Biden’s Document Screwup Is an Ethical Opportunity

As President Biden enters his next and final presidential election cycle, there can be little doubt that his best argument for reelection is that he put a wayward nation right after four years of Trumpian misrule. There will be contrasts that Biden will surely want to tout, from job numbers and legislative accomplishments to his superior tone and temperament. But a recent delivery from the “Be Careful What You Wish For” store has drawn him into a less favorable comparison with Trump.

There are early indications that Biden’s mishandling of classified documents is rooted in error rather than corruption or egomania. Unlike Trump, Biden did not spend a lengthy period of time intransigently blowing off authorities, forcing them to carry out a search and seizure of his property; his team immediately fessed up and handed over the documents to the National Archives. But thanks to the appointment of a special counsel to investigate the matter and a second discovery of classified documents that was handled less forthrightly, the flap has offered the GOP and its media organs enough meat to ensure this matter won’t be pleasantly resolved.

CNN summed up the White House’s strategy like so: “Pledge full cooperation. Attack House Republicans. Don’t engage in the details of an ongoing matter,” the idea being that “pushing ahead with their regularly scheduled programming” is the best course of action. But as The Washington Post subsequently reported on Wednesday evening, things didn’t go to plan, and the administration earned itself a furor by not picking the right moments to be as transparent as possible.

That the White House prefers a low-key approach is understandable—unlike Trump, most presidents don’t try to inject themselves into the news cycle every hour of the day. But I think it’s an error. What Biden is facing is a test of mettle, not a pitfall to dodge. Rather than play this matter down, Biden should—within the limitations that are wisely enforced during an ongoing investigation—endeavor to play it up, instead. He should own whatever mistakes led to these classified documents ending up where they shouldn’t have. This is an opportunity to make government ethics great again, and it’s long overdue.

One of the more important jobs a president has is setting an ethical standard for his administration. We don’t have ethics cops walking the beat and making arrests; there’s no enforcement mechanism other than the tone set from the guy at the top. When this is absent, as we saw during the Trump administration, things unwind quickly—the entire Republican National Convention ends up being a massive violation of the Hatch Act. A post-Trump restoration couldn’t be more vital: New norms get established quickly in Washington. They also erode fast. So Biden should sail over the low bar set by his predecessor by detailing the errors that led to the misplacement of these classified materials and making clear what’s being done to ensure the mistake won’t be repeated.

Why is this important? While Biden and his fellow Democrats can’t do much in the way of passing laws with the GOP in control of the House, they can still spend the next two years setting an example. Collectively, everyone on the team should be seeking out opportunities to play Gallant to the Republicans’ weird Goofus impulses. But it’s also important for Biden to burnish his credibility with the American people—and maybe be a direly needed change agent in our all-too-tatty political culture. Washington, a notoriously cynical place, is famous for its common sense–crippling ideas about leadership. Perhaps one of the most notorious is the odd standard that holds that publicly admitting errors is a sign of weakness and that politicians should go to comical lengths to avoid doing so.

There’s another way: In Bailout, Neil Barofsky’s memoir of his time in Washington serving as the special inspector general overseeing the Troubled Asset Relief Program, he described the advice he received from Kristine Belisle, the woman he smartly hired to be his communications director. It was about as anti-Washington as it can get: “We’ll admit and even highlight our mistakes.” As she went on to explain, there’s method in a strategy that most people inside the Beltway would deem madness:

This is the best way to earn the press’s trust. They’ll know we’re not spinning like everyone else. SIGTARP will quickly become the only credible source for information in Washington about TARP. We might be embarrassed at times and disclose things that we could—and others would—easily hide, but we’ll shock the press with our honesty. No one else does this, and before long, we’ll have a built in defense when we’re attacked. No matter what they hear, the press will come to us first and believe us, because we’ll prove to them that we tell the truth.

This is perhaps the biggest reason for Biden to pursue the course of radical responsibility-taking: Moments inevitably arise in any presidency when having the trust of the public and the institutions that safeguard the civic interest is critical. Moreover, there is vital capital to be earned by owning our mistakes, and there’s an important distinction that Biden can draw with his political opponents. The president would do well to follow the old adage: Tell the truth—and shame the devil.

