Obama's disunited states

It would be a mistake to regard the result as a sweeping endorsement of the Obama presidency.

So what was all that fuss about? Voters and pundits wanting a good night's sleep should have double-checked the final opinion polls and the exits and gone to bed safe in the knowledge that Barack Obama would be re-elected by a surprisingly convincing margin.

That was one of the stories of a great night for the pollsters as well as for Democrats and liberal America. By extension, the President's decisive defeat of Mitt Romney was a stunning reverse to Republicans who had insisted that the polls underplayed their score. The GOP had confidently expected to at least take Florida and Virginia and to run Obama to the wire in Ohio. It didn't happen. The President swept the board of the key swing states. In the event, of the states that made up his total of 365 electoral college votes in 2008, Obama ceded only two - Indiana and North Carolina to Romney - romping home with narrow but clear victories in, amongst others, Virginia, Colorado and the ultimate bellwether states, Ohio. While Florida will be recounted after a mere 46,000 votes separated the two main candidates, Obama still holds the load and will probably claim the state.

It is also a personal triumph for Obama and for liberal America. The Obama-care health reforms are a political revolution that few thought a Democratic President could get through Congress against well-funded opposition determined. The rights of women, gay Americans and minorities have also been protected. The two Republican Senatorial candidates who became embroiled in scandal after making incendiary remarks opposing the termination of pregnancies resulting from rape were heavily defeated.

At the weekend, Victoria Yeroian, President of the Young Democrats at Virginia Commonwealth university, passionately described the importance of the Affordable Care Act and legislation on gender pay discrimination. By contrast, one Republican canvasser in St Petersburg told me on Monday that "Obama care forcing everybody to be equal is just wrong", arguing instead that she had been forced to sell her house to pay for her husband's healthcare and that others should do the same. It is huge breakthrough that healthcare in America will no longer be based on the ability to pay and in time opponents, as well as supporters of Obama-care, will recognise its value and justness

But it would be a mistake to regard this as a sweeping endorsement of the Obama presidency. It is not just that the two candidates were separated by a fraction over one per cent in the popular vote but the fact that the results reflect an America that is deeply divided politically, socially and economically. Obama's winning coalition was based on reaching out to latino voters. The President picked up 70 per cent of Latino voters, over 90 per cent of African-Americans, as well as a majority of women and university educated voters. However, most white Americans voted for Romney with a large majority of male voters backing the Republican.

In fact, after an election process in which the two camps have spent a combined $6bn including $700m on television adverts in the swing states alone, the reality is that little has changed. Indiana and North Carolina were the only two states to change hands compared to 2008. Meanwhile, the Democrats increased their majority in the Senate by picking up two seats but failed to make any inroads into the Republicans' 25 seat majority in the House of Representatives.

With the Republican hard-right indicating that they will continue to oppose anything and everything that the President touches the political deadlock that has paralysed Capitol Hill for over two years will not be broken if Obama does not reach out to the remaining moderate Republicans. If he can do this, the Democrats will reap the rewards. For all the animosity between Democrats and Republicans, most voters want a bipartisan approach that can break the legislative log-jam in Washington.

Without a radical change of mindset and culture, it is difficult to see how a Republican candidate will be able to secure the presidency. The Hispanic community, in particular, is increasing rapidly, now accounting for over 10 per cent of the population. On the basis of the current demographic trends, America will cease to be a majority white country between 2040 and 2050.

The division between white and black and brown America also created an unedifying spectacle in a number of counties in the likes of Florida, Ohio and Virginia, with a string of accusations and lawsuits against state Republicans over allegations that voters in predominantly African-American and hispanic communities were being blocked or delayed at polling stations. At precinct 135 on the outskirts of St Petersburg, Sharon Hodgson, Vice-Chair of Pinellas Democrats, was in no doubt that the tactics were a cynical attempt by state Republicans to stop black and hispanic people from voting. The undoubted attempts by Republicans to suppress voting were and are a shameful stain on American democracy.

