Posts Tagged ‘budget’

Are we focused yet?

Published by John on August 8th, 2011

Know anyone in this situation? I do. Pretty soon, we may only have to look in the mirror.

Last week I waded full into the political river, straddling the political divide like an Adonis.  I posted the following:

But, something got done, and that ain’t nothin.  Global markets are souring on the American dollar, so maybe that will serve as a wake-up call.  We took a ride on a really dangerous precipice, so perhaps that will focus the nation’s attention.

Well, I just wanted to follow up on that post, and wonder if the populous has begun paying attention.  Those big thumps you’re hearing are the fall of dominoes all over the world.  Unlike the Great Depression of the 30s, we can watch the fallout in real time.  If you’re paying attention, you’re seeing things we haven’t seen in decades, or perhaps even in our lifetime.  Good.  A change is a-comin’, and it desperately needs to.  I’m old enough to notice the following sad, yet surreal events:

  • The S&P downgrade happened after  the budget deal.  While some sort of deal is better than no deal at all, it is clear that the folks who grade investments think we don’t have much of a chance to pay back all our debt.  Moody’s, S&Ps chief competitor, is “threatening” a downgrade.   For a long time, the US Treasury Bond was the benchmark, and ratings were determined as compared to our national debt.  Now the benchmark has been downgraded.  Hmmm.
  • In Connecticut, I’m paying taxes retroactively.  It’s a fact – I’m paying income taxes retroactively to cover what I owed for January through June of this year, because the state is in big trouble.  Add to this, a governor elected with the enthusiastic support of unions is now laying off those union members by the thousands.  Yes, political friends are turning on one another.
  • Only one member of the President’s original economic team is still on board.  Secretary Geitner is still in office, but everyone else tapped to help in this crisis left.  Do I hear strains of, “Nearer, My God, To Thee?”
  • Rises in the following: random violence, suicide, joblessness, bullying.  None of these events connect directly to the economy, but our society is falling apart.  It feels a bit like 1937 – the year of the Hindenburg disaster, the Spanish Civil War, the beginnings of violence that would be WWII, and no real help for the US economy.  (By the way, for many years the government has reported jobless rates based on unemployment claims.  If your unemployment benefits expire and you’re still not employed, you are then considered “employed” according to this figure.  Just sayin’.)
The term “depression” has an economic application and an emotional one.  I’m sad to say I’m seeing both.  I’m glad we passed a deal, but it appears that it may not have been enough to stave off disaster, or at least a big “whack” to our nation’s economy, similar to what Great Britain saw in the late 70s.  I hope this is focusing our national attention.
John Tusch is just a guy from Sandy Hook, CT.  He’s not an expert in any of this.  


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Gotta love me a camel and a sausage!

Published by John on August 2nd, 2011

No, I’m not talking about cigarettes – those will kill you.  I hear that sausages will do that too, but I’m no doctor.

I’m talking about the budget deal.  It’s not great, but it’s not the end of the world.  And like it or not, its exactly what we asked for.

Two of the most-quoted cliches for the next couple of weeks are likely to be:

“There are two things people don’t want to see made: laws and sausages.”

and…

“Camel: a horse designed by a committee.”

We’ve got ourselves a little bit of both.  It’s a compromise, so nobody is happy.  That’s a good sign.  Consider the following:

  • The far left and the far right HATE the deal.  Extremists run on a moral platform.  One side reminds us of our moral imperative to care for the sick and the poor, while the other prophesies the impending disaster that awaits from living far beyond our means.  As a militant moderate, of course I agree with both.  But when you run on a “moral” platform, there is absolutely no room for talk of “compromise.”
  • By and large, people are angry at leaders on both sides.  That could be a good first step to real change.  We’ve been re-electing over 80% of our representatives to congress for the past 30 years.  (It’s only about 70% in the senate.)  The most reliable way to remove an incumbent is through retirement or death.  Who knows? Maybe we might see more than 50% of eligible voters come out to vote!
  • People got to see the sausage made.  This was really, really ugly.  Fortunately, both sides helped put the “fun” in “dysfunctional.  Some of my favorites included:
    • “Get your asses in line.”  Speaker Boehner to the Tea Party Republicans.
    • “Then Democrats would have no choice but to pass a balanced-budget amendment and reform entitlements, and the Tea Party hobbits could return to Middle Earth having defeated Mordor.” Senator McCain.
    • The President is holding the “Full faith and credit of the United States Hostage.”  Michelle Bachmann, Republican Presidential Candidate.
    • “‘Frankenstein’ Omnibus Budget Bill,” House Democratic Leader Kevin McCarthy

Let’s be clear here.  None of this is new.  John Adams, our second president, was called “bald, blind, crippled, toothless Adams.”  In response, Adams said that Jefferson’s election would result in, “”murder, robbery, rape, adultery and incest will be openly taught and practiced, the air will be rent with the cries of the distressed, the soil will be soaked with blood and the nation black with crimes.”  Anyone who has “grown tired” of the vitriol that fuels Washington politics hasn’t been paying attention for a very, very long time.  This type of rhetoric is as old as America itself.

So the bill itself is awkward, and leaves much of the needed work undone.  I pay too much in taxes, but who doesn’t?  In a country as wealthy as ours, a single child should never go hungry.  As a teacher I consumed tax dollars, and there was never enough to get the job done right.  As a business person I resent sending a significant portion of my income to the government rather than saving it for my daughter’s education.  Yeah – we have more to do.

But, something got done, and that ain’t nothin.  Global markets are souring on the American dollar, so maybe that will serve as a wake-up call.  We took a ride on a really dangerous precipice, so perhaps that will focus the nation’s attention.

Either that, or we’ll moan and groan for a day, then get back to our reality shows and playing Angry Birds.

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