The 2011 State of the Union Address

President Obama’s 2011 State of the Union, delivered last night before the assembled Congress in the Congressional chamber, was evocative. I do not necessarily mean this in a good light. I mean that the president called out several themes that have long been staples of his speeches and of the common political discourse without developing, adding to them, or improving them. To my ear the most common theme was “winning the future”. From whom?

Presumably, this is what he meant:

We know what it takes to compete for the jobs and industries of our time. We need to out-innovate, out-educate, and out-build the rest of the world. (Applause.) We have to make America the best place on Earth to do business. We need to take responsibility for our deficit and reform our government. That’s how our people will prosper. That’s how we’ll win the future. (Applause.) And tonight, I’d like to talk about how we get there.

The evidence that defense spending has had non-defense applications that have resulted in enormous economic growth (e.g. the Internet, printed circuit boards, solid state) is pretty good; the evidence that education has done so is much slimmer. We already spend more overall and per capita on education than any other country in the world. We are receiving diminishing returns to scale.

The speech was incoherent. This is no special distinction. Nearly every State of the Union address over the period of the last sixty years has been an incoherent, inconsistent shopping list of promises that will be broken almost as soon as they’re made and wishes that will never materialize in concrete legislation. It did not cohere; it did not stick together. How in the world can we increase spending on education and basic research and freeze domestic spending for five years without cutting existing programs? I blanched when I heard the words “basic research”, by the way. The examples he gave, the Internet and the space program, were not basic research. They were engineering projects. Had the president announced one or more specific mass engineering projects that he was proposing to the Congress, I would have stood up and cheered. But the ROI on basic research is awful. That’s why companies are reluctant to do it.

I was even more concerned when he mentioned medical research. Is there really a large backlog of projects in medical research that have the likelihood of bearing fruit in the foreseeable future that are starved for lack of money? Or are there an infinite number of possible projects in medical research, most of which will never bear fruit at all? I believe there are good reasons for the federal government to support medical research. Saving human life leaps to mind. However, we should hold out no expectations that such research will have near term impact or that it’s the stuff of which tomorrow’s industries will be made. That has not been the experience to date. Three fifiths of all healthcare spending continues to be funded from tax dollars and it appears that will continue to be the case. You cannot boost the economy based on something that requires tax dollars to survive. To believe that is to believe in the cat and rat farm I’ve written about before.

What in the heck is a “Sputnik moment”? This is a wonderful example of something which is simultaneously evocative and incoherent. Fully five years passed between the day in October 1957 that the Soviet Union launched the first satellite into space and President Kennedy announced his intention to send a man to the moon and a decade before its greatest triumphs. I doubt that President Obama’s evocation of Sputnik was a plea for long range planning. Contrariwise, I suspect that he was thinking of a rousing from decades of torpor into immediate and urgent action. A better metaphor for that would be a “Fort Sumter moment” or a “Peal Harbor moment”. We’ve already had one of those on September 11, 2001 and we’re still trying to muddle through our response to that, unable to decide what to do. Nearly a decade has passed and we’re still in Afghanistan and we’re still in Iraq and there are still major terrorist acts taking place in the West (as the attack on Moscow’s airport a couple of days ago demonstrated). His pledge in the speech to hold to his promise to begin withdrawing from Afghanistan this year is hardly a model for decisive action. It may be realistic or practical or politically necessary but it is not decisive.

How will increased education spending reach the 40% of the students in New York, Chicago, and Los Angeles who fail to graduate from high school on time? (and have done so persistently over the period of the last half century) Will building roads between the islands of Hawaii or bridges to nowhere in Alaska with federal tax revenues (or, worse, with borrowed money) really be the key to a bright economic future for the United States?

Mr. President, dream no small dreams. Rather than being content to rest on laurels, double down on the solutions of the past, or divide an ever-shrinking pie more equitably, make a bold new proposal of your own. I want an Apollo moment, not a Sputnik moment.

The complete text of the speech is here. As usual Joe Gandelman has a fine round-up of media and blogospheric reaction. Memeorandum has an automated (or semi-automated, I’m not really sure) news aggregation on the speech.

29 comments… add one
  • john personna Link

    In 1957 my grandfather put a sputnik on his roof, with Santa, as part of the Christmas decorations. As I’ve heard the story, he was playing off the neighbors’ shock.

    FWIW, the problem I predicted as I heard the speech was that few would be willing to just say “ok” to the bits in it they like.

    For instance, the freeze on “annual domestic spending” … will that get any traction with fiscal conservatives? Or will they flail away contributing to the “gridlock” they prefer?

  • john personna Link

    (I wonder if the spending / freeze thing will just resolve itself as some sort of BS “pay-go.” That is, continue on the road to more debt but with “pay-go” self-affirmations along the way.)

