Debt ceiling, round two

The USA is once again on course for financial disaster through no fault but their own.

Remember the debt ceiling debacle, when the broken American political system led to the country losing its triple-A credit rating, and nearly resulted in the largest economy in the world defaulting on its debt? Well, joy of joys, in nine months, it's all going to happen again.

The problem is the basic disagreement was never actually resolved, but merely postponed until after the election so that the Republicans could get back to the important business of tearing their party apart with excruciating primaries and loony-fringe candidates. The deal that raised the ceiling required a spending bill to be passed in both houses of congress that substantially removes the deficit. If no such bill is passed, then on January 1st 2013, a whole raft of automatic spending cuts are introduced at once, bringing in what American commentators breathlessly describe as "European levels of austerity".

Not only that, but on the same day those cuts come in, the the Bush tax cuts and the Obama payroll tax cuts both expire, increasing the tax burden on millions of Americans. Oh, and emergency unemployment benefits also time out.

Congress has had ample warning to sort out the mess (almost as much warning as it had before the initial face-off), but yesterday the House of Representatives rejected two possible solutions. The first, a bipartisan bill which has the most chance of passing in the Democrat-controlled Senate, was defeated 382-38; the second, the White House's preferred option, was unanimously rejected 414 to 0. Instead, it seems likely that the House will pass, along strict party lines, Republican Congressman Paul Ryan's bill, which has no hope of passing getting through any Democrats, calling as it does for "draconian reductions in the federal government's commitment to financing health care for the disabled, the elderly, and the poor", in the words of Slate's Matt Yglesias. So the Senate will reject the bill, and the whole damn thing will start again.

Faced with the unappealing task of repeating last summer, Fed chairman Ben Bernanke has weighed in, telling the House Financial Services Committee:

Under current law, on Jan. 1, 2013, there’s going to be a massive fiscal cliff of large spending cuts and tax increases. I hope that Congress will look at that and figure out ways to achieve the same long-run fiscal improvement without having it all happen at one date.

All those things are hitting on the same day, basically. It’s quite a big event.

Barclays Capital has calculated that the combined effect of all these cuts hitting at once would wipe 2.8 per cent off the annualised growth rate for the first quarter of 2013, bringing them from 3 per cent to 0.2 per cent growth. For comparison, the UK – which is voluntarily enacting "European levels of austerity" – is currently forecast by the OBR to have 2.0 per cent growth over the year, and the OECD forecast yesterday had us on minus 0.4 per cent over the first quarter of 2012, with the USA already at growing at 3 per cent annualised.

The worst case scenario is unlikely to happen; just as an actual default was unlikely to happen when the debt ceiling needed to be raised. The most likely outcome is that Congress will simply postpone everything once again, renewing the tax cuts and shrinking, but not removing, the automatic spending cuts. But all of this has led Bloomberg's Clive Cook to declare:

But there’s a much bigger threat to U.S. power [than the growth of China]: the increasingly abject failure of the country’s own political class.

Congressman Paul Ryan. Credit: Getty

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Reuters/New Statesman composite.
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When it comes to social media, we all have a responsibility to avoid sharing upsetting images

If Twitter is the new journalism, we are all editors – and responsible for treating our fellow humans with dignity.

“I wish I hadn’t seen that”, my colleague says from across the desk. It’s been an hour since the first reports came in of a shooting outside Parliament, and the news agency Reuters has started posting photographs of injured people, knocked down by the terrorist as he drove across Westminster Bridge.

In one, a brunette woman leans over a victim whose blood is beginning to stain the wet pavement. Lying on her back, she is framed by scattered postcards sold for tourists which have been knocked to the floor. She is clutching the arm of the woman helping her, but her eyes are staring dead into the photographer’s lens.

Another photograph – the one that my colleague is referring to – disturbs me even more: a man who has fallen (or been pushed?) off the bridge onto a stairwell. He is face down in a pool of blood, his left leg at an unnatural angle. It is impossible to tell if he is alive or not.

Briefly, before I scroll past, I wonder if someone, somewhere is seeing the same picture and experiencing a shock of recognition as they recognise their friend’s clothes.

And then there is one picture which I now cannot find on Twitter, but which, lying in bed last night, I could not stop thinking of: a woman’s legs extended from under the wheel of a bus, her skirt hiked up to show her underwear, her shoes missing.

We are a desk of journalists covering an attack on the Houses of Parliament, so I keep scrolling. It is only later, in an article by the Telegraph, that I learn a junior doctor has declared the woman dead.

Of course, the shock of seeing images like these is nothing compared to what war reporters, doctors or police go through on a regular basis. But a 2015 study at the University of Toronto found that extended exposure to violent or disturbing material can have a severe effect on journalists’ mental health.

The impact can be particularly confusing when one does not anticipate seeing violence.On social media, we increasingly encounter images this way: without warning and without a chance to steel ourselves. This is particularly a problem when it comes to members of the public, whose jobs don’t require them to look at shocking material but who can nevertheless be exposed to it just by virtue of using a social media network.

It is for this reason that, shortly after Reuters published their photographs of the Westminster victims, prominent journalists began posting asking their colleagues not to retweet them. Some protested the fact that Reuters had published them at all.

In today’s media landscape, news moves fast and social media faster. Where a picture editor would have previously had until their print deadline to decide which images to run, now photographers are able to send their work back to the office almost instantaneously, and editors must make a snap decision about what to release.

Deciding what images to use can be a difficult call – especially under pressure. On the one hand, there is the urge to not turn away, to bear witness to the full magnitude of what has happened, even if it is shocking and upsetting. On the other, there is the need to treat fellow human beings with dignity, and particularly to avoid, where possible, showing images of victims whose families have not yet been informed.

Social media makes this process even more difficult. Once released online, photographs of the Westminster attack were quickly saved and re-posted by private individuals, stripped of context or warning. One can choose not to follow the Reuters Pictures account, but one cannot necessarily avoid seeing an image once it is being retweeted, reposted and recycled by private accounts.

As the line between traditional news and social media blurs and we increasingly become participants in the news, as well as consumers of it, our sense of responsibility also shifts. On Twitter, we are our own editors, each charged with making sure we extend dignity to our fellow humans, even – especially – when the news is dramatic and fast-moving.

I was glad, this morning, to encounter fewer and fewer photographs – to not see the girl lying under the bus again. But at 3am last night, I thought about her, and about her family; about them knowing that journalists on desks across Britain had seen up their loved one’s skirt during the last moments of her life. It was, without putting too fine a point on it, no way to encounter a fellow human being.

Over the next few days, we will find out more about who the victims were. The media will release images of them in happier times, tell us about their jobs and careers and children – as is already happening with Keith Palmer, the policeman who we now know died on the Parliamentary Estate.

It is those images which I hope will be shared: not just as a way to resist fear, but as a way of acknowledging them as more than victims – of forging a different connection, based not in horror and voyeurism, but in a small moment of shared humanity.

There is no shame in being affected by graphic images, however removed one “ought” to feel. If you would like someone to talk to, Mind can provide details of local services.

The BBC also provides advice for those upset by the news.

Find out how to turn off Twitter image previews here.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland