By Johan Galtung
There is more than the fiscal cliff to meet the naked eye.
Wise people – Borosage, Krugman, Stiglitz – some of them economists, see neither the fiscal deficit nor the US debt but the lack of growth as the key problem. They point to Clinton years and how, through growth, the Debt/GDP ratio went from a half to a third. This is important, but then there is a fourth consideration: some Americans are suffering out there. “16 percent” comes up very often, of people and families below the poverty line, not knowing for sure where the food comes from the next day, not having medical insurance. Macroeconomics is blind to human basic needs, yet there may even be solutions hidden in it.
But after the Clinton years came somebody else; increasing expenditure with enormously costly wars making conflicts even worse, and in addition lowering the revenue by reducing taxes on the super-rich. That a fiscal deficit would rear its ugly head, fed by such policies year after year, was a foretold conclusion. Democracy protects the president with a golden parachute, similar to that enjoyed by the CEO of a bankrupt company. But rightly so: he was elected, even re-elected. US voters, you asked for it and you got it!Read More »




