The first ever submission to The Social Verdict is here and it is a direct response to the a previous article titled The World Needs a President Obama. The author wished to remain anonymous so there will be no BY line. Big thanks to the author. Feel free to comment and keep the posts coming! 

 

Ideals aside, a President Obama will not solve the world’s problem

These are curious times. America faces big problems and a big choice. Whether it is Obama or McCain, the victor will be faced with an uphill challenge. It is an uncontested fact that America is not moving in the right direction. Further, and perhaps more debatable, where America leads, the rest of the world usually follows.  

For conceptual clarity, the terms “Obama” and “President Obama” will be used interchangeably. There is no need to distinguish the two. If Obama does not become President, then the argument will go no further. The holding of power is a staple requisite. Alternatively, if he is elected, he will be expected to use his personal abilities so to meet the Presidential ideas demanded of him.   

Let us start on a practical level. If Obama is to attempt to resolve some of the world’s problems, then surely his first task will be putting America back on track. Clearly, there is no point arguing he can resolve global issues if he cannot deal with the raw issues at home. This is, after all, his electoral mandate. With this in mind, let us examine some of the issues he faces.  

Firstly, Wall Street is not in a settled place. Irresponsible lending by institutions such as Fanny Mae and Freddie Mack provide the foundations for trouble. It is simple logic that if creditors cannot get their investments back, this will ultimately lead to the downfall of the creditor. The problem is further amplified by inter-lending between financial institutions in a frivolous manner. As one financier said, it has not been uncommon for no one to know who was in charge of a debt, or who was actually holding the assets in question. The complexities of the financial crisis are not in issue here. However, we have outlined the problem America faces, and as such, a problem which a President Obama would need to rectify.  

The next problem is the American housing market. Coupled to the liberal lending ideology, house builders could not resist the urge of throwing up thousands of houses to make a quick profit. But what is the point of building a house? Surely the answer is to provide a home for individuals. The common phrase that something is said to be “as safe as houses”, does not hold true if we forget this basic principle. In America, house building has become a money making tool. Supply now outstrips demand. The house market has become knotted with the financial market. Potential home owners do not buy houses because they cannot get the capital. Coupled to this, the very companies depended on a housing bubble can no longer get the credit, nor can they sell the houses they have built. The result is collapse.  

A third and perhaps most important problem is a downturn in the American economy. Today it was announced on BBC news that there are fears one of America’s car giants will fail. Buying new expensive purchases, such as cars, are hardly high on the list of the average American in light of the circumstances. These “icons of the American dream” are on dodgy ground, having proved less successful against their Japanese rivals over the last ten years they may not survive the credit crunch “tsunami”.  Uncertainty is not only common at the top, workers too are worried. Boeing workers, worried about their future job prospects and outsourcing to China have caused revenue to fall by nearly ten percent at the company. These America icons are looking shaky, and whilst it would be too far to argue that America’s global economic dominance is under threat, they are not representing the “American dream” in the way they have previously. 

Evidently a President Obama has some big problems to solve. But according to the author, he may be able to solve them. After all, there is “no force that can stand up against fierce determination, passionate desire, and gut-wrenching hard work”. Obama can walk on water too, so rectifying a “tsunami” sized credit crunch shouldn’t be too challenging.  

What should be obvious from our brief exploration of key American problems is that Obama cannot and will not solve them. Obama cannot solve the financial crisis single handily. The financiers don’t even know where the assets are located. He cannot solve the oversupply in the housing market, and he cannot exert enough individual force to turn the economy around. Things are in equilibrium and things must play out. The excesses of ten years cannot be crossed out, merely by placing a cross in the ‘Obama box’.  

A counter may be propounded. No one is claiming that Obama can solve these problems. Rather Obama represents an ideology which the world needs. His overwhelming capability will mean other leaders will be “armed” with “innovating ideas and solutions” to face the problems individually. Through this, he will implement the change necessary to both the world and America back on track.

Unfortunately this response cannot work either.

Firstly, a President Obama has no basis to found such an ideology. As the most powerful world leader, he will be faced with great and new challenges. Electoral rhetoric, promise and spin all sound great, but until attempted execution of these promises, his leadership ability cannot be ascertained. Moreover, if we are forced to accept Obama cannot resolve the current downward trend, he will have a very slim basis to claim such an ideology.

On a practical level, if (as the author claims), the European Union, Russia and China are in politically resurgent positions; they are unlikely to accept solutions from a representative of a state which has “slipped down” the global ranks. 

Secondly, and most crucially, it will have been noticed the problems Obama faces in America are not just specific to America. They are global. Take Britain. We are facing a similar credit crunch, largely because the banking system is interlinked. Northern Rock has recently been nationalised, and the treasury has announced an enormous rescue package for the purpose of saving other lenders. Like America, our housing market is in free fall, and similarly our economy is looking shaky. It can be said with certainty that similar problems are faced in Germany, Iceland and elsewhere around the world.

Obama cannot solve America’s problems. It is not proven that he can lead the world to its desired solutions, or that they will bother to listen. We cannot claim, therefore, that the world needs him. Where America leads, the rest of the world follows. Currently that is, and will remain downwards. 

There is one last irony to address. The writer argues that a President Obama could reduce prejudice and polarization. He shall create a shift akin to that of Martin Luther King. Tolerance should prevail, and the mighty shall not prevail over the weak. In a daring assertion, the writer points out that Obama shall “lead the way towards a new world order”.  

This is all sizzle and no substance. In Britain we have experienced this. In 1997, we had our own “Obama”. Tony Blair. On his political ascendancy he was heralded as someone who would bring change. He would solve both our social problems at home, and further lay the foundations for a cohesive world. True, his work with Israel and Palestine on the Middle East Peace Process was proactive and largely positive. But do not forget Blair’s other great legacy; war with Iraq. This is not to argue that Obama will precipitate war. Rather, to argue that politicians who appear to represent peace and prosperity may not live up to their expectations. Even the most positive ambitions may be curtailed by the realities of office and power.

Unity, coherence and fairness are easy values to preach, but they are almost impossible to bring about either nationally or internationally, especially where states are under severe pressures. We only need to look at the battle between Iceland and the UK over protection of investor deposits. In particular, the UK took the extreme and aggressive measure of invoking the Crime Prevention and Terrorism Act to freeze landsbanki’s assets in this country.  

America is in dream and will remain so for the next couple of weeks. There are those who are already sold, cheering enthusiastically at the democratic conference, believing in change. Even those who are yet to decide are likely to get caught in the spin of the next few days. If there is an election of a black president this will undoubtedly be groundbreaking and a perfect signal of equality. Yet overall, we should exercise caution. The world does not need Obama because he cannot create the change he preaches. The realities of the last ten years must play out of their own accord. Vacuous ambition and promise, backed with little proof of success will not be enough to solve them.