Tuesday, October 31, 2023
NEW INC. MAGAZINE COLUMN FROM HOWARD TULLMAN
Why Some Wealthy Investors Are Sitting On Their Wallets
At a conference in
Orlando I met older, wealthier people who are waiting for the second coming of
Trump. They want to turn back the investment clock, too. Unless it's
healthcare, there's not much of an appetite for technology funding--and not
much funding for their kids, either.
BY HOWARD
TULLMAN, GENERAL MANAGING PARTNER, G2T3V AND CHICAGO HIGH TECH
INVESTORS@HOWARDTULLMAN1
It’s illuminating, and
highly recommended, to take a step or two out of your own financial,
educational, media and societal bubble and subject yourself (with as much of an
open mind as you can muster) to a radically different environment for a couple
of days. I just returned from speaking at The MoneyShow Orlando, a major annual
financial conference, which is held a few miles from Disney, and which was just
as insular, hyper-hygienic and self-referential as the Magic Kingdom itself.
Hundreds of financial speakers, industry presenters, investment advisors, media
personalities, and independent investors from dozens of states gathered for
several days of lectures, pitches, seminars, and conversations about the state
of the world, the economy, their own finances and portfolios, and the future.
Suffice it to say, the
overwhelming vision of the current state of affairs is bleak. They long for the
golden days of Trump when they believe the world was rosy. Universal could make
a bundle showing screenings of Back to the Future all day
long. More importantly, their views are set in concrete and utterly impervious
to debate or even discussion. It was a whole lot of “my way or the highway” and
most of these men and women were a long way down the road and unlikely to
change direction.
TO ARGUE WITH A PERSON WHO HAS RENOUNCED THE USE OF REASON
IS LIKE ADMINISTERING MEDICINE TO THE DEAD.
THOMAS PAINE
Meeting and chatting
with all manner of industry and financial “experts,” watching dozens of
presentations loaded with figures, charts, projections, and warnings, and
witnessing surveys, and other polls which reflected astonishing levels of
unanimity was an extreme, invaluable, and eye-opening experience as well as a
bubble-burster.
Until you get out
into other parts of the world, you just have no idea of how deeply, sincerely,
and unalterably certain ideas, beliefs and political positions are held. And,
much more importantly, how they impact these folks’ lives and investment decisions.
Plenty of gold hoarders, but nary a substantial bitcoin player in the bunch. My
sense is that they remembered the dot.com debacles all too well and steered
clear of crypto.00:000
Talking to these
audiences about the exciting prospects of innovation, new technologies, and the
rapid onset of radical, unavoidable, change was a lot like offering them
cancer. “Clean” anything is a dirty word; climate is the reason they live in the
South, and, if it’s okay with you, they’d just as soon see things continue
along as is - at least until they’re gone. It feels a lot like King Louis XV in
France in the late 1700’s, who purportedly said “Après moi, le deluge.”
After me, the flood.
What’s especially
clear and I think misunderstood by the media is that a substantial number of
the actions these people take and the political ideas and individuals they
choose to support are not driven by their current economic situation. They’re very
happy with what they’ve got, they’re not that excited about sharing it, and
they certainly don’t want it taken away. None of these attendees was in any
kind of dire straits although there was persistent angst (not to say fear)
about what may be coming down the pike. The vast majority of the conversations
were about capital preservation rather than appreciation -- defensive in
nature. The stink of statis could be matched only by the smell of the
omnipresent hand sanitizer dispensers.
What this means
for entrepreneurs, new business builders, change agents and even venture
capitalists isn’t totally clear, but it’s obviously not good news when millions
of independent and formerly active investors - sitting on substantial accumulations
of post-Covid capital - are also basically sitting on their hands. They’re out
of the market, waiting for a savior to show up and turn the clock back a decade
or two.
Extrapolating my
admittedly small sample size to the population is easier than you’d imagine
when you see the amazing extent to which ALL of the channels, media and
information directed at this crowd are aggressively supportive of a single dark
vision of the economy, politics and the future in the absence of a pervasive
political change. More than a third of the vendors in the exhibit space were
hawking books, newsletters, subscriptions to podcasts, and other advisory
resources and the messaging was remarkably uniform. A strong mix of Chicken
Little and Armageddon.
We’re going to
need to revise and reform our storytelling and pitches if we want to have any
chance at all of reaching and attracting these investors. Here are the areas of
appetite and interest that seemed to get through to the crowd. As I often say,
if they’re not listening, it doesn’t matter what you’re saying or selling.
