If you're not feelin' it, the pressure from the debt crisis countdown to Aug 2, you must be living in a cave. It's everywhere, the talking heads on tv, the radio talk shows, the newspapers, the internet---will the sky really fall, is it really that serious, or will we somehow find a way out of this more than scary situation before we need to find out? For all the drama, there's still no ending. Our congress seem unable to solve the riddle of the debt crisis as we move ever closer to the deadline One plan after the other has been offered up as way out, or at least a way to keep going for awhile, and each one has been scuttled, as too weak on taxes, or too strong on cuts.
President Obama so far, while long on words and scolding speeches, has been woefully short on any resolution or plan of his own design. He has given several press conferences, the latest this morning, imploring bi-partisanship. Perhaps if he could have been more of an example---he could have rallied all the troops, instead of pitting one against the other. Instead, he continued to blame Bush for past deeds, and the Republicans for holding the nation hostage and for, offering only unsatisfactory plans,which seems to be anything at all that includes serious spending cuts and doesn't include increasing taxes. In other words, it's my way or the highway, fellas---get it? John Boehner, House majority leader, gets it alright, and virtually threw up his hands last Friday, saying he could not negotialte with the president any longer, as they are just too far apart in their thinking and the president keeps changing his mind. Nothing short of a "clean bill", Obama's past April term for a proposal to increase the debt without any cuts, giving him full reign to keep spending, seems to be what this president really wants, though he reluctantly now agrees to some light weight cuts---unbelievably, he keeps blaming the Republicans for their stubborn unwillingness to compromise, and even turning down Senator Harry Reid's plan, which raises the debt limit, but omits the holy grail of a tax increase.
One is reminded of the old story, "The Emperor Who Wore No Clothes"---the transparency is so there, but the bully pulpit of Obama allows him to think he can run nakededly through the controversy wearing his only real solution---to raise taxes in order to keep paying for his over spending. The problem, Mr. Obama---is DEBT OVERLOAD--- we are spending more than we're taking in---raising taxes will just prolong and cover up the symptoms of a disease called "living outside our means". Nor is it fair, many feel, to continuously berate the rich (those making over 250,000.00, for "not giving their fair share"). What's fair about asking for more and more, while you continue to spend more and more, already having racked up more debt than any other president in history? Of course, there is the other side of the argument, which claims it's unfair for the rich to not share their wealth when the country is in such trouble, but that is a philosophical debate, not pragmatic, nor practical at this very crucial time---we simply can't afford to rock the boat with higher taxes on those who in many ways supply the jobs. Even the Democrats have come around to recognizing that, as seen with the one plan they have presented, via Harry Reid, Senate Majority Leader.
There are now two plans being considered: The John Boehner plan, which raises the debt by 1.2 trillion and requests in return, 900 billion in cuts, but another review in 6 months with possible further increases; and the Harry Reid plan, which offers 2.2 trillion debt raise, no review until 2012 (after the election) and cuts dependent on the wind down of our two wars, assumable and not considered negotiable cuts by the Republicans. Both are probably dead on arrival. The Boehner plan, as of last night, had awkwardly stalled, the Republicans not even able to agree among themselves on whether to include a balanced budget amendment to the bill, which the more conservative members of the party were insisting upon. The Reid plan won't fly either, as the president has said he will veto it, due to the exclusion of no new taxes. Is this brinkmanship or incompetency? Both parties are suffering from inside fracturing and election-itis. They desperately need a president who can lead them to higher ground.
But NEWS FLASH!! As this is being written, the Boehner bill has passed the House---with the balanced budget amendment boldy included and requiring passage by an outside committee before an additional 1.6 trillion could potentially be added later. Progress? Not so fast---Nancy Pelosi has already declared this latest move by the Republicans as "going nowhere" " and a waste of time". Hope floats, but politics torpedoes --once again.
President Obama, meanwhile, is definitely feeling it, as he gave yet another speech this morning, sounding frustrated , more conciliatory, and urging more compromise and decision, but as the CBO cautioned him, our credit ratings are not improved by speeches. Ooh, that had to sting a little----a Rodney Dangerfield moment for sure, as the president appears to be losing ground and respect. Perhaps, with this latest development, and as Obama begins to feel the pressure on his shoulders, there's still hope that he will begin to lead and bend enough to bow to circumstances and the reality of an economically broken country. That would be true leadership, which sometimes comes late in the form of humility and grace. It is time for both---may he find it, for all of our sakes. Now is his chance----the ball is of this evening, in the Dems' court. The clock is running out----tick, tock, and no more time-outs.
.
Friday, July 29, 2011
Monday, July 18, 2011
WHOSE PEAS ARE WE GOING TO EAT??
They say money makes the world go round--but it appears it can also stop a country----say" hello, and haven't we met before?"to a debt crisis that won't go away and threatens to shut down at least some parts of our government if congress doesn't come to some sort of agreement by Aug.2. Who cares? Everybody should. But in case you haven't been paying enough. attention, Pres. Obama tried to grab it last Tuesday when he threatened that among other things, social security checks may fail to go out, along with veterans' checks---'the money just isn't there', he gravely said. Interestingly, it seems to be there for many other things near and dear to Obama's heart---things like his health care program, education, railroad projects, etc. that he has declared unnegotiable and untouchable. His attempts to appear a wise counselor to both parties, urging them to negotiate, compromise, and get the job done for " the American people" dissolved with that less than honest and very heavy handed scare tactic----time to roll out the big guns and blame the carnage on the Republicans. Let's be real-- though there will be consequences if the debt limit isn't raised, the president has no intentions of being the bad guy by selectively cutting off the social security and veterans' checks-- the money is there for those very important things---he knows it, and the Republicans know it---but Obama's banking that the general public doesn't know it, and that by making his dire pronouncements he can appear the white hatted cowboy, and intimidate the Repubs into caving, so as not to blamed for a shut down. It's a hot mess in Washington as both sides play this high stakes game down to the wire.
Meanwhile, the Republicans are holding the line against not raising taxes for anyone, including the rich---without at least some serious spending cuts. The Dems, who feel strongly that a tax increase on the rich is the only righteous key to unlocking the debt crisis, have given a little in discretionary cuts, but nothing very substantial or that will make much difference in the bulging debt load. While on the surface, this battle over taxes seems purely economical, it is much more serious. It is the ultimate philosophical difference between the two parties and has everything to do with believing in a larger or smaller government; and while common sense would dictate compromise, this time there appears to be little room for such manuevering---because to do so, will be to give in to the other's political core values and forsake one's own. The wiggle room usually present has been crowded out by a Democrat controlled Senate, and a House full of newly elected members sent by angry conservatives demanding change from the current administration's very liberal policies. This is a simmering pot of differences which has finally come to a roiling boil, and could be one of the most interesting, game changing events we have seen in many years, as the leaders of both parties meet behind closed doors, trying so far in vain to find common ground.
President Obama, who earlier in his parental syle, announced "we", meaning the Repubs, need to "eat our peas", and get on with passing his budget---with no intention of appeasing, no pun intended, the Republican's wishes. Mr. Obama walked out of a meeting last week, irately announcing "enough is enough"-----really, Mr. President. Telling us to eat our vegetables and huffing out of the room is not the way to lead a country. Perhaps you should consider that others have had enough of your some would say, Chicago style politics, and that you need to rise above your own idealogy and figure out how to do what's right for this country---get control of the budget now, not 10 years down the line, as is currently proposed by the Dems. It is no longer a blame game or a chicken game or a game of chess---the people want out of this budget crisis, and are longing for leadership. Unfortunately, it is clear that this president has decided to no longer try to play the middle, but is running hard to the left and for his next election--come hell or high water.
Along comes Senator Mitch McConnell, Senate Republican leader, with a compromising plan which just might do the trick---his plan is to allow for debt increases, accompanied by cuts, in the form of three increments, each time requiring congressional approval---all to be done with spending cuts and without any tax increases. It looks good at first glance, but the conservative Republicans are not happy for fear they will look like push-overs to their constituents and that spending cuts will either be not enough or vetoed by Obama---but they may not have a choice. For now, the Dems and Obama are in control and that's not going to change until the next election. Obama's threat this week to Majority leader, Eric Cantor , "don't call my bluff", may be just what's happening, if he takes this deal---the burden will be placed squarely on his shoulders, and he will either live or die with it. The Repubs in the meantime, will have accomplished at least the no tax increase demands by their party, without appearing the intransigent, uncompromising bad guys in the black hats. Brilliant strategy, if it works---and it may be the only hope we have for a settlement before the August 2 deadline closing in fast. Nobody loses a lot of face, the debt ceiling gets a lift, with no taxes---yet. Also, as this is being written, another proposal is being voted on by the House by the Republicans--"Cap, Cut, and Balance", which is a bold attempt to force deep cuts and a balanced budget ammendment to the constitution, hasn't a chance to pass the Senate ---and Obama has already threatened to vetoe it. The negotiating meetings will continue and perhaps by the time this blog is posted, some form of agreement will have been reached to keep us from falling off the cliff----but keep your parachutes ready.
