The reasons for Romney’s election loss can be argued over till doomsday. We will not agree on why Obama won. Frankly sage advice from the professional know-it-all’s (both paid and unpaid) on how to win elections does not interest me in the least. The campaign is over. How do the know-it-all’s propose we govern?
What is important is that the status quo was affirmed yesterday. The direction of the country will not change. We are now set to amass $1,200,000,000,000.00 debt each year for four more years. This level of deficit spending is not sustainable. This assertion is not Pollyannaish, it is math.
The solutions proposed for debt reduction from both parties are anemic. The announced Romney plan of growing the economy faster than we amass the debt is marginally better than Obama’s tax the rich until they pay their fair share and only because we already are on the far side of the Laffer Curve. If President Obama does get a higher tax rate passed, the tax revenue stream will not increase.
As others have said, the Democrats have won. America is not willing to part with its social programs. The total budget for 2012 was $3,800,000,000,000.00 the military budget was $700,000,000,000.00. As Obama said, it is math. Here is the math. We can zero out the military budget and we would not close the deficit. The government in Washington would still run a deficit for the tune of $500,000,000,000.00 per year.
We could also tax everyone making over $250K a year at 100% in addition to zeroing out the military budget. The government in Washington would still be engaged in deficit spending. Pillaging small businesses and high earners would lesson the shortfall for a year, but then what? The trouble with taxing the rich at 100% is that they would be gone after a year. Even if we confiscate their assets down to the last penny, we would not pay off the $16,000,000,000,000.00 debt. Now, what happens internationally if we shut down the military? Once the rich are gone, what happens to the unemployment rate?
Running into the hinterland will not shield people from the coming train wreck. Granted people in the countryside can at least live off the land. But this ability will not shelter them from the storm. When the currency begins to experience hyperinflation, all will be affected. Goods and services will become scarce, or nonexistent. The shelves will be empty because the consumer demand will be gone. Something’s are not to be found by living off the land. Things like medicine, clothes, salt. We need a functioning economy for these.
One does not require some post apocalyptic scenario for such hardship, all it takes is hyperinflation, no zombies required. Think Peron’s Argentina in the 1950’s. Think of Zimbabwe under Mugabe or the Weimar Republic under Hindenburg. Argentina’s hyperinflation in the late 1980’s led to the following scenario …
There were no prices on any items in the grocery stores. There was a man with a microphone who would announce the prices of various items, often increasing the price every few hours by 30% or more. Workers would get their pay in cash and rush to the store to buy anything, as by the end of the week their pay would be worthless. Of course, shelves were empty.
With each tick of the clock, the debt increases. The US Dollar is being devalued further as time passes. The Democrats won, Barack Obama is still our President. Now what? Imagine a perfect world were the Republicans did give him everything that he wanted. What could Obama do then to stop us from going over the fiscal cliff?