Austerity averted in US

Country hauled back from the fiscal cliff.

At 10:59 PM EST yesterday, the US House of Representatives voted 257-167 to pass a bill originating in the Senate to prevent the government from being forced to implement a damaging mixture of spending cuts and tax rises – popularly known as the fiscal cliff.

To understand how much of a misnomer that title was, consider this: The US had already gone over the "cliff" at midnight on 31 December, 23 hours before the House passed its preventative bill.

The cliff was in fact the date at which the United States would, unless it passed new legislation, implement a series of European-style austerity measures. While these all became law at the stroke of midnight, implementation was to be phased out throughout the next few months. Unemployment benefits would have been cut within a week, while the full tax hikes – caused by the automatic expiration of Bush II's tax cuts – were to have taken several more months to implement. If we must keep the cliff metaphor, then the plummet was slow enough that the House was able to throw a rope down a day later and haul the nation back off the precipice.

Not that everything is peachy. The compromise that the Democrat- controlled Senate and the Republican-controlled House came to was 154 pages of legislation, but still involved kicking a couple of hand-grenades down the road.

Included in the bill was:

  • an agreement to return taxes to Clinton-era levels for families with income above $450,000 (a compromise between the Democrats' desire to do so above $250,000 and Republicans' desire to do so above $1m – or preferably not at all)
  • a similar rise in capital gain and dividend tax above that threshold
  • another rise in estate tax above that threshold (although, for no good policy reason, the estate tax threshold and only the estate tax threshold is to be indexed to inflation)
  • a civil service pay-freeze
  • unemployment benefits extended for another year
  • The Alternative Minimum Tax, which was intended to impose high taxes on the rich but has been affecting more and more middle-class families, will be "patched" to prevent any further mission-creep.
  • And an extension of Obama's tax breaks for low-income households.

In other words, nearly every measure extended yesterday was a tax break, with the exception of the three headline tax rises. There were also – because there always are – a host of other smaller measures added to the bill to ensure its passage. Joe Weisenthal finds six, including tax breaks for Puerto Rican rum and market loss assistance for asparagus farmers.

But two things weren't dealt with yesterday, instead booted down the line. On 1 March, the "sequester" will be enacted. This is the bundle of spending cuts agreed to in summer 2011 as part of the deal which raised the debt ceiling. It is similar in degree to the spending cuts implemented by the UK coalition, and most of the American establishment – the Republican party excepted, as usual – appear to have learned from the lesson Cameron provided, and have no intention to enact austerity in the midst of a depression.

The second fight due to come is over the debt ceiling. Exactly the same debt ceiling which was "dealt with" by enacting the sequester. The ceiling was raised – not abolished – and current Treasury projections suggest that it will have to be raised again in about two months.

The battlefields are drawn, in other words. The White House wants the sequester and debt ceiling extended or abolished; the Republicans want the sequester – and probably further spending cuts – enacted, and are prepared to see government spending hit the ceiling to do so. And unlike the "fiscal cliff", the debt ceiling is a real cliff. If the US hits it, a full government shut-down is required to stop it defaulting on its bonds.

The comparison with the UK is fascinating. Much has been made of the fact that the fiscal cliff, which has taken so much effort to avoid, is more accurately called "austerity"; but while the US legislature has been hosting fake debates in which the Republican party pretends it is fine with the whole thing and the Democrats pretend they don't want to negotiate, there is broad understanding in the rest of the US establishment (including the media) that to do so would be a very bad thing. That serves only to highlight how strange the UK right is in persisting in its defence of austerity. So while it's for the best for the US that it prevented the crippling austerity, it does mean that the evidence-based debate in Europe is deprived of yet another data point showing the damage such policies do.

Republican Speaker of the House John Boehner. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

A National Trust property. Photo: Getty
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The National Trust is right to bring gay history out of the closet

If you want to explore the history of Britain, you can't ignore its LGBT citizens.

Imagine seeing a monument to executed gay men and thinking literally anything other than, “how sad and poignant”. In September, the National Trust unveiled exactly such a memorial at one of their properties in Dorset. Kingston Lacy was once owned by William John Bankes, a man whose sexuality, in nineteenth century Britain, was a capital offence. The NT’s moving tribute to Lacy and so many others persecuted for being queer was deemed a “PC stunt” by the Daily Mail. Tory MP Andrew Bridgen somehow managed to find the monument “totally inappropriate”, adding that he looks to the Church for moral guidance – not the National Trust.

 But let me backtrack. I’m in the darkened vault of the Tower of London where the Crown Jewels are kept. The tour guide has just made a joke about vibrators.

The last time I was here, I was about nine and I was on a day out with my grandma. She made no mention whatsoever of sex toys. I wonder, actually, if this is the closest to this ceremonial bling a joke about vibrators has ever been made. I also wonder if there’s ever been a tour of the Tower of London where the guide – as my one did about fifteen minutes ago – has quite overtly slammed British imperialism. One thing I know for certain though: this is the first ever official LGBTQ tour of the Tower, organised by none other than Historic Royal Palaces – the charity that manages several of the UK’s grandest former homes.

