Monday, September 10, 2012
Don’t worry about the deficit/debt
I know that some of you must think I’ve gone off the deep-end, but I've been saying all along that we must concentrate on jobs, which will take care of the deficit and the debt. The naysayers will watch the "Debt Clock” for us as if it's a ticking time bomb. The entire world is in a financial slowdown, and we would be ahead if we graded on a curve, but we don't and our standards are much higher than that. Our underpinnings are relatively durable. Don't mistake my last sentence for John McCain's “the fundamentals of our economy are strong" smack dab in the middle of the worst recession since the Great Depression.
Our new found endless supply of natural gas gives as an upper hand that we didn't have before. It burns 30% cleaner than fossil fuels. It's making us less dependent of a foreign energy source but most importantly; it's cheaper. I'm not a fan of T. Boone Pickens, but I agree with his plan, which would convert 8 million 18- wheelers to natural gas. That would enable us to get off of 75% oil dependency from Saudi Arabia.
Although they are kicking and screaming because of the new regulations; our financial sector is pretty stable and the stock market is doing great, which means worker's 401Ks are growing.
There's no doubt that we have a slow improving jobless recovery but that's what future recessions will look like because we no longer have a large manufacturing base. There's also no doubt that we have to go back to strong fiscal policies, but we have to recover first. Mitt Romney says that 130,000 jobs will be lost with the current defense cuts the president is proposing. Welcome to Keynesian economics, Mitt because that's what the initial stimulus did. It put a floor on the government jobs lost such as teacher's firemen, and police officers. A government job is a government job.
I don't know why the press says that Mitt has to introduce himself to the public because I understand where he's coming from. Mitt Romney knows finances and he knows business economics’, but he doesn't understand the middle class. He says under his plan the middle- class will not pay taxes on the interest, dividends, and capital gains, but he won't say that he will not eliminate their $1000 child tax credit, home-mortgage interest and property tax deduction, or any other tax incentives that they would rather have. As Bill Clinton said the other night, the arithmetic doesn't make sense. He has changed his mind again because now Mitt Romney will keep the “no denial for pre existing illnesses “and keeping your 26 year on your policy. The Obama Administration was able to bargain with the insurance companies and the providers using the 31 million additional customers as a bargaining chip. Mitt Romney said that the free- market would take care of everyone with pre-existing conditions. Good luck with that Mitt; they didn't before, and nothing has changed to make me believe they will change their mind.
I believe that we will take steps to avoid falling off fiscal cliff because the Democrats do not want to see the steep cuts on entitlements, and the Republicans don't want to see those same extreme cuts on defense spending. That's the reason the sequester was agreed on in the first place. Mitt Romney said it was a mistake for the Paul Ryan led Republicans to have agreed on the sequester in the first place. Paul Ryan was having a difficult time telling Norah O'Donnell of CBS why he voted for, and now is against it. It's like buying a brand-new car and returning it before the first payment is due.
We have to remember that growth is an end- product and not part of a fiscal plan as Grover Norquist would like us to believe. It's not a plan if it can't get it through both houses of Congress, attain the president's signature, and receive the stamp of approval from the Congressional Budget Office. The opposition can put all the accolades they want on Paul Ryan for submitting a plan, but it's still a partisan wish list. We do have something to work with because both parties want to extend the Bush tax cuts for the middle-class, but the Republicans want to extend them on everyone which will explode the deficit even more, and it will do nothing to create jobs.Absolutism is not a prescription for compromise.
Bring on the debates says Fox News's Kim Strassel saying that Mitt Romney was an excellent debater but how would she know? The people Romney debated is not a good metric for debating President Obama. I hope the Democrats boycott Fox News because I could feel the pain Austan Goolsbee was going through with Chris Wallace yesterday, as he kept putting up charts for his straw-man arguments.I did like Juan William’s answer to Chris Wallace question “ what about the wrong way number?” Juan said" its has always been high."
Posted by Mike at 11:50 AM