You have to give some credit to the new Republican House majority: The first week of their new reign was hilarious. Between several days of watching Kevin McCarthy get subjected to ritual humiliation and New York Congressman George Santos’s total commitment to ensuring that not a day would pass without fresh “revelations” about his haphazardly constructed lies, this has been a period of peak content. While it may have been possible for Democrats, like Katie Porter, to practice “the subtle art of not giving a fuck” during this period, I’m sorry to say that the time for chortling is over—and the fuckery that the GOP’s House majority has planned will be anything but subtle. 

Already there’s been a lot of hot talk about Star Chamber–style investigations and possible impeachments. The House is in session, in chaos, and there’s not much to be done about it until the next election. But there’s one concern that stands out: the likelihood that the GOP will drag the country to the brink of a debt default, and perhaps even push us over the edge. I know, I know: How many times are we going to go through this? The Democrats had a chance to disarm this ticking time bomb during the lame-duck session but chose not to. Now it’s essentially understood that the threat of a debt limit default is back for the duration. 

Well, we can live with the constant fear of a GOP-precipitated debt default for the next year if we want, in the hopes that cooler heads will prevail and cobble together some sort of short-term compromise that might tide the global economy over until the next deadline. Or we can do what we should have done a long time ago: have the president command the U.S. Treasury to mint a magic trillion-dollar platinum coin, stash it in the Treasury, and end the danger once and for all.

I know what a lot of dull-witted pundits are going to say about this proposal: You can’t just mint a magic coin, it’s a total gimmick, this is crazy talk. You want to know what’s really crazy? Agreeing to remain the secretary of the treasury during a period of time when the House of Representatives’ primo nutters have made it their cause célèbre to regularly threaten to tank the global economy. But just this week, Bloomberg News reported that Treasury Secretary Janet Yellen—who herself has called the platinum coin a “gimmick”—will remain in the role for “the duration.” If she wants to survive, let alone enjoy her tenure, she should tell Joe Biden that she’s ready to mint the coin. Honestly, I’d question the judgment of any treasury secretary who wouldn’t do so, given the sadomasochistic alternative of grimly enduring an escalating series of economic nightmare scenarios.  

In politics, conflict and complications are inevitable. Simple solutions are in short supply. And we all have a tendency to overthink things. It was, in fact, “overthinking things” that got us into this mess: During the “Grand Bargain” phase of his presidency, Barack Obama thought it would be a great idea to use the occasion of raising the debt ceiling as a moment to enter into larger negotiations on debt reduction. Obama just threw open Pandora’s box, enabled the GOP’s plunge into debt-limit psychosis, and we’ve been struggling to get unfucked ever since.

It was also, not coincidentally, during Obama’s first term that the idea of minting a trillion-dollar coin—which appears to be an entirely legal cheat code, thanks to a few sentences in a 1996 law—first arose. Now Biden, who had a front-row seat to Obama’s massive cock-up, can end this grievous era of totally overthinking it. By embracing the kind of mentality that Alexander the Great deployed when he was faced with the Gordian knot, or which Indiana Jones turned to when challenged by a scimitar-spinning fool who failed to observe that he was carrying a loaded pistol, Biden can write his name alongside these legends. He can reach for the quickest solution to the debt ceiling fiasco and secure Dark Brandon’s place in history by minting the coin.

The main criticism against minting the coin appears to be that it might worsen inflation. But the truth is, no one knows because we’ve never tried it—and certainly defaulting on the nation’s debt would have more immediate and drastic economic consequences than minting a coin and stashing it away. The idea may seem absurd on its face, but as Zachary Carter argued back in 2021, the real absurdity is the debt ceiling itself. There’s a beautiful symmetry about thwarting the ridiculous problem it poses with an equally ridiculous solution.

What are the biggest problems that the people of Rapid City, South Dakota, have to face? I’d argue that its citizens should be most concerned that the sole reason the state seems to exist is to provide a haven for oligarchs and tax cheats. But not everyone agrees—and in what is becoming a pitched mayoral race in the state’s second-most-populous city, it’s a matter of hot debate. If you listen to city Councilwoman Laura Armstrong, who has already announced her intention to run, she’ll tell you the biggest issues are crime and meth. But a potential rival, her council colleague Jason Salamun, has identified a different villain: TikTok.

