Friday, July 2, 2010

Are American Conservatives Anti-Big Government or Anti-Poor?

The Guardian, July 2, 2010
No age of austerity for the rich: If austerity implies shared sacrifice to preserve a shared public sphere, America isn't really experiencing such an age
By Sasha Abramsky

We are, pundits frequently inform us, living through an "age of austerity". True, perhaps; but what that means, and what community responses it mandates, vary widely from country to country.

UK chancellor George Osborne's emergency budget was stark in the cuts that it laid out – and there's obviously a good case to be made that the notion of an impending debt crisis was largely used as a foil for an ideologically motivated attack on the public sector. But, to sell the cuts, the government couldn't resort to a simplistic "government-is-bad, welfare-is-awful" rhetoric. It wouldn't have worked with an electorate that still retains some affection for the redistributive, protective functions of government vis-à-vis the nation's poor; that still believes in a societal obligation to smooth out the roughest edges of a market system.

And so, in addition to cutting many public services by an eye-popping 25%, the budget also increased taxes. Most interestingly, it significantly raised the capital gains tax, a tax that falls largely on wealthier Brits.

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