  • Drew Link

    I think that’s a fair assessment. And Sputnick; WTF?!?

    And yes, like all SOTU, Obama is like Lucy with the football and the electorate like Charlie Brown.

  • Didn’t watch it – the SOTU is a complete waste of time except as a reminder of shallow our political class is.

  • john personna Link

    I feel like I should say I was driving somewhere, and it was on the radio. Not like I sought it out.

  • Maxwell James Link

    I don’t care about the SOTU and never have. It’s obviously a cultural event having more to do with lawmakers’ egos than anything else.

    That said, I’m glad the president gave public support – even brief, understated support – to reform of the corporate tax system.

  • michael reynolds Link

    I sought it out.

    Weak speech, not very well-constructed. Sputnik meant something to, let’s see, maybe 10% of his audience.

    The only detail that stuck with me was an implied offer to lower corporate tax rates if they were financed by closing loopholes. Unfortunately he’s talking to the people whose entire campaigns and post-political retirement is financed by guys who want to insert special deals in the tax code.

  • steve Link

    “But the ROI on basic research is awful. That’s why companies are reluctant to do it.”

    So we should just abandon basic research? This is one of those areas, like health care, where markets just do not work very well.

    Steve

  • john personna Link

    The answer on basic research is really easy. Universities should do basic research, and publish it all without restriction into the public domain. Companies should pick that up, do applied research, and patent their innovations.

    This creates a clear distinction, and clear incentives for each group.

    We’ll have a hard time getting there from here though, because we’ve allowed universities and other non-profits to feed at a very particular trough. They accept public monies now, they use that money to create intellectual property, and then they go into competition with private firms for licensing & etc.

    Spending less, but giving it to public-domain publishers, would probably yield more. Just because public-domain knowledge isn’t blocked waiting for a licence negotiation.

  • john personna Link

    BTW, this is so right that I’m surprised it ever happened:

    New federal education fund makes available $2 billion to create OER resources in community colleges

    OER being Open educational resources

    There is an opportunity to pay for something once, and then use it forever.

  • Basic research is a nonsense bromide spend thrifts want to hide behind all the time. What basic research do they have in mind…uhhh they’ll…uhhmmm….well….errrr…can they get back to you on that. It suggests a light weight.

  • john personna Link

    lolz, steve.

    Do you really need a science or engineering degree to see it?

    Studying the deep ocean is basic research. Developing a method to harvest deep ocean hydrates is applied research.

  • john personna Link

    Basic research is understanding things, applied research is changing things.

  • michael reynolds Link

    So far we’ve had no use for basic research like the discovery of the heliocentric solar system, the speed of light, gravity, the electromagnetic spectrum, DNA, the whole energy=mass thing and I can’t imagine we ever will.

  • The answer on basic research is really easy. Universities should do basic research, and publish it all without restriction into the public domain. Companies should pick that up, do applied research, and patent their innovations.

    I agree with that wholeheartedly.

    I think we should continue to fund basic research at some level but touting it as a solution for near term economic problems is snake oil.

  • So far we’ve had no use for basic research like the discovery of the heliocentric solar system, the speed of light, gravity, the electromagnetic spectrum, DNA, the whole energy=mass thing and I can’t imagine we ever will.

    Let me put it another way. If it’s useful, it’s applied research not basic research. You go to the moon by applying knowledge of gravity not with the basic science. Basic science is good. We should fund it at some level. However, you get a much more immediate return on investment by applying science in some large scale project. Personal computers, cellphones, GPS, and 10,000 other things are spinoffs of the space program and the space program was applied research, not basic research.

    Which reminds me of a story. Many years ago I when I was wandering around campus I ran into an old friend, a math post doc in an extremely abstruse field. He looked tremendously crestfallen so I asked him what was wrong. He replied “Somebody went and found a use for my work.” True story.

  • Drew Link

    “crestfallen”

    One of my favorite words. A buddy chastises me for using it. I’m not sure I’ve seen someone else use it in 20 years.

  • john personna Link

    Related: latest Planet Money says replacing bottom 5-7% worst teachers with average teachers yields 100 trillion in future GDP.

  • michael reynolds Link

    Dave:

    I’m not sure the emphasis should be so strongly on getting a quicker return.

    The beauty of basic research is you never quite know what you’ll find, or how quickly it can become applied. Elapsed time from special relativity to Hiroshima was forty years. DNA was discovered in 1953.

    We can’t just look for what we know is there, we need to look for answers to all sorts of questions that may at first seem to have no practical application. Otherwise we are in an intellectual cul-de-sac of our own making, a sort of scientific solipsism, seeing only what we expect to see — reflections in a mirror.

    Basic research in math led to Google in a remarkably short period of time. Without the concept of the algorithm a computer would be an abacus.