It must be difficult for a young, whip smart President who rode in on such hope and change to realize that he cannot bend a whole country to his will by speaking well and playing hard ball when the going gets tough. He too must eat his peas, settle down, and learn his lessons---or be replaced. Underneath this very gifted, likable man who could have been great, is a dedicated, ideological politician who appears somewhat spoiled by earler success, is used to getting his own way ----how sad for all of us that his talents couldn't have been used to lead this country by blending and compromising the left with the right, by showing us that while we are all different, he could lead us to a place where we could begin to feel we are actually taking a pre-emptive strike against financial disaster instead of tap dancing around the problem, increasing taxes on an already weary and weak economy, and passing the debts down to future generations. Time and again, he has forced his will---chances are, given the power he wields , he will do it again, The game of Chicken will finally come to an end as the Repubs will surely blink as they approach the brink of disaster with no presidential or senate parachute. They can either cave and lose the war, thereby escaping the reason for the shut down; or stand on principle , thereby causing serious damage, but perhaps come back to fight the battle another day---truly a conundrum with epic consequences either way.
The elusive, coveted "American people", not the politicians, will finally decide the ultimate winners and losers, but we will all share in the results of the decisions made soon in Washington. What will they be? The great irony is that at this moment in time, with our future hanging in the balance,and the stakes so high, all bets are off---should it be this hard to rescue a country on its way down?
Meanwhile, the Republicans are holding the line against not raising taxes for anyone, including the rich---without at least some serious spending cuts. The Dems, who feel strongly that a tax increase on the rich is the only righteous key to unlocking the debt crisis, have given a little in discretionary cuts, but nothing very substantial or that will make much difference in the bulging debt load. While on the surface, this battle over taxes seems purely economical, it is much more serious. It is the ultimate philosophical difference between the two parties and has everything to do with believing in a larger or smaller government; and while common sense would dictate compromise, this time there appears to be little room for such manuevering---because to do so, will be to give in to the other's political core values and forsake one's own. The wiggle room usually present has been crowded out by a Democrat controlled Senate, and a House full of newly elected members sent by angry conservatives demanding change from the current administration's very liberal policies. This is a simmering pot of differences which has finally come to a roiling boil, and could be one of the most interesting, game changing events we have seen in many years, as the leaders of both parties meet behind closed doors, trying so far in vain to find common ground.
President Obama, who earlier in his parental syle, announced "we", meaning the Repubs, need to "eat our peas", and get on with passing his budget---with no intention of appeasing, no pun intended, the Republican's wishes. Mr. Obama walked out of a meeting last week, irately announcing "enough is enough"-----really, Mr. President. Telling us to eat our vegetables and huffing out of the room is not the way to lead a country. Perhaps you should consider that others have had enough of your some would say, Chicago style politics, and that you need to rise above your own idealogy and figure out how to do what's right for this country---get control of the budget now, not 10 years down the line, as is currently proposed by the Dems. It is no longer a blame game or a chicken game or a game of chess---the people want out of this budget crisis, and are longing for leadership. Unfortunately, it is clear that this president has decided to no longer try to play the middle, but is running hard to the left and for his next election--come hell or high water.
