Obama is still being blown back by Hurricane Reagan

The US President is likely to find himself back in the Oval Office – but further from real power than ever.

I’ve just retuned from a week in the USA.  I flew into Miami just as Hurricane Sandy passed on its destructive path through to the northeast seaboard. It left politics becalmed for a few days before the presidential storm reaches a crescendo next Tuesday. From what I saw and whom I talked to, it feels like President Obama is unlikely to be an ex-President this time next week. But what has he done, what is he likely to do if reelected and what does it tell us about the prospects for progressive politics?

First off, it shouldn’t surprise me but always does – the style of American politics is often so different to ours. It is played out on the TV and radio airwaves through a wall of paid-for advertising for very local jobs to the highest post in the land. Ninety per cent of it is negative and distorts and disfigures the political process beyond the tolerable. Obama has failed to change this. And they elect everything and anyone in the States from the members of the Mosquito Control Board to the occupier of 1600 Pennsylvania Avenue.  And then it gets really weird as gun shop owners enter their customers in a raffle to win a rifle if they do their duty as a citizen and cast their ballot. It’s a shot in the arm for democracy, I guess.

But other things feel more familiar. Walking into a converted bar on Washington Avenue in the art deco district of South Beach Miami, which now houses a Democrat campaign office, feels eerily similar to any election committee room back home. Stickers and leaflets pile up, a few people mill about chatting over coffee, only one person is actually making calls to voters and every now and again someone goes out with a batch of leaflets as someone else comes back in. 

Most here think Obama will win even if he doesn’t take Florida. But you feel there is little energy. Few voters even bother to sport car bumper stickers or garden and window posters. The staffers and volunteers I spoke to were pretty sanguine. They have few illusions about what a second term Obama presidency would do.  They had illusions in 2008 and they were quickly dashed. The rhetoric of "hope" and "change" has had its day. What fuels the activists is the thought of a Romney victory and how much worse life will be for the poor and struggling across their country. It is the politics of the least worst option. The poor will get poorer and the planet will continue to burn but neither will happen as quickly if Romney is defeated.  As the historian Douglas Brinkley writes in this month's Rolling Stone, "The offensive driven, Yes-We-Can candidate of 2008 has become the No-You-Wont defensive champion of 2012."

It's not that Obama didn’t do successful things in his first term and it's not as if he won't do more good if re-elected. His minimal growth plan was better than the Republican alternative and his heathcare bill was better than no bill. And if he gets another go, his Affordable Care Act and Clean Energy proposals will all better anything from Romney. But nothing being proposed will alter the big picture, of a world heading in the wrong direction.

That is because, just like anyone else on the progressive left, Obama has to contend with the fact that capitalism went up and went in. It went up to a global level of fast moving financial flows beyond democratic control.  And it went into us – as we started to know ourselves and each other primarily as consumers. Walk around the Aventura Shopping Mall in North Beach Miami. This is where Miami families make the real decisions that determine their fate; like what they wear and what their mobile says about them. As the slogan on the ceiling of one of the imposing long stretches of designer shops reads: "Admired, desired, required, acquired". Whoever wins next Tuesday won’t stop this individualizing culture that washes away the once-rich soil of solidarity progressives rely on. Neither will they reverse the "big bang" of freedom for capital flows to wreck economies and lives. Struggling up a never-ending down escalator is bound to end only one way – in the final exhaustion of the progressive project.

Against the backdrop of corporate finance of all political machines, a Congress controlled by Republicans and a heavily funded right-wing lobby what else could Obama do?  Isn’t this the best we can expect, to try and hold the line? Isn’t anything else unrealistic?

Well, it wasn’t to Franklin Roosevelt or Lyndon Johnson, or, come to think of it, Clement Attlee, or the Swedish Social Democrats in their long haul to a good society. All were progressive pragmatists.  They knew where they wanted to take their countries and were clever about how they achieved it.

Obama can’t do more because he refuses to will the means to do so. The means are both ideological and organisational – a vision of a different kind of society and a political movement actually capable of standing up to financialised and consumerised capital. The most fateful decision Obama made was taken a few days into his Presidency, when he cut off the Movement for Change that helped get him elected. This quasi-autonomous political force held out the possibility of becoming a countervailing force to the corporate lobbies -  millions of ordinary voters who mobilised themselves online and off. But it was wound down, deemed unnecessary to the new kings of the White House Court. Obama has struggled ever since.  Hope and change now feel like another era. Instead what we get is the politics of managed decline. A Presidency and a Party weaker today than four years ago, when the overriding goal has to be to become stronger for slow but steady progress.

As Sandy dies down, America will continue to be shaped by the winds of Hurricane Reagan. It blows on, shaping the political and economic landscape and just as importantly the mindsets of the popular imagination of the American people. Obama is likely to find himself back in the Oval Office – but further from real power than ever. And what is true in substance of the Democrats, despite all the stylistic differences, is as true for Labour in Britain.

P.S. If it’s true that the left is fundamentally weakened by the rise of global capital, then the ability to regulate and harness international corporations is more important than ever. That has to start at a European level. We need more Europe, not less. That’s why Labour’s decision to vote with the Tory right to cut the EU budget is incredibly troubling. If the opportunistic vote had brought the government down, then fair enough, but as a tactic it will backfire.  It will stoke anti-European sentiment and confuse voters about where growth will come from, if not demand created by vital public expenditure.

