February 18, 2009
Howard Schultz Is In Trouble With The British Government
For being
too negative about Britain's
economic prospects.
The business secretary, Peter Mandelson, has launched an extraordinary tirade against the head of
the Starbucks coffee empire, accusing him of spreading gloom and overly denigrating the state of the
British economy.
Tonight he expressed regret at the tone of his outburst — but not the sentiment.
Earlier, angered at remarks by Starbucks chairman, Howard Schultz — who said the UK was in an
economic "spiral" with "very, very poor" consumer confidence — Mandelson had accused him of
spreading unnecessary misery and speaking out of turn.
Labour is behind the Conservatives in British polls, which may help explain why Mandelson is a little
testy. And, as far as I can tell, Britain's economic problems are worse than ours.
I posted this because of the local connection, and because I thought the story adds some perspective
to our own problems. Specifically, if almost all industrial nations are now having economic
slowdowns, then the principal cause should not be sought in the policies of the Bush administration, or,
for that matter, earlier Democratic administrations. Not that I can't find reasons to blame both
Democrats and Republicans, but that I am pretty certain that neither party has been running Britain, Japan,
Germany, et cetera, et cetera. And so I am inclined to think that the main cause of this
slowdown should be sought in something common to these very different nations, specifically in the
spike in energy prices in the last few years.
(Here's an article on a current British poll, for those interested in politics there.
As I understand it, the current district boundaries in Britain give Labour a significant advantage, so the
Conservatives will probably need to win by at least four or five percent to win a parliamentary majority.)
Posted by Jim Miller at February 18, 2009
07:00 PM | Email This
1. Starnsville, here we come.
2. Here's something that will make the economy worse: Just file it under "they never learn, do they?" file. Fannie Mae will soon introduce a program for homeowners to refi even if they can't show income (more liar loans, anyone??) and even if they have bad credit. Yes, if that sounds like you, you too can refi your house through government-run Fannie Mae soon. This will put Fannie completely into the ground, since (isn't this obvious? I guess not to pols...)these will be junk loans just like the others that got us where we are today. Is there nobody who understands this anymore?
3. ..in light of this, anyone want to lay odds on when Fannie's next bail-out will happen?
4. Interesting. Meanwhile, across the pond, the U.S. President used the word "crisis" 25 times during his speech regarding mortgage bailouts and the state of the U.S. economy. But I'm sure that is more "fear mongering" rather than being "too negative about economic prospects". I can guarantee that he isn't satisfied with a trillion dollars in increased spending and national debt. Afterall, at this point these sums of money are simply semantics to a government that can just print currency and handout IOU's. The more important agenda to the "inexperienced one" is social justice, not the American way.
5. Jeff B - Your line of thinking there was EXACTLY what I came in here to post.
6. I am an American who lives in the UK and having dwelt here for thirty-three years can say that no matter what Howard Schultz or any American says or does not say, everything wrong in the world is blamed on the Yanks. My book, 'Don't Tread on Me -- anti-Americanism Abroad' is out next month in the USA and UK. It deals with my 33 years of being on the receiving end of verbal abuse in Europe and the UK and about every aspect of how America and Americans ruin the world. If you read me at Pajamas Media.com you will see that the minute I criticise Britain -- despite being here for decades and even having a UK passport -- the British bloggers go insane. In 2006 I travelled to Washington and marvelled at the disabled access on public transport. In London only 28% of tube stations are disabled accessible and most train stations are a nightmare for anyone with a disability. But when I criticised this aspect of the UK --- to be hosting the Olympics in 2012! -- I was called 'demented' and 'a liar' by British bloggers. By the way, Peter Mandelson said on Sky News that the US Congress was behaving in a 'disgraceful' manner when they first debated the Bailout last autumn; his government has not exactly been transparent with the British people...