1. Health care change is
hot.
Not simply because
they’re older or because it’s a growing part of their day-to-day lives, but
because: (a) they know the system is broken; and (b) they are interested in
taking a much more active role in managing their own health and health care. 2
out of every 5 adults in the U.S. are already using a health care app and/or
device on a daily basis. I couldn’t say enough about the Apple watch and the
idea of being proactive rather than reactive in respect of our health.
Interestingly, there’s a perceived difference and a comfort here between
innovation (fast and bad) and “long overdue” fixes (good and reassuringly
slow).
2. Privacy is a prime
concern.
Not because they’re
overly concerned about their own privacy - most of them understood that that
boat had already sailed. They just didn’t want to be scammed, hacked, or have
their identities or funds stolen. The real concern about privacy is how it was going
to impact their investments in Google and Facebook. Unlike Amazon, Apple and
Microsoft, Google and Facebook continue to live on ad revenue based on invading
our privacy, but the government (and 41 states especially) are finally waking
up to the risks and the problem. In an upcoming hyper-political year, attacking
the lowest hanging fruit in Big Tech as evildoers killing our kids is a no
brainer for the lazy legislators in Washington. Can’t be good news for Zuck or
Sundar or their stockholders.
3. Time
and Step Savers are Good Stories.
Time is the scarcest
resource in our lives and far more valuable than money in many ways. Ease of
use and access, convenience and simplicity, and increased productivity along
with better decision making are all simple and well-understood stories to tell and
sell. Make it easy for me and you own me.
4. They
Really Don’t Care about Junior.
Whether it’s entirely
accurate or not, to a person, these folks believed that they worked hard and
earned their good fortune and wealth. And they’re convinced that - by and large
- their kids don’t get it, that they have a lousy work ethic, and that they’re
way too entitled for their own good. I was struck by how many of the attendees
literally used this rationale to explain why they were living it up now,
enjoying their money while they could, and not really all that concerned about
passing their fortunes on to their offspring. As Covid-19 finally recedes,
expect a boom in experiences, services and adventures as opposed to hard goods
and property.
They know that you can’t
take it with you and that shrouds have no pockets.
Monday, October 30, 2023
Sunday, October 29, 2023
One-Sided Rules of War
By Steve Huntley
October 29, 2023
We’re hearing a lot of talk these days
about the rules of war. All of it is aimed at Israel. No one is calling on
Hamas to follow those rules.
There’s a simple reason for that.
No one — no one — thinks Hamas will do
anything other than what it always does. And what it did on Oct. 7. The music
concert massacre. The murders of civilians from babies in cradles to
grandmothers. The rapes. The mutilation and burning of bodies. The beheadings.
The hostage-taking of civilians, including 20 children, one of them in a
wheelchair. The use of Palestinians as human shields.
No one expects Hamas to obey
civilization’s standard for conducting warfare. No one even thinks of calling
on Hamas to do so.
But it’s a different case with the
Jewish state. Israel is getting a lot of, what’s the right word — advice,
guidance, cautions, veiled warnings? — whatever the word, Israel is hearing
from various corners about its conduct of the war against Hamas.
Make sure to avoid civilian
casualties.
Don’t do anything that would be
“disproportionate.”
Don’t let “rage” affect your
decisions, as President Biden put it in talking about the need to adhere to the
rules of civilized warfare.
Delay the ground invasion of Gaza in
hopes of getting more hostages out now that four have been released, say some
European nations and the U.S. government.
Others, such as the Democrat squad in
the U.S. House of Representatives, aka the congressional antisemitic caucus,
demand a cease-fire.
All this is coming from people who
bear no responsibility for protecting the citizens of Israel.
I mean, who else is going to step up
to make Hamas pay for the terrible war crimes, the pogrom of Oct. 7?
Will the International Court of
Justice based at The Hague issue an indictment and send a posse of steely
lawmen into the Gaza Strip to arrest the Hamas war criminals and bring them to
justice?
Dream on.
Will the United Nations assemble an
army, equip it and dispatch it to Gaza City to wage the unbelievably complex
and dangerous mission of urban warfare necessary to bring retribution to these
terrorists?
There’s a reason the UN is called the
Useless Nations. Even worse, the UN secretary general tried to justify the
Hamas savagery of Oct. 7
Will the European Union call up
soldiers from its member nations to rout Hamas out of the Gaza Strip?
