COMM 337: Are politicians driving world economy into a black hole?

Here's an editorial - a "leader," as the Brits call them - in tomorrow's print issue of The Economist that explores how economic policies in the U.S. and Europe are related. It's an opinion piece, which by definition means you don't necessarily have to agree with its conclusions. But it gives background on the issues you're reading about in Time magazine reporter Catherine Mayer's article on Germany and the sovereign debt crisis in the euro zone.

Besides, it has one of the more attention-grabbing headlines I've seen lately:

Be afraid

With a graphic that shows a black hole and a subhead that says, "Unless politicians act more boldly, the world economy will keep heading towards a black hole." The leader itself is as well written as the headline.

Published in London, The Economist is an interesting magazine. It's been around since 1843, and it has supported both Labour and Conservative governments in the UK and both Democrats and Republican in the U.S. If it has an overriding political philosophy, it's in favor of free markets, globalization and a center-right or middle-of-the-road approach to government. It has a reputation, according to Wikipedia, for "displaying dry, understated wit, and precise use of language."

Given its attitude to the global economy, it's probably not surprising The Economist sees global implications in the European sovereign debt crisis and parallels in domestic U.S. economic policy:

... Europe’s leaders are a long way from a deal on how to save the euro. The best that can be said is that they now have a plan to have a plan, probably by early November. Second, even if a catastrophe in Europe is avoided, the prospects for the world economy are darkening, as the rich world’s fiscal austerity intensifies and slowing emerging economies provide less of a cushion for global growth. Third, America’s politicians are, once again, threatening to wreck the recovery with irresponsible fiscal brinkmanship. Together, these developments point to a perilous period aahead.

The rest of the editorial elaborates on these points. It says the U.S. economy is "limping along" and is ill-served by our political parties:

Whatever it does, America is currently on course for the most stringent fiscal tightening of any big economy in 2012, as temporary tax cuts and unemployment insurance expire at the end of this year. That could change if Congress came to its senses, passed Barack Obama’s jobs plan and agreed on a medium-term deficit-reduction deal by November. If Democrats and Republicans fail to hash out a compromise on the deficit, draconian spending cuts will follow in 2013. For all the tirades against the Europeans, America’s economy risks being pushed into recession by its own fiscal policy — and by the fact that both parties are more interested in positioning themselves for the 2012 elections than in reaching the compromises needed to steer away from that hazardous course.

In the end, says The Economist, economic problems are made worse by a "failure ... of honesty" among leaders in the rich nations, especially German Chancellor Angela Merkel, the leadership in the U.S. Congress and President Barack Obama:

In Germany, where the jobless rate is lower than in 2008, people tend to think the crisis is about lazy Greeks and Italians. Mrs Merkel needs to explain clearly that it also includes Germany’s own banks—and that Germany faces a choice between a costly solution and a ruinous one. In America the Republicans are guilty of outrageous obstructionism and misleading simplification, while Mr Obama has favoured class warfare over fiscal leadership. At a time of enormous problems, the politicians seem Lilliputian. That’s the real reason to be afraid.

[Lilliput was an imaginary island in Jonathan Swift's Gulliver's Travels where Gulliver was tied down by Lilliputians who stood only six inches high. The Brits still enjoy literary allusions like that.] Whether you agree with the conclusions of the editorial or not, it makes a strong case that the U.S. economy, Europe's and those of the developing nations are interconnected in an age of globalization.

This is not a tangent:Your next analytical assignment will be to evaluate an opinion piece. Tim Harrower, author of Inside Reporting: A Practical Guide to the Craft of Journalism (Boston: McGraw-Hill, 2007), has these tips on how to write an editorial:

• Keep it tight. [By this he means keep it short and simple.]
  
• Keep it relevant.
  
• Take a stand.
  
• Attack issues, not personalities.
  
• Don't be a bully.
  
• Control your anger.
  
• Write a strong lead and a solid finish. (27)

On the next page (271), he adds: "Base your opinions on facts - and present those facts. It's a delicate balancing act: If you leap to conclusions without providing facts to support them, readers will think you're just a raving loon. Yet if the facts crowd out your commentary, you're just rehashing old news."

How well do the editors of The Economist stack up against Harrower's principles?