Future of Finance Perspective: Why we must never allow Westminster to turn into Washington
In her first column for the Young Fabian Blog, Young Fabian Future of Finance Network member Gillian Econopouly writes about the the US debt ceiling crisis and argues that British politics needs to avoid the toxic political discourse which has enveloped US politics.
This weekend, America woke up to the news that its seemingly infallible triple-A credit rating had been downgraded, as ratings agency Standard & Poors made good on warnings that wrangling over the US debt ceiling could have serious consequences for the countrys finances.
Whilst blame has been attributed to both parties, from both within and without, fascinated UK observers watched as moderate US Republicans struggled to bring the fulcrum of power within their party back to the centre ground and away from the now-infamous ‘Tea Party’ activists. This time, they seem to have failed in their efforts, even if the party won the day on the debt concessions.
Whilst Labour Party supporters (and let’s be honest, many Conservatives and Liberals too) who hope to see a second Obama victory will welcome the electoral opportunity created by such internal division on the right, what has happened in the past weeks and months is actually incredibly damaging.
News reports have focused mainly on the embarrassment of the debacle to the US, as the country was chided by China for its irresponsible behaviour. This makes for excellent geo-political drama, to be sure, but the real cost as usual is to those already hit hard by the recession. Americans who have found their way back into work after the economic crisis will fear for the security of their jobs, whilst those still seeking paid work will continue to face an uphill battle. Even taking into account the cuts to public services in the UK, the social safety net for Americans remains much less developed, meaning poor parents will struggle to put food on the table and access health care for their children.
The Tea Party is not the only culprit in this saga, but it has a lot to answer for. The group ascribes to a political philosophy which is not only knee-jerk and divisive, but also seems to reject informed debate and instead rely on a folksy defiance against tax and government involvement without considering the relative merits of each issue. Critical analysis is rejected, and a values-based rhetoric about freedom and personal choice is being used to lure poorer Americans into basically voting against their own interests.
Whilst we have our own difficulties with fringe parties in the UK, we must never let what happened in Washington come to Westminster. Not just the downgrading of our credit rating (although that too would be damaging). But the lowering of political debate to a level so toxic and unproductive that we lose sight of the people who rely on policymakers from both parties to use intellect, information, judgment and yes, compromise, to make the decisions that the country needs.
In opposition, the Labour party has a responsibility to avoid the temptation of low-brow politics and instead focus on creating informed debate, undertaking considered critique, and putting forward real solutions and alternatives.
Our democracy demands it, and ultimately, voters will respect it.
You can find out more about the Young Fabian Future of Finance Network by clicking here.
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