Well, tomorrow (Monday, 3-4-2013) will be America’s first business day and stock market day under sequestration. A sickly stomach malady will strike the man or woman appointed to ring the 9:30 bell at the NYSE tomorrow morning and water cooler talk at work in many places will be centered around Will I have a job tomorrow? In my home state of Connecticut, Tweed New Haven Airport will most-likely shut down since only one commercial carrier (US Airways) now flys out there and the shortfall of air traffic controllers resulting in the actions of the boys on the hill 3-1-2013 11:59:59 PM. Where is America going from here?
I heard economist Ben Stein do some commentary on a Sunday morning program where is blamed both parties for unwillingness to compromise. Stein pointed out that American Democracy is not about belligerent support for your side and how to defeat those who oppose, but about compromise. He quoted Lincoln with America is God’s last best hope for Earth. For the most part, I agree with Mr. Stein. Not necessarily the epitome of compromise, but government of the people, by the people, for the people. Therefore, the representatives we elect are supposed vote according to the will of the people most of the time, and vote against the people if and only if it can be proven beyond a reasonable doubt that a majority of the people support what will turn out to be a fatal mistake. The sequestration happened. Most Americans were sure the sequestration was a political ploy to get both sides of the aisle on board for a better solution and yet, they just left town and allowed sequestration to happen.
As a Republican loyalist, I know to expect many to ask me the question, If your Republican Party is truly America’s savior, than why can’t Republicans compromise? Why are Republicans just as guilty as the president for obstructing Democracy? I don’t have a good answer for that, but I can tell you why the Republicans got it right. Ronald Reagan was a great conservative and a great engine of compromise and pundits say he is spinning in his grave. The difference between the Reagan era and today is The Great Ronald Reagan had the good fortune to be a bell weather president. When he took the oath of office on 1-20-1981, he told us It’s morning in America. The policies he got through Congress in his first term in office got sent the American economy into its largest boom of prosperity since before the Great Depression. Compromise was the buzz word in both houses of congress and in the oval office. That is not the case today; America is forced to live under economic martial law because it is $16 Trillion in debt and headed towards the point of no return. Even the best of American Democracy, when Washington, D.C. was a [gentlemen’s] club and the art of compromise was the way things got done cannot sustain itself without proper funding. If the New York Mets are to put a contending ball club on the field, they first have to rebuild financially. They cannot sign key free agents if they cannot afford them. And if they reach appoint where they cannot pay 25 minimum salaries and stay in the black, the owners have to sell the team. Ideally, you search for the ultimate compromise between taxes and spending cuts. But as I have said plenty, with 7% plus unemployment and outsourcing employment, you cannot raise taxes on the middle class because they just don’t have a spare penny. You can raise taxes on the rich up to a point, but you have to allow them to stay rich or they will lose the wherewithal to hire and will be forced to lay off employees. The Republican way of over 90% on spending cuts has its flaws and it would be kinder and gentler to wean America off entitlements gradually; but it has become a Hobson’s Choice. The alternative is to go the way of Greece and declare national bankruptcy; if that is allowed to happen, not only America, but the world may never recover.
The corollary to the Schoenhaus Theorem states that if the calculated minimum government can accrue insurmountable debt, America is at the point of no return. Though nobody including myself will be happy with the end results of sequestration, right now sequestration is the prettiest house on the ugliest block and will be that way until somebody in Washington builds a nicer house. Doing nothing and that debt clock would continue to race; the sequestration will slow from a gallop to a canter albeit it is still moving forward. We can consider new and increased taxes only when we can get unemployment under 4% and middle class wages to a workable level with the rate of inflation. And if you want the rich to pay still more taxes, you have to allow them to make still more profits. And why didn’t anyone in Congress propose the hybridization of our currency putting some of it back on the gold standard? With gold trading at almost $2,000 an ounce, this should be a no-brainer.
The one thing that should not have been allowed to happen is the draconian cuts to the military. A military defense is the one service the Federal Government has been constitutionally obligated to provide since its inception in 1789, so military defense cannot be removed from the calculation of minimum government to apply the Schoenhaus Corollary. And no matter how we fare economically, we cannot afford to allow another 9-11 to happen. The best we can hope for right now is to obey God’s principles and achieve his blessing in our recovery. Remember, With God all things are possible.