Is Politics and Gimmickry Driving Global Agenda?
Brinkmanship Is The New Form Of Leadership In US, Europe
While an ocean apart, there is an unfortunate similarity between the US and Europe that the government cannot fund what the citizenry wants.
“Notwithstanding differences in economic structure and governance, the heart of the problem in Europe and the US is the same: Citizens are demanding services from their governments that they are not willing to pay for,” says an editorial in the Christian Science Monitor.
“Following this practice of governance by brinkmanship, the United States has Europeanized its crisis response by artificially erecting a number of cliffs, obstacles, and deadlines. No comprehensive solution is sought on any of these occasions. Every time a small solution is found, the public also recognizes that the big can has been kicked down the road. In the US, yet another showdown is just around the corner – raising the debt ceiling.”
Political Gimmicks, Not Policy, Is Driving Agenda In Washington
“From the filibuster, to the sequester, to the expiration of the Bush tax cuts that created the fiscal cliff, to the debt ceiling itself, the entire agenda of the US government is now being determined by a series of ridiculous legislative gimmicks, afterthoughts and unintended consequences, exploited by Republicans willing to drive the legislative machine to the brink of meltdown in search of partisan advantage,” argues The Economist in an editorial.
Economic Growth Is Central To Ensuring Strong Dollar
It is common in Washington to hear politicians proclaim that if the US debt crisis is not addressed, the nation will follow the same path as Greece. There are several reasons the US will not become the next Greece – the first being the incredible economic and social differences, but the second is the status of the dollar as the predominant international currency.
To ensure that status, however, it is not the debt, but economic growth which will prove most effective.
“The surest way to protect the status of our dollar and our sovereign debt is to grow our economy at least as fast as our debt grows. Conversely, the surest way to become “Greece 2.0” would be to detonate our suicide vest — i.e., to default on our Treasury securities after refusing to raise the debt ceiling. Default could destroy the most valuable brand name in the world — the “U.S. dollar”— and, ironically, that destruction would be self-inflicted,” writes Steve Conover in a counter-argument to the Tea Party’s threat to block any lifting of the debt ceiling.
In fact, Conover contends, the strategy being employed by the Tea Party will do more harm because “using the meaningless debt ceiling as a weapon to extort long-run entitlement cuts is at best a costly diversion; at worst, it’s economic suicide.”
GE Releases Barometer Of Global Innovation
GE just released its third Global Innovation Barometer, which monitors the pace of innovation across the global economy.
Among the findings of the new report:
The pace of innovation is challenging local economies, leaving business leaders conflicted between an appetite for globalization and protectionist tendencies;
Collaboration is perceived as the key to increased business innovation success, with emerging markets embracing the collaborative innovation trend more strongly than western, developed economies;
And, access to new technology and the possibility to enter new markets are the biggest drivers of collaboration.