The view from Capitol Hill
His take: the turmoil in the Middle East had reduced the superpower to grappling observer status. The options on unseating Col Muammar Gaddafi were extremely limited. The economy was sputtering at best. Afghanistan was the wrong war, and worst of all the deficit was so huge it had pushed America close to the cliff's edge. If we don't fix this, Uncle Sam will be pushing up daisies in three years from now. This is make or break, he said, between mouthfuls of ricotta ravioli. I used to worry about my children and grandchildren. Now I worry about myself.
How to fix this? Slash social security and other entitlement programmes. Don't raise taxes. If President Barack Obama showed real leadership in this crisis - that is, forced the bitter pill of British-style austerity down American throats - he would be a sure winner in his re-election bid next year.
But in Britain, the top tax rate is 50% and austerity was never a rallying cry. It was imposed after the election and it has yet to reboot the economy as promised. I can't see anyone getting elected in America on the promise of hardship, however acute the debt crisis.
~RS~q~RS~~RS~z~RS~45~RS~)
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Did he pay the bill with a credit card ?
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Could UK style austerity measures work in the U.S.? Only if U.S. polticians suddenly become so patriotic they are willing to sacrifice their careers and give up thoughts of re-election.
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With the current numbers of home forclosures and the present level of unemployment in the USA, many Americans are already suffering a level of austerity that is previously unknown to them. If Obama were to try and impose any more hardship on people, particularly in the period before the coming election, not only would he not win re-election in next year's polls, he would probably hand the position of President to someone that even many of those in the opposition Republican Party would prefer not to have as leader.
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Hardship doesn't sell in the US except in rare moments of national crisis. Comparisons between the UK and US on political matters are difficult because of the separation of legislative and executive powers in the US.
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Matt Frei wrote:
"...yet I have had one of the more interesting and sobering lunches with a Capitol Hill grandee."
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Polarization of political perspective is a hallmark of all Capitol Hill grandees. Your grandee obviously was Republican, but worry not for there are Democrat grandees, too. Only politicians dare to tread the political middle ground.
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Cutting taxes in a time of war. That should show you what kind of leadership we have in this country. When the Large American companies effectively pay nothing in taxes (the corporate tax rate is 35% but many companies use loopholes to pay 0%). The problem isn't spending it's just that Government revenue has fallen because we've decided to give the Wealthy more money.
You could fix the debt problem tomorrow by re-instituting the tax rates for everyone under President Reagan.
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"If President Barack Obama showed real leadership in this crisis - that is, forced the bitter pill of British-style austerity down American throats - he would be a sure winner in his re-election bid next year."
Yep. But that would run contrary to his philosophy. Plus he is not equipped with the required testicular glands for such schemes.
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Obama, whom I supported, has indeed followed the Bush line on most everything: two wars that have bankrupted us (while local yokels blame teachers), the bank bailout (where bankers after the trillion infusion concluded, "Hey, we had a great year), big pharma (just try to buy prescriptions, our only high-tariff product, in Canada), educating under the MBA, gym teacher model (fire the teachers, not the overpaid TV anchors who can't make subjects and verbs agree) and other acts or non-acts. Healthcare is moot, a slight change but beneficial to big pharma.
Wouldn't that grandee have been more depressed if his only healthcare were Medicare, his retirement, Social Security? It's time to bring Congress in line with the people they represent. Maybe then they'll form a union--and a more perfect union, too.
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"- a Capitol Hill grandee. This man, not exactly a wilting flower _".
Well if he is in full bloom presumably he has a name? Isn't this taking the right of journalists to protect their sources a bit far? An entire blog post dedicated to an off the record briefing with a grandee who likes Italian food? Give me a break.
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There is a difference between British and American ideas of where austerity should be most evident.
In the U.S. the general feeling is that Washington should set an example by running government the way businesses and families run during these economic times; by eliminating staff, departments, unnecessary expenses, avoiding debt whenever possible, paying off debt, saving as much as possible, deferring vacations or big-ticket purchases and returning to core functions.
Government should sacrifice as much as it can before telling the people that they have to sacrifice more.
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Nothing can fix the United States financially until it deals with the banks too big to fail with meaningful reform. Even the bail-out have gone to the bank to big to fail, and from there into the pockets of the Wall-Street fat-cats. Have you never wondered why the stock market never compares with the actual growing poverty of the American people? Someone's getting rich and it isn't Joe the Plumber.
The view from Capital Hill is one of imperialism (Costs big money).
The view from Capital Hill is one of greed, corruption and nefarious financial products.
Not even auterity can save the United States. The $14 TRILLION DOLLAR DEBT THAT CONTINUES TO GROW EACH AND EVERY DAY is too much for even the entire world to bear.
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Americans don't like pain and suffering, so we elect politicians who promise lower taxes and more government programs. Higher taxes and fewer government services is going to be a hard sell.
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#4GH 1618
"Hardship doesn't sell in the US except in rare moments of national crisis. Comparisons between the UK and US on political matters are difficult because of the separation of legislative and executive powers in the US."
I think the basic problem is the average American has no idea on how to handle money. Most of the population is ´financially illiterate´
--- and are handled by the ´monied´ as such.
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Dear Matt Why should retirees ,working class people have to pay.This country has the greatest gap between rich and poor among developed nations.As it it disability is not enough to live on ,food stamps don not consider central heating, electricity,and running water.Many of us reside in older housing and dont have the means for weatherization.Obama made his decision early on when he put Rubin and Geithner in their positions.The only way out of this mess is to become a manufacturing country again and let the financial sector fail
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Matt Frei wrote:If President Barack Obama showed real leadership in this crisis - that is, forced the bitter pill of British-style austerity down American throats - he would be a sure winner in his re-election bid next year.
