no longer a part, just as we do in other overseas markets. We accept that." May also acknowledged that any deal would have to be followed by a "phased process of implementation" (otherwise known as transitional agreement) to prevent the UK falling over what the PM once called the "cliff-edge". 

In Brussels, such realism will be welcomed. Many diplomats have been stunned by the Brexiteers' Panglossian pronouncements, by their casual insults (think Boris Johnson's reckless war references). As the UK seeks to limit the negative "consequences" of a hard Brexit, it will need to foster far greater goodwill. Today, May embarked on that mission. But as the negotiations unfold, with the EU determined for the UK to settle a hefty divorce bill (circa £50bn) at the outset, the Prime Minister will find herself torn between party and country. Having delighted the Brexit-ultras to date, will she now risk alienating the Mail et al? The National Insurance debacle, which saw the government blink in the face of a small rebellion, was regarded by Remainers as an ominous precedent. May turned on the charm today but it will take far longer to erase the animosity and suspicion of the last nine months. 

George Eaton is political editor of the New Statesman.