Twenty-First Century American Nationalism Needs to Be Profoundly Cosmopoiltan

It’s disturbing. As we face the probable abrogation of NAFTA, possible trade wars with China, Germany, and others, and the total cluster* that is the Trump administration’s policies (if any) toward NATO and Russia, a number of really smart and really well-intentioned people are, I think, making rhetorical–and in some cases substantive–errors that are degrading the quality of the debate and increasing the chances of bad outcomes. And they are doing it while trying to be forces for good, light, human betterment, truth, justice, and the American way…

So let me do some boundary policing here. Let me ask people–all of whom are wiser than I am, or if not wiser smarter, or if not smarter more knowledgeable–to think about whether they really hold the positions they set forward, and think about whether they have set them forward in a way most calculated to guard against destructive misinterpretation. Today: Dani Rodrik. And–hopefully–more tomorrow…

Let me start with Dani Rodrik.

We find Rodrik beating his breast about how “Cosmopolitans often come across like the character from Fyodor Dostoyevsky’s The Brothers Karamazov who discovers that the more he loves humanity in general, the less he loves people in particular…. The best way to serve global interests is to live up to our responsibilities within the political institutions that matter: those that exist…” In today’s political context, that will be read as: “only weenies care about the impacts of policies on people outside national borders, and any consideration of those impacts has no place in any political debate.” In today’s political context, that will be read as: “the well-being of Mexicans and the stability of Mexico must have a zero–nay, a negative–weight in the U.S. discussion about whether to abrogate NAFTA.”

But the major reason to do NAFTA is and always was that it is an important and a big good deal for Mexico. Having a good relationship–i.e., being in a positive-sum gift-exchange relationship–with the country on our southern border is a matter of elementary prudence in international relations. And doing what we can easily and cheaply to increase the chances that the country on our southern border is stable and prosperous is elementary prudence as well.

NAFTA is close to rounding error in terms of its effects on the U.S.–not one of the thirty most important things the U.S. government could do for good or ill for the U.S. economy. It has small net benefits, yes. It had some costs for groups that had flourished under the umbrella of the pre-1993 barriers to imports from Mexico, yes. Those costs should have been better cushioned–and would have been had not Americans voted for Gingrich as House Speaker and Dole as Senate Majority Leader in 1994–yes. But those costs are now sunk, and those firms and sectors have adjusted and moved on. Abrogating NAFTA would impose a new and different set of costs, and would have no net positive benefits as an upside, yes.

But NAFTA is, substantively, not worth committing political capital to attack or to defend if one is required to limit one’s view to its direct effects on the U.S. The rational strategy, therefore, if one is forced to look at the direct effects in the U.S. and at the U.S. only is to let the point go and keep your powder dry for more important struggles, rather than wasting energy and stressing political alliances.

That’s where Dani’s rhetoric takes us.

And that is, I think, very wrong. The indirect and long-run benefits for the U.S. in living in a more peaceful, more stable, and more prosperous world are large and mighty. NAFTA is and was worth doing for the reason that it is and was a stone placed in that still-unfinished arch. But to point that out is to be a rootless cosmopolite–the thing that Dani wants to rule out as a political position. And if one has to argue that abrogating NAFTA is “poor domestic governance” in terms of its direct effects on the U.S. economy–well, that is a very heavy lift indeed…

At the end of the 1910s, the Republicans turned isolationist: America was protected from Europe and Asia by two oceans, and did not need to engage with and spend treasure and blood trying to make the rest of the world better. At the start of the 1940s, the Democrats–led by the great Franklin Delano Roosevelt–undid that isolationist turn. The world and the United States are vastly better off as a result. The true American nationalism is to recognize the importance for American prosperity, peace, and security of being a good neighbor and a benevolent hegemon. Dani Rodrik’s rhetoric says: “the more he loves [global] humanity in general, the less he loves [American] people in particular…. The best way to serve global interests is to live up to our responsibilities within the political institutions that matter: those that exist.” But that denial of global interdependence serves even the narrowest of the long-run interests of the American people ill.

