Only Fiscal Sobriety Will Prevent Further Fiscal Chaos

 

Updated Feb. 1, 2012

We’re way past the deadline to demonstrate financial leadership. It’s time for economic fundamentals and teamwork focused on economic patriotism.

As the world’s largest-economy, threats for a double-dip recession will only worsen unless the Unites States stops the fiscal dysfunction. In fact, not only is the U.S. economy is danger, so are world markets.

With a $1.6 trillion dollar deficit, investors and average Americans aren’t confident that the Obama Administration and Congress are competent enough in public policy. Voters are sick and tired about the bickering and finger-pointing.

Fourteen million Americans are out of work. The catalysts are the economy, advances in technology and business greed for outsourcing.

Despite what the Obama Administration claims, the S&P downgrade of the U.S. credit rating was justified. If a family or a company’s credit situation is lousy and cash flow is poor, they don’t qualify for loans, period.

All of that stimulus spending hasn’t turbo-charged the economy.

The challenges are many:

• Capital isn’t circulating.
• Consumers have cut spending.
• Businesses aren’t hiring.
• Money isn’t being lent.
• Despite efforts by the Small Business Administration to promote loans, the majority of small companies don’t have the collateral, credit and cash flow to qualify for a loan.
• Don’t forget the obnoxious greed on Wall Street, which helped cause the meltdown.
• Precious little is being manufactured.
• Many investors have more confidence in gold.
• The trade deficit is exacerbated by manipulation of currencies by China, India and Japan.

The selections for the bipartisan debt panel raise more questions. It appears we’re headed for more deadlock. The panel is filled with staunch partisans from both sides – the same politicians who have long failed to recognize problems and deliver results.

The blame game has become onerous, and few politicians – from the White House to Congress – have offered constructive ideas. What we need is balance and compromise. Move to the middle, please.

To Democrats: Cut spending.

To Republicans: Quit attacking Social Security and Medicare as entitlements instead of lifelines, and reconsider the Bush tax cuts for the wealthy. (Note to Republicans, Democrats aren’t the only culpable spenders. Lest I forget, Mr. Bush waited six years before vetoing any pork bills in a GOP-dominated Congress.)

To both parties: Stop the hometown pork to get re-elected, shun unnecessary risk, and simplify the tax code. Consider all options, including the call by Steve Forbes for a 10 percent flat tax.

To the White House: Wake up to realities. Hire bipartisan economists.

Remember why this nation was founded. At-risk are all of our political and economic liberties.

Now, can we get sober fiscally and agree to roll up our sleeves?

From the Coach’s Corner, here are additional resource links on public policy:

Manufacturing Jobs Might Return to U.S. as China’s Labor Costs Rise

Job Creation: Will Public Officials Listen to Intel’s CEO?

“This country has come to feel the same when Congress is in session as when the baby gets hold of a hammer.”

-Will Rogers

 

__________

Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?