Over the past few months, TikTok—the social media platform that Gen Z has taken to in droves and which their aunts don’t quite understand—has earned the opprobrium of lawmakers near and far. The Wall Street Journal, which reported on these Rapid City goings-on, asserts that concerns over the platform have gone “from Washington to Main Street”—and with a bipartisan sheen to boot. It’s hardly the first time a tech company has drawn the critical eye of policymakers. But what critics of TikTok claim is a matter of national security looks, upon closer inspection, to be a familiar concern about privacy that could just as easily be levied—and should be levied—against a whole array of U.S.-based tech companies.

The political war on TikTok has been brewing for some time, but it ramped up in mid-December when bipartisan legislation was introduced in both the House and Senate that would ban TikTok outright in the United States. That this measure suddenly arrived on the scene with such broad approval was, to me, a red flag. Bipartisan legislation typically falls into three categories: the naming of post offices, the funding of unwinnable wars, and stupid pieces of stunt legislation. My suspicions were confirmed when I saw the name of the bill: Averting the National Threat of Internet Surveillance, Oppressive Censorship and Influence, and Algorithmic Learning by the Chinese Communist Party Act, or ANTI-SOCIAL CCP Act. As my colleague Matt Ford has written, acronym bills are typically the work of the unhinged or the unserious.

Nevertheless, it does seem as though this bipartisan and bicameral desire to limit TikTok’s ability to, say, briefly cement Louis Theroux’s status as a hip-hop icon, was born of bona fide real-world concerns. As NBC News’s Rebecca Shabad reported, lawmakers took the step after receiving “warnings from the FBI director and cybersecurity experts who have said China could use the social media platform for spying”; Buzzfeed reported in June that China-based employees of TikTok’s parent company had accessed the nonpublic data of U.S. users despite assurances to the contrary. The ANTI-SOCIAL CCP Act, put forth in the Senate by Marco Rubio, sought “to protect Americans from foreign adversaries who might use certain social media to surveil Americans, learn sensitive data about them, and spread influence campaigns or propaganda.”

But TechDirt’s Karl Bode took a dim view of Rubio’s proposal, and with good reason. “For several years,” he wrote, “we’ve noted how most of the calls to ban TikTok are bad faith bullshit made by a rotating crop of characters that not only couldn’t care less about consumer privacy, but are directly responsible for the privacy oversight vacuum TikTok (and everybody else) exploits.” Bode noted the dubious legal underpinnings of the measure but found a larger fault at the core of the proposal: “For decades the GOP (and more than a few Democrats) have worked tirelessly to erode [Federal Trade Commission] privacy enforcement authority and funding, while fighting tooth and nail against absolutely any meaningful privacy legislation for the Internet era.”

This door has been open for tech companies of all stripes to abuse in similar fashion. “If you actually care about national security,” wrote Bode, “holding all companies and data brokers accountable for privacy abuses should be your priority. A basic, helpful, well-written privacy law should be your priority. A working, staffed, properly funded FTC should be your priority.”

We have some idea what a more rigorous regulatory regime looks like. European authorities this week dropped hundreds of millions of dollars’ worth of fines on Mark Zuckerberg as part of the EU’s larger effort to bring Meta into compliance with the privacy regulations of its member nations. That we don’t have this level of enforcement in America is down to the fact that firms like Meta spend a lot of time and money influencing our lawmakers to retain a status quo in which they have broad latitude to do the very things TikTok stands accused of doing: surveilling Americans, acquiring sensitive data about them, and subjecting them to influence campaigns and propaganda.

What’s likely to happen once all the shouting is over? As Bode notes, a stateside TikTok ban is not going to prevent China’s exploits in the field of data acquisition: “You could ban TikTok immediately and the Chinese government could simply buy this (and more) data from a rotating crop of dodgy data brokers and assorted middlemen.” Meanwhile, the tech industry’s surveillance-capitalism panopticon will continue its work. Lawmakers could take bigger and more effective efforts to secure our privacy, but until then we’ll get a few brief and repetitive seconds of feckless and ineffectual parliamentary song-and-dance from lawmakers across the land. How very TikTokian.