Along comes Senator Mitch McConnell, Senate Republican leader, with a compromising plan which just might do the trick---his plan is to allow for debt increases, accompanied by cuts, in the form of three increments, each time requiring congressional approval---all to be done with spending cuts and without any tax increases. It looks good at first glance, but the conservative Republicans are not happy for fear they will look like push-overs to their constituents and that spending cuts will either be not enough or vetoed by Obama---but they may not have a choice. For now, the Dems and Obama are in control and that's not going to change until the next election. Obama's threat this week to Majority leader, Eric Cantor , "don't call my bluff", may be just what's happening, if he takes this deal---the burden will be placed squarely on his shoulders, and he will either live or die with it. The Repubs in the meantime, will have accomplished at least the no tax increase demands by their party, without appearing the intransigent, uncompromising bad guys in the black hats. Brilliant strategy, if it works---and it may be the only hope we have for a settlement before the August 2 deadline closing in fast. Nobody loses a lot of face, the debt ceiling gets a lift, with no taxes---yet. Also, as this is being written, another proposal is being voted on by the House by the Republicans--"Cap, Cut, and Balance", which is a bold attempt to force deep cuts and a balanced budget ammendment to the constitution, hasn't a chance to pass the Senate ---and Obama has already threatened to vetoe it. The negotiating meetings will continue and perhaps by the time this blog is posted, some form of agreement will have been reached to keep us from falling off the cliff----but keep your parachutes ready.
It must be difficult for a young, whip smart President who rode in on such hope and change to realize that he cannot bend a whole country to his will by speaking well and playing hard ball when the going gets tough. He too must eat his peas, settle down, and learn his lessons---or be replaced. Underneath this very gifted, likable man who could have been great, is a dedicated, ideological politician who appears somewhat spoiled by earler success, is used to getting his own way ----how sad for all of us that his talents couldn't have been used to lead this country by blending and compromising the left with the right, by showing us that while we are all different, he could lead us to a place where we could begin to feel we are actually taking a pre-emptive strike against financial disaster instead of tap dancing around the problem, increasing taxes on an already weary and weak economy, and passing the debts down to future generations. Time and again, he has forced his will---chances are, given the power he wields , he will do it again, The game of Chicken will finally come to an end as the Repubs will surely blink as they approach the brink of disaster with no presidential or senate parachute. They can either cave and lose the war, thereby escaping the reason for the shut down; or stand on principle , thereby causing serious damage, but perhaps come back to fight the battle another day---truly a conundrum with epic consequences either way.
The elusive, coveted "American people", not the politicians, will finally decide the ultimate winners and losers, but we will all share in the results of the decisions made soon in Washington. What will they be? The great irony is that at this moment in time, with our future hanging in the balance,and the stakes so high, all bets are off---should it be this hard to rescue a country on its way down?
Saturday, July 9, 2011
THE GREATEST SUMMER NOVEL EVER LIVED
And so as another week winds down, my thoughts turn away from the dreary news of the nation---a budget debate still at a standstill, a mother accused of killing her child declared "not guilty" in the face of overwhelming evidence, wars still waging, and various other non-inspiring stories being played out and woven into this summer of 2011. The real news in one's life is also unwinding its film, frame by frame, often much more inspiring, interesting, and sometimes far more complicated than found on the pages of paper and screens. The stories are lived in real time with stories of courage, valor, deep hurt, forgiveness, exquisite joy, heartbreaking sadness, quiet desperation, longing, loss, and sometimes discovery of new friends, truths, secrets, and if not the meaning to life, at least a few clues along the way. We are here but for a brief moment in time--then gone, swept away---before we solved all the riddles, accomplished all our goals, righted our wrongs, climbed our mountains, appreciated the magnificent drama, the infinite possibilities. or the beauiful, epic, grand, story of it all. The moments are the moutains, and the people along the way are the messengers, our teachers, our beloved journeymen----
A sun rises, another day---another chapter
A friend many miles away writes that she is recovering slowly from
heart surgery
A daughter writes wistfully that she and her family will be moving soon.
A son calls with the sound of lonliness in his voice.
A neighbor's husband emails with news of his very sick wife in the hospital.
A friend takes her dog for their daily walk while her husband who cannot speak waits for her return.
A man cares lovingly for his helpless, memory-less wife--and drinks that he
may also forget
An elderly mom weeps because she is old and tired and lonely.
A daughter weeps for what lies ahead
A husband stoops and limps under the weight of years and injured knees.
A wife worries and remembers younger days.
A homeless man wanders through a grocery store, listless and lost
A military wife is notified that her husband is not coming home, ever.