Hell, European countries can’t even
handle backing the Ukraine war on their own without the spine-enforcing support
of the United States.
And what about all the Arab nations
that are so, so concerned about the fate of the innocent Palestinians in Gaza?
Will they tell the Israelis to stand aside while their armies invade Gaza to
protect civilians and capture the Hamas terrorists?
A fantasy beyond the imagination of
any sane human being. This is true even though Hamas is funded, armed and
advised by Shia Iran, the committed enemy of the Sunni Arab world.
No, Israel knows — as it has
tragically learned time and again — that only it will step up to protect Jews,
only it will fight to save Jewish lives, only it will endure the terrors of war
to combat a wretched bestial organization that in its charter is dedicated to
genocide and mass murder of Jews.
While Israel has assimilated the
lessons of history, incredibly too many in the world have not — even after the
horrors of the Holocaust.
Worse, as we have seen, in some of our
most esteemed institutions like Harvard, UPenn, Columbia and other elite
universities ruled by extreme left thought, in some Muslim immigrant
communities resistant to Western ideas of civilized warfare and even in the
halls of Congress, the cancer of antisemitism is alive and well — and
metastasizing.
No one but Israel is going to fight
and bleed to protect Jews.
To his credit, Biden has committed
America to providing military assistance to Israel and he has dispatched U.S.
naval forces to Mideast waters with the goal of preventing Iran and other bad
actors from widening the genocidal war against Israel.
Some have seen weakness on Biden’s
part because the leaders of Jordan, Egypt and the Palestinian Authority
canceled a summit with him during his recent visit to the region. I understand
that argument.
But it masks a greater, more serious,
more depressing truth. These Arab leaders have never even started preparing
their populations for a real, lasting peace with Israel. Now they tremble in
fear that anger in their streets from people fed lies for decades about Israel
will threaten their rule.
That fear was intensified to the point
of canceling the summit after Hamas falsely accused Israel of bombing a Gaza
hospital. It should have been no surprise that intelligence and evidence
quickly revealed it was an errant Islamic Jihad missile that fell into the
hospital parking lot.
The news media should be engaging in
serious soul searching after so many of our prestigious newspaper, broadcast
and cable news outlets accepted uncritically and published/broadcast an
accusation against Israel from an organization whose fundamental, essential,
core belief is that the only good Jew is a dead Jew.
That’s the neighborhood that Israel
must live in.
The Jewish state needs no
sanctimonious advice, smug guidance or veiled warnings about how to defend its
people.
And what does proportionality actually
mean in war?
Hamas fired thousands of unguided
missiles into Israel with the obvious intention of killing Israeli civilians.
Would it be proportionate for Israel to fire the same number of unguided
missiles into Gaza?
Would it be proportionate for Israeli
troops to rape Palestinian women? To target babies for murder? Mutilate and
burn bodies? Capture civilians as hostages?
That would be doing exactly the same
thing as Hamas did. Isn’t that the very definition of a proportional response?
Do exactly the same thing and in the same numbers as Hamas did?
Tit for tat, proportionality.
The Geneva Conventions adopted after
World War II outlawed that kind of proportionality. Hamas has shown time and
again it doesn’t care about those rules of war, its only standards of war are
savagery, barbarism, cruelty and brutality.
But the Israelis are a civilized,
moral people and they are not going to deliberately violate the conventions of
warfare. They will do all that they can to minimize civilian casualties, to
follow the civilized principles of conducting a necessary, just war.
They don’t need any moralizing advice
or pious warnings about the battle they are fighting.
And when in history has any nation
fought a war agreeing with recommendations to tie its hands behind its back?
Did anyone tell the Red Army to be
sure to protect innocent German civilians when it unleashed its soldiers on a
starving Berlin in 1945? An estimated almost 2 million German women in Berlin
and elsewhere were raped by the Red Army. The Nazis had waged war on Russian
civilians. The Soviets waged war on German civilians. Proportionality.
Despite the prospect of civilian
deaths, America dropped two atomic bombs on Japan for the just, righteous
reason of saving the lives of hundreds of thousands of GIs who faced the
forbidding, bloody challenge of invading the home islands to end World War II.
And don’t forget that Japan waged war on civilians. Exhibit No. 1: the Rape of
Nanking.
And even after the terrible punishment
of atomic bombs, fanatics within the Japanese military wanted to fight on.
