British Austerity

Interesting article about economic changes in Britain. Excerpt with my comment at the end.

For the U.S., Britain's austerity is a foreign concept

By Anne Applebaum, Tuesday, September 14, 2010

"Vicious cuts." "Savage cuts." "Swingeing cuts." The language that the British use to describe their new government's spending reduction policy is apocalyptic in the extreme. The ministers in charge of the country's finances are known as "axe-wielders" who will be "hacking" away at the national budget. Articles about the nation's finances are filled with talk of blood, knives and amputation.

And the British love it. Not only is "austerity" being touted as the solution to Britain's economic woes, it is also being described as the answer to the country's moral failings. On Oct. 20, the government will announce $128 billion worth of spending cuts, and many seem positively excited about it. Okay, the trade unions are not so excited, but Nick Clegg, deputy prime minister and leader of the Liberal Democrats -- the smaller party in the governing coalition -- is overjoyed. Recently he gave a speech in which he explained that tough choices had to be made, so that "we will be able to look our children and grandchildren in the eye and say we did the best for them."

Clegg went on to explain that his own generation, born in the 1960s, had got things wrong. "We have run up debts, despoiled the planet and allowed too many of our institutions to wither." By contrast, his government's forthcoming austerity budget will value "long-termism" over "short-termism" and eliminate "the dead weight of our debt and our failings," so that future generations could flourish....

Austerity.....has a deep appeal {in Britain}. Austerity is what made Britain great. Austerity is what won the war. It cannot be an accident that several British television channels are running programs this year with titles such as "Spirit of 1940," all dedicated to the 70th anniversary of that "remarkable year" of rationing, air raid sirens and hardship. One series, "Ration Book Britain" is even devoted to that era's parsimonious cooking. "With bacon, eggs and sugar rationed, wartime cooks had to be jolly resourceful," explains an advertisement for the show. Its host promises to "re-create the recipes that kept the country fighting fit."

Sometimes the depth of the Anglo-American cultural divide reveals itself in unexpected ways, and this is one of those moments: No cooking show featuring corned beef hash and powdered eggs would stand a chance in the United States. Perhaps for similar reasons, nobody is talking about "austerity" in the United States either. On the contrary, Republicans are still gunning for tax cuts, and Democrats are still advocating higher spending. Almost nobody -- not Paul Krugman, not Newt Gingrich -- talks enthusiastically about budget cuts. Instead, our politicians use euphemisms about "eliminating waste" or "making government more efficient," as if no one had ever thought of doing that before.

Despite the deep shock the United States supposedly experienced during the banking crisis of 2008 and the resulting recession, we are, in other words, still far from Clegg's "long-termism." Hardly anyone in America is talking about cuts in Medicare, Medicaid or Social Security, for example, the biggest budgetary items (even though "private" pensions now look a lot safer, even when taking stock market fluctuations into account, than those who will depend entirely on a bankrupt federal budget 20 years hence). In Britain, by contrast, everything is on the table: pensions, housing benefits, disability payments, tax breaks.

Politics explain some of this difference, but I reckon history explains more of it. The last period of real national hardship Americans might remember is the 1930s, too long ago for almost everyone alive today. But rationing in Britain lasted well into the 1950s, long enough to color the childhoods of many politicians now in power. Nostalgic Brits, longing to re-create their country's finest hour, remember postwar scrimping and saving. Nostalgic Americans in search of their own country's finest hour remember postwar abundance, the long consumer boom -- and, yes, a time when even instant gratification wasn't fast enough.

applebaumletters@washpost.com

My Comment: I'm not so sure Applebaum is right about this. If what is happening with the "Tea Party" is any indication, then a vast majority of Americans might just go for the British example. I think most people are fed up with the exorbitant and wasteful spending by governments at all levels in this country. I've said before that I believe the final act of this crisis will be taxpayers forcing cuts and efficiencies on government and I think we're only in the 1st or 2nd inning of this process.

Link: For the US, Britain's austerity is a foreign concept.