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Wednesday, 5th November 2008

The example that Obama sets for Cameron

Fraser Nelson 6:08pm

It’s strange hearing US pundits solemnly explain that the banking turmoil of the last month was always going to hurt the incumbent government, because it hasn’t hurt Brown. Yet the UK and the US both went through the same reign of error: profligate spending, huge deficits, a housing bubble created by underpriced debt. The Bush-Brown economic policy has led both countries into a painful recession, but leaders do not self-destruct. It takes an Opposition politician to hold them to account. Since Lehman's collapse, which put the economy at the centre of politics, Obama has succeeded - brilliantly. The Tories have so far failed, abjectly.

Obama had both a critique, and a powerful alternative plan in his “tax cut” message. It became his answer for everything. When McCain wheeled out Joe the Plumber, Obama replied “Joe’s cool. I got no problem with Joe. All I want to do is give Joe a tax cut.” Now before I’m accused of being a tax-cutting punk fundamentalist, my point is that Obama made himself relevant in this economic crisis and offered voters not just warm words but a quantifiable, bankable promise. That’s how to win over undecided voters. As I say in my column for tomorrow’s magazine, Obama brilliantly stole the tax cut issue from the Republicans, just as George W Bush stole education and Clinton stole welfare reform. The Tories should not think this issue has been reserved for their exclusive use.  It has been painful, and deeply frustrating, to watch Brown get away with so much as the Tories seemed as lost for words in the financial crisis as McCain was. 

Yet a Tory fightback may finally be at hand. Cameron at PMQs today had fresh attack lines whereas Brown’s rebuttals were stale. He snared Brown a few times, persuading him to use the “novice” attack line again - which has lost some of its potency given what’s just happened in USA. He had Brown claim, again utterly implausibly, that Britain is “better prepared” for the slowdown. As it becomes clear that we have the worst banking crisis outside Iceland and the worst recession outside the former Soviet bloc, this will sound more and more absurd.

When Brown trumpeted his achievements, he actually listed low interest rates. Hasn’t he grasped yet that this was what got us into this mess – debt was too cheap for too long, leading to a massively over-leveraged Britain? This is why Brown is so vulnerable. “Ten years of stability,” he said: doesn’t he realise, as Amercians do, this was a debt-fuelled mirage? Cameron asked him to confirm that household debt was the highest in the G7 – this is one of the smoking gun issues. Brown ducked it, and resorted to quoting old IMF figures claiming debt is 38% in Britain (the UK has only one official national debt metric, it’s prepared by the ONS who say 44%). “You’ve got to look at personal and public debt together,” said Brown – again, leaving himself horribly exposed. Because countries like Italy which have higher state debt than Britain have household debt at less than half UK levels. This mixture of high state and high personal debt is what leaves Britain so exposed. Cameron is leading Brown into precisely the territory where he’s most vulnerable. 

Cameron didn’t quite nail Brown on any of these points, but he will be able to in future. He should go after Brown like Kenneth Starr went after Clinton. Brown designed the banking regulatory system that failed this county with such catastrophic consequences, but he was Chancellor for ten years bulking up the UK economy with the dynamite of unexploded debt. When he blames America for lighting the fuse, the Tories should blame him for providing the dynamite. There are plenty of attack lines out there, and the Tories have plenty time to link the recession to Brown’s policies.

Cameron’s greatest strength is ability to learn, to change, to wash his hands of old mistakes and adopt new tactics. He and Osborne have been dismal in the last month, and I suspect they are level-headed enough to know it. The questions asked today show they are finally sniffing out the right issues. Obama chose his own metrics and his own language, and was never pulled onto McCain’s territory. The Tories should do the same. They should seize social justice from Labour, defend their tax-cutting flank (in a way McCain failed to) and use their own words. No more talk about “investment” rather than spending.  Much more talk about sharking underpriced debt to British households. More talk about Labour, once again, “running out of other people’s money” (as The Lady put it in Oct75). If the Tories learn the right lessons from Obama’s formidable campaign, and get a bit of intellectual self-confidence back, Brown may finally be held to account for his what he did these past 11 years. Both the US and UK economies have been damaged by out-of-control spending, huge deficits and housing bubbles.  The Bush-Brown economic policy has have been busted on the other side of the pond. Now it’s Cameron’s turn.

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David Lindsay

November 5th, 2008 6:45pm Report this comment

Whatever you think of community organisers, being a community organiser is a long way from being a Bullingdon Boy.

This is still no time for a novice.

Andy Leeds

November 5th, 2008 7:09pm Report this comment

Yes a good analysis. Brown is an arrogant man and I think he will ride into the swamp on his own account. The press needs to start and hammer home the point. Brown has messed up the economy in an alarming way. He has messed up the States finances to such an extent that it will take a generation to sort it out. The people need to be reminded of this fact day in and day out.

I still do not think that Brown can survive. The hate and loathing one hears when you mention Brown and New Labour is every bit as strong as that you heard in 1997 for the Conservatives.

jon dee

November 5th, 2008 7:45pm Report this comment

Your piece clearly spells out the need and strategy for exposing Browns disastrous financial management.
Browns grandstanding is receiving an undeserved legitimacy outside the UK and it is time his failures were nailed convincingly.
It is bad enough to suffer because of his incompetence but it is infuriating to see him brag about it.