An old friend touches base and brightens the cloudy day---
A summer knows, but it doesn't care--it has more stories to share
A summer storm floods the streets and rumbles the skies.
A train whistle warns through the traffic noise--"be aware"
A visit from relatives reminds of the ties that bind
A child visits her grandmother for the summer
A cherry tree blooms, then bursts with cherries to pick, to seed, to bake
A picnic in the rain
A hike in the mountains
A garden flowing with flowers
A lawn freshly mowed
A gurgling fountain
A bee's buzz
A tennis match, a walk, a run in the sprinkler
A shutter thrown open to catch the evening breeze,
and capture the morning rays.
A lost summer love
A found peace
A woman kneels
A prayer is whispered
Thy will be done, but if there's any way---
A summer reminds
A forgotten known, our time in the sun is short.
Seize the day, the moment, the joy of now
A time to live, to savor what's left,
Cry for all that's gone, for all the sadness, the world's sins, and your own
then take a sip from
summer's frosty glass, breathe the fragrant air, listen to the music of the
earth, set yourself free
Laugh in the sun again, dance in the rain, hold someone's hand, and
be happy, if just for a while
A sun sets on yet another golden day, laden with grief, regrets, joy, hope, but
always the promise of tomorrows yet to be lived--jewels of surprise hidden,
perhaps to be found, perhaps not.
A train returns its whistle through the night--"you are not alone"
A secret shines through the moonlit light--- ---it's all good.
Saturday, July 2, 2011
THE DEATH OF THE AMERICAN DREAM----OR A REBIRTH??
President Obama last night in his 14th full news conference, challenged and threatened the Republicans to resolve the issue of the debt crisis. He reminds me once again less of a President than a father, who rebukes his children for fighting, sends them to their rooms, and tells them to stay there until they've settled their argument. Ah, if only it were that easy---but the gravitas of the decisions being made so exceeds the political posturing and presidential impatience. Perhaps Obama should get a little more involved, rather than trying to appear the wise mediator. He is accused of "leading from behind", and perhaps rightly so---letting others do the heavy lifting till the last hour, then appearing stern, commanding, and possessor of the last word. Last night Mitch McConnell, Republican Senate leader, invited Obama to join him and other Repubs to have a one on one discussion re whether or raise the debt ceiling. Obama refused, on the grounds that he wasn't about to listen to more requests for cutting more out of the budget without Republican consent to raise taxes. How refreshing it would have been to have seen just a little bi-partisan effort on his part, instead of insisting that it's his way or the highway and calling any resistance ,obstructionism.
To raise taxes without more serious cutting to the budget remains the sticky wicket around which this debt crisis revolves. But in Obama's world, "revenue" (code word for taxes) doesn't come from reduced spending. In his conference speech he went on to enumerate how the effects of more budget trimming by the Republicans would mean fewer scholarships for students,decreased medical research, and other threats designed to scare and vilify. Contrarily, he said, no further taxes for the rich would mean they get to continue to fly their corporate jets---oh, we can't have that, it's obscene. How dare they spend their money like that? They should have checked first with Obama, who just recently sent his wife, Michele, their two daughters, their grandma, one nephew, and all the necessary security people off to Africa. Well, I suppose that's a bit different---they are not the evil, super rich corporate people. Those people make way too much money and should give some to us,the workers, the government, the debt crisis. Really? In fact, 50% of the people in this country don't even pay any taxes, and the top earners pay 35% or their income. But what if they were to pay just a little more ? After all, they are the ones who can afford it. But wait-- studies have shown that even if all the millionaires and billionaires were taxed according to the pre-Bush tax cut days, that would only result in a little less than a trillion dollars. Lot of money, honey? Not when you consider we have a 14 million dollar deficit on our backs. But okay, let's say it makes a decent dent---the flip side to socking it to the rich is that the rich may decide it's not so important anymore to be quite so rich,down size their production , which will result if fewer jobs, less investments and less prosperity for everyone. Still think they make too much money for their own good, and especially ours? Look up "socialism" in Wickipedia. Or if that's too harsh a word, then check out the meaning of "Keynesian economics". Even that theory doesn't advise a tax increase within our current fragile economy.
