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The Surrender President: Mehdi Hasan on Obama's "deal" with congress.

Obama's "deal" isn't a compromise. It's capitulation. And there were alternatives.

We got 98 per cent of what we wanted.

That's the verdict of Republican congressman and House Speaker, John "dark side" Boehner, on the debt deal that was agreed yesterday between Barack Obama, congressional Democrats and congressional Republicans.

The deal, as the BBC summarises, involves:

* Government spending cuts of $900bn, split between defence and non-defence spending

* Bipartisan Congressional "super-committee" to recommend $1.5trn of further spending cuts, spread out over ten years, reporting by November

* Cuts to key spending areas, including education and defence spending, to be enacted automatically if committee fails to reach a deal

It's difficult to disagree with Boehner. Obama started off asking for a "clean" rise in the $14.2trn debt ceiling and then switched to pleading for tax revenues to match spending cuts. He got neither. He couldn't even get the Tea Party crazies to agree to the abolition of the tax exemptions on private jets. The US budget deficit will be paid off the backs of the poor. Here is the opening para of a news report on the website Hedgefund.net:

Hedge-fund managers and others in the investment world breathed a sigh of relief when President Barack Obama announced Sunday night a tentative deal to raise the county's debt ceiling.

Obama defenders have also railed against critics of the president, asking again and again: "Well, what was the alternative? What is YOUR alternative?"

Well, to begin with, as the Irishman said, "I wouldn't have started from here."

But Paul Krugman offers some details:

Did the president have any alternative this time around? Yes.

First of all, he could and should have demanded an increase in the debt ceiling back in December. When asked why he didn't, he replied that he was sure that Republicans would act responsibly. Great call.

And even now, the Obama administration could have resorted to legal maneuvering to sidestep the debt ceiling, using any of several options. In ordinary circumstances, this might have been an extreme step. But faced with the reality of what is happening, namely raw extortion on the part of a party that, after all, only controls one house of Congress, it would have been totally justifiable.

At the very least, Mr. Obama could have used the possibility of a legal end run to strengthen his bargaining position. Instead, however, he ruled all such options out from the beginning.

As Robert Reich, the academic and former US labour secretary (under Bill Clinton) points out:

But another part of the answer lies with the president -- and his inability or unwillingness to use the bully pulpit to tell Americans the truth, and mobilize them for what must be done

Barack Obama is one of the most eloquent and intelligent people ever to grace the White House, which makes his failure to tell the story of our era all the more disappointing and puzzling. Many who were drawn to him in 2008 (including me) were dazzled by the power of his words and insights -- his speech at the 2004 Democratic convention, his autobiography and subsequent policy book, his talks about race and other divisive issues during the campaign.

We were excited by the prospect of a leader who could educate -- an "educator in chief" who would use the bully pulpit to explain what has happened to the United States in recent decades, where we must go, and why.

But the man who has occupied the Oval Office since January, 2009 is someone entirely different -- a man seemingly without a compass, a tactician who veers rightward one day and leftward the next, an inside-the Beltway dealmaker who doesn't explain his compromises in light of larger goals.

In his inaugural address, Obama warned that "the nation cannot prosper long when it favors only the prosperous." In private, he professes to understand that the growing concentration of income and wealth at the top has robbed the middle class of the purchasing power it needs to keep the economy going. And it has distorted our politics.

He is well aware that the Great Recession wiped out $7.8 trillion of home values, crushing the nest eggs and eliminating the collateral that had allowed the middle class to keep spending despite declining real wages -- a decrease in consumption that's directly responsible for the anemic recovery.

But instead of explaining this to the American people, he joins the GOP in making a fetish of reducing the budget deficit, and enters into a hair-raising game of chicken with House Republicans over whether the debt ceiling will be raised.

Never once does he tell the public why reducing the deficit has become his number one economic priority. Americans can only conclude that the Republicans must be correct -- that diminishing the deficit will somehow revive economic growth and restore jobs.

