February 1, 2009

BACK TO THE FUTURE

President Barack Obama has completed all the preliminary tasks we have come to expect of a new administration in Washington D.C.

Now comes the customary 100 days of critical law-making as initiated by President Franklin Roosevelt’s “New Deal” in 1930.

A self-centered Congress drove the American economy to disastrous levels by tinkering with banks and other lending institutions.

(Click here to see my: “Recession-Depression” article of October 12, 2008.)

Today, Mr. Obama and a Democrat majority Congress must deal with too much spending by government in relation to income by taxes.

The spending tendencies of Speaker of the House Nancy Pelosi -- and Senate Majority Leader Harry Reid -- are held in check by a thin Republican presence.

EXPERT JUGGLER

President Obama is expert in juggling disparate politics to his advantage.

Latest example is his choosing New Hampshire Senator Judd Gregg – a staunch Republican and fiscal conservative – for Secretary of Commerce.

This allows New Hampshire Governor John Lynch (Democrat) to fill the vacancy with another Democrat. This gives Obama a filibuster-proof 60-vote majority in the Senate.

Also, this smothers the smelly investigation of Obama’s first pick for Commerce – New Mexico Gov. Bill Richardson who became involved in favoritism for awarding government contracts.

BYE-BYE TAX CUTS

Congress on Monday will begin crafting legislation to erase President W. Bush’s tax cuts and then rescue the high-cost banks and automobile companies with a trillion dollars of spending.

President Obama proposes a massive spending program for highways and public buildings.

House Minority Leader John Boehner declares that more tax cuts – instead of “slow-moving government programs” – will better boost the economy.

He says the Republican plan would provide an average of $3,200 in tax relief for families. It would grant a tax credit for homebuyers “to help bring the housing market back to life.”

Also, it would end the “unfair taxation of unemployment benefits” and provide credits for small business that produce more jobs than factories.

Boehner declares: “Our plan is rooted in the philosophy that we cannot borrow and spend our way back to prosperity.”

AIMED DOLLARS

Harvard economist Martin S. Feldstein is reported saying -- more than a year ago -- that the United States was heading for a recession.

“When you are filling a hole this big – and adding to America’s debt on such a large scale -- you need to make sure every dollar is aimed for the economic boost needed.”

It is expected that the national debt will increase $2 trillion this year -- according to other economists. This will affect the world economy adversely.

The U.S. economy is the leader of a global economy. China, India, Japan and Europe are economic bed buddies with the United States of America.

When America gets a cold, the rest of the world gets pneumonia.

MAKING WORK

American legislators are rushing to get new roads, bridges and public buildings started to “make work." Their mantra is: “the more you spend, the more you save.”

Sounds good -- but often in the past, “spending to save” brought bankruptcy and wars.

Government’s first duty is to keep the peace, or fight wars if attacked. Secondly, our public servants should build roads, provide community safety, and establish uniform weights and measures.

Beyond these essentials, government should be closely monitored for common sense and frugality. Elected officials should hold a maximum of two, short terms.

Public schools should start for children at age 5 and continue through two years of college. Work enterprise should be encouraged with starter loans.

We exaggerate a bit, but you get the idea. Back to the future.

By Lindsey Wilger Williams, retired newspaper publisher and syndicated columnist