America Is Curtailing Spending
Published in De Volkskrant
(Netherlands) on 15 February 2011
by Fokke Obbema (link to original)
Following in Europe’s steps, the U.S. has announced a plan to economize. Unfortunately, no daring vision lies beneath the U.S.' approach, but at least the American government has finally realized that something needs to happen in regard to its immense budgetary deficit. After all the European governments that were forced to make cuts in the aftermath of the international credit crisis, President Obama likewise has decided to do so. Thus far, his actions showed his belief that stimulating the economy was the primary concern.
The timing of this change in policy can only be explained as a political move. The United States is still not doing well: Unemployment is 10 percent and economic growth is weak. The political forces in Washington recently changed after the interim elections. This shift has forced Obama into cooperation with the Republicans.
That cuts are now finally being made, is just, considering the government deficit. The deficit will amount to $1.6 billion dollars this year, or 11 percent of the gross national product. This brings to mind the economic situation in Greece. But the U.S. has to be careful not to move too fast because growth is still fragile and it can also be economized to the point of breaking.
The Republicans overshot themselves at the moment — Obama’s plans are not enough for them. It seems they have conveniently forgotten that President George Bush, a Republican, is partially to blame for the government deficit.
The new plan the government has made does not reflect a daring vision, but a means of appeasing Congress. The rising costs of health care are being left out of the picture. The health care issue is a political taboo in the U.S. because the proposed cuts mainly affect people in lower income brackets and with less education. For Obama, those are painful concessions.
The timing of this change in policy can only be explained as a political move. The United States is still not doing well: Unemployment is 10 percent and economic growth is weak. The political forces in Washington recently changed after the interim elections. This shift has forced Obama into cooperation with the Republicans.
That cuts are now finally being made, is just, considering the government deficit. The deficit will amount to $1.6 billion dollars this year, or 11 percent of the gross national product. This brings to mind the economic situation in Greece. But the U.S. has to be careful not to move too fast because growth is still fragile and it can also be economized to the point of breaking.
The Republicans overshot themselves at the moment — Obama’s plans are not enough for them. It seems they have conveniently forgotten that President George Bush, a Republican, is partially to blame for the government deficit.
The new plan the government has made does not reflect a daring vision, but a means of appeasing Congress. The rising costs of health care are being left out of the picture. The health care issue is a political taboo in the U.S. because the proposed cuts mainly affect people in lower income brackets and with less education. For Obama, those are painful concessions.
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