This week, The New Republic will be devoting some of our time to looking back at the villains, ghouls, and do-gooders who shaped the past year in politics. A new Scoundrel of the Year will take their place alongside such luminaries as Mark Zuckerberg and Ron DeSantis, and the entire TNR staff will be making contributions to the cause. In looking back on the work TNR has published in 2022, I keep coming back to one big idea that I’ve tried to nurture on these pages: the necessary fight for the Good Life.

Longtime readers may remember how I tried to elucidate the borrowed-from-Keynes concept of the Good Life as a means of offering a then-wayward Democratic Party a way to get its messaging unstuck. To my mind, the elements of the Good Life boiled down to this: “More shared prosperity to reduce economic inequality; more widely distributed political power so that people have more control over their own lives; more political stability to keep upheaval at bay; and, most important of all, more time with the people we love.”

These are simple ideas that can inform a broad compact with America—one that would recover wealth that was stolen from us and provide a more just and equitable future. Democrats, of course, didn’t end up taking the beating many expected in the midterms, in part because they told a good story about democracy, the fountain from which the Good Life flows. They’ll have an opportunity to keep advancing this vision. Some of my favorite pieces from the past year might help light the way.

Democrats should stop panicking about elections, Walter Shapiro argued: The election “reminds Democrats … that it is time to go back to trusting the American people.” A good place to begin—but there is work to be done. As Joe Lowndes and Daniel Martinez HoSang documented at length, the GOP has made inroads with candidates of color, and Democrats have to take that threat seriously. I’ve urged Democrats to be more proactive, rather than waiting to benefit from GOP wreckage.

But when Republicans do wreck things, it’s good to go on offense. Meredith Shiner’s clarion call for Democratic action after Roe was gutted is a good reminder that time is of the essence in an emergency. One Democrat who spoke the loudest about countering the threats of far-right extremists—and one of the few who seemed to step out in support of the increasingly threatened LGBTQ community—was Michigan’s Mallory McMorrow, who did one of my favorite interviews with our editor, Michael Tomasky.

You can’t have the Good Life without a thriving economy, and while Democrats may not get any of their economic ideas to Joe Biden’s desk in 2023, they need to keep pushing for them, even if ultimately they’re getting voted down by the GOP House (which has its own benefits). One big policy to push: a revived and extended child tax credit, which, as Grace Segers has relentlessly documented, provided massive gains in the war against poverty. The Biden administration has, for the most part, helped to build a labor economy that favors workers and boosts the democratizing influence of unions. The president backed the wrong horse in the recent rail strike fiasco, but Steven Greenhouse provided a blueprint for his administration to get back on the right track.

As TNR editor Michael Tomasky noted, Democrats actually have a pretty good economic tale to tell—but they “need to tell a sharper economic story that identifies enemies of working people’s economic interests by name.” The coming year should be a boom time for shaming the worst of the worst, from the private equity firms sucking the American dream dry to the corporate interests that are keeping ordinary people down, as Sarah Miller wrote so eloquently.

Naturally, the biggest enemy of the Good Life continues to be the GOP and a conservative movement that, as Graham Gallagher illuminated at length, is only getting stranger, more off-putting, and more un-American by the day. We’ve worked hard to chronicle this transformation: from Laura Jedeed and Ana Marie Cox’s on-the-ground coverage of a truly cracked CPAC to Melissa Gira Grant’s constant chronicling of the way the QAnon movement keeps burrowing itself deeper into the halls of power.

Perhaps the most important story that defenders of the Good Life will need to tell over the next year is that Trump’s electoral defeat in 2020 and his weakened profile at the end of this year’s midterm cycle don’t point to the return of a normal, credible, democracy-minded Republican Party. Osita Nwanevu wrote:

The Republican Party understands the climate its rhetoric and strategies have created kills people and will continue to do so; it remains important to Republican politicians that the men being provoked to murder have the right tools at their disposal. It’s of some comfort that many Americans have come to see the right’s degeneracy for what it is and that Republicans continue to pay an electoral penalty for it. But given the mounting structural advantages the GOP enjoys within the federal system, this election barely qualifies as a setback.

