I was on Cavuto last night and he had a very interesting first segment about some recently released opinion polls: Americans wanted spending cuts but were coming over all NIMBY about them. Cuts were fine as long as they happened to someone else.
Of course this was their response. That is human nature. We’re seeing this very reaction in the UK at the moment now George Osbourne has actually announced how GBP81 billion in spending cuts will occur over the next 5 years. However, these cuts are absolutely necessary for Britain’s long term financial stability and I do believe that the British know that they are. Cameron and Clegg are dealing with a generation of Thatcher’s children – they know tough times are sometimes required for good.
But what of the US? Do American politicians have the stomach – or the mandate – for the level of spending cuts – and tax raises – that the Deficit Reduction Commission will inevitable recommend on December 1st? Because make no bones about it, there is no chance of reducing the US deficit without tax increases and spending cuts together.
I’m not so sure the politicians in the US do. At the moment, it’s all about the election and winning votes, so it’s unsurprising that neither Republicans nor Democrats are talking about specifics. But after, what are we going to have? A gridlocked Congress? Politicians and lobbyists looking out for their own agendas?
Tough decisions need to be made for the good of America. But will they? It’s a worry, and the American people deserve better.