Thursday 9 June 2011

It's the economy, dumbass!

The political change taking place across the Middle East and North Africa has surprised most commentators and politicians in terms of its success and speed. Many of the countries that have changed during the ‘Arab Spring’ had been controlled by strongmen who had been in charge for decades. Hosni Mubarak, who stood down from Egypt after thirty years, was only the third president since the 1952 revolution. What has interested me most besides the timing, has been the reaction of the world’s major countries, particularly America. The US has been a major player in the region in the past sixty years, providing aid (and arming) Israel, placing sanctions on Iran and removing Saddam Hussein from power in Iraq. The US has a varying record across the world but it is always unanimous when it comes to promoting and pushing values of democracy and liberty.

These values are mentioned dozens of times in any presidential speech and evolve ultimately from America’s Declaration of Independence and Bill of Rights. American troops are deployed all around the world to protect the love of their country and the values it evokes. Yet despite the vivid portrayals of flags and parades adjoined to the rhetoric from the likes of Sarah Palin and Michelle Bachmann, I wonder whether America is perhaps over-democratised and whether its ‘brand’ of politics is tarnishing the way the system works?

To many, 20 January 2009 was a historical day across the world, but particularly in America. Barack Obama was sworn in as the first black US President. It was a magical moment to watch and the banners for change were painted across cities and small towns in America through the ubiquitous ‘Hope’ posters that will come to define a generation. Yet since that day the obvious stalling of the American economy has defined Obama’s first term as President and with that an infectious antagonism has developed between the President’s Democrats and the Grand Old Party (GOP), the Republicans.

The passage of Obama’s healthcare bill that in essence extended insurance provision to the poorest in society caused fractions between both parties. Obama’s Presidential opponent, Senator John McCain called the bill ‘unconstitutional’ and the President was called a liar by Republican Joe Wilson during a joint session of Congress, a major disrespect in American conventions and in most democracies. The issues of late has been the nation’s high unemployment rate, around 9%, and the inability to agree on America’s deficit (currently America’s total debt stands at $14 trillion (and increasing)). The Democrats, who suffered defeats during the midterms, struggled to pass through the President’s budget until the last minute. Yet, the belligerent GOP who block every bill proposed by Mr Obama, have struggled to formulate their own deficit reduction plan. Congressman Paul Ryan who put forward a much tougher plan, compared to the Democrats, called the ‘Path to Prosperity’ wanted tighter reforms to healthcare and federal spending. This too was voted down. Politicians are embattled over the Treasury’s ceiling limit of American federal debt and the unrest is visible as states such as New Jersey, California and New York struggle to tackle their public spending, even the NFL nearly went on strike. Yet amongst all this, it appears we are yet again in election season.

Despite the US elections being over 18 months away, we have already descended into the hubbub of caucuses and campaigning. The Republicans candidates are still deciding whether 2014 is the best opportunity for them to run. Most headlines nationally and internationally focus on the glamorous, relentless yet fallible Sarah Palin. An ambassador of the Tea Party and a saviour to America’s right, Palin has taken herself on a tour of the US but has yet to confirm whether she will stand. The flamboyant property tycoon Donald Trump also ruled himself out after questioning Obama’s citizenship. Another unhealthy idea evolving from America’s Right is the re-emergence of Reagonomics, in honour of the Republican’s ideological God – Ronald Reagan. Yet Reagan’s policy of cutting taxes yet maintaining a large military capability through borrowing seems idiotic but plays with the patriots’ hearts, despite a horrendous deficit. There appears to be plenty of choice of candidates but no one outstanding.

American electioneering has revolutionised the way democracy and politics works and moves. From the advent of Presidential debates that saw the rookie John F, Kennedy defeat the experienced Richard Nixon to the sophisticated internet campaign that saw Obama steamroll Hilary Clinton as nominee then John McCain. Presidential campaigning is a billion dollar industry and has been used over the years to the Philippines, Venezuela, even the Scottish National Party (SNP) adopted the technology in the recent local elections in the UK.

Now here is the problem, expect utterances of ‘American exceptionalism’ and the usual musings of freedom, hope etc. Yet, it appears to deflect from the big elephant in the room. Bill Clinton’s infamous election phrase, ‘It’s the economy stupid!’ America is in a safer position compared to Britain because the dollar is the world’s reserve currency and developing nations are still prepared to buy US Treasury bonds. Yet the dynamics of American electioneering deflect from the intrinsic importance of policy making and sorting out the economy. The current UK coalition between the Conservatives and the Liberal Democrats could of course collapse at any time, coalitions do, but the five year plan to wipe out the deficit, despite its critics, is backed and understood by most members of the British public. The British economy is of course entirely different to the American, but the flexibility of the Parliamentary system, which does have its flaws, has shown that the benefits over a codified and rigorous constitutional system. America’s love of democracy isn’t helping any recovery.

America should be proud of its values and persistence to promote and enhance the lives of others across the world. Its labour markets are flexible enough to create new jobs and adapt to the global economy, yet it the constant dogmatism and disorder, perhaps over-democratisation, mixed with the professional electioneers, has caused it to stall and lose focus on important matters. By no means, would any American lust for the Chinese political system or the over bureaucratic system of India but it would aspire for year on year high economic growth and end site to potential financial meltdown. The world could not afford the American economy to default, but you wish someone would stop talking about flags and just say ‘it’s the economy stupid!’

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