The deficit? Clinton gets it but Obama doesn't, claims Mehdi Hasan

The Bubba comes out against austerity.

 

Here's Bill Clinton speaking at the Campus Progress conference in Washington, DC, yesterday:

In the current Budget debate, there is all this discussion about how much will come from spending cuts, how much will come from tax increases. Almost nobody's talking about one of the central points that everyone who's analysed this situation makes -- including the bipartisan Simpson-Bowles Commission -- which said you shouldn't do any of this until the economy is clearly recovering.

Because if you do things that dampen economic growth . . . And the UK's finding this out now. They adopted this big austerity budget. And there's a good chance that economic activity will go down so much that tax revenues will be reduced even more than spending is cut and their deficit will increase.

He gets it. He understands the point that John Maynard Keynes made eight decades ago:

The boom, not the slump, is the right time for austerity.

But here's Barack Obama -- who came to office with a pro-Keynes, pro-stimulus mindset and advisory team (Christina Romer, Larry Summers) -- speaking on Saturday 2 July, in his weekly radio address:

. . . We're working to reduce our nation's deficit. Government has to start living within its means, just like families do. We have to cut the spending we can't afford so we can put the economy on sounder footing and give our businesses the confidence they need to grow and create jobs.

I never thought I'd opt for Bill Clinton over Barack Obama (or "Barack Herbert Hoover Obama", as Paul Krugman puts it) but, on the deficit, the latter has become an austerian in recent months. Clinton, on the other hand, remains a Keynesian -- and it is Keynesian economics that can get us out of this mess.

[Hat-tip: Left Foot Forward and Andrew Sparrow]

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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Andy Burnham's full speech on attack: "Manchester is waking up to the most difficult of dawns"

"We are grieving today, but we are strong."

Following Monday night's terror attack on an Ariana Grande concert at the Manchester Arena, newly elected mayor of the city Andy Burnham, gave a speech outside Manchester Town Hall on Tuesday morning, the full text of which is below: 

After our darkest of nights, Manchester is today waking up to the most difficult of dawns. 

It’s hard to believe what has happened here in the last few hours and to put into words the shock, anger and hurt that we feel today.

These were children, young people and their families that those responsible chose to terrorise and kill.

This was an evil act. Our first thoughts are with the families of those killed and injured. And we will do whatever we can to support them.

We are grieving today, but we are strong. Today it will be business as usual as far as possible in our great city.

I want to thank the hundreds of police, fire and ambulance staff who worked throughout the night in the most difficult circumstances imaginable.

We have had messages of support from cities around the country and across the world, and we want to thank them for that.

But lastly I wanted to thank the people of Manchester. Even in the minute after the attack, they opened their doors to strangers and drove them away from danger.

They gave the best possible immediate response to those who seek to divide us and it will be that spirit of Manchester that will prevail and hold us together.

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