Sunday, 16 November 2008

Shifting Winds

I have a feeling that something significant is going to happen in America. I get a feeling of forces gathering, of a society that is taking a deep breath before stepping out into a time of change. It’s not any one event that makes me feel that way, it’s more an accumulation of occurrences.

The obvious one is the election of Barack Obama as president. Perhaps my view is coloured by living in Massachusetts, a state so liberal that it was the only state that did not vote for Nixon when he ran for President in 1972. And you have to worry about the weight of expectations on him when 2 out of 3 Americans said in a recent poll that they expect the country to be better off by the end of his term. But I think it’s got to the point that this expectation will become a self-fulfilling prophecy.

In any case, there is more to the gathering storm than the tailwind that propelled Obama on his trajectory to the White House.

There’s the current economic situation and all that that could lead to. It’ll lead to job losses of course, and hardship for many. In just the past few weeks it’s got to the stage where I can see local businesses shutting down around me, and people losing jobs as a result. But there’s more. It feels like the country is poised to change its consumption patterns. A year ago restaurants were advertising the great deals you could get on extra-large portions. That's changed. Today I saw a TGIF ad promoting "the right-sized portion at the right price", and that's only the most recent of the small-portion / low-price ads I've seen on the television.

That's just the beginning. Imagine what could happen if the big American car companies do go bankrupt (as many fear they will soon), and credit remains expensive, and so does fuel. Will American decrease their usage of cars? Will we see the demographic momentum reverse direction and move from the suburbs back towards urban centers? If it does, that would be a profound social and cultural change.

And that’s not the only social and cultural change in the offing. Apart from voting for Presidential and Congressional candidates, voters in 3 American states voted against legalizing same-sex marriages. Ironically, that seems to have sparked a tremendous burst of support for a movement in favour of such marriages. The demonstrations across the country in the past week suggest to me that it’s only a matter of time before same-sex marriages are recognized across the country, and it may not be a matter of very much time at that.

So what do a change of Presidency, an economic recession, and a challenge to social norms have to do with each other? Absolutely nothing, except that they are simultaneous in time and place, and therefore they cannot help but affect each other.

This has happened before, and not too long ago. In 1990 it was the Soviet Union which swore in a new head of state, Mikhail Gorbachev. Movements for democracy and independence from the USSR spread like wildfire across Eastern Europe. Saddam Hussein ordered his troops into Kuwait, sparking American intervention. And just like that we saw the end of the cold war and the making of a new world order.

It is, of course, impossible to say that that’s the sort of momentous change that awaits the world now. But there is one thing that I think is clear: we have some exciting times ahead.

2 comments:

Anonymous said...

U have forgotten to add a title or is that intentional?

rg said...

I agree, we definitely have exciting times ahead. However I am not so sure about beginning significant social/cultural changes in US. It’s difficult for me to see Obama’s win in any other way than 5% of the population changing its mind on how it thinks about war and economy. Maybe I had grown a little (or quite) cynical after reelection of Bush. I still think there are significant of believers of “We have to fight them over there so that we don’t have to fight them here” or “They hate us for our freedom”. I am not suggesting that other electorates in the world make more thoughtful choices; they just don’t have enough resources to cause damage because of their choices.

Over the next few decades as the influence of US consumer decreases proportionately in the world’s economy, and as other countries in the world become resourceful enough to cause damage outside their borders, we are heading towards a very interesting chaos.

There are also plenty of choices remaining to be made in America: Whether to catch up and make the Auto industry more fuel efficient. Should it recognize millions who have lived here for decade and are still counted as illegal, or loose the title of “country of immigrants”? How does it fix the “Agency cost” disconnect between shareholders and management that in many ways contributed to the current crisis? As you said, there are interesting times ahead.