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Newt encounters a different kind of Tea Party, writes Laurie Penny

"To my astonishment, the audience applauds. Gingrich is in a spot."

"To my astonishment, the audience applauds. Gingrich is in a spot."

"You're from Britain? You want to watch out," says the man with the Newt 2012 sticker plastered across his paunch. "If you don't do something soon, your country will be under Sharia law. And that won't be any good for you, miss. You know what I'm saying."

I have come to a meeting of the Staten Island Tea Party, where Newt Gingrich, currently the front-runner in the Republican presidential debate, is about to give a campaign speech.

My new friend, Kevin Coach, is a retired police officer in his early sixties. He was a supporter of Herman Cain, but as the former pizza-chain mogul's presidential bid recently collapsed in a welter of sexual assault allegations, Kevin has switched allegiance . "Anyone but Mitt Romney," he says.

We need to talk about Kevin, and the five hundred other overwhelmingly white, middle-aged Americans who have gathered to hear Gingrich speak today.

This man --  a former cop with fists like ham hocks that he thumps on his knees for emphasis, a libertarian blogger, a Tea Partier and, finally, a person wearing a baseball hat without a shred of irony -- is everything that people like me are supposed to loathe. But I don't.

When he informs me about the practical dangers of the burqa -- "no side vision. Those women are constantly getting run down by cars" -- he flashes a grandfatherly smile, and I suspect that the safety of young women on the roads of a notional Islamic Caliphate of Britain is, on some level, a genuine concern for him.

The basic emotional language Kevin Coach is speaking is one of fear, and I believe that this fear comes from a place that is chillingly familiar.

Suddenly, it's time for the Gingrich show.

The presidential hopeful takes the stage, surrounded by an entourage of security personnel, well-wishers from central casting and a terrifying fem-bot of a wife who is here to promote a children's book she has written about American exceptionalism, which stars Ellis the baby elephant on a journey of neoliberal indoctrination. The book is available in the lobby.

There is a call to stand, and the pledge of allegiance is chanted with hands on hearts and the veterans in the audience applauded with that peculiarly American cultish credence that is somehow less, rather than more, frightening when it's happening all around you rather than on the television.

We take our seats, and it takes Newt Gingrich -- a man with the aspect of a toad with expensive dental work and whose forced exit as Speaker in 1998, under a cloud of corruption, followed midterm election defeat-- roughly three minutes to lose the interest of half the audience.

The people gathered here are less rapt by Gingrich's clunky, high-school-debate-champ, pro-market propaganda than they are by praise for the idea of America as an "exceptional nation", which draws the largest cheer of the afternoon.

Stand-up fights nearly break out at two separate points in the speech, the first when a group of infiltrators from the Occupy movement stand up and attempt to disrupt the proceedings by shouting "Mic check!". As they are evicted, thick-necked men seated all around me stand and pump their fists in the air, chanting "Newt! Newt! Newt!"

This Tea Party gathering is a jumpy, anxious crowd, teetering between violence and implosion. It is a crowd that wants its prejudices pandered to, a crowd that is worried about jobs, a crowd that has allowed itself to be convinced of a wholescale, unfair confiscation of privilege from white, middle-aged, middle-class Americans; a crowd whose members want to believe that they are still special and powerful, as if they ever were.

It is not a crowd of monsters. If it were, it would be easy to dismiss. It is a crowd of frightened, angry human beings watching their lives get steadily worse, and that is a far scarier prospect.

These people could come from any state in America. They are parents and grandparents and teachers and small business owners, the core of the Republican vote, and they are swallowing hard lumps of rhetoric about dissolving the welfare state and cutting taxes for the rich washed down with bland Obama-bashing that always steers far enough away from overt racism to avoid headlines.

This is how the trick is done. This is how -- with the Eurozone is in crisis, with rioting and protest in the streets of major cities across the world and the Durban climate talks likely to signal the end of even the limited climate concessions offered by the Kyoto protocol -- a friend of big business like Gingrich persuades white-collar workers to vote in their millions to protect banks and corporations from regulation.

The trick, however, is wearing thin. During the question-and-answer session, a middle-aged man in a fleece jacket takes the microphone and tells the crowd, struggling to stop his soft voice from breaking, that he is at risk of having his home foreclosed, that he is fighting a bank that wants to take everything from him and his family. He wants to know, should Gingrich become president, "What would you do regarding the financial crisis and making the banks pay?"

To my astonishment, the audience applauds. Gingrich is in a spot. This man has obviously not been listening to the preceding hour of gentle tubthumping about giving banks even more freedom to do whatever the hell they like with public money. The candidate gives a mitigated statement in support of small, local banks, and the audience cheers.

"I'd just like to say," says the questioner, quietly repeating the mantra of the Occupy movement, "that I am one of the 99 per cent, and I appreciate this dialogue."

It's a dialogue of desperation and hope that answers the same concerns shared by many of the ordinary Americans gathered here, without resorting to co-optable xenophobia or cheap cultural prejudice. It's a dialogue that gets to the heart of injustice in the developed world.

And it's a dialogue with which, soon enough, even the Republican Party may find itself forced to engage.

Laurie Penny is a contributing editor to the New Statesman. She is the author of five books, most recently Unspeakable Things .

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR