Washington DC: Arrested Development
Sometimes I feel like Moe because every now and then Larry
and Curly need to get smacked upside the head.
I watch the complete political dysfunction in Washington DC, and I come
away with the following impressions:
1)
Our economy is growing IN SPITE of the federal
government
2)
The only jobs politicians are interested are
their own
3)
Courage comes not from proposing drastic social
cuts (Republicans) or proposing no change to the Big Three (Democrats), but
from giving up something near and dear to get something big done.
4)
Both sides are afraid being labeled a ‘loser’ by
the media should a deal actually get done
5)
The political process is being held hostage by
the extreme wings on both sides
My criticism of the right has long been established and
communicate, but my criticism of the left is growing and my dissatisfaction for
the political process is an indictment of all parties. The demagoguery is prevalent on both sides,
but the hypocrisy and obstruction from the right have set new lows in civics
and governance. There are times I wish
the President would do more, but I soon realize that for every step he would
take towards a deal, the other side would take one step back. The GOP have vilified President Obama and
the Democrats since the 2009 inauguration, claiming they have caused the tepid
recovery because they have created uncertainty for businesses, created runaway
spending, and have passed onerous regulations.
None of which are true.
So here is some data, opinions, and analyses. You may disagree, you may concur, your call.
·
Obamacare and Dodd-Frank contain some
unnecessary bureaucratic elements but the GOP method of do nothing was NOT the
solution.
·
For all the complaining about regulations and
taxes, the number one reason why firms don’t hire: lack of qualified candidates
·
States with low or no income tax rates add jobs
quicker than high tax states. But that
may be confounded with rate of population growth. In truth, states with higher tax rates have
higher median incomes and the same unemployment rate as low tax states.
·
Tax reform cannot happen unless ALL lawmakers
are willing to say no to special interests.
Which means the mortgage industry, oil & gas companies, energy,
technology, banks, and others will need to accept, amongst other things, loss
of the mortgage interest tax deduction (for many), carbon tax, consumption tax,
R&D tax credit, etc. Of course these
new taxes will come into being when income tax rates are lowered for all
Americans who will have to realize that a consumption or VAT is neither
socialist nor regressive.
·
We need to stop taxing positive outcomes like
income and profit which deters growth and begin taxing negative outcomes such
as energy consumption.
·
Government should promote investment in R&D
and the creation of intellectual property.
·
Social Security and Medicare may not have contributed
significantly to today’s deficits, but to ignore that coming mandatory spending
associated with these programs is reckless.
Maintaining the status quo is untenable.
·
Increasing minimum wage will not stifle growth,
it will stimulate growth as millions of Americans will have increased
disposable income.
·
The White House using the sequester as an excuse
to shut down White House tours, the People’s House, was petulant and
counterproductive. Threatening to do so
for the Easter Egg Hunt is below the office.
·
Programs like Race to the Top may not be
perfect, but creating grants for states to reform and generate educational
results is a good idea. Teachers’ unions
should not resist reform, but instead join the results-based movement. Education results are critical to filling the
millions of jobs that go unfilled.
·
The key to economic recovery is via growth, not
austerity. Once the economic engine gets
revved up, automatic stabilizers will phase out and the government can apply
some brake to its spending.
·
The White House should approve the Keystone XL
Pipeline in return for getting the $2Billion investment fund for alternative
renewable energy sources. Fracking and
horizontal drilling are critical to our economic recovery, but it should be
done with safety and environment 1st and profits 2nd
·
Republicans should stop promoting Trickle Down
Theory, when economic data is available.
According to the University of Massachusetts – Amherst: for every
$1billion invested in infrastructure, 18,000 jobs are created, a 30% increase
if the same $1billion was spent on tax cuts.
·
Want to know why most American companies aren’t
screaming for tax reform even though the U.S. has the highest corporate tax
rate in the developed world? Because effective tax rates are lower than most
countries in the developed world thanks to loopholes and credits.
I expect many on the left will not be happy about my stance
on Keystone, fracking, Big Three reform, education, and sequester hijinks. Those on the right will oppose tax reforms,
carbon and value added taxes, the need to fund infrastructure and education,
and the call for regulation when it is necessary.
Bottom line is both sides need to give in and take a step towards the other party. Using budgets for political platforms instead of legitimate proposals is a waste of time and just gets the dander up.
Bottom line is both sides need to give in and take a step towards the other party. Using budgets for political platforms instead of legitimate proposals is a waste of time and just gets the dander up.
So come here knuckleheads and get your shit together and
give us a long term plan. What about
Shemp, you ask? I save him for the
Supreme Court critique.
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