I disagree with this statement completely. (I'm sorry, Matt, but you don't seem like you understand the U.S. very well when you make statement like that.) Everyone in America loves government services; we just don't want to pay for them. That's the rub. Any politician who tries to cut these services will be tarred and feather in the next election. Obama and the Democrats dare not to touch a jot or a tittle of these services. They will stand back and allow the Republicans and the Tea Party to do the dirty work, and the conservatives will bear the brunt of the voters' wrath in the next election in 2012.
Americans will never stand for austerity measures. Since the 1950s we've become a very spoiled and narcissistic society. We think we're owed everything without any sacrifice or hard work on our part. Do you remember what George Bush said immediately after 9/11? He told us to go shopping, as if that would solve all our problems. --And most Americans believed it and didn't question it, as if a day at Macy's or Bloomingdale's could solve all your problems.
My one prediction: Congress will not slash Social Security. This is one sacred cow that not even the Republicans or the Tea Party members will be foolish enough to touch. The elderly, who are overwhelmingly conservative and vote in large numbers in each election, will go to Washington and lynch any politician who dares to cut this program. There will be riots in Washington that will make Tahrir Square look like a tranquil garden party.
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Americans do want low taxes AND entitlement programs, well, not just Americans but Americans seem to be the most stubborn believers in being able to have their cake and eat it too, whereas people in other countries generally accept that entitlement programs cost (tax)money. Many Americans also don't realize (yet) when essential services are not handled by the government or strictly regulated private companies the people end up paying more, of course it won't be in taxes but what does that matter?
Anyway, here's waht America should do if it's serious about tackling the deficit:
1) Well regulated universal healthcare would raise taxes (probably around $1-2k for a family) but it would cut private expenses even more for the average American (around $4k for a family), it would also save many lives, but that facet seems to be secondary in the current political "debate".
2) So much American money is wasted on universities that are far too expensive when compared to their foreign counterparts (I guess American deans and professors have bigger bonusses). Making education affordable again would give more people the opportunity to lift themselves out of poverty and even middle class families would benefit because they have to pay less tuition for their children.
3) America spends billions on arresting, prosecuting and incarcerating people who's only crime is smoking marijuana (apparently kids smoking marijuana is more dangerous than kids buying freely available assault rifles). Taxing marijuana growers and vendors alone would give the stats billions more in tax revenue.
4) America spends billions on supporting the militaries of Egypt, Israel, Jordan, Pakistan and others, this is ridiculous: these countries are often involved in arms races AGAINST EACH OTHER and should fund their own toys.
5) America's oil addiction makes America vulnerable: switch to high tech green energy as soon as possible to end America's addiction, get rid of rising fuel and heating costs and create jobs in the process.
6) The power of corporations need to be tackled: tax evasion has to be cut. The IRS should hunt companies down and Washington should close loopholes. Furthermore banks should face more regulation and CEO's and investment funds need to be hurt harder when one of their corporations falls (as in seize their assets until the corporations debts, including overdue salaries have been paid off).
7) Last but not least: America should get out of the futile conflicts in Afghanistan and Iraq, militarily AND financially! In addition America needs to cut back on defense: 3% of GDP is more reasonable, still well above the NATO average and more than enough to deter enemies.
All these things and more (such as not wasting taxmoney on expensive court cases to defend "traditional marriage") can be done, but it all depends on the attitude of the American voters.
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Only 16 comments in 5 days? Matt, your column is in danger of becoming irrelevant to BBC readers; better find a nice juicy sex scandal to write about, that'll pack 'em in.
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To add to my remarks at post #4, the US president does not have the power to "force (anything) down American throats." Americans would call that not "leadwrship," but tyranny.
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#16 ModernJan:
I think it's more of a guns and butter sort of thing. I believe US budgets are divided pretty equally between social programs and the military. It seems we can't afford both. If you factor in Iraq and Afghanistan, you will find US debt doubled, or preetty close to doubled, during President Bushes eight years in office. Wars are very expensive.
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re.# 18. At 00:53am on 09 Mar 2011, GH1618 wrote:
To add to my remarks at post #4, the US president does not have the power to "force (anything) down American throats." Americans would call that not "leadwrship," but tyranny.
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Actually, President Obama is trying to do just that with his carbon reduction policy. He couldn't get it through Congress as a law so he has ordered the Environmental Protection Agency (EPA) to impose it by regulation thereby imposing his will and policy on the country against the express disapproval of the people's elected representatives, i.e. Congress. If that's not forcing something down people's throats I'd like to know what is.
And there's the matter of his health care reform act, admittedly passed by Congress but literally in the middle of the night without time for debate or amendment and on a straight party line vote--a form of power play almost unheard of in our system of government and one which if a Republican administration had pulled it off would have generated howls of outrage on editorial pages across the country. While that may not technically be cramming something down our throats a lot of people are still choking on that one.
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Buzet23, (#1324. At 08:28 8th Aug 2011)
”... As for QOT asking me about the role of the confessional in Catholism it's a bit like asking if the pope's a Catholic. Since I am not and never have been a Catholic or attended a mass or confessional I only know what is written about the subject. QOT has a penchant for going off topic as you've also commented on.”
I suspect that quietoaktree would like to move on to almost any subject where his ignorance of the facts is not yet known. He knows from reading your posts that you are areligious, and are unlikely to call him out on specifics he will claim about the RC Church.
Given the results here of his immediate past efforts, changing the subject by attacking the RC Church (which is all he will do) is a safe harbor.
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