After the polls closed, I spent about an hour at the post-election party of the St Petersburg Republican party. The several hundred campaigners and local candidates were polite, committed, and almost exclusively white and middle aged. Aside from two waiters there was only one black man in the room, while a handful of unhappy looking children behaving themselves in their Sunday best brought down the average age into the 50s. In a country of minorities, the GOP can simply no longer afford to be a white-person's party. The Republicans remind me of the Tory blue rinse brigade - their base support is simply too old and too white to win.

But, for the moment, who cares about the GOP's doomsday scenario and the tightness of the popular vote? Wednesday is a great day to be a liberal in America.

Ben Fox is a political reporter for EU Observer

Barack Obama, First Lady Michelle Obama and their daughters Mali and Shasa arrive to board Marine One in Chicago. Photograph: Getty Images.
Photo: Getty Images
Show Hide image

How can Britain become a nation of homeowners?

David Cameron must unlock the spirit of his postwar predecessors to get the housing market back on track. 

In the 1955 election, Anthony Eden described turning Britain into a “property-owning democracy” as his – and by extension, the Conservative Party’s – overarching mission.

60 years later, what’s changed? Then, as now, an Old Etonian sits in Downing Street. Then, as now, Labour are badly riven between left and right, with their last stay in government widely believed – by their activists at least – to have been a disappointment. Then as now, few commentators seriously believe the Tories will be out of power any time soon.

But as for a property-owning democracy? That’s going less well.

When Eden won in 1955, around a third of people owned their own homes. By the time the Conservative government gave way to Harold Wilson in 1964, 42 per cent of households were owner-occupiers.

That kicked off a long period – from the mid-50s right until the fall of the Berlin Wall – in which home ownership increased, before staying roughly flat at 70 per cent of the population from 1991 to 2001.

But over the course of the next decade, for the first time in over a hundred years, the proportion of owner-occupiers went to into reverse. Just 64 percent of households were owner-occupier in 2011. No-one seriously believes that number will have gone anywhere other than down by the time of the next census in 2021. Most troublingly, in London – which, for the most part, gives us a fairly accurate idea of what the demographics of Britain as a whole will be in 30 years’ time – more than half of households are now renters.

What’s gone wrong?

In short, property prices have shot out of reach of increasing numbers of people. The British housing market increasingly gets a failing grade at “Social Contract 101”: could someone, without a backstop of parental or family capital, entering the workforce today, working full-time, seriously hope to retire in 50 years in their own home with their mortgage paid off?

It’s useful to compare and contrast the policy levers of those two Old Etonians, Eden and Cameron. Cameron, so far, has favoured demand-side solutions: Help to Buy and the new Help to Buy ISA.

To take the second, newer of those two policy innovations first: the Help to Buy ISA. Does it work?

Well, if you are a pre-existing saver – you can’t use the Help to Buy ISA for another tax year. And you have to stop putting money into any existing ISAs. So anyone putting a little aside at the moment – not going to feel the benefit of a Help to Buy ISA.

And anyone solely reliant on a Help to Buy ISA – the most you can benefit from, if you are single, it is an extra three grand from the government. This is not going to shift any houses any time soon.

What it is is a bung for the only working-age demographic to have done well out of the Coalition: dual-earner couples with no children earning above average income.

What about Help to Buy itself? At the margins, Help to Buy is helping some people achieve completions – while driving up the big disincentive to home ownership in the shape of prices – and creating sub-prime style risks for the taxpayer in future.

Eden, in contrast, preferred supply-side policies: his government, like every peacetime government from Baldwin until Thatcher’s it was a housebuilding government.

Why are house prices so high? Because there aren’t enough of them. The sector is over-regulated, underprovided, there isn’t enough housing either for social lets or for buyers. And until today’s Conservatives rediscover the spirit of Eden, that is unlikely to change.

I was at a Conservative party fringe (I was on the far left, both in terms of seating and politics).This is what I said, minus the ums, the ahs, and the moment my screensaver kicked in.

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