The right pose–substantive and rhetorical–is to recognize that, just as since 1620 the good American nationalism has always held that people anywhere can elect to become Americans by joining our utopian project here at home, so in the twentieth and twenty-first centuries that good American nationalism is one that puts global prosperity and being a good neighbor and benevolent hegemon first.


Dani Rodrik: Global Citizens, National Shirkers: “Real citizenship entails interacting and deliberating with other citizens in a shared political community…

…Global citizens do not have similar rights or responsibilities. No one is accountable to them, and there is no one to whom they must justify themselves…. Political representatives are elected to advance the interests of the people who put them in office. National governments are meant to look out for national interests, and rightly so….

But what happens when the welfare of local residents comes into conflict with the wellbeing of foreigners – as it often does? Isn’t disregard of their compatriots in such situations precisely what gives so-called cosmopolitan elites their bad name?… Countries should maintain open economic borders, sound prudential regulation and full-employment policies… because they serve to enlarge the domestic economic pie…. Policy failures… reflect poor domestic governance…. Hiding behind cosmopolitanism… is a poor substitute for winning policy battles on their merits….

Cosmopolitans often come across like the character from Fyodor Dostoyevsky’s The Brothers Karamazov who discovers that the more he loves humanity in general, the less he loves people in particular…. We have to live in the world we have, with all its political divisions, and not the world we wish we had. The best way to serve global interests is to live up to our responsibilities within the political institutions that matter: those that exist.

Must-Read: Tony Barber: A Renewed Nationalism Is Stalking Europe

Must-Read: Tony Barber: A Renewed Nationalism Is Stalking Europe: “Part of the appeal of rightwing populism is that it hammers away relentlessly on the theme that mainstream political parties…

…especially since the end of the Cold War, are almost indistinguishable from each other and offer no proper choice. Not without reason, the parties are depicted as corrupt and detached…. But… they have no economic policies beyond an iconoclastic rage at the euro, free trade and foreigners alleged to be parasites on the welfare state. The new nationalism, in its radical rightist colours, has no credible solutions for a modern Europe that, despite all its troubles, must pin its hopes for a better future on mutual co-operation and an open face to the world…

Must-read: Ernst Gellner: “Nations and Nationalism”

Must-Read: Ernst Gellner (1998): Nations and Nationalism:: “It may be worthwhile giving a short, no doubt incomplete, list…

…of false theories of nationalism:

  1. It is natural and self-evident and self-generating. If absent, this must be due to forceful repression.
  2. It is an artificial consequence of ideas which did not need ever to be formulated, and appeared by a regrettable accident. Political life even in industrial societies could do without it.
  3. The Wrong Address Theory favored by Marxism: Just as extreme Shi’ite Muslims hold that Archangel Gabriel made a mistake, delivering the Message to Mohamed when it was intended for Ali, so Marxists basically like to think that the spirit of history of human consciousness made terrible boob. The awakening message was intended for classes, but by some terrible postal error was delivered to nations. It is now necessary for revolutionary activists to persuade the wrongful recipient to hand over the message, and the zeal it engenders, to the rightful and intended recipient. The unwillingness of both the rightful and the usurping recipient to fall in with this requirement causes the activist great irritation…

Must-read: Marshall Steinbaum: “Should the American Middle Class Fear the World’s Poor?”

Must-Read:The very sharp young whippersnapper Marshall Steinbaum:

Marshall Steinbaum: Should the American Middle Class Fear the World’s Poor?: “Politicians responsible to the public cannot sell the idea that the domestic middle class must suffer…

…to the benefit of foreigners. The tradeoff idea instead serves the folk mythology of an elite class of economic policy consensus–enforcers, who push policies that enrich the already wealthy. Democracy is supposed to operate as a natural check to bring the elite policy-making consensus in line with popular opinion and interest; playing the domestic middle class against a foreign one is one of many ways to keep that from happening. Asking which ought to suffer to benefit the other distracts attention from the real issue: their joint exploitation at the hands of globally mobile capital.