We’re not out of the woods yet, but the world only spins forward. On to a new year: a new chance to cut, a new chance to cure.

This article first appeared in Power Mad, a weekly TNR newsletter authored by deputy editor Jason Linkins. Sign up here.

What kind of criminal activity must a corporation commit to face real consequences—for the justice system to compel the company into nonexistence or jail its executives? In recent weeks, there has been some cheerful news on that front: Sunny Balwani, the president of Theranos, will join his former flame and company founder Elizabeth Holmes in a lengthy prison sentence—a deserved punishment for their outlandish lies about their fraudulent blood-extraction machine.

But for every Theranos, there’s a Wells Fargo, who readers might remember as the ne plus ultra example of a bad bank, its executives seemingly bent on finding newer and more innovative ways to scam its customers. Wells Fargo has been given permission to constantly apologize for its wrongdoing and immediately return to it, with no one facing real consequences. The truth is, instances like Theranos, where clear-cut corporate criminals face clear-cut punishments, are considerably rare. All of which brings us to Hertz, which this week joined the ranks of those who’ve gotten away with egregious malfeasance.

Hertz, a car rental firm that’s joined at the balance sheet with several other well-known brands (Thrifty, Dollar), made some blink-and-you’ll-miss-it news: It was forced to “pay about $168 million to settle disputes with hundreds of customers,” reported The New York Times. “Disputes” puts it too politely. Over the course of many years, the company sicced the police on its own customers, who were wrongly accused of having stolen vehicles. This was all due to Hertz’s error: The company mistakenly misclassified cars as stolen or failed to account for customers making payments to extend their rentals.

As CBS News reported a year ago, dozens of customers were wrongly subjected to terrifying encounters with police. But some customers were subjected to even worse. According to the Times, one woman who was arrested, despite having paid her rental extension, was jailed for 37 days—during which time she was “separated from her fiancé and two children, missed her nursing school graduation and discovered she was pregnant.” Another renter, after learning there “was a warrant for his arrest on charges that he stole a Hertz car, had actually paid for and returned the vehicle.” But after he missed a hearing date, he was “arrested again, and jailed for six and a half months.”

Now a $168 million fine might seem like a lot, but it pales in comparison to the company’s $7.3 billion in revenue and $19.7 billion in assets at the end of 2021. Additionally, no company executives have been punished for what amounts to a wholly fraudulent exploitation of the criminal justice system.

Hertz was a troubled firm beyond the crimes it committed; the company filed for bankruptcy during the pandemic, and its employees are thus familiar with their jobs being at risk. But this episode still provides an illuminating example of why our labor politics needs a big rethink. Firms do things all the time that put jobs at risk. Sometimes they commit crimes. Sometimes an idiot just acquires a company and starts firing everyone who won’t join his inane ego trip. An economy in which employers have to compete for labor allows workers to be more mobile and more capable of leaving bad jobs behind, which can help soften the blow whenever the justice system lowers the boom on bad corporate actors. Moreover, this episode is simply the latest and greatest example of why it pays to have a unionized workforce.

But an even better solution would be to promote and enact policies granting workers larger ownership stakes in companies like Hertz. This would give workforces that are already too vulnerable to the errant whims of overpaid executives more transparency into the decisions cascading from the company boardroom as well as a better opportunity to prevent bad, costly actions that put workers’ jobs at risk. Democrats have, in the recent past, proposed such ideas; as The New Republic’s Osita Nwanevu noted in May 2020, polling from YouGov indicated that there was broad support for them among voters, including for “policies incentivizing the voluntary transfer of ownership stakes to employees, and even making companies with more than 250 employees grant those employees half of their stock over time.”

Without the emergence of a course-altering remedy, we will be stuck with a status quo in which we have to hope that slap-on-the-wrist financial penalties will be enough to steer our corporate masters onto more just and prudent paths. The New York Times’ reporting offered some insight into how that will play out at Hertz: “On Monday, Hertz said it believed it would recover a ‘meaningful portion’ of the settlement amount from its insurance carriers and that the $168 million would be paid by the end of this year.” The system works, just not for you.

This article first appeared in Power Mad, a weekly TNR newsletter authored by deputy editor Jason Linkins. Sign up here.