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Aug 12B2B CFO

A view of the current political climate

Aug 12B2B CFO

I would consider myself well informed on US political issues and continue to be amazed at the current status of US politics.  It’s quite interesting to watch the political machines gear up for the coming election and all I can surmise from both parties is that they rely upon an uninformed public to make their selections.  I have watched the Republican party declare that their number one goal is to keep our current President from getting a second term.  Simple as that.  There has been absolutely no effort to reach across the aisle to work for the good of the Country.

We have a situation where it has become acceptable to lie in political ads.  This is true for both parties.  An Obama Super PAC is currently touting ad an (has never aired, but continues to cause an uproar) that ties the death of a workers wife to Romney.  It’s not true.  The Romney campaign continues to air an ad that says Obama is creating a welfare state, which is also untrue.  There has always been stretches of the truth in political discourse, but the level both parties are exhibiting now is just outright lies about each other.

The Democrats have compromised on most of their accomplishments over the past three and a half years.  Look at the result of the Affordable Care Act.  The premise for the individual mandate was originally an idea presented by the Heritage Foundation as a way to combat the efforts of the Clinton Administration.  It was originally presented in Congress by Newt Gingrich in 1994.  Romney used it as the basis for the state mandated health care reform in Massachusetts.  The Republicans are so opposed to the Affordable Heath Care Act that they are planning on repealing it if they get the Presidency.  They are doing this without providing any alternative.  They hope to get people so up in arms over the Act that they don’t notice there is no alternative.

The US is in a dire position concerning the deficit and the solutions are going to be tough.  In 2001 the Bush tax cuts were put into place, even though they were unfunded cuts.  (An unfunded cut is one that by definition is based on deficit financing.)  We have been in two wars over the past 11 years and both of these were unfunded, once again, funded by increased deficits.  The Medicare prescription drug benefit was another unfunded benefit provided by the last administration.  The previous administration created the situation and the current President promised to reduce the deficit but has only increased it in an effort to save the economy.

I’ve watched with amazement over the past two years the lack of effort by the Congress to do anything to create jobs and then blame the President for the poor job creation numbers.  It’s a stretch to imagine that government action creates jobs in the private sector, but they can have an impact.  Government can create jobs in the public sector, but in an environment of no spending that won’t happen.  The recent highway bill can impact jobs, but the Congress waited until the last minute to pass this.

Republicans are being asked to, and 90% of Republican Members of Congress have, sign a pledge to not increase taxes in any form.  While I agree that giving more money to the government is not something I or anyone else relishes, it may be something that is required to right the ship.  Taking this option off the table makes no sense.

B2B CFO®

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