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No matter who takes the US helm, Barack Obama or Mitt Romney, the winner will have to tackle the budget deficit problem which many experts consider threatening the global economy. Some even call it a fiscal cliff. The GOP and the Democrats approach the issue differently but its solution will be decisive for financial well-being of all countries around the globe. Neither candidate plans tough austerity, but both back tougher taxation. Obama proposes to tax the rich, whilst tycoon Romney wants to tax everybody.
Russian economist Yevgeni Yasin believes, “This is all pre-election rhetoric, but, in practise, unpopular measures would be inevitable. Any drastic decision could trigger side-effects in the global economy. If the USA keeps on squandering money like this, its economy, as well as the global one, would fluctuate for some time, but, then, finally collapse”. Andrei Vavilov, the head of the Financial Research Institute, said, “Anyway, the winner would have to “relaunch” the American economy for further growth. It’s crucial to stimulate business activity, which is a priority for Romney, whilst Obama pays less attention to this sphere”.
According to a Foreign Policy magazine poll, half of the leading American economists find Obama’s economic strategy more reliable and rebuke Romney’s plan as being dangerous and unrealistic. Larry Summers, ex-US Treasury Secretary and the head of the National Economic Council, mocks Romney’s economic course. Meanwhile, Wall Street investment banks think that time is running out and urges the President and the Congress to prevent a collapse. However, politicians are unlikely to handle financial issues when the presidential race is approaching its peak.
19 October 2012
Anna Zhdanova
Voice of Russia World Service
http://english.ruvr.ru/2012_10_19/US-on-the-verge-of-a-fiscal-cliff/
Editor’s Note:
The fiscal crisis is due to four factors:
- Overly-expensive wars in foreign parts unrelated to national defence or national interests
- Tax cuts to the wealthiest Americans enacted during wartime (!)
- Deregulation of the banking industry
- Businessmen using Third World locales to circumvent labour and environmental regulations
The way out is clear. Firstly, we must “bring the legions home”, end the wars, and cut military spending for at least 20 years. Secondly, we must restore taxation on the rich to the levels of 1980. Thirdly, we must repeal all of Reagan’s “deregulation” and reimpose strict regulation of the banking industry. Fourthly, we must stop “outsourcing” by penalising businessmen who send jobs overseas.
That would cure the ill… but the Republican Party wants short-term gain over long-term health. It does indicate whom to vote for on 6 November, doesn’t it? Remember, a vote for Romney is a vote for war, higher taxes, and a corporate dictatorship. If we hold back the Republican racists this time, they may never get up again (due to changes in American demographics). That’s why we all have to vote…
BMD
