Having perspective about how people
live in other countries is not something Americans are typically
given credit for. In fact, they are known throughout the world for
looking inwards, caring much more about domestic issues than
international ones. This is true for most countries in the world, but
American politics affects the entire world. The American economy
drives the western world, their foreign policy defines who are our
allies and who are our adversaries. It seems unfair that a decision
of global importance, such who should lead America, can be decided by
trivialities of domestic politics. In 2000 a few voters in Florida
decided the trajectory of global politics. Had they voted a
differently, the war in Iraq could have been averted.
If every person who was affected by the
outcome of the American Presidential election was able to vote in it,
the outcome could be very different. This is true of a number of
countries. In China, even the country’s own citizens cannot decide
their leadership and the decision is made in secret by a few people.
Both leaderships have an enormous effect on the entire human race;
the American decision is much more democratic, but both are made
without considering the effect the outcome has on those outside the
country.
As with most general elections, the
recent US Presidential contest has been mainly fought over the
incumbent’s economic record. Other issues were prevalent –
foreign policy, social issues – but, as with most general
elections, it comes down to the matter of which side the voters trust
to handle the economy. After the credit crunch and the global
recession, which began under George W. Bush, the American economy has
stalled. Recovery has been slow and growth is lacklustre. Even after
Obama was elected President in 2008, prosperity has not returned to
America.
In the years since the credit crunch,
America has not fared the best or the worst among OECD countries.
When Obama took office in 2009, GDP was shrinking at 3.5% per annum.
By the time of the election, growth had risen to 1.7% (all statistics
are from Google’s public data). During the same period,
unemployment has remained roughly constant at 7.8% (despite peaking
at 10% in October 2009). Compare this to the UK, where growth is
currently at 0.65% and unemployment at 7.9%. The same story of barely
positive growth is true across most western economies. America is
actually faring better than most but the prosperity of the late 1990s
and early 2000s has not returned.
The question posed to American voters
was whether they would be better off with Mitt Romney and the
Republicans in charge. A growth rate of 1.7% leaves room for
improvement, but it is certainly better than we are experiencing in
the UK and better than a recession.
On Tuesday, American voters opted to
stay with Obama and voted in favour of current economic policy. It
was felt that the stimulus introduced by Obama in February
2009 had been effective, and that the bailouts of Chrysler and
General Motors had prevented mass unemployment, which could have
driven the country back into a recession. This vote in favour of the
current administration’s economic policy is a reflection that
Americans are aware that they are financially better off with Obama
and better off than comparable countries.
Left learning social-democratic parties
are generally out of power across Europe. Centre-right governments
dominate and the fiscal agenda is austerity. In the UK, severe cuts
to government spending have been enforced since the Conservative-Lib
Dem coalition came to power in 2010. These cuts have killed off the
green shoots of recovery and briefly pushed the UK economy back into
recession. Looking at the British economy’s recent performance it
is hardly a ringing endorsement of austerity and privatization.
Americans recognise they are better off with Obama’s stimulus and
steps to prevent mass unemployment than they would be with
European-style austerity.
Usually Americans do not have a good
deal of perspective, especially about how fortunate they are compared
to other countries. However, in the case of the recent elections, it
is clear that although Obama’s record on the economy is not
stunning, Americans consider that they are better off with him than
with the alternative. If anything, this week’s election result is a
victory for perspective.
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