Tiberius

November 5th, 2008 8:28pm Report this comment

You may well be right, Fraser, that the Obama template could propel the Tories to greater success, but, like some other commentators, you don't take into account the differences between the constituencies.

While the desire for economic well-being is common to both American and British voters, their respective culture and psychology are quite different. All Tory leaders since 1992 have been fighting the electorate rather than the Labour Party, a problem which neither McCain nor Obama have faced.

expat

November 5th, 2008 8:29pm Report this comment

Sir, an excellent article, and having been in business for many years, I always adopted the attitude of "if in doubt do nowt", watch your enemy let them think they have the upper hand and lull them into a false sense of security and then strike!!! I come from a long line of Tories and have just returned to my home town, which was bequeathed to my family in the 1200's. My forefathers were torie MPs and Mayors, and did many things for the good of this town, I cannot believe what has happened as this town is now regarded as a "working class success". This City, as it once was is Salford, yes, Ms Blears is moron that represents this City. Well, let me tell you I am on her case, I know where the bodies are buried, and I intend to make her life a living hell, and if I could rely on the press in this Country I could also shame this Government! If the people of this Country actually knew about all the deals that Blair struck during his time in office, they would certainly then begin to realise that all Government bodies do not run this Country. Sorry, just had to get a few things of mmy chest, but, I do intend in the near future to go rogue. But, who to turn to, that is the question?!!!!

oldtimer

November 5th, 2008 8:35pm Report this comment

I thought that the polling evidence reveals that most of the British public does hold the government responsible for the economic mess. Are you suggesting that if there was a general election that Brown would win? I don`t think so.

There is no easy or painless route out of the present economic crisis nor, I believe, is there one that can be forced by government. It is a cold turkey situation as debt is run down. Politicians who pretend there is an easy way out are charlatans.

Puncheon

November 5th, 2008 8:42pm Report this comment

The main difference is that Obama was much nearer an election that Cameron is. But nevertheless, the Conservatives have been a poor opposition. They always are, in my experience - they can't stick it up 'em Sir. They should be hammering at Brown one word "debt". They should keep on shouting - not something the well bred Tories are good at - that Brown has conned the British public into believing that they were wealthy when they weren't, and that the bills have started to come in and that you can't pay off debt with more debt. Brown is like a drunk in a bar waving a dud credit card, shouting "the drinks are on me". Practically everyone in the country knows this except Brown, it seems. So Cameron should point to the right path - lower taxes, particularly for the lower paid, and higher interest rates. He should ignore the ritual whining from the usual interest groups, eg the CBI and TUC for lower interest rates, and point out that dearer money will not only discourage dodgy indebtedness but also squeeze out lousy investment projects and badly run companies. That is the way to benefit from a recession, whereas the Government's approach will do just the opposite.

Short the UK

November 5th, 2008 8:48pm Report this comment

This is the best piece of real opposition to Gordon Brown - on YouTube:

http://uk.youtube.com/watch?v=jbgwR1pA1k0&feature=related

The Tories are just pathetic. Do they still have Kirsty from Location, Location, Location, advising them on the property bubble?

Brook Whelan

November 5th, 2008 9:26pm Report this comment

Gordon Brown's 'no time for a novice' argument has been blown out of the water by the Obama victory.

It should also be pointed out that the plan to re-capitalise the banking system last month was not Gordon Brown's idea.

Rumour has it that Gordon Brown was not convinced about the re-capitalisation plan, and was only persuaded at the last minute by one of his Downing Street advisers to go along with it.

There is no way Gordon Brown should be taking credit for the re-capitalisation plan.

Fraser Nelson

November 5th, 2008 10:33pm Report this comment

Tiberius, I agree with you. The US drama is so addictive there is a temptation to exaggerate the potential for transferrable lessons. There are a few fundamental martial principles that hold good, tho.

oldtimer, Brown would lose - but the task isnt just to beat him. He doesnt matter on a personal basis. The real mission is to defeat the disastrous policies that he championed, and to start to repair the damage he has done particularly in his legacy of welfare ghettoes. The Tories must realise and start shouting about the scale of Brown's error.

TGF UKIP

November 5th, 2008 11:19pm Report this comment

Fraser, you say that as opposition politicians "The Tories have failed abjectly." and unarguably so.

Then you say,, "He (Cameron) and Osborne have been dismal in the last month and I suspect they are level headed enough to know it. The questions asked today show they are finally sniffing out the right issues."

Finally, Fraser, FINALLY sniffing out the right issues. Just how long have your precious pair been sniffing? Is it 3 days? 3 weeks? 3 months? or is it indeed 3 years that these two who you so consistently peddle as political geniuses have been sniffing to find the right opposition formula.

What's even worse though, Fraser, is that neither you nor we can be sure they would stick to the right line even if they found it.

