Where Obama and Romney are neck and neck

The first in a series of campaign reports from Hicksville, Ohio.

“A national political campaign,” the journalist HL Mencken once said, “is better than the best circus ever heard of.” Well, the circus is in town again. With the words, “I never said this journey would be easy,” Barack Obama sounded the starting-pistol for the sprint toward the Presidential election in November.

Six hundred miles north of where he was speaking at the Democratic National Convention in North Carolina, I had arrived in the town of Hicksville, Ohio, where I am spending the next sixty days following the campaign's every twist and turn for the New Statesman.

The picturesque main street is dominated on one side by a water-tower that serves as town sign, and on the other by a vast, imposing and incongruous grain silo complex. Small family businesses – Jodee's Video, Bob's Auto Repair, Yoder's Restaurant – jostle for attention as huge trucks rumble through on the way from foundry or farm to factory or silo. In the distance, the deeper thunder of industrial trains can be heard day and night. Further out, pretty and jumbled wooden houses skirted with verandahs share well-tended lawns strewn with children's toys.

Hicksville may seem tranquil on the surface as it basks in the late summer swelter, but it sits atop a political hornet's nest. Defiance County is in the middle of the rust belt, the north-eastern and mid-western industrial heart of the country. According to the Center for Automotive Research, the auto industry employs 1.7 million people in the US and supports 6.3 million more; most of them are nearby. Detroit, home of Ford and General Motors, is just a couple of hours drive to the north. Among car workers Obama should be on solid ground – his bailout of the auto industry saved hundreds of thousands of jobs – but outside the manufacturing towns, the countryside is small-c conservative heartland. Cars drive by tuned either to country music or Fox News Radio. If this was England, they'd all read the Daily Mail.

In 2008, Obama won here with 51.5 per cent, but now polls variously place the President and his Republican challenger neck and neck. Ohio is the battleground state; possibly the most important in this election. Both parties know it. The President was in Toledo, a bigger town just up the road, on Monday, where he spoke almost entirely in football metaphors (the season opened Wednesday night with the Cowboys beating the Giants); Vice-President Biden will be in the state this weekend – his third visit to the state in just over a week – and former President Bill Clinton will be campaigning here too.

Mitt Romney's campaign came through here last month, and his wife Ann was in the state a few days ago, trying to rally support for her husband among women voters. No Republican in modern times has won the White House without Ohio's 18 electoral college votes, and Romney is playing a strategy in which he concentrates his mighty campaign finances on a few key states, including this one. On Thursday, his campaign announced a major purchase of television advertising here, as well as in Florida, New Hampshire, and five other swing states.

“If this President wins another term,” says Connie, who runs the only hotel in Hicksville, “we're all screwed.” She is not alone in this. “I've been reading about this President, and what I read scares me,” says Mary-Ann Barth, who edits the Hicksville News-Tribune. Painted on a high street junk-shop window in big letters is: “One Big-Ass Mistake America – Cut Tax Spending”, and calls for the terrifying prospect of a “PALIN-BECK 2012” ticket.

Even Hicksville is not entirely lost to the President, however. On top of the scrawls in the window, some rebellious soul has stuck a small, lonely but audacious Obama-Biden sticker.

Street scene in Hicksville, Ohio

Nicky Woolf is reporting for the New Statesman from the US. He tweets @NickyWoolf.

Photo: Getty Images
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.