That’s the kind of fanaticism Israel
faces in its enemy Hamas, terrorists so maniacal that they use Palestinian
civilians as human shields. So rabid they don’t care how high Palestinian
bodies pile up. To them, Palestinian deaths are propaganda fodder in their war
for Israel’s extinction.
Today’s reality is this: Hamas will
keep flouting civilization’s rules of war, keep committing atrocities, keep
sacrificing Palestinian lives as human shields. And the world will keep
self-righteously wagging its finger at Israel. And worse — in academia, in far
left political circles, in Muslim immigrant communities — apologists for Hamas
will keep excusing and justifying its war crimes, its massacres, its rapes, its
ritual of human sacrifice of Palestinian civilians.
War is hell, as Sherman said. It
always has been and remains so.
Just ask the Ukrainians brutalized by
Vladimir Putin’s armies. Just ask the people of Sudan, Ethiopia, Sri Lanka and
other nations that have suffered warfare in recent years. Just ask the people
of Mosul where 10,000 civilians died in 2016 in a nine-month campaign by Iraqi
troops, backed by U.S. air support ordered by President Barack Obama, to defeat
Isis.
And just ask the survivors of the
massacres, the pogroms of Oct. 7.
War is hell and no civilized nation
enters one for any reason other than protecting its citizens.
That’s what Israel is doing. It didn’t
seek this fight. It was attacked by the barbarians of Hamas. And it must
exercise its best judgment on how to fight the genocidal fanatics of Hamas. It
will conduct this fight by the rules of war as decreed by 21st century
civilization.
It must fight this war to win and it
doesn’t need lectures on how to do that.
Saturday, October 28, 2023
Friday, October 27, 2023
Thursday, October 26, 2023
Wednesday, October 25, 2023
Tuesday, October 24, 2023
NEW INC. MAGAZINE COLUMN FROM HOWARD TULLMAN
Terrible Tech and Untrained Staff: For Customers, Is This
the Worst of Both Worlds?
Too many companies are
trying to automate customer service with technology that doesn't work; then
they compound the problem with customer-facing workers who can't help the
customer.
BY HOWARD TULLMAN, GENERAL MANAGING PARTNER, G2T3V AND CHICAGO HIGH TECH INVESTORS@HOWARDTULLMAN1
I guess there was a time
not too terribly long ago when we actually preferred doing business with people
rather than machines. When we believed that the human interaction somehow
added value to the transaction and could, if necessary, address questions and
issues that might arise. This was based in no small part on our prior
impressions and experiences in terms of the individuals we were likely to
encounter on these occasions. They might even recognize us; we trusted them,
they trusted us. We thought of them as our neighbors and part of the community,
and we believed that they were generally interested in being of service to us.
Those times are long
gone. These days you can walk into a branch bank and the humans sitting behind
desks in cubicles are happy to tell you that they can't even cash a check for
you. You've got to wonder why they even bother to come to work?
Too many businesses
today are replacing people with technology without understanding that the
increasingly few customer-facing employees they still employ are their
"front door" and most likely their prime point of customer contact.
As a result, these firms, who are willing to insert just about anyone who can
breathe into those sensitive positions, are really selling themselves short and
cruising for a bruising. Especially post-pandemic, your front-line troops are the ones who are best suited
to welcome back, reassure, and re-connect directly with your customers.
If your entire consumer service experience is automated and abstract, you can
bet that Amazon will be handling your customers' banking and other needs in no
time at all. And if these folks have no real training, no authority, and not
even cash on hand, they might just as well be replaced by ATMs.
Today, for a variety of
economic and social reasons, all bets are off in terms of what passes for an
acceptable workforce as well as appropriate dress and behaviors. The net effect
is that we're all, more or less, passively migrating or being actively pushed
toward impersonal tech solutions (whether they work well or not) partly because
the alternatives are so unfriendly, unappealing, or unappetizing. And, believe
me, it's not just the banks that are a problem. Grocery stores, restaurants, bars,
and bodegas all have similar issues. They may have massive and meaningless
video displays and all kinds of Muzak, or a million different bottles of beer,
but the overall retail experience just keeps getting worse and worse.
Maybe it's post-pandemic
PTSD or longing for times long past, or the fact that it's flu season, but
between the autumn's abundant allergies, winter's sniffles, and resurgent Covid
issues, everyone seems to be walking around stressed and a little more
sensitive to their surroundings than they might have in the past. Observant
consumers are increasingly noticing the cutbacks and cost-saving efforts. But
the biggest and most obvious changes are in the attitudes, abilities, and anger
of the people staffing the stores. I get that there're a lot of folks unhappy
with their work situations, but honestly, I don't think it's my fault, or that
they should take it out on me.
