Obama’s deal with the GOP exposes two sad truths

President sacrifices key campaign promise for the sake of political expediency.

It is said that a stereotype gains traction because there is within it an element of truth. This week, we appear to have further confirmation of this idea. In the United States, President Barack Obama has agreed to a deal that sees the economically disastrous tax cuts passed under George W Bush extended for another two years, having campaigned against them in 2008. In this one move, Obama has, for a large number of people, demonstrated the truth in two stereotypes.

First, that politicians from all sides of the spectrum will go back on their campaign promises if it suits them politically. Morals be damned; political expediency is king (another recent example of this was when Obama's predecessor said – with a straight face – that he was not in the business of nation-building). Obama is not bowing to public pressure to appear strong in the face of an enemy as Bush did, however. He is caving in to the pressure from rich Republicans who threatened to filibuster tax relief for the middle-class households of America if the tiny minority of millionaires and billionaires did not also get the same treatment.

Which leads us to the second stereotype: the weak Democrat.

The Democratic Party has been infuriating the American left for years because it appears to be utterly unwilling to fight the Republicans on any issue. The GOP is moving further and further to the right side of the political spectrum, which is dragging what should be the centre to the right. Instead of having a right-left divide, the weakness of the Democratic Party has resulted in a far-right/centre-right divide.

The recent health-care legislation battle is a perfect example. Instead of starting from an absolute position (for instance, a single payer system) and compromising from there, the Democrats started from a compromise position and worked right. The result was a watered-down bill, most of which will not go into effect until 2014.

This tax debate was an example of the same idea. Economists overwhelmingly say that the Bush tax cuts were a major force in the explosion of the national deficit, and that their extension (especially to the super-rich) would only aggravate the problem. Obama could have taken this position and run with it. He could have called the GOP's bluff and told it that the super-rich were not getting their cuts extended and allowed them to filibuster. He would then be able to go in front of the American public and lay the blame at the feet of the corporate-friendly (or more corporate-friendly, at least) Republican Party. They would be responsible for a massive tax rise for everyone, because they wanted to help their already obscenely rich friends and contributors. Now, there is even more fuel on the GOP's "It's Obama's fault for the huge deficit" fire.

Obama has given the Republicans the stick with which to beat him. He claimed when announcing the deal that he would fight the Republicans on this issue, and others, over the next two years.

One question that immediately leaps to mind is this: if he went back on his pledge to fix the American tax system now, what reason is there to believe he won't just do it again in 2012 when the new tax cuts expire? By then, he may no longer be the president. Whose fault would that be? Certainly the Republican political machine and the conservative media outlets will claim responsibility, but honestly the blame would rest mostly on Mr Obama's shoulders.

Yes, we can? Prove it.

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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