All it would need would be a focus group from Metropolitan Man, a cough by Polly or an harumph by Humphrys and they'd be scurrying back to their Blue Labour comfort home quicker than you could say Max Clifford.

What we've all got to hope for is that the US Republicans don't emulate the the British Tories by over-reacting to their defeat and become yet another social democrat party.

TGF UKIP

November 5th, 2008 11:53pm Report this comment

Tiberius - "All Tory leaders since 1992 have been fighting the electorate rather than the Labour Party ....."

A typically Tiberian piece of sohistry if you don't mind my saying so.

Much of the debate on this website is as you well know centred on the Tory performance as an opposition and inevitably this invites comprison with Labour's performance as an opposition post 1992.

It is an essential part of being an opposition to provide a prism through which voters view the opposing party and this Labour did brilliantly especially after the Blair/Brown/Mandelson/Campbell takeover.

Even on becoming the government in 1997 New Labour continued to be intent on pursuing their course of defining the Tories in a manner which made them unelectable. In short they continued to not only to treat the Tories as an enemy of the Labour Party but to represent them too as an enemy of the British people themselves. Loathe them as we all may do, it was brilliant politics.

That the Tory party has been seen as fighting the electorate is due largely to the genius of the Labour Leadership (with the complicity of a goodly chunk of the media) in their representation of the Tory "enemy."

The failure of successive Tory Leaderships, but especially this one when Labour have so dismally failed in office, has been not only to counter the Labour portrayal but their seeming inability to respond by fully alerting the British public to just what a bunch of rotten, corrupt, incompetent, lying shysters this Labour Government really is.

Tiberius

November 6th, 2008 9:57am Report this comment

Now that is a new line, TGF, that the election of Cameron as leader is an overreaction to three successive and very heavy electoral defeats under three different leaders.

Ian C

November 6th, 2008 10:26am Report this comment

Most pertinently Fraser you say "Obama had both a critique, and a powerful alternative plan in his “tax cut” message. It became his answer for everything."

But this is precisely the sort of confidence trick that Obama, and politicians of the past 40 years, have wrought on those who voted for them - luckily only a small majority on this occasion. In all other economies where tax cuts have been election-leading strategies, government has still grown bigger by other means. It is merely a device to get elected and that is all it is good for without democracies understanding that 'government is the problem' not tax in isolation.

Obama's "tax cut for 95%" are no more nor less than Gordon Brown's tax credits. If, as we know, GB is very much part of the cause of the mistakes of the past decade or more, then Obama is simply signing up to more of those mistakes as the Democratic Party of the past 15 years has done. If he is allowed to work this con into reality he will have begun to knowingly kill incentive in the American economy - something that will be utterly disastrous for the world economy, let alone for the American, and will simply accelerate the transfer to the Asian consumer and producer the role of mainstay of world economics. As communists dominate that continent, this is the ultimate irony, especially as Obama claims to want to protect America from a transfer of jobs.

Why Fraser, do you show respect for Obama's achievement without warning, now, about this the real historical significance in the election of 2008? My eternal criticism of politicians and those who comment on them are only interested in the next five minutes – because that is the electoral cycle. It is the death of freedom and democracy and means that you, and they, make a living from tittle-tattle and lightweight sound-biteable issues, not the real hard issues of the world. The democratic cycle and the press and politicians that go with it are killing Democracy and the real importance of Government.

Tiberius

November 6th, 2008 12:03pm Report this comment

TGF: I don't agree with your interpretation of the politics up to 1997.

Labour joined in with an electorate already at war with the Tories. It did not invite the electorate to join it in its crusade to wipe them out as an electoral force. It didn't need to.

We have the ERM fiasco, David Mellor, Tim Yeo, Aitken, Archer, Hamilton, Teddy Taylor, Teresa Gorman, and Bill Cash to thank for this, as well as John Major's public persona. That the economy improved immensely from 1992 to 1997 was completely ignored.

This suicidal self-indulgence is what has knobbled all the subsequent leaders.

Labour have been lucky lucky, all the more so as just about everything they have done in government since 1997 has been a failure.

Puncheon

November 6th, 2008 4:06pm Report this comment

Tiberius - I agree with most of your analysis, but you leave out the biggest villain of the piece - Michael Heseltine. He systematically undermined John Major in a way that played right into the hands of Mandelson and Campbell. He was the most self-destructive Tory politician of his age, and had nothing to offer but his own over-weaning desire to be PM.

seb

November 6th, 2008 5:07pm Report this comment

Why not apportion some of the blame for the mess we're in where it belongs; with an electorate that was happy to indulge in binge-borrowing. Of course, a sycophantic media [i.e. the bought and sold Murdoch papers and broadcasting outlets] helped. I think it was The Spectator that, over a year ago, reported the unofficial Tory view of Brown as being 'we can't touch him'. Brown has been the worst chancellor the UK has ever had, but it's not just the mainstream media that's hidden this fact. It also requires quite a few million voters who neither understand the remotest thing about debt and solvency nor wish to.

Puncheon

November 6th, 2008 7:36pm Report this comment

Seb - I agree. But it seems the profligate were right, since the political class and the media are conniving at stealing from savers to bail them out.

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