A simple example. We're
entering the runny nose season and I'd like to suggest that Whole Foods and the
other food purveyors and restauranteurs that have staff handling my food to
suggest to their esteemed team members that it's a good time to keep the studs
and other jewelry hanging out of their noses away from my meals. It gives me
the creeps even apart from any contagions. This stupid idea of letting their
food handlers bring their whole selves to work needs to be cleaned up so they
don't bring COVID, colds, and other germs to work with them. If you think I'm
the only one disgusted by the drips, feel free to ask anyone standing in line
or seated at a table and subjected to this snotty spectacle. Self-service
checkout machines still basically suck, but they're looking better all the time
compared with the bozos behind the registers and the brutal baggers.
Or how about the new
restaurant kiosks where you're supposed to order your food as you enter and
then wait for someone behind the counter to bring it to you? We're seeing more
and more variations of this theme even in traditional restaurants (not just
fast-food joints) as a way to cut back on wait staff. Needless to say, these
displays have all the flexibility and warmth of an ice cube, and you end up
feeling just like another cog in the system. They make you long for the crabby old servers who at least knew what you wanted and
seemed slightly interested as well. It's hard to escape the subtle message of
"eat and get out" that so many of these places give off. Not exactly
comfort food. But don't forget to leave a generous tip as the display
officiously reminds you.
Now's the time that
smart business builders and owners need to take a step or two back and decide
what business they're in and how they want that business to operate. Frankly, I
think most of them-- if they could mystery shop their own places -- would be
shocked and disappointed at how unpleasant the whole process has become. Every
business is the same in at least one way-- whatever you're selling, it's your
people who deliver the goods. Starbucks takes a lot of crap for a variety of
reasons, but one thing that Howard Schultz said at the outset of the business
was the truest observation ever. He said "we're not in the coffee
business, serving people. We're in the people business, serving
coffee."
Saving on staff, cutting
back on training, trying to do things cheaply that you shouldn't do at all --
all send the same message to your customers. And not a happy one. Technology is
a tool, not a savior in these situations. Care for your customers first and
then worry about the costs.
Monday, October 23, 2023
The Day the Delusions
Died
A lot of people woke up on
October 7 as progressives and went to bed that night feeling like
conservatives. What changed?
October 22, 2023
When Hamas terrorists crossed over the
border with Israel and murdered 1,400 innocent people,
they destroyed families and entire communities. They also shattered long-held
delusions in the West.
A friend of mine joked that she woke
up on October 7 as a liberal and went to bed that evening as a 65-year-old
conservative. But it wasn’t really a joke and she wasn’t the only one. What
changed?
The best way to answer that question
is with the help of Thomas Sowell, one of the most brilliant public
intellectuals alive today. In 1987, Sowell published A Conflict of Visions. In this
now-classic, he offers a simple and powerful explanation of why people disagree
about politics. We disagree about politics, Sowell argues, because we disagree
about human nature. We see the world through one of two competing visions, each
of which tells a radically different story about human nature.
Those with “unconstrained vision”
think that humans are malleable and can be perfected. They believe that social
ills and evils can be overcome through collective action that encourages humans
to behave better. To subscribers of this view, poverty, crime, inequality, and
war are not inevitable. Rather, they are puzzles that can be
solved. We need only to say the right things, enact the right policies, and
spend enough money, and we will suffer these social ills no more. This
worldview is the foundation of the progressive mindset.
By contrast, those who see the world
through a “constrained vision” lens believe that human nature is a universal
constant. No amount of social engineering can change the sober reality of human
self-interest, or the fact that human empathy and social resources are
necessarily scarce. People who see things this way believe that most political
and social problems will never be “solved”; they can only be managed. This
approach is the bedrock of the conservative worldview.
Hamas’s barbarism—and the explanations
and celebrations throughout the West that followed their orgy of violence—have
forced an overnight exodus from the “unconstrained” camp into the “constrained”
one.
The Reality of Woke Ideology
Many people woke up on October 7 sympathetic
to parts of woke ideology and went to bed that evening questioning how they had
signed on to a worldview that had nothing to say about the mass rape and murder
of innocent people by terrorists.
