The U.S. Economy: Bookerista Perspectives

Kenneth Durden: "National Bankruptcy On The Way"

The libertarian-conservative blogger writes: "By 2019, the payment due on our nation's debt interest will be more than 'the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan.' The principle is now $12 trillion and climbing. This is beyond a crisis situation, and no one in our government seems to want to face it, much less address it. What does it mean? We're broke and facing a situation unlike any in our nation's history. Yes, it's bigger than George W. Bush's spending. Meanwhile the health care reform plan will kick in and cost upwards of 2 $trillion, adding to the madness."

More: "Also note that 2019 is about the time that Medicare will also go broke. Of course the government will never let that happen. Where will all of the money come from? The evil rich? Sorry, even if the goverrnment seized every penny of every Fortune 500 company we couldn't afford our debt. We'll run out of rich people to punish. The government needs to stop spending and creating new entitlements or we will all pay dearly."

Herman Cain: "Mr. President, Your Handlers Set You Up"

The conservative Republican businessman opines: "Mr. President, I had hoped that I could wait at least to the end of your first full year in office to break this bad news to you, but your latest pronouncement had me screaming at my TV, so I knew I had to tell you now. In a Fox News interview on November 17, 2009 with White House Correspondent Major Garrett, you said:

'There may be some tax provisions that can encourage businesses to hire sooner rather than sitting on the sidelines. So we’re taking a look at those. I think it is important though to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession.'

Sitting on the sidelines! Businesses don’t sit on the sidelines or they would be out of business. Businesses are managing for survival as we pray that you and Congress will pass some real stimulus measures before we slip into an even deeper recession. Most businesses are hoping that the double-dip recession you hinted at will not turn into a triple-dip."

He continues his commentary: "You have been advised to start mentioning some tax provisions to help stimulate the economy. Republicans in Congress and others suggested this before the $787 billion dollar stimulus bill was passed and signed, but it fell on deaf ears. So you ended up with a bill for the government, of the government and by the government. Here are three tax provisions that will work. Suspend the payroll tax for a year, suspend the tax on repatriated corporate profits indefinitely and replace the income tax with a consumption tax, popularly known as the FairTax. I know it’s a long shot, but I’m just trying to offer some better advice than you have been getting. You have also been advised to allude to the fact that we can’t keep on spending this way. You’re right! Your acknowledgement is welcomed, because that’s a lot different from what you said in December 2008, namely, 'deficits don’t matter.'"

More: "You also suggest that we are in the midst of an economic recovery. There is no recovery yet. The unemployment rate is now 10.2 percent and is expected to continue to rise. Remember, your advisors told you to say that it would not go above 8 percent with the passage of the stimulus bill. They also have you trying to peddle the 'jobs saved and created' rhetoric, and most people are not buying it. Businesses do not add jobs based on rhetoric and promises of tax provisions for businesses. They add jobs based on sustained economic recovery."