How Now?

How did you weather it all ... the hurricane, the Nor'easter, the general election? Or, perhaps, I should ask how are you weathering it all? Reasonably well, I hope. With the ink barely dry on U.S. ballots, the minions of doom are pointing to the fiscal sword of Damocles hanging overhead. One critic decries, among other things, the promotion of government "largess" over private industry. Government largess ... let's think about this term for a moment. It sounds good, but is that what American voters were really choosing, and were we choosing largess, i.e., extreme generosity, not an enlightened approach to human needs? And, why would that be contrary to the interests of private enterprise?

I've never found it very comforting, when people have said, "You're not alone." My thought is always, "I never, for a moment, thought I was alone, and it's not a cheery thought!" In the global economic scheme of things, we are not alone. Perhaps there are lessons we can learn from other nations struggling with the same issues. Some people are committed to the belief that only a tremendous private industry growth spurt will save us from impending disaster. Many are still committed to imposing austerity programs on the struggling remainder of the society ... the young, elderly, disabled, immigrants, un- and under-employed. We've come to use terms like entitlement, which mis-characterize programs such as Social Security.

The next siren's song encourages private sector growth and promoting America's energy exploration and independence over environmental concerns. That's a toughie, especially while Americans take the brunt of widespread natural disasters and consider the implications of oil extraction methods such as hydraulic fracturing (fracking.)

France has Gallois, a former CEO in the European aerospace industry, who has developed a plan to increase that country's competitive standing in industry.  With a ten percent national unemployment rate, even France's socialist government may have little choice but to listen and concede. But one journalist's suggestion that the U.S. have a serious look at Gallois' twenty-two step program are missing a couple of facts, we do not have what he terms competitive stagnation, nor do we have a national ten per cent unemployment rate.

We have Simpson-Bowles. I'm certain of one thing. The Simpson-Bowles deficit reduction plan would, in the words of Senator Harry Reid, "mess with Social Security." It is easier to see in a graphic form, but, using the Chained CPI would lower social security benefits for all Social Security beneficiaries now and in the future. The cuts become deeper, as beneficiaries age. This represents a triple-whammy for women, who are generally less well-off than men, and are, therefore, more reliant upon Social Security benefits, and who live longer than their male counterparts.

Men won't be unaffected by any means, and Social Security retirement won't be the only program affected. Ah, but, wait for it! The planners tout an increase in revenues. Unfortunately it will not come close to offsetting the effects of the cuts. President Obama fades from view, when looming fiscal crisis rears its ugly head, something he can no longer afford -- no pun intended. He started his first term, almost right out of the box, using social security retirement and disability recipients, along with active duty military, as bargaining chips. Here we all are, back to Debt 101 with nasty, some would say, unacceptable decisions looming.

While I was thinking how to close a post about the election and impending fiscal doom, a friend offered this:  "After the words, In God We Trust, we should add We'd Better."  It seemed better than "You move your own cheese." and "You pack your own chute."  The cheese reeks, we're in fiscal free fall, and the time to pack the parachute is long past.