The reaction to the attacks—from
outwardly pro-Hamas protests to the mealy-mouthed statements of college
presidents, celebrities, and CEOs—has exploded the comforting stories many on
the center-left have told themselves about progressive identity politics. For
many years, they opted for the coping mechanism of pretending that the
institutional capture of universities, corporations, and media organizations by
the woke mind virus was no big deal. “Sure, students shutting down events they
disagree with is annoying,” they would say, “but it’s just students doing what
students do.”
October 8 was a wake-up call for those
who didn’t appreciate that the ideology of the campus has spread to our cities,
supercharged by social media.
We woke up on October 8 to the clamor
of street protests in cities across the West condemning Israel even before any
major Israeli response to the attacks. We watched celebratory crowds
brandish swastikas and chant
“gas the Jews” at events purporting to be about the loss of Palestinian lives.
We saw Black Lives Matter chapters lionize terrorists.
In London, where I live, we watched
the mayor deliver glib assurances that “London’s diversity is our greatest strength” in
the midst of a wave of antisemitic attacks, and as Jewish schools were forced to close because of safety
concerns.
Across the West, we noticed that our
representatives refused to condemn
Hamas’s kidnappings, and that the legacy media was all
too eager to swallow and regurgitate Hamas propaganda.
Prior to the October 7 massacre, many
students, alumni, and donors with the “unconstrained vision” trusted that the
university—for all its many problems—remained the West’s best environment for
civil discourse.
But then they watched university
presidents who were quick to issue statements condemning the Russian invasion
of Ukraine and the killing of George Floyd fall silent, or offer the most slippery, equivocal statements
carefully crafted to avoid offending anti-Israel groups. They watched an
Israeli at Columbia get beaten with a stick, and
heard reports about the physical intimidation of students on campuses across
the country. They read about dozens of student organizations at Harvard signing
a letter holding Israel “entirely responsible” for
the massacre of Israelis.
The events of the last two weeks have
shattered the illusion that wokeness is about protecting victims and standing
up for persecuted minorities. This ideology is and has always been about the
one thing many of us have told you it is about for years: power. And after the
last two weeks, there can be no doubt about how these people will use any power
they seize: they will seek to destroy, in any way they can, those who disagree.
This unpleasant conclusion is
surprising only if you are still clinging to the unconstrained vision. But if
there is any constant in human history, it is that revolutionaries always feel
entitled to destroy those who stand in their way.
Just as hope about the possibility of
peace with jihadists seems suicidally naive, reconciliation with citizens
seized by the woke mindset seems a long way off.
Immigration
Nowhere is the shift from the
unconstrained to constrained vision starkest than on immigration.
For decades, both Europe and America
basked in an “unconstrained vision” of immigration. In the U.S., the melting
pot that could integrate the nineteenth-century Germans, Irish Catholics, or
Japanese could surely absorb those crossing the southern border. And many of
these new arrivals would do jobs Americans didn’t want to do. Europe needed
immigration to deal with an aging population, with many European countries
inviting people from their former colonies to fill labor shortages and skills
gaps.
But over time, especially from the
late 1990s onward, the unconstrained vision ran rampant through media and
political elites, and immigration went from being a solution to specific
problems to a moral good in its own right. (I am myself an immigrant. When I
moved to Britain from Russia in 1996, net immigration into Britain ran at
55,000 people a year. Last year, net immigration stood at over 600,000 people.)
Over the past decade, more and more
people in America and Europe have quietly shifted toward the “constrained” view
of immigration. The Brexit referendum and the election of Donald Trump were
early warning signs of this ongoing transformation. Today, we see New York,
where nearly 60,000 newly arrived
migrants are putting tremendous strain on shelters and city services like
healthcare, education, and public transport. The city has already spent over $1 billion to
address this crisis, and projections indicate that housing costs alone could
exceed $4.3 billion by next
summer. Lifelong Democrats in Manhattan tell The New York Times that
“we have too many people coming in,” and that “Biden could do something more
about putting our borders up a little stronger. I mean, we’re not here to take
in the whole world. We can only do so much.”
Europeans have learned similar lessons
from their own migrant crisis. In Britain, we spend approximately $10 million a day on
hotels for people who have come here illegally. We refuse to deport foreign
criminals over “human rights” concerns.
