U.S Elections 2010

U.S mid term elections are over. Republicans have seized control of the house. They also won majority of governorships. Democrats retained the control of senate with a slim majority.

U.S election results show similar trends to other G8 developed countries. In elections in U.K  there has been a shift to the right. In fact almost all the G8 countries except Japan are ruled by right wing parties. What led to this situation?

In 2008 there was a massive financial collapse of the capitalist system. Banks were on the verge of bankruptcy. G8 government had to step in to bailout the banking sector in their countries. Banking sectors in these countries were directly responsible for this disaster by their own reckless speculation and poor governance. Massive amounts of money was poured into financial sector to bail out the sector. Some body has to pay for it. Rich were not to pay for this bailout with increased taxes. Naturally workers and poor  have to pay for it.

Suddenly much noise was made about debt crisis. G8 countries had massive debt for a long time. Much of this debt was accumulated by constant bailouts of reckless capitalist ventures. Now the clamour to cut the spending to reduce the debt. Cutting the spending means reducing the wages , social welfare benefits etc.
In order to implement these measures capitalist system requires it's strongest political allies i.e right wing. They come in different new forms i.e Tea party. In order to pay the bailout capitalist system utilize it's "liberal" political allies i.e Obama, Gordon Brown etc. "Liberal" allies sweet talked masses to accept the payment of bailouts.

It is so strange Obama with his aggressive war efforts in Afghanistan/ Iraq , cosmetic tinkering of health care system is considered too left by U.S capitalist class. If Obama is considered too left then what can we say about Republicans especially Tea party which is considered right. In this case if we consider Chavez and Morales are on the left and accordingly Obama in the moderate right then Tea party will be on extreme right close to Nazis and Fascists. Basically U.S voters have elected extreme right wing politicians.

In 2008 Obama was elected for multiple reasons. First of all U.S voters were so fed up with Bush they would have elected anybody other than Republicans. Secondly anti war movement and new liberals thought Obama as their torch bearer and mobilized their support to win the elections. Unemployed thought that Obama had a magical solution with spending to provide them employment. Finally capitalists of course supported Obama because he will provide the bailouts.

What Obama has done since coming to power? He has provided the bailouts to the financial sector. This largest expenditure in the U.S recent history went through the congresses very easily. He has increased the war expenditure in Afghanistan by sending more troops and rotating troops from Iraq to Afghanistan. This has kept the defense sector happy. In fact his defense secretary is a republican. Even Bill Clinton too had a Republican Defense secretary. One of the Obama government's achievements is the military coup against the liberal Honduran government. Obama's promise to close the Guantanamo bay never materialized.

Only "progressive " measure Obama government achieved is the so called Health care reform. This measure was so compromised that in the final measure it will be totally under private sector control.

On the whole Obama government hasn't behaved any better than Bill Clinton's government. The  change promised with the big bang turned out to be a whimper.No wonder "liberals" who carried Obama campaign in 2008 deserted him in 2010. Some of them even reinvented themselves into Tea party.

What next?

Obama's rest of the presidency will be a lame duck presidency. He will now move to "Center" according to U.S spectrum which in reality is right. His government will carry out spending cuts targeting working class and poor  rather than more spending. There will be aggressive foreign ventures possible intervention in Yemen in addition to Afghanistan, Iraq , Somalia ..... Bullying of emerging countries such as China and India to reduce the trade deficits. Reset button with Russia will be reset again with aggressive missile defence shield, Zero progress in middle east talks.  

Finally Obama presidency will end up similar to Clinton's presidency tainted by scandals.

On the economic front Obama will not be able to achieve much. Unemployment will grow. Deficit will increase and Debt will grow. U.S economy is fundamentally going downturn irrespective of who is in power. U.S workforce cannot compete with China or developing world in terms of labor costs. U.S companies will continue to move to other countries to get cheaper labor force. If U.S bashes China then these companies will move to Indonesia or Latin America. U.S government may cut taxes , but this would mean that these companies will move more investment abroad. This is the fundamentals of  Capitalism. By cutting down on spending on education and infrastructure, U.S will continue to produce expensive and light literate workforce.

On the whole mid term elections will accelerate U.S's decline. Obama's presidency is just a blip in the process started during Reagan's presidency.

Nov 2010