Obama is a master of words, using common vernacular and playing to the general populace he thinks will have the most clout to vote him in again. His mannerisms, body language, and emotionally charged words are beginning to sound and look almost juvenile in style, tone and logic. The over riding theme is 'they got it, you don't, you deserve to have some, and we're going to get it for you'---class warfare not even on steroids, just plain old Robin Hood philosphy, an ideology at work again because it always plays well to the masses, especially around election time. After all, life isn't fair, and a seemingly benevolent government can level the playing field; but, unfortunately, even the government runs out of money when the economy isn't producing well, as witnessed by our current problem. Real revenue comes from a healthy, thriving economy that creates jobs, allows people to have the confidence to spend, consume, buy homes, cars,et.---that's real revenue which flows into taxes, because enough money was made to create the spending---unlike taxing income simply to take before its allowed to be spent.
President Obama and others like to point out that tax receipts are at near historic lows, but a recent Wall Street Journal article states that lower tax rates are not the culprit---and demonstrate this by showing that as recent as 2007, the current tax rate produced 18.5% of GDP in revenue---higher than average. Times were still good then--but in 2008, when the economy was going south, federal tax receipts still came in at 17.5% of the economy. In 2009, the report goes on to show that tax collections fell below 15%, the worst since 1950. Times were no longer good, the consumer was pulling way back, and the flow of revenue began to show in tax receipts. For those that still like to blame the Bush tax cuts for all our financial woes, this report offers that while the cuts may have contributed, approximately two hundred and sixteen billion in lost dollars, this was only 9.5% of the 2.29 trillion deficit incurred since Obama has been in office. And even after the Bush tax cuts of 2003, revenue gained by almost a trillion in 2007, which was the highest increase in U.S. history. So, it appears the tax reductions generated true revenue gains until the recession hit, as they were meant to do and are not the damaging villains they were made out to be.
Huge, unparalleled spending by this administration, over one trillion dollar since coming into office, has got to be recognized and acknowledged for at least part of the blame for the mess we are in. Much of that amount, $523 billion is found in domestic spending, which includes defense, education, Medicaid and the infamous, but ineffective, stimulus package. Currently the economy is not showing great progress with a disappointing 2% growth rate, unemployment at 9.1%, and housing still in a major slump.
Where we go from here is a frightening prospect---some would suggest Europe, as in Greece. The deadline for whether to increase the debt limit, either by raising taxes, and or cutting spending is August. There seems no easy answer with no simple cures. One way or the other, bills must be paid, or we will lose our credit standing in the eyes of the world. We can continue down the same road, printing more funny money and passing the burden on down to our children, or we can bite the bullet and find ways to cut expenses---yes, medicare, medicaid, college scholarships, fewer investments in research, and possibly a roll back of Obamacare, a huge gamble and one that needs to be re-vamped. It's called living within our means. Higher taxes? Probably, but not just for the rich. Everyone who can will have to chip in---that's the dirty little secret that Obama doesn't like to talk about, but soon he, like all others before him will learn, there are not enough free lunches to go around, even when you steal them from someone else. The middle class, because it is the biggest class, will inevitably suffer the biggest burden of tax increases.
True revenue comes from the people who make it, mostly businesses who hire lots of employees. And right now those people who make it are scared to move for fear of a double dip recession and a president who does not particularly favor our capitalistic society, and cares more about social programs, even at the expense of our financial situation, and seems willing to burn the house down in order to advance his ideologies and win re-election, by spouting tenets of wealth distribution. It is sad, when the plain truth is right in front of our eyes, and our leaders are unable to put principle before politics. We must come to terms with our reality---we are not Europe or Greece or any other country. We are the very original United States of America, built on self reliance, and if we have screwed up, then we must find the strength and resolve to fix ourselves---not through surrendering our financial means and independence away to a government that takes and always needs more,until there is nothing left but ruin and mediocrity, but by dramatically altering our spending, in order to someday recapture the biggest success story of the ages.
Once upon a time it was called the American dream, where ambition and hard work were rewarded,not thwarted by an over reaching government, attempting in the name of social justice to take care of everybody at the expense of those who would by their talents and expertise generate revenue and consequently provide the means for others to care for themselves. They are not driven by altruistic motives necessarily, but by a free market system that simply and objectively rewards success with money. And one of the side benefits of that is that charity and philanthropic giving comes from the heart and spirit of grateful people. It is interesting to note that both charity and philanthropic giving were down during the recession. So while att legislating charity via free entitlements may seem noble and good, there is also reason to believe that the best way to spread the wealth is to spread job opportunities and encourage those who provide them.