And here's Bill Clinton, the Bubba himself, earlier this month, saying what he'd have done were he still in the Oval Office:

Former President Bill Clinton says that he would invoke the so-called constitutional option to raise the nation's debt ceiling "without hesitation, and force the courts to stop me" in order to prevent a default, should Congress and the President fail to achieve agreement before the August 2 deadline.

But Obama shied away from using the 14th Amendment. Perhaps, as Reich suggests, because:

. . . he simply lacks the courage to tell the truth. He wants most of all to be seen as a responsible adult rather than a fighter. As such, he allows himself to be trapped by situations -- the debt-ceiling imbroglio most recently -- within which he tries to offer reasonable responses, rather than be the leader who shapes the circumstances from the start.

Obama cannot mobilize America around the truth, in other words, because he is continuously adapting to the prevailing view. This is not leadership.

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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Inside a shaken city: "I just want to be anywhere that’s not Manchester”

The morning after the bombing of the Manchester Arena has left the city's residents jumpy.

On Tuesday morning, the streets in Manchester city centre were eerily silent.

The commuter hub of Victoria Station - which backs onto the arena - was closed as police combed the area for clues, and despite Mayor Andy Burnham’s line of "business as usual", it looked like people were staying away.

Manchester Arena is the second largest indoor concert venue in Europe. With a capacity crowd of 18,000, on Monday night the venue was packed with young people from around the country - at least 22 of whom will never come home. At around 10.33pm, a suicide bomber detonated his device near the exit. Among the dead was an eight-year-old girl. Many more victims remain in hospital. 

Those Mancunians who were not alerted by the sirens woke to the news of their city's worst terrorist attack. Still, as the day went on, the city’s hubbub soon returned and, by lunchtime, there were shoppers and workers milling around Exchange Square and the town hall.

Tourists snapped images of the Albert Square building in the sunshine, and some even asked police for photographs like any other day.

But throughout the morning there were rumours and speculation about further incidents - the Arndale Centre was closed for a period after 11.40am while swathes of police descended, shutting off the main city centre thoroughfare of Market Street.

Corporation Street - closed off at Exchange Square - was at the centre of the city’s IRA blast. A postbox which survived the 1996 bombing stood in the foreground while officers stood guard, police tape fluttering around cordoned-off spaces.

It’s true that the streets of Manchester have known horror before, but not like this.

I spoke to students Beth and Melissa who were in the bustling centre when they saw people running from two different directions.

They vanished and ducked into River Island, when an alert came over the tannoy, and a staff member herded them through the back door onto the street.

“There were so many police stood outside the Arndale, it was so frightening,” Melissa told me.

“We thought it will be fine, it’ll be safe after last night. There were police everywhere walking in, and we felt like it would be fine.”

Beth said that they had planned a day of shopping, and weren’t put off by the attack.

“We heard about the arena this morning but we decided to come into the city, we were watching it all these morning, but you can’t let this stop you.”

They remembered the 1996 Arndale bombing, but added: “we were too young to really understand”.

And even now they’re older, they still did not really understand what had happened to the city.

“Theres nowhere to go, where’s safe? I just want to go home,” Melissa said. “I just want to be anywhere that’s not Manchester.”

Manchester has seen this sort of thing before - but so long ago that the stunned city dwellers are at a loss. In a city which feels under siege, no one is quite sure how anyone can keep us safe from an unknown threat

“We saw armed police on the streets - there were loads just then," Melissa said. "I trust them to keep us safe.”

But other observers were less comforted by the sign of firearms.

Ben, who I encountered standing outside an office block on Corporation Street watching the police, was not too forthcoming, except to say “They don’t know what they’re looking for, do they?” as I passed.

The spirit of the city is often invoked, and ahead of a vigil tonight in Albert Square, there will be solidarity and strength from the capital of the North.

But the community values which Mancunians hold dear are shaken to the core by what has happened here.

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