Posted tagged ‘debt ceiling’

Not having a party

July 31, 2011

It’s nearly three years since Barack Obama won the US presidential election. To many people outside America, this marked what people assumed would be the return of ‘normal’ politics to America. For non-Americans it had been almost impossible to understand George W. Bush and his retinue; they seemed to be driven by various impulses that, for them, signified US influence and leadership, but which to the rest of the world appeared to be somewhere between zany and dangerous. The Bush administration took on almost unimaginable costs, ranging from the various wars to massive (and unfunded) tax cuts.

Oddly enough, right now US politics are convulsed by two outputs from the Bush era: the amazing deficit that his policies bequeathed the American people, and the ‘Tea Party‘ movement that is a spin-off of sorts from his ideological positions. This dual legacy is so odd in part because the Tea Party are treating the deficit as an Obama creation, which it actually is not. As the graph in this article shows, overwhelmingly the over-spending is a creature of the Bush government, whereas Obama has been relatively frugal; indeed Obama’s main expenditure relates to issues (or wars) that were put in play by Bush.

If you visit America, as I have been doing these past few days, you get a very direct sense of how US politics are now anything but normal. The debate here about raising the debt ceiling is so totally irrational as to have mind-bending attributes. A solution to the by now somewhat real threat that America could default on its financial obligations (though probably not its loans) is held in abeyance by driven ideologues who, when you listen to them being interviewed, clearly do not have an even basic understanding of the economic issues involved. They share the Republican Party with an established leadership that is increasingly aghast at their antics. On the other side is a president who may not be acting as decisively as the situation requires. As the outcome of this drama will affect us all, it has rather chilling properties.

The United States is, and notwithstanding occasional exaggerated predictions about the growth of the BRIC countries will continue to be, the leader and trend-setter of the global economy. This makes it rather important that its economic policies are the subject of rational debate and decision-making, guided by informed analysis. The current battles being fought on Capitol Hill won’t do. It is time to stop humouring the Tea Party ideologues, and to stop pretending that their arguments merit real debate. There are perfectly legitimate differing positions on the economic crisis, but they need to be based on an understanding of the issues. It is time for America to end the ‘tea party’ and to let the adults take over.

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