US politics aggravate global uncertainties
Updated: 2012-12-03 22:35
The disappointing failure of the first round of negotiations between the two parties in the United States on ways to avoid a so-called "fiscal cliff" spreads worry around the world, says an article in People's Daily. Excerpts:
The IMF says, that if the US does fall off that cliff, it will tighten public spending by as much as 4 percent of GDP in 2013, and the world's largest economy will fall into recession.
The OECD also warns any tightening in US fiscal policy will hurt the global economy, even by as much as the eurozone debt crisis.
The fiscal cliff stalemate between the Democrats and the Republicans illustrates their conceptual disparities in governance.
Under current international economic conditions, US politicians should know that a "self-made" recession will seriously erode the US' soft and hard powers.
The partisan politics of the US removes the country's sense of responsibilities.
An irresponsible, yet self-conceited, leader has become the main contributing factor.
Past experience invariably indicates neither of the two parties will compromise until the last moment.
Members of Congress are good at these power games, despite the huge uncertainties they bring to the US market, its own corporate sector, and the effect they have on global confidence and any recovery in the world economy.
Much of the responsibility for keeping economic uncertainty to a minimum rests with the US maintaining a rational political system.
Yet it seems that political paralysis continues.
The dilemma presented by the fiscal cliff issue reflects the maladies of the US political system.
Even if the US successfully avoids the cliff this time, the US will still be threatened by its mounting debt.
The US' short-term default risk is caused by the huge gap between the federal government's income and spending.
The US has stimulated its economy by allowing the build up of a huge deficit for too long.
The Obama administration's measures to counter its financial crisis have further aggravated the pressures on its finance status.
The global market's concerns over the US fiscal cliff are based on the federal government's inability to pay off its soaring public debt.
The threat of the fiscal cliff should waken the US to its excessive reliance on a virtual economy and its lack of financial controls.
These addictions have been developed and reinforced by its partisan politics at home.
Exporting the negative implications of their own mistakes at home can only serve to threaten global economic recovery and stability.
The two US political sides must find common ground and work to reach economic consensus as soon as possible.
The time has come for the US — often only too willing to tell other countries how to solve their problems — to take responsibility for its own.