At this point, some would sadly argue, that the American dream has died, felled by time, circumstances and too many who never dreamt,nor appreciated it--- and there is nothing left but the memories. But Monday,Independence Day, is one of the great reminders of our past and those who fought to build a country, free from an over powering monarchy. But this is no longer 1776 and we are not those early Americans. Change is inevitable, and we may never be the same America we once were---but is that all bad? Perhaps, one might consider, that our greater destiny is still out there waiting to rise from the ashes of a stunning down turn---chastened, smarter, and still innovative, ambitious, and free enough to ride the tides of change and become a different, and perhaps even better place---a wake up call to cross the bridges of new technologies, developing countries, and blending cultures, into a wider more globally aware and sophisticated world .
It would seem imperative that we would also throw off our political animosities and decide to blend the best of our ideas in order that we may survive, and not self destruct from our own unwillingness to pull together. As we look to the star spangled flags on porches this weekend and gasp in awe at the fire worked skies, may we still be filled with pride borne of our past and faith in our future---God bless the U.S.A.
To raise taxes without more serious cutting to the budget remains the sticky wicket around which this debt crisis revolves. But in Obama's world, "revenue" (code word for taxes) doesn't come from reduced spending. In his conference speech he went on to enumerate how the effects of more budget trimming by the Republicans would mean fewer scholarships for students,decreased medical research, and other threats designed to scare and vilify. Contrarily, he said, no further taxes for the rich would mean they get to continue to fly their corporate jets---oh, we can't have that, it's obscene. How dare they spend their money like that? They should have checked first with Obama, who just recently sent his wife, Michele, their two daughters, their grandma, one nephew, and all the necessary security people off to Africa. Well, I suppose that's a bit different---they are not the evil, super rich corporate people. Those people make way too much money and should give some to us,the workers, the government, the debt crisis. Really? In fact, 50% of the people in this country don't even pay any taxes, and the top earners pay 35% or their income. But what if they were to pay just a little more ? After all, they are the ones who can afford it. But wait-- studies have shown that even if all the millionaires and billionaires were taxed according to the pre-Bush tax cut days, that would only result in a little less than a trillion dollars. Lot of money, honey? Not when you consider we have a 14 million dollar deficit on our backs. But okay, let's say it makes a decent dent---the flip side to socking it to the rich is that the rich may decide it's not so important anymore to be quite so rich,down size their production , which will result if fewer jobs, less investments and less prosperity for everyone. Still think they make too much money for their own good, and especially ours? Look up "socialism" in Wickipedia. Or if that's too harsh a word, then check out the meaning of "Keynesian economics". Even that theory doesn't advise a tax increase within our current fragile economy.
Obama is a master of words, using common vernacular and playing to the general populace he thinks will have the most clout to vote him in again. His mannerisms, body language, and emotionally charged words are beginning to sound and look almost juvenile in style, tone and logic. The over riding theme is 'they got it, you don't, you deserve to have some, and we're going to get it for you'---class warfare not even on steroids, just plain old Robin Hood philosphy, an ideology at work again because it always plays well to the masses, especially around election time. After all, life isn't fair, and a seemingly benevolent government can level the playing field; but, unfortunately, even the government runs out of money when the economy isn't producing well, as witnessed by our current problem. Real revenue comes from a healthy, thriving economy that creates jobs, allows people to have the confidence to spend, consume, buy homes, cars,et.---that's real revenue which flows into taxes, because enough money was made to create the spending---unlike taxing income simply to take before its allowed to be spent.
President Obama and others like to point out that tax receipts are at near historic lows, but a recent Wall Street Journal article states that lower tax rates are not the culprit---and demonstrate this by showing that as recent as 2007, the current tax rate produced 18.5% of GDP in revenue---higher than average. Times were still good then--but in 2008, when the economy was going south, federal tax receipts still came in at 17.5% of the economy. In 2009, the report goes on to show that tax collections fell below 15%, the worst since 1950. Times were no longer good, the consumer was pulling way back, and the flow of revenue began to show in tax receipts. For those that still like to blame the Bush tax cuts for all our financial woes, this report offers that while the cuts may have contributed, approximately two hundred and sixteen billion in lost dollars, this was only 9.5% of the 2.29 trillion deficit incurred since Obama has been in office. And even after the Bush tax cuts of 2003, revenue gained by almost a trillion in 2007, which was the highest increase in U.S. history. So, it appears the tax reductions generated true revenue gains until the recession hit, as they were meant to do and are not the damaging villains they were made out to be.
