Barack Obama, Gordon Brown, and the pending nightmare of a global New Deal
During the short time he spent as a United States Senator, Barack Obama truly authored only one piece of legislation, the Global Poverty Act, a socialist behemoth with an innocuous, almost virtuous name which would saddle America and the American people with an $845 billion global tax intended in the liberals’ idyllic fashion to fight poverty and respond to disasters across the world.
Across the pond, as a mere MP and Chancellor of the Exchequer, Gordon Brown outlined an ambitious and exponential expansion of government spending in the UK, and during his time as Chancellor studies showed that the poorest fifth of all households in Britain accounted for less than seven percent of taxes paid but roughly 28 percent of state benefits payouts.
Both leaders, with Obama as the American president and Brown as the British PM, seem to have a penchant for punishing the successful, Robin Hood-style, and evening out the divide between the classes by knocking the wage-earners and growth catalysts down a peg. Now, the two will have a chance to even out the first and third world by knocking the former down a peg.
According to a report in London’s Sunday Times, Brown is doing his level best to induce the American president into forging ahead with a global version of FDR’s New Deal, an effort through which the United States and Great Britain could work together in order “to solve global economic problems.” According to the Times, this “21st century ‘global new deal’ will . . . require public spending on a huge world-wide scale.”
In other words, just as American President Barack Obama has forced responsible Americans to artificially prop up those who have been irresponsible or just plain stupid, Brown is hoping to woo Obama (somehow, I think he’ll go for it) into ensuring that taxpayers in both nations prop up those across the world who, for one reason or another, cannot sustain themselves. It’ll be just like here in the States, where the self-reliant are expected to support the self-destructive — only on a global level. Brown explains further in a separate editorial, entitled “The Special Relationship is Going Global,” written for today’s Times:
I believe there is no challenge so great or so difficult that it cannot be overcome by America, Britain and the world working together. That is why President Obama and I will discuss this week a global new deal, whose impact can stretch from the villages of Africa to reforming the financial institutions of London and New York– and giving security to the hard-working families in every country.
I see this global new deal as an agreement that every continent injects resources into its economy. I believe that central to this new investment is that every country backs a green recovery for the future, that every country that wishes to participate in the international financial system agrees common principles for financial regulation, coordinated internationally, and changes to their own banking system that will bring us shared prosperity once again. And that, together, we must agree to reform the mandate and governance of global institutions to recognise the changing shape of the world economy and the emergence of new players.
It is a global new deal that will lay the foundations not just fora sustainable economic recovery but for a genuinely new era of international partnership in which all countries have a part to play. This programme of internationally coordinated actions includes six elements:
First, universal action to prevent the crisis spreading, to stimulate the global economy and to help reduce the severity and length of the global recession. Second, action to kick-start lending so that families and businesses can borrow again. Third, all countries renouncing protectionism, with a transparent mechanism to monitor commitments. Fourth, reform of international regulation to close regulatory gaps so shadow banking systems have nowhere to hide. Fifth, reform of our international financial institutions and the creation of an international early warning system. And last, coordinated international action to build tomorrow today – putting the world economy on an economically, environmentally and socially sustainable path towards future growth and recovery.
Brown is proposing the employment of the very same approach which extended America’s Great Depression by more than a half-dozen years and caused Japan’s “Lost Decade,” only on a global level, and Barack Obama will be more than happy to play along. As a result, we’re once again going to send good money after bad, rely on the boneheaded notion that we can somehow spend our way out of crisis, stifle further growth with augmented regulations, and inject government where it does not belong.
And, as an added bonus to those who, like me, teeter on the edge of a massive coronary at even the mention of “climate change,” this farcical attempt at recovery is going to be green! Oh, thank God. I feel much better knowing that our future as not only a nation but an entire planet will not be mortgaged in favor of one myth–Keynesian economics–but two myths. Now that’s putting taxpayer money to work.
It’s going to take all of the tea in China to protest this massive leap toward global socialism — but with all the money being spent by the Chinese to buy American debt, I’m not so sure the Chinese will want any of our currency for it. Honestly, if it weren’t for the ominous reality of an entire globe being flushed down the toilet at the hands of socialists on both sides of the Atlantic, the prospect of the British throwing a tea party-style protest might be a funny one.
In the meantime, however, I’m sure not laughing. Neither, I hope, are the British people.