Mr. Obama is slated to give a major address to the nation tomorrow evening regarding fiscal
policy and budget management. Ahead lies a battle with a GOP newly revitalized by the "Tea
Party" -- a rising, powerful group of reactionary airheads. Now, we all know the US cannot
go on borrowing willy nilly forever, and we know that at some point, genuine wisened adult
supervision will be needed to fashion policy that meets our commitments in a rounded, sensible
way.
Mr. Obama sees political opportunity here. He has sold out the Left and the young independents
who put him over the top in 2008, and he now appears to be moving toward the political Center
to counter the emergent legion of wingnuts on the Right. But, I do think he desires to stand firm
on entitlement programs, on paring back the military and on using taxpayer money to develop
energy sources that would give the US much better balance.
The longest running scam in the history of US fiscal policy over the past 50 odd years has been to
lay out budget plans which overstate revenue growth. So, at bottom, I will be listening most
carefully to Obama's views regarding the management of the revenue side of the budget. It is
assumed he will be discussing raising taxes to fund programs, but I am much more interested
in how the Feds view the longer term growth potential for the economy, and whether Obama
will put the fiscal policy issue into broader context. Over the long run, it can make a huge
difference to fiscal policy if necessary programs to accelerate growth potential, ranging from
more focused but expanded immigration to underwriting domestic investment and productivity,
get top billing along with the "slash and burn" cuts to wasteful spending.
There is a crossroads ahead for the US, and when it comes up fast as they so often do, it has
to be wisdom and luck on our side if we are to take the best path. Let's here the man out.
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