American taxpayers are witnessing an unprecedented full-frontal attack on free enterprise, business, innovation, invention, creativity, productivity and entrepreneurialism. This is a misguided strategy from elected officials. At its core it is also an attack on employment.
We are provided a daily dose of news from Washington and from Wall Street’s experts that the economy is now in a phase of recovery, however we are told that this is a jobless recovery. “Jobless recovery” must be a new mantra concocted to perpetuate feel-good perceptions. There is little point in wasting anyone’s time analyzing this non-sense. For the millions of unemployed, and all the workers who will lose their jobs over the coming months, the economy is, and for the foreseeable future, will continue to be in a recession. This is not a glass-half-full attitude, but a lucid perception of the reality facing the road ahead for taxpayers, so let’s not sit and wait for answers from government. The actual number of unemployed is over 26 million. Where are we going?
As a result of this drawn out recession, and out of the undiminished American perseverance, a whole new wave of entrepreneurial ventures will spring up over the next five years. Washington has not been able to kill the entrepreneurial energy that created the millions of jobs in the first place, regardless how much it has tried. This remains enough of a “free” country that from the housewives in the suburbs struggling to feed their families, to the laid off office managers in the cities, individuals across America will rise to the challenge, and do something for themselves. They will take back whatever control over their own lives they might have relinquished to carelessness. Such is the nature of the human condition, as long as it does not allow itself to succumb to oppression, but holds the door open to fulfilling inspiration. America continues to be an environment where fulfillment at all levels is possible.
Out of the current stress and anxiety, will sprout a new collaborative entrepreneurship flowering through mutual inspiration and encouragement. The population’s negative reaction to “bigger, more expensive government,” that we have seen this past year, has not been an accident. While there will always be those who want to be “taken care of,” the vast majority of America has a natural desire to flourish and succeed without “big brother.” America also wants to see its government implement its laws with more diligence than has been demonstrated over the past twenty years.
Over the coming decade, the biggest change in perception that Americans will have to make will be in their relationship to debt. Debt has been very effectively promoted by banks and government, to the point where consumption of the conspicuous kind became a necessity for happiness.
Our general perception has been that debt is not only right, it is a right. Evermore lavish homes with equally lavish mortgages have become expectations, without which we have not achieved the unanimously accepted “dream.” How has such a perception translated to the national stage? It has become nationally acceptable that the U.S. government reach a state where it owes $13 trillion or a little under $120,000 per taxpayer. With an ever-increasing Federal budget deficit nearing $1.5 trillion, and no one seriously yelling stop, politicians have every right to think they have free reign to do as they please.
Washington knows and understands that perception is everything. Until the taxpayers decide otherwise, the White House and Congress will not implement restraints on the out-of-control spending.
The 110 million Americans paying income tax should lock out the grating noise of the propaganda machines lathering up their conscious minds with idiocies, and do what is right – Change perception on debt. Debt should be used when absolutely needed, rather than when desires have been stimulated into “wants.” Much of the national budget has been bloated by special interests, and by satisfying the personal wants of elected officials. A fraction of all government spending is needed. Demand a drastic cutback on that spending.
Debt has inflicted enough damage on the American landscape, and come very close to injuring the American psyche beyond recognition.
Crossposted from The Pacific Gate Post
A constituent of the vast baby boomer generation with a career which has been fortunate to know the ponderous corporate worlds, as well as the intimately pressurized, and invigorating entrepreneurial domains of high tech and venture capital, I have harvested my share of mistakes meandering through corridors of enterprise from Silicon Valley, to London and endless, colourful, sometimes praetorian points in between. The voyage has provided an abundance of fodder for a pen yielding to an inquisitive keyboard, a foraging mind, and a passionate spirit.
Whether political or business or social or economic or personal, is it not all political? It is a privilege to write, and an even greater privilege to be read by anyone, and sometimes with the wind at my back the writing may occasionally be legible. I do not write to invite scorn, nor to invite respect, but if I get really lucky the writing can stimulate thinking. I also write for the very selfish purpose of animating my own processes, and engaging the best of what life offers. Above all, whether biting fire or swatting shadows, I am grateful to be gifted the freedom to write and publish whatever flows down to the keyboard. To all those who enabled this freedom, and to all those standing guard to preserve it, I am indebted.
Very simply, . . . overwhelming debt should be viewed as a disease. It is a disease that saps energy and spreads stress. Nothing good comes of it.
Actually, ALL debt is a disease. The minute you borrow from a bank, or even from an acquaintance, the relationship becomes strained.
JAMES RAIDER:hi, i think that you are so right,i am sure many experience like me ,a family member or friend who is adicted to spending on credit card;and the fun has change focus also;their pleasure is not on what they buy,but to be able to slide the card;specialy when someone of their close family or friends are there;I notice many time that funny smile they give me as they pick up the card;i even found myself doing it too;but i can say that i am very carefull not to bounce my limit: bye
Here are some tidbits I have looked up.
Debt compared to GDP with 100% equaling the GPD of the nation. The higher the number, the less chance the country can recover from its debts.
Japan: 192.10% (2009)
Italy: 115.2% (2009)
Greece: 108.1% (2009)
Iceland: 100.6% (2009)
Belgium: 99% (2009)
US GBO projected: 90% (2020)
France: 79.7% (2009)
Germany: 77.2% (2009)
Canada: 72.3% (2009)
UK: 68.5% (2009)
U.S.: 60.8% (2009)
Norway: 60.2% (2009)
Spain: 59.5% (2009)
Switzerland: 43.5% (2009)
Sweden: 43.2% (2009)
Mexico: 42.6% (2009)
U.S.: 39.7% (2008)
South Korea: 28% (2009)
Notice the massive jump in the U.S. numbers from 39.7% to 60.8%. Also notice the numbers for Japan which spends only 1% of its GNP on defense and Iceland which spends zero percent on defense. Sweden was considered to have the best health care in 2003. In 2005 Sweden ranked 160th in military defense compared with its GNP. Sweden had a negative 4.4% GNP in 2009.