Neal Lawson's column appears weekly on The Staggers.

Barack Obama speaks during a campaign rally in Boulder, Colorado, on 1 November 2012. Photograph: Getty Images.

Neal Lawson is chair of the pressure group Compass and author of the book All Consuming.

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Should London leave the UK?

Almost 60 per cent of Londoners voted to stay in the EU. Is it time for the city to say good by to Brexit Britain and go it alone?

Amid the shocked dismay of Brexit on Friday morning, there was some small, vindictive consolation to be had from the discomfort of Boris Johnson as he left his handsome home in EU-loving Islington to cat-calls from inflamed north London europhiles. They weren’t alone in their displeasure at the result. Soon, a petition calling for “Londependence” had gathered tens of thousands of names and Sadiq Khan, Johnson’s successor as London mayor, was being urged to declare the capital a separate city-state that would defiantly remain in the EU.

Well, he did have a mandate of a kind: almost 60 per cent of Londoners thought the UK would be Stronger In. It was the largest Remain margin in England – even larger than the hefty one of 14 per cent by which Khan defeated Tory eurosceptic Zac Goldsmith to become mayor in May – and not much smaller than Scotland’s. Khan’s response was to stress the importance of retaining access to the single market and to describe as “crucial” London having an input into the renegotiation of the UK’s relationship with the EU, alongside Scotland and Northern Ireland.

It’s possible to take a dim view of all this. Why should London have a special say in the terms on which the UK withdraws from the EU when it ended up on the wrong side of the people’s will? Calling for London to formally uncouple from the rest of the UK, even as a joke to cheer gloomy Inners up, might be seen as vindicating small-town Outer resentment of the metropolis and its smug elites. In any case, it isn’t going to happen. No, really. There will be no sovereign Greater London nation with its own passport, flag and wraparound border with Home Counties England any time soon.

Imagine the practicalities. Currency wouldn’t be a problem, as the newborn city-state would convert to the euro in a trice, but there would be immediate secessionist agitation in the five London boroughs of 32 that wanted Out: Cheam would assert its historic links with Surrey; stallholders in Romford market would raise the flag of Essex County Council. Then there is the Queen to think about. Plainly, Buckingham Palace could no longer be the HQ of a foreign head of state, but given the monarch’s age would it be fair to turf her out?

Step away from the fun-filled fantasy though, and see that Brexit has underlined just how dependent the UK is on London’s economic power and the case for that power to be protected and even enhanced. Greater London contains 13 per cent of the UK’s population, yet generates 23 per cent of its economic output. Much of the tax raised in London is spent on the rest of the country – 20 per cent by some calculations – largely because it contains more business and higher earners. The capital has long subsidised the rest the UK, just as the EU has funded attempts to regenerate its poorer regions.

Like it or not, foreign capital and foreign labour have been integral to the burgeoning of the “world city” from which even the most europhobic corners of the island nation benefit in terms of public spending. If Leaver mentality outside the capital was partly about resentment of “rich London”, with its bankers and big businesses – handy targets for Nigel Farage – and fuelled by a fear of an alien internationalism London might symbolise, then it may prove to have been sadly self-defeating.

Ensuring that London maintains the economic resilience it has shown since the mid-Nineties must now be a priority for national government, (once it decides to reappear). Pessimists predict a loss of jobs, disinvestment and a decrease in cultural energy. Some have mooted a special post-Brexit deal for the capital that might suit the interests of EU member states too – London’s economy is, after all, larger than that of Denmark, not to mention larger than that of Scotland, Wales and Northern Ireland combined – though what that might be and how that could happen remain obscure.

There is, though, no real barrier to greater devolution of powers to London other than the political will of central government. Allowing more decisions about how taxes raised in the capital are spent in the capital, both at mayoral and borough level, would strengthen the city in terms of managing its own growth, addressing its (often forgotten) poverty and enhancing the skills of its workforce.

Handing down control over the spending of property taxes, as set out in an influential 2013 report by the London Finance Commission set up by Mayor Johnson, would be a logical place to start. Mayor Khan’s manifesto pledged to campaign for strategic powers over further education and health service co-ordination, so that these can be better tailored to London’s needs. Since Brexit, he has underlined the value of London securing greater command of its own destiny.

This isn’t just a London thing, and neither should it be. Plans are already in place for other English cities and city regions to enjoy more autonomy under the auspices of directly elected “metro mayors”, notably for Greater Manchester and Liverpool and its environs. One of the lessons of Brexit for the UK is that many people have felt that decisions about their futures have been taken at too great a distance from them and with too little regard for what they want and how they feel.

That lesson holds for London too – 40 per cent is a large minority. Boris Johnson was an advocate of devolution to London when he was its mayor and secured some, thanks to the more progressive side of Tory localism. If he becomes prime minister, it would be good for London and for the country as a whole if he remembered that.  

Dave Hill writes the Guardian’s On London column. Find him on Twitter as @DaveHill.