COMMENTARY | What a week! The GOP held a presidential debate Wednesday and President Obama delivered his jobs speech Thursday to a joint session of Congress, all overshadowed by the 2012 primary season and elections. It was the kind of week political junkies live for. Beyond all the hype, though, what did we really learn this week? Let’s take a look.
What Took So Long?
Obama has been in office for almost 32 months. How is it that he waited this long to “pivot to jobs?” Obamacare, financial reform, and numerous other new regulations have led to uncertainty in the economy and reluctance for consumers to spend and businesses to hire. Jobs should have been the priority from Jan. 20, 2009. Putting the private sector back to work would have made Obama’s poll numbers a mirror image, or better, of what they are today. I know he thought he had a mandate to implement a big government agenda, but he was elected under a once in a lifetime set of economic circumstances against a very weak opponent. Voters wanted change, but they wanted economic change, not bigger government.
More Deficit Spending
“Everything in this bill will be paid for. Everything.” It sounds nice, but how will it be paid for? There will be more borrowing in the short term for sure, but Obama didn’t say exactly how we will pay for the borrowing. It sounds like he has some ideas that he’ll send to the debt reduction “super committee,” but they are already tasked with finding $1.2 trillion in savings; now they need another $447 billion.
We can’t continue to print money and ask China to finance our lives. Eventually we have to pay the money back, or inflate it away – both options are painful and the more we kick the can down the road, the more painful it will be. I don’t want to apologize to my kids for the mess we made.
Same Old Ideas on Jobs
Tax cuts, aid to states, and infrastructure. I thought I had stepped back to 2009. Apparently, I wasn’t alone. The Boston Herald, USA Today, and The New York Post all seemed to think it was a retread with no new ideas. I like a tax cut as much as the next person, but a temporary tax cut will not incent me to spend since I know that money is going away. Besides, why deplete the Social Security reserves even further? When 47 percent of Americans pay no federal income tax, according to The Associated Press, I guess you have to find another way to give some money back.
Social Security Dust Up
Speaking of Social Security, Perry and Romney couldn’t be clearer on where they stand. Romney calls it a success, which it has been for current and prior recipients, but the program is on shaky ground now and slated to run permanent deficits if nothing is done to restructure it. In Social Security’s current format, Perry is correct: It’s a monstrous lie perpetrated on those younger than baby boomers. There will not be enough money to go around and taxes will need to be raised or benefits reduced.
Rick Perry Didn’t Implode
In his first foray onto the national stage for a debate, Perry held his own. While not as polished as Romney, who has been running for president since 2007, Perry did OK. He was aggressive when he needed to be and didn’t make any unforced errors. As noted above on Social Security, Perry’s biggest flaw is that he may be too honest and too willing to tell the truth.