Unemployment:
Independents: 15.6%*
Democrats: 15%*
Republicans: 9.9%*
EU: 9.5%
Canada: 8.2%
Japan: 4.9%
South Korea 4.4%
* From Rasmussen Report Nov. 2009 poll
Average income per person (with 2005 single no kids total tax rate from MSN),:
Switzerland: $36,987(gross), $26,076 (net)
Sweden: $36,800 (gross), $19,173 (net)
Japan: $35,474 (gross), $25,648 (net)
United States: $33,070 (gross), $23,447 (net)
South Korea: $27,700 (gross), $22,908 (net)
UK: $24,486 (gross), $16,283 (net)
Germany: $23,534 (gross), $11,343 (net)
France: $22,571 (gross), $11,263 (net)
Canada: $20,789 (gross), $14,220 (net)
Italy: $19,276 (gross), $10,525 (net)
Spain $14,575 (gross), $8,891 (net)
Note that in 2008, the Japanese work an average 1,772 hours compared to 1,792 hours for the U.S. and 1,542 for France. South Koreans worked an average 2,316 hours per year in 2007. A couple of reasons why Europe has a slightly lower unemployment rate is they generally work less hours per person and use other people to fill in. That’s also why they tend to make less money per year in gross. Both Europe (1.5 children per woman) and Japan (1.21 per woman) also have declining birth rates which means a shrinking number of workers. A stable birth rate for the modern world is about 2.06. The U.S. has a birth rate of 2.1. To offset a population decline, one could use immigrants. Japan has an immigration rate of zero, the EU has an immigration rate of 3.7 per 1,000 people while the U.S. has an immigration rate of 4.31 per 1,000 people.
What’s Switzerland’s story? Switzerland had a population of 7.6 million people (slightly smaller than the population of the city of New York in 2007) in 2008 with a work force of about 4.5 million. 375,000 work in the tourism business. They are also known for their watches, beer, knives and banks. Their population growth has been at about 1.06% including immigration. So the model for the U.S. wouldn’t work. It’s smallness mixed with a few successful businesses have made it look good only on paper. Switzerland has universal health. Is it really universal? No. It’s more like catastrophic insurance. Adults pay about $4,000 per person a year (with a 3% to 4% increase per year) with a $1,000 deductible. Insurance companies are also banned from making a profit. Eye glasses, most dental work and basic check ups would all have to be paid by cash. They do have a choice of what care they want done.
What’s South Korea’s story? South Korea’s population was about 48.6 million with an almost flat population growth. Their low wages overall make them part of the East Asian cheap skilled labor mine which also affects China, Japan, Taiwan and South Korea. South Korea’s wages yearly wages are due to the long hours they put in at work. South Korea’s average wage would be $11.96 per hour gross. South Korea does have universal health coverage, but it has been going broke since 1996, with mandatory insurance premiums have increased since 2000. The average deductible is 35%. Their biggest problem is no oversight of the doctors which one critic claimed that they over test and over medicate. They also have doctors who would rather be specialists, just like what is happening in the U.S. Specialists make more money.
@ Gregory_Dittman,
Thank you for the additional stats.
Unfortunately one of the looming challenges ahead for the U.S. taxpayer is the commitment to the Baby Boomers – health care and retirement.
Most of it the commitment is unfunded, with the current debt and deficit, plus drop in total revenues, making it more and more unlikely that it will be funded. The funds required will be greater than the current national debt by an estimated multiple factor of anywhere from 2.5 to 3, . . . annually.
Get ready for a monetized repayment of the national debt.
The news reports that ‘the recession is over, but it is a jobless recovery’ is typical of the out-of-touch elites, who place so little emphasis on the reality that for most everywhere beyond Washington DC and Wall Street, that the Recession is definitely not over, and conditions on ‘small town main street’ and the homes of all these out of work workers, (not to leave out the retired elderly,) seem more headed towards a Depression. Is it any wonder that the American people are incensed at the elite who definitely do not “feel our pain.”
This is what should most seriously concern Republicans (and Democrats too.) who for too long have cared more for the global marketplace, while ignoring the economic atrophy at home. I am seriously concerned that if Washington and Wall Street continue to wear blinders and not address the rebuilding of the American economy, that eventually we could end up in true class warfare the likes of the French Revolution.
Now, perhaps that is the end hope of change by some in the flame-fanning far-left who would, after the chaos, rebuild America into a Socialist Republic. Constitutional conservatives of all types need to put Adam Smith on hold for a little while, and focus on fixing the American economy and regaining the public trust before it is too late.
I’m not saying that we should close off foreign trade and turn to complete protectionism, but that virtually that there has been no consideration whatsoever towards protecting American jobs. Our global trading partners still manage to strive towards protecting the jobs of their citizens, yet it is stupid for us not to do the same.
@ ditto,
I think you make a good point. Other countries, particularly China, have been very discriminating, while Washington has been asleep.
Some more thoughts on the U.S. trade relationships:
Free Trade
Washington has also shown little vision over the past twenty years. We have also had almost no one in Congress who really understands economic matters, other than padding their retirement coffers.
Somebody just needs to connect the dots for the liberal college students out there. V for Vendetta, 1984… yeah this is what your government is turning into!