After a nice month off Congress is back for an abbreviated session and I hope many who were blind, mute and “dumb” by living in the bubble in DC have had their eyes, ears and mind open after hearing the anger and concerns from their constituents.
I was speaking with good contact, Rep. Paul Ryan yesterday after the show and we got to talking about Mid-Terms. I told him I was afraid some voters might not get out in the Mid-Terms because they would think they votes were “in the bag” and would stay home. Ryan told me he thinks Americans will go out and vote because they want to insure “change”. He told me a story how he was at a rally in his district this past Saturday and it was raining. He said it was packed. Ryan believes the emotions running this mid-term election will keep the fire in the voters belly and get them out to the polls. I hope he’s right.
Ryan is one of the few who gets it when it comes to the economy and solving its problems. He made a great analogy yesterday on Squawk and again with me after the show on how the two parties differ. Right now the administration wants to redistribute the pie. Take away from others and give to another group. The GOP wants to grow the overall pie. I think Americans want a bigger piece of a bigger pie. I’ll call it “super sizing” the economy. Problem is our deficit is morbidly obese and the extra calories Congress has forced fed it has to be addressed.
I believe there is not just one magic bullet to anything when it comes to solving a problem. Its normally a basket of ideas that gets the job done. Right not the fight over
the Bush Tax Cuts is going full force and the political posturing has officially started. I wish politicians knew what compromise was. I know, laugh. I wonder if you polled how many politicians were bullied when they were in school has to be a high number. Now its their turn to be the bullies and they having the time of their lives.
Yesterday, McConnell said on the Senate floor. “I’m introducing legislation today that ensures that no one in this country will pay higher income taxes next year than
they are right now.” Come on! That’s nice to say that but we know it won’t happen. Just another camera play. To be honest, I’m shocked we haven’t heard from the O-ministration yet that they want to put the Bush Tax Cut talks on C-span. Its still early yet, so who knows. The O-ministration loves to paint the other side as not working together and a brawl in front of tv cameras over the Bush Tax Cuts would be something right up their alley.
Bottom line our economy is bumping along the bottom and in desperate need of some healthy stimulus. Our bodies don’t stay healthy eating peanut butter M&M’s (but boy do I wish it could!) you have to eat a balanced diet. But balanced is something that left Washington years ago. American’s need to bring it back.
Lori Ann LaRocco 
First off, I’m with you on Peanut Butter M&M’s. They are delicious but not necessarily nutritious. The human body needs a diet containing key vitamins & nutrients. The economy needs a plan containing sound policy initiatives within the framework of free market capitalism.
There were excesses between 2003-2006. Consumers took on excessive debt in that time frame, financial institutions grew their loan pool excessively, taking on undue risk. Consumers have had to make budget cuts when they’ve lost income. Financial institutions haven’t been lending as much, their equivalent of a budget cut.
When the human body consume an excess of calories, it causes weight gain. Weight loss isn’t a fun process. Government spending has been like consumer spending from 2003-06. Governments haven’t reduced spending from taking in less income tax and less gross receipts tax due to a slowdown in the business cycle. The path isn’t sensible, like a diet consisting of Peanut Butter M&M’s, potato chips and ice cream.
To lose weight, there needs to be a sensible, nutritionally balanced diet and exercise. There needs to be a return to a reasonable level of spending and policies that promote a strong free market capitalist system. Tax raises and continued government spending do not promote a healthy economy.
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Interesting blog today. Please keep them coming. Inserting my thoughts here and wondering if any of your contacts might agree with the approach. ~Best.
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I haven’t read of a credible policy to enable manufacturing rebirth in America, with attendant new jobs. Here’s my thinking on what should work.
Problem with lack of Jobs is that [after we exported our industry] our domestic small companies don’t see markets here in the USA where they won’t be undercut by pegging in the currency markets.
Tax policy only works if there are profits in an industry to be taxed.
And, consumer and business consumption of goods from US producers keeps the $US here to be recycled, not exported.
Policy: Build it here to sell it here – America First. It’s OK for foreign companies to build plants here to sell here and take the profits home, but the jobs stay here.
Only method that occurs to me to make this happen is that we return to “a flat tariff” on all imports based only on the inappropriate pegging by foreign governments in the currency markets. For example, China devalued its currency by 40% when they pegged 8 Yuan = 1$US [Clinton says thank you for the $$ contribution]. So, we look at the current appropriate undervaluation and, for example, add a 40% tariff to all goods manufactured in China. USGov keeps the tariff revenue.
Protectionism of course, but we base it only on aggressive foreign currency pegging, not by industry, on currency.
Result: Small US companies see will markets for all types of essential products that they can manufacture and profit if the currency costs are leveled. They will expand to fill the market and in doing so, hire new workers and buy new “American High Tech Tooling”.
At some point it’s America First. Tariffs can be used or abused. Use to level the economic-cost playing field is a fair use of tariff tool, gives the Feds a revenue stream, and American industry a market into which they can expand.
Another thought …. If we use the “Flat Tariff” method then we don’t have to resort to “Devaluing the Dollar” to attempt to gain manufacturing advantage. We could actually save the Dollar as our currency. [Reduce Gov’t spending by sending the big social programs back to the states, and implementing America First manufacturing policy with tariffs, with Gov’t receiving the income from the tariffs. Save the American Dollar as a currency. Insanity!! ]
ps. I went to Home Depot to get some copper pipe fittings: guess where they were made – China. Egads!
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Personal feeling is that if we are to ever get back on the road to a healthy nation, DC will have to be completely cleaned out. And I’m not just talking about the politicians. The staffs and life long insiders are part of the problem.
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Wait until you hear Bernie Marcus on Squawk Box Friday- he is talking about this very issue!! He’s guest co-hosting from 7-9 Friday. Pop some popcorn. You’ll enjoy. DC really is a kingdom where those who work there get the best healthcare for life and a pension. They have no clue as to what real Americans are facing every day. Debating on what bills can be paid and what can be late. Telling their kids no time and time again for the simplist of things like buying new sneakers. The bubble needs to be popped and cleaned up.
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I am definitely going to have to tune into that on Friday.
It’s one of the larger problems I think we face as a nation. The sort of problem that can rip a country apart if not addressed and corrected.
Speaking about the show. I caught and enjoyed the Shiller spot. Joe always cracks me up. Wilbur Ross was a great guest-host. Had some good questions and insights I thought, particularly for Shiller on business side versus gov side stimulus and revenue sharing.
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price of gold is a big story as you know 🙂 I spoke with Steve Forbes today for my C-suite Insider post on CNBC’s Net Net page. that will post tmrw. I’ll put on my blog then 🙂
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I’ll be looking for it 🙂
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