    And one thing to remember is that if all we look for is what we know is there, then we are looking in exactly the same place as everyone else. The Chinese, the Germans, whoever, they all know the same practical questions and are searching for the same solutions. The thing we bring to it in the western tradition, our edge over the Chinese perhaps, is imagination.

  • Let me see if I can’t explain my concerns another way. I have no problem with funding basic research at some level. I have a problem with thinking of it as part of an economic plan.

    The analogy I would use is playing the lottery. If you find playing the lottery fun, it’s okay to allocate some part of your budget to doing so. It’s not okay to project possible future winnings into your long term budget as part of your financial plan.

    You also shouldn’t allocate the money for playing the lottery that you need to pay the rent, buy food, put gas in the car, or for savings. And you shouldn’t borrow to do it.

  • john personna Link

    Let me see if I can’t explain my concerns another way. I have no problem with funding basic research at some level. I have a problem with thinking of it as part of a [near term] economic plan.

    You said “near term” before, and with that tweak I can agree.

    Basic science definitely helps in the long term, and we do even have some examples where government build-out in applied engineering (internet, GPS, as you say) did reap huge benefits in GDP.

  • john personna Link

    BTW, with wide bets basic science research does become less of a lottery. It isn’t like we only pick one scientist each year, and hope he wins.

    And, as I think I’ve mentioned, there might even be some kinds of basic science I would defund. If you want to go to the amazon to discover new snakes … maybe that should be your hobby.

  • michael reynolds Link

    Let me see if I can’t explain my concerns another way. I have no problem with funding basic research at some level. I have a problem with thinking of it as part of an economic plan.

    Agree. In fact it would make no sense, as you point out you can’t factor in, “Maybe we’ll discover the god particle and it will allow us to build a transporter beam.”

  • BTW, with wide bets basic science research does become less of a lottery. It isn’t like we only pick one scientist each year, and hope he wins.

    That brings up a different and equally thorny problem: the way federal funding of basic research is done. Too often it’s a bunch of guys sitting around and deciding to fund each other’s projects. Not precisely casting a net widely.

  • michael reynolds Link

    That brings up a different and equally thorny problem: the way federal funding of basic research is done. Too often it’s a bunch of guys sitting around and deciding to fund each other’s projects. Not precisely casting a net widely.

    This is a real problem. It gets us back to the issue of intellectual culs-de-sac. (Please pause to admire the proper pluralization there.) Isaac Newton spent much of his life trying to turn base metals into gold because it was pretty well admitted at the time that this was about the coolest thing you could work on.

  • john personna Link

    You guys are a notch older than I, and maybe you’ve confirmed what I’ve heard. That is, back in the glory days, when really-really good DARPA bets were placed, monies were dispensed by just one or two guys with good science and engineering backgrounds.

    (I do think the net is quite wide now, just because there are so many of those committees of which you speak.)

  • john personna Link

    According to wikipedia:

    Small and flexible: DARPA has only about 140 technical professionals; DARPA presents itself as “100 geniuses connected by a travel agent.”

  • john,

    Learn to read (thinking would help too).

    I know what basic research is. Problem is when politicians talk about it it is anything but basic research. Its a lie that big spenders want to hide behind. You don’t see a politician up there saying we need to study the bottom of the ocean because it could be important and helpful someday. The return on investment on basic research is hard to gauge since it is research everyone will utilize.

    Instead we get applied research masquerading as basic research. Why is that important? Applied research on the other hand can have a much more clearly defined return on investment. So…why would government be funding it? Because the project in question likely has a shit return on investment and those who see it as a pet project are engaged in rent seeking.

    I do agree with this suggestion of yours.

    The answer on basic research is really easy. Universities should do basic research, and publish it all without restriction into the public domain. Companies should pick that up, do applied research, and patent their innovations.

    So if we are to fund basic research that is the model I’d like to see used. If a person wants to do basic research, get the education and work at a university. Applied research…go to a corporation.

    Let me see if I can’t explain my concerns another way. I have no problem with funding basic research at some level. I have a problem with thinking of it as part of an economic plan.

    I think this is right. Basic research should always be on-going. If it is like a public good then funding it via government is not unreasonable.

    The analogy I would use is playing the lottery. If you find playing the lottery fun, it’s okay to allocate some part of your budget to doing so. It’s not okay to project possible future winnings into your long term budget as part of your financial plan.

    Well you can, its just that they should your expected future winnings which would be very very small. Multiply the winnings by a suitably small number and it is very much like multiplying by zero.

    So I think Dave is right. Basic research might save us from our current problems, but it is like an individual thinking winning the lottery will solve his current financial woes. A president saying I want to keep funding basic research because it is a key element of long term economic growth would be telling us the truth…and we can’t have that.

  • john personna Link

    “Learn to read (thinking would help too).”

    Yawn. Learn your audience, and whether they care enough to read the rest of crap that starts like that.

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