Fiscal cliff meets fiscal irrationality

5 Dec

Fiscal cliff meets fiscal irrationality

 

 

President Obama is requesting 1.6 trillion dollars in new tax revenues over the next ten years along with elevating the debt ceiling towards heaven. Startling as his requests may sound he has offered minimal spending cuts as a rational means to stabilize the economy. Succinctly, the President is telling the private sector to give up more so he can lavish the takers with further entitlements. A stealth attack on private assets is under consideration to finance an expansive redistribution of wealth. Media from both perspectives has been humming with potential plans to nationalize retirement accounts, limit across the board tax deductions, tax businesses on gross revenues not net and other devious means to maximize revenue collection. To embed the enormity of this manufactured crisis into the minds of Americans, a new set of key words has been invented for this purpose. Fiscal cliff, a term that is loosely defined as the economic detriment that would befall most of us in the event certain laws are not amended in the immediate future has come into being. The resulting tax increases and spending cuts that would follow could affect every level of the economy. Economists and those in the know explain that over spending tilts the economy towards the precipice that has become the talk of the media and Congress. President Obama and the Democrats believe that high levels of revenue enhancements to certain sectors of the economy will buy America life-support from the fiscal oblivion for which they are partially responsible. From TARP to the ill-fated Stimulus debacle, the economy swirled for a few seconds while the money was being dished out. The latter programs caused a hiccup in the financial markets never denting the true problem, too much government and over-spending. Similar to all ill-conceived legislation the Stimulus never stimulated anything. There is definitely climate change, yet it has nothing to do with the weather. America has been mismanaged into the economic doldrums with irrational policies. Starting with the Bush 8 year tour, and extended and renewed by the present Commander-in Chief their collective responsibility is written all over this mess. Teetering on the brink, America is already technically bankrupt. Why: because the 16 trillion dollar debt will never be repaid. Logic and rational thought were never the strong points on the liberal side of the aisle. Present negotiations are foolhardy when progressives knowingly request the unobtainable.  Will the Republicans unite and walk away from Obama’s nonsensical approach to budget management or will they cave in. We have three weeks to find out. Mark Davis, MD President of Healthnets Review Services. www.healthnetsreviewservices.com

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