Why U.S. Midterms Should Point Obama Toward Europe

November 04, 2010 6:01 PM

It may be old news  by now but America has a new Congress, a new Speaker of the House, and a new direction for many policy issues. In the UK many MPs have agreed it’s about time.


Obama Before yesterday MPs avoided two forbidden words when talking about America: deficit and spending. Treasury Minister, Mike Hoban, went one step too far when he had the nerve to suggest the U.S. took the wrong approach towards its economic policy.


Economically the U.S. was isolated because while the rest of the world was practicing austerity, the U.S. was spending to the tune of $800 (£491) billion in an economic stimulus package. A stimulus, which was supposed to save employment and shrink deficit.  However, today unemployment is hovering at 10% and the U.S. debt is over $13 (£7.9) trillion.


The American people overwhelmingly rejected the tax and spend policies of the past 20 months and their mandates resembles the European approach: fiscal restraint. This new approach is being used in France, Germany, and the U.K. It’s as simple as cut waste, stop spending recklessly, and hold government more accountable for what they do with taxpayer funds.


The British public have mostly accepted that these cuts are not only necessary but essential for financial solvency. Director of the TaxPayers’ Alliance, Matthew Sinclair, recently spoke to an audience of civil servants and accountants, and at the end of the debate the audience concluded with the TPA that these cuts made sense.


There is a reason that Mr. Cameron has become remarkably close to Mrs. Merkel and Mr. Sarkozy; the three leaders share a common purpose in cutting spending and reducing the EU budget.


But will Mr. Obama will listen intuitively to his European counterparts at the upcoming G20 summit?


Or will he follow the policies of Gordon Brown,who ardently believes in spending your way out of a recession.


If this is the case then Mr. Sarkozy might want to give Obama his previous pep talk of living in the “real world” not the virtual one.


 

It may be old news  by now but America has a new Congress, a new Speaker of the House, and a new direction for many policy issues. In the UK many MPs have agreed it’s about time.


Obama Before yesterday MPs avoided two forbidden words when talking about America: deficit and spending. Treasury Minister, Mike Hoban, went one step too far when he had the nerve to suggest the U.S. took the wrong approach towards its economic policy.


Economically the U.S. was isolated because while the rest of the world was practicing austerity, the U.S. was spending to the tune of $800 (£491) billion in an economic stimulus package. A stimulus, which was supposed to save employment and shrink deficit.  However, today unemployment is hovering at 10% and the U.S. debt is over $13 (£7.9) trillion.


The American people overwhelmingly rejected the tax and spend policies of the past 20 months and their mandates resembles the European approach: fiscal restraint. This new approach is being used in France, Germany, and the U.K. It’s as simple as cut waste, stop spending recklessly, and hold government more accountable for what they do with taxpayer funds.


The British public have mostly accepted that these cuts are not only necessary but essential for financial solvency. Director of the TaxPayers’ Alliance, Matthew Sinclair, recently spoke to an audience of civil servants and accountants, and at the end of the debate the audience concluded with the TPA that these cuts made sense.


There is a reason that Mr. Cameron has become remarkably close to Mrs. Merkel and Mr. Sarkozy; the three leaders share a common purpose in cutting spending and reducing the EU budget.


But will Mr. Obama will listen intuitively to his European counterparts at the upcoming G20 summit?


Or will he follow the policies of Gordon Brown,who ardently believes in spending your way out of a recession.


If this is the case then Mr. Sarkozy might want to give Obama his previous pep talk of living in the “real world” not the virtual one.


 

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