November, 2010 Archives

10
Nov

Deficit Commission Proposals

by Riaan Nel in News

Here are links to the National Commission on Fiscal Responsibility and Reform’s proposals for addressing the deficit.  The first link is the Co-Chairs’ proposal (http://www.fiscalcommission.gov/sites/fiscalcommission.gov/files/documents/CoChair_Draft.pdf).  The second link is the $200 billion in illustrative savings:  http://www.fiscalcommission.gov/sites/fiscalcommission.gov/files/documents/Illustrative_List_11.10.2010.pdf

I think all these proposals should be implemented.

8
Nov

Some Thoughts on the Election…

by Riaan Nel in News

I am always careful not to be partisan.  Those of you who frequently read my commentary blog and articles know that I am truly Independent – I dislike both the far left and far right in American political discourse.  Yet, from a global political economic perspective I wanted to make a few observations.

The Obama administration and the Pelosi/Reid Congress over-reached and lurched too much to the left.  They misread their 2008 mandate – Americans didn’t vote for a more intrusive government then, they voted for a government that served them better.  Obama is again misreading the message sent by last week’s election.  Although voter frustration over the current economic environment played a role in the Republican landslide, that was not the main driving force of the electorate.  Essentially the voters rejected the Obama-Pelosi-Reid agenda. 

Republicans will have to remember that they were not ELECTED last week, but rather the Democrats were UNELECTED.  Voters did not vote for a Republican agenda, but voted against the current Democratic agenda.  Obama is correct though in his assertion that Americans want their elected officials to work together.  We want a BETTER government.

The current musings from Republicans regarding the vote on the US debt ceiling coming next year is, to put it bluntly, idiotic!  Moreover, a short-term focus on cutting spending could tip the economy back into a double dip recession.  We have to address spending over the long-run, but cutting spending tomorrow will not create jobs – it will lose jobs.  Rand Paul’s proposal for a constitutional amendment requiring a balanced budget is, to put it bluntly, STUPID!!

The Republican agenda of leaving Social Security, Medicare and Defense untouched, to focus on cutting federal discretionary spending will NOT solve our long-term deficit problems.  Most Republicans, as well as Democrats, have no courage when it comes to facing our long-term fiscal disaster.  There has to be cuts to these three programs – period.

We can change the entire trajectory of our fiscal nightmare by enacting the following changes: everyone younger than 55 will not be eligible for Social Security and Medicare benefits until the age of 70.  This is the stark reality – we either face it, or we go broke.