Face Facts

Mr. O. The campaign is over. Eight months ago. The problems are the same as they were then – Iran doesn’t like, respect or pay attention to the US; Israel intends to look out for number one; NKorea thinks that you are not quite the genius that NBC, PBS and you think; unemployment in the US is much higher than it was eight months ago and getting worse; tax revenues are going to be one heck of a lot less than your political, political appointees predicted; the debt of the US has skyrocketed and will continue at geometric increases based on your fiscal promiscuity and unchecked congressional support and you are well on your way to making every possible, conceivable rookie mistake.

The core problems in the US are a lack of competitiveness in a world economy (just as certain US states are competing and experiencing income growth so are other nations) and a wasteful access to the public treasury by a series of congresses and presidents who combine the worst of the human frailties – a lack of courage to do what needs to be done and a silly vanity that extends way beyond their meager vision. The game plan that you have brought to office is failing desperately. You are well into the first quarter and the score is home team – 0; other side - 35. If you had ever competed in a real marketplace you would have learned to change plans (even order takers at McDonald's learn to listen to customers) when they are not working. Notwithstanding the richness of the experience of being you, there is nothing in community organizing or machine politics that can prepare a person for real world events. There is also nothing wrong with a bit of deflation affecting health care, education and government costs. A little bit of deflation will save your community organizing behind.

Assuming you have a survival instinct, here are some facts worth facing and some changes worth making:

1. US policy does not support the economic fundamental of wealth creation. The following components are necessary: favorable tax/regulation/bureaucratic control for the basic wealth creating activities which are growing or extracting something from the ground and manufacturing something from that which is grown or extracted. Further, a fair balance between ownership/management of wealth creating businesses and labor is required. Right to work is a necessity in order for the US to regain competitiveness. Limitations on costly benefits are necessary. New business must be encouraged to replace the moribund and bureaucratic companies that have accumulated vast overhead and non productive obligations. Tax individuals aggressively if you need to satisfy your pseudo populism inclinations. Encourage wealth creation and you will be very successful with your tax revenue gathering schemes.

2. Recognition and limitation on vested public and private interests. The public interest limitation is term limits for elected offices. Politicians, more than any other group in the country, are responsible for the non competitiveness of the US in world markets. The private limitation is the prohibition of any payments to any candidates for office. No more pay to play.

3. Limitation of access to the public treasury. There is no faster road to hell than the unbridled access to the public treasury by politicians who will neither limit their own terms nor face their own frailties. So, a simple Constitution amendment limiting public expenditures to public revenues is required. Severe reduction of bureaucracies is required. The government you love just plain does not work. All public pensions must be restricted to defined contribution programs and, further, restrictions must be placed on the public portion of the contribution.

4. Tort reform and the general reduction of litigation and attorney involvement at all levels of normal life, happenstance and related claims is required. We can be a nation of law abiding citizens and not be a nation of litigators and litigation. Non economic damages must be eliminated; losing parties to lawsuits must accept responsibility for legal costs.

5. Public debt is now the millstone around the neck of American free enterprise. A commitment to commence the repayment/diminution of the debt is required. Even a small reduction would be a beginning. Think of a busload of lawyers going over the cliff – it’s a beginning.

6. A measurable (set specific objectives; report progress quarterly; independent audit) plan must be presented to America and the pain and sacrifice must be spelled out and equitably distributed. No more of this job creating/job saving BS and green energy is the solution and we can spend our way to health cost reductions. Higher income Americans will continue to fund a good portion of the public treasury revenue needs. Embedded union power players, enriched public employees and pensioners will be motivated to make their sacrifices if you communicate to them honestly about the real tax burden and taxpayers in the US.

7. Medicare can be expanded to offer a public choice. Deflation is the only real solution to rising health care and education costs. Deflation can be your friend. Figure out how to control it.

8. No more special groups of people with their cultural, societal, behavioral and physical differences. It devastates a country.

9. All Americans must learn the history of the US and show a proficiency in the English language. Tell the people about their heritage; quit apologizing for it.

PS: you do have one other choice. Stay the course. Keep up the spending. Pile up huge debt. Bankrupt the country. All on your watch. Remember, 35-0!