Readers may recall seeing recent media reports about the small Italian island
of Lampedusa, whose population quadrupled in a day as large numbers of illegal
immigrants arrived. We have now learned that a man who shot two Swedish soccer
fans dead in a terror attack in Brussels last week arrived there illegally via the island in
2011. The man was known to the authorities as a security risk due to his jihadi
links, but when his asylum application was rejected in 2020, he was not deported. How
many such people are allowed to come and stay in Europe is impossible to say,
as hundreds of thousands of people make illegal crossings into
Europe every year.
But despite these shocking statistics,
the issue of illegal immigration has been impossible to discuss in polite
company for decades. No matter how bad the problem became, to raise concerns
about it would almost always lead to accusations of bigotry and xenophobia.
What we have witnessed over the last
two weeks—with enormous pro-Hamas rallies in cities like London, Paris, and
Washington, D.C.—has the potential to change the immigration debate in a
decisive way. It is much harder to pretend that allowing people to enter our
country illegally is a moral good when you watch some of them celebrate mass
murder in the streets of your capital cities.
German Chancellor Olaf Scholz has
recently announced the intention to deport illegal immigrants “on
a large scale” as his coalition hemorrhages votes to anti-immigration parties.
France has banned pro-Palestine
protests and warned that foreign nationals who take part will be removed from
the country. Britain has also threatened to revoke the visas of
foreigners who praise Hamas. Whether this represents a permanent realignment
toward a more constrained view of immigration or merely a temporary blip on the
path to progressive dystopia remains to be seen.
Border Security
To express concern about border
security has for many years been coded as “right-wing.” But how many people,
after the horrors of October 7, believe that a secure border is anything other
than the most basic test of national security?
I have just returned from a week in
Los Angeles where, on recognizing my name, every single Armenian Lyft driver
struck up a conversation in Russian. Once the inevitable complaints about the
rising cost of living were out of the way, several shared with me their own
journeys into the U.S. and those of their families. I was struck by the fact
that those who came in the 1990s and 2000s had usually come legally, but more
recent arrivals had made their way through Mexico. One man told me about
smuggling his two brothers and 80-year-old father through the southern border:
“It’s easy,” he told me.
I have no doubt he is correct: 2023
saw the highest number of illegal crossings since records began. And
polling shows that the American people, who are otherwise uniquely welcoming of
new arrivals, aren’t happy about it. The
problem with illegal immigration isn’t just its scale; it’s that we have no
idea whether the people coming are 80-year-old Armenian retirees or jihadi
terrorists plotting another 9/11.
It is clearer now than ever before
that borders aren’t about bigotry, they’re about security. In a sign of the
times, Joe Biden is now continuing work on the
border wall that Democrats spent years criticizing Donald Trump for erecting.
The West
The reason the readjustment is
necessary and, in my view, highly likely, is that proponents of the
unconstrained vision have been allowed to ride roughshod over the concerns of
ordinary citizens. They have used this window of opportunity to implement extraordinarily
impractical and outright harmful ideas because they take the unbelievable
levels of safety, plenty, and freedom we enjoy in the West for granted. The one
form of privilege you will never hear them address is the first-world privilege
that we all benefit from every day.
They have done this because the
fundamental flaw in the unconstrained model of the world is a failure to
understand Thomas Sowell’s greatest maxim: there are no solutions, only
trade-offs. When you let your institutions be captured by an ideology of
intolerance and illiberalism masquerading as progress, that has consequences.
When you sow division at home and signal weakness abroad, that has
consequences. When you debase the public’s faith in what they are told by the
media and their government, that has consequences too.
Western civilization has produced some
of the most stunning scientific, technological, social, and cultural
breakthroughs in human history. If you consider yourself “liberal” or even
“progressive,” it must surely be clear by now that America and her allies are
the only places in the world where your values are even considered values. If
our civilization is allowed to collapse, it will not be replaced by a
progressive utopia. It will be replaced by chaos and barbarism.
Will this waking-up moment persist? It
depends, in large part, on our courage to look reality in the face.
As Sowell explained, “When you want to
help people, you tell them the truth. When you want to help yourself, you tell
them what they want to hear.”
And the truth is that we have indulged
in magical thinking for too long, choosing comforting myths over harsh
realities. About terrorism. About immigration. And about a host of other
issues. In our hunger for progress, we have forgotten that not all change is
for the better. Now the world is paying the price for that self-indulgence.
Let’s hope recent events are the wake-up call we so desperately need.
Konstantin Kisin is the co-host of the
podcast Triggernometry. You can read all of Konstantin’s
work on his Substack.
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