Huge, unparalleled spending by this administration, over one trillion dollar since coming into office, has got to be recognized and acknowledged for at least part of the blame for the mess we are in. Much of that amount, $523 billion is found in domestic spending, which includes defense, education, Medicaid and the infamous, but ineffective, stimulus package. Currently the economy is not showing great progress with a disappointing 2% growth rate, unemployment at 9.1%, and housing still in a major slump.
Where we go from here is a frightening prospect---some would suggest Europe, as in Greece. The deadline for whether to increase the debt limit, either by raising taxes, and or cutting spending is August. There seems no easy answer with no simple cures. One way or the other, bills must be paid, or we will lose our credit standing in the eyes of the world. We can continue down the same road, printing more funny money and passing the burden on down to our children, or we can bite the bullet and find ways to cut expenses---yes, medicare, medicaid, college scholarships, fewer investments in research, and possibly a roll back of Obamacare, a huge gamble and one that needs to be re-vamped. It's called living within our means. Higher taxes? Probably, but not just for the rich. Everyone who can will have to chip in---that's the dirty little secret that Obama doesn't like to talk about, but soon he, like all others before him will learn, there are not enough free lunches to go around, even when you steal them from someone else. The middle class, because it is the biggest class, will inevitably suffer the biggest burden of tax increases.
True revenue comes from the people who make it, mostly businesses who hire lots of employees. And right now those people who make it are scared to move for fear of a double dip recession and a president who does not particularly favor our capitalistic society, and cares more about social programs, even at the expense of our financial situation, and seems willing to burn the house down in order to advance his ideologies and win re-election, by spouting tenets of wealth distribution. It is sad, when the plain truth is right in front of our eyes, and our leaders are unable to put principle before politics. We must come to terms with our reality---we are not Europe or Greece or any other country. We are the very original United States of America, built on self reliance, and if we have screwed up, then we must find the strength and resolve to fix ourselves---not through surrendering our financial means and independence away to a government that takes and always needs more,until there is nothing left but ruin and mediocrity, but by dramatically altering our spending, in order to someday recapture the biggest success story of the ages.
Once upon a time it was called the American dream, where ambition and hard work were rewarded,not thwarted by an over reaching government, attempting in the name of social justice to take care of everybody at the expense of those who would by their talents and expertise generate revenue and consequently provide the means for others to care for themselves. They are not driven by altruistic motives necessarily, but by a free market system that simply and objectively rewards success with money. And one of the side benefits of that is that charity and philanthropic giving comes from the heart and spirit of grateful people. It is interesting to note that both charity and philanthropic giving were down during the recession. So while att legislating charity via free entitlements may seem noble and good, there is also reason to believe that the best way to spread the wealth is to spread job opportunities and encourage those who provide them.
At this point, some would sadly argue, that the American dream has died, felled by time, circumstances and too many who never dreamt,nor appreciated it--- and there is nothing left but the memories. But Monday,Independence Day, is one of the great reminders of our past and those who fought to build a country, free from an over powering monarchy. But this is no longer 1776 and we are not those early Americans. Change is inevitable, and we may never be the same America we once were---but is that all bad? Perhaps, one might consider, that our greater destiny is still out there waiting to rise from the ashes of a stunning down turn---chastened, smarter, and still innovative, ambitious, and free enough to ride the tides of change and become a different, and perhaps even better place---a wake up call to cross the bridges of new technologies, developing countries, and blending cultures, into a wider more globally aware and sophisticated world .
It would seem imperative that we would also throw off our political animosities and decide to blend the best of our ideas in order that we may survive, and not self destruct from our own unwillingness to pull together. As we look to the star spangled flags on porches this weekend and gasp in awe at the fire worked skies, may we still be filled with pride borne of our past and faith in our future---God bless the U.S.A.
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