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.