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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Watch: The evidence Nigel Farage said money sent to the EU should go to the NHS

After the EU referendum result, Nigel Farage said it was a "mistake" for Leave to suggest funds could go to the NHS. But what's this?

Remember Friday? (I know: it's not necessarily a pleasant thing to do, but bear with me.) On Friday, hours after the result of the EU referendum was announced, Nigel Farage appeared on Good Morning Britain and said that the Leave campaign advertising which linked the extra "£350m a week" Brexit would allegedly gift us with the NHS was a "mistake".

Sure, it was on posters, and emblazoned on a bus, and he didn't speak up to disabuse anyone of the notion. But let's give Farage the benefit of the doubt and pretend he does sorely regret the fact that, through no fault of his own, members of the electorate may have been led to believe that that money would be put into healthcare. It must be tough, when you ought to be high on your victory, to have to answer for other people's mistakes

Ah. Hold that thought.

It looks like the Independent has unearthed a video of Nigel Farage on television before the vote, and  strange thing  he tells Hilary Benn that the money currently being sent to Europe should be spent on, er, "schools, hospitals and the NHS".

Well, this mole isn't sure what to say. Maybe Farage doesn't remember this specific moment? Maybe when he said "schools, hospitals and the NHS" he actually meant something different, like "negotiating our exit from the EU", or "paying to access the common market despite no longer being a member"? Or maybe when he said that money should be spent on these things, he didn't mean it necessarily would be, and it would have been entirely unreasonable for the voting public to make such an absurd leap?

All I can suggest is that you watch and decide for yourself, dear reader.

I'm a mole, innit.