 Earlier, at Traitors’ Gate, me and a tour group of about twenty people were told about Irish republican Roger Casement, who was executed, here, in 1916. Casement was dedicated to speaking out against the atrocities of imperialism, and was rumoured to be gay. But it wasn’t his alleged homosexuality that landed him in this thousand-year-old fortress-turned-prison, rather his involvement in the Easter Rising. King James I though – I later learn – was almost definitely gay or bi, having a number of “favourite” male courtiers. “Favourite” seeming to be a particularly coy seventeenth century euphemism for “gay lover”.

 The tour lasts about an hour and, although at times it seems to be slightly scraping the barrel for queer content, the pure effort of it is nothing short of heroic. The Crown Jewels section focused in on Queen Victoria, and all the anti-gay legislation introduced during her infamously prudish reign. On this tour, her freakishly tiny crown becomes a symbol of oppression rather than a cutesy royal knick-knack. Which, I can only imagine, would have the “gay agenda”-fearing monarchy groupies of middle England in a Faragean frenzy.

 This year marks the fiftieth anniversary of the 1967 Sexual Offences Act, which partially decriminalised (male) gay sex in England and Wales. And with the sheer number of events, like the queer Tower tour, at palaces and historic institutions – from Hampton Court to the British Library – you’d think it was the Queen’s platinum jubilee.

Now for some word association.

 “National Trust”.

 Pensioners? Fruitcake? Dust? Anarchic genderqueer hook-up joint?

 Not so much that last one? Well then, it may come as a surprise that it was the fusty old National Trust, working alongside the National Archives, that recreated a historically accurate covert 1930s London gay bar. For a couple of nights in March this year, Soho’s Freud Café was transformed into “London’s most bohemian rendezvous”, the Caravan club. In a spectacularly and appropriately theatrical evening of incense, cocktails and vintage drag queens, the NT totally nailed the “illegal den of queer iniquity” thing. This was preceded by a historic LGBTQ tour of Soho, which, like the Tower tour, didn’t gloss over the brutality of the British establishment. The Soho tour was rightfully heavy on harrowing stories about police raids on queer venues. In fact, it was through police reports collected by the National Archives that the NT was able to recreate The Caravan (which was shut down by the police in 1934).

Further north in London, another LGBTQ event hosted by the National Trust was “Sutton House Queered”. If the idea of a Tudor manor house in Hackney isn’t surreal enough, in February the grade II listed former home to aristocracy was the setting of a queer art exhibition. Think – richly wood panelled great room containing a painting of Henry VIII in full bondage gear. This was also the debut of the first gender-neutral public toilet in an NT property.

And, in a display of borderline hilarious inevitability, the Daily Mail … raised objections. “Preserve us from a National Trust that’s so achingly right-on”, quacked a Mail headline in December last year, after the NT announced its plans for a series of “Prejudice and Pride” events marking the 50th anniversary of the Sexual Offences Act. This July, the NT came under attack from the Mail, yet again, for outing late aristocrat, Robert Wyndham Ketton-Cremer. Ketton-Cremer left his Norfolk home to the Trust in 1969, and was supposedly outed as gay in a recent film for the “Prejudice and Pride” series. Whether or not the NT’s decision to discuss Ketton-Cremer’s sexuality was ethical, it’s a refreshing sort of controversy: the kind where an old British institution is actually quite blasé about gay sex, and the Mail goes nuts.

 Throughout this year, my inbox has been almost quite alarmingly full of press releases for queer-related events and promotions. From rainbow hummus (yes.) at the Real Greek restaurant, to “Pride at the Palace” at Hampton Court, more than ever, everyone seems to want a slice of the gay action. The Tate Britain’s “Queer British Art” exhibition, which opened in April, showcases a century (1867—1967) of sexually subversive works by LGBTQ artists. Although overwhelmingly male and posh, it’s hard to play down the importance of such a simultaneously harrowing and celebratory retrospective. In one room, A large and imposing portrait of Oscar Wilde stands right next to the actual door to his prison cell in Reading Gaol, where he was imprisoned for the absolute non-crime of “gross indecency”. Even if Britain’s cultural institutions are just playing up to a trend, a very big part of me is into it.

 In July, I went to a panel discussion organised by Opening Doors London, a charity that provides support for older LGBTQ people. A group of queer people who were adults when the Sexual Offences Act was passed spoke about what this anniversary means to them. When I asked panellist Jane Traies, the author of The Lives of Older Lesbians: Sexuality, Identity & the Life Course, what she thought about the likes of the National Trust taking on queer history, she was understandably wary of the possible faddy-ness of it all.

“It’s good, though, that history itself should come out of the closet,” she said.

                                                                                       

Eleanor Margolis is a freelance journalist, whose "Lez Miserable" column appears weekly on the New Statesman website.