In my card-carrying neoliberal view, policies in the Global North to restrict trade (or restrict immigration either below or at rates not far above current ones!) would do relatively little to improve the domestic distribution of income and impose great harm on development prospects in emerging markets. The “China Shock” of the GWB administration is the only trade-related episode that is even plausibly as important as other policy moves. And it would be trivial to compensate for even its net distributional harm.

In my view, the focus of left-wing attention on trade restrictions is due not to the importance of international trade flows in altering income distribution, but rather springs from different motives: from attempts to hook up some of the energy that for two centuries now has been abundantly focused on nation and cross-connect it to class. As Ernst Gellner wrote, leftists have been faced with what they regard as a historical anomaly in the rise of nationalism, and have reacted by embracing:

The Wrong Address Theory…. Just as extreme Shi’ite Muslims hold that Archangel Gabriel made a mistake, delivering the Message to Mohamed when it was intended for Ali, so Marxists basically like to think that the spirit of history of human consciousness made terrible boob. The awakening message was intended for classes, but by some terrible postal error was delivered to nations. It is now necessary for revolutionary activists to persuade the wrongful recipient to hand over the message, and the zeal it engenders, to the rightful and intended recipient. The unwillingness of both the rightful and the usurping recipient to fall in with this requirement causes the activist great irritation…

Policies to enhance intellectual property rights and preserve rents are, of course, another kettle of fish entirely…

Must-read: Branko Milanovic: “There is a trade-off between citizenship and migration”

Must-Read: A surprisingly-large (to me) number of people have been trashing the very sharp Branko Milanovic for what seems to any normal economist to be an obvious point: At one pole is (1) restricting immigration far below the economically-rational level for any economic welfare analysis because the political system rejects providing full national-community citizenship rights and powers to every migrant. At the other pole is (2) completely decoupling political voice from geographic location and affective ties to the local community. The best policy has to be somewhere in the middle. Yet many more so-called “leftists” than really ought to or than I expected to see say that (1) is obviously correct, and that Branko is guilty of ThoughtCrime for thinking about where in the middle the proper balance might lie…

Branko Milanovic: There is a trade-off between citizenship and migration: “The rich world believes it has reached the limits of acceptable migration….

…We know that migration does more to reduce global poverty and inequality than any other factor. Calculations done by Alan Winters of the University of Sussex show that even a small increase in migration would be far more beneficial to the world’s poor than any other policy…. So is there a way to make greater migration acceptable to the native populations of the rich countries?… Most of a person’s lifetime income is determined by where he or she lives…. Citizens of rich countries receive a citizenship premium, while citizens of poor countries suffer a citizenship penalty. Migration is the attempt by the global poor to enjoy that premium, or at least a part of it, for themselves….

We [need to find a way to] redefine “citizenship” in such a way that migrants are not allowed to lay claim to the entire premium falling to citizens straight away, if at all… [to] assuage the concerns of the native population, while still ensuring the migrants are better off than they would be had they stayed in their own countries…. Migrants could be allowed to work for a limited number of years, or to work only for a given employer, or else be obliged to return to their country of origin… pay higher taxes since they are the largest net beneficiaries of migration…. This would require significant adjustments to traditional ways of thinking about migration and citizenship….

It is not clear that the old conception of nation-state citizenship as a binary category that in principle confers all the benefits of citizenship to anyone who happens to be physically present within a country’s borders is adequate in a globalised world. In effect, there is a trade-off between such a view of citizenship and the flow of migration…. If graduated categories of citizenship were created… we would be able to reconcile the objective of reducing world poverty with reducing migration to acceptable levels. If we do not do something, we will be stuck in a position in which everyone who makes it to the rich world is given full rights of citizenship, but we do everything in our power to make sure that nobody gets here.