American Austerity & Obeisance

“(W)hile Obama opposes (European) austerity (because he needs European consumers to consume US goods and services), the 50 (US) states and virtually every city and town are busy actually imposing austerity on the US. This is because cities and states are losing tax revenue (because of unemployment and home foreclosures) and yet are forbidden by law to borrow for their operating budgets. Hence every state and local government is either raising taxes and fees or cutting payrolls and public services or taking all three steps. There it’s ‘austerity’; here it’s called ‘prudent fiscal management'”…

The difference between the US and Europe is the capacity to resist this upwards wealth transfer. Europeans are better able to resist. European capacity for resistance, the disruptive mass strike, is the result “of decades of ongoing anti-capitalist agitation (in the daily newspapers, inside trade unions, by explicitly anti-capitalist political parties, from intellectuals articulating critiques of capitalism and proposals for post-capitalist social change, etc.)” notes Rick Wolff in this MR analysis.

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