The US – when two parties are unable to work together for the good of the country

Most people have mixed feelings on the coalition, but what is not in doubt is that the Liberal Democrats entered a coalition with the Conservatives for the good of the country. This ensured a political consensus for strong and necessary action to the economy.

Compare that to the inability of the Democrats and Republicans in the US to compromise to avoid the fiscal cliff which could drive the economy into another recession. Yes a last ditch effort meant that tax decisions were decided, but spending decisions have merely been delayed by a couple of months.

Mervyn King said in 2010 that “…whoever wins this election will be out of power for a whole generation because of how tough the fiscal austerity will have to be.” I’m more optimistic than Mervyn on the election prospects, but it was no secret that there were tough decisions which needed to be made after May 2010. Sometimes what is right is not the most popular decision…


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