First let me say I'm apolitical. The tax cut thing IMHO flies in the face of common sense when HUGE domestic fiscal issues remain unaddressed. Frankly, I'm talking about Social Security and Medicare. The baby boomers (born 1946ish to 1960ish) represent 76 million people. The Xers (say born 60 to 80) are roughly 51 million folks. As a result, the fact is there are more folks looking to get their benefits than will be paying in to the system. Add to that equation the fact that the boomers are living longer and will, therfore, draw benefits for a longer period. Tell me how it makes sense to add a drug benfit? As I said, I'm apoliotical but it sure looks to me like this is pandering to the AARP for votes.
Does a record fiscal deficit coupled with this eventuality scare you? I think it should. How many of you are prepared to fully fund your retirement and pay for you own healthcare once you are no longer working? If you are the typical consumer you are up to your eye-teeth in debt and have little or no liquidity. All this crowing about consumer spending spurring a recovery has some merit as something like 90% of our GDP comes from consumer spending. The question How long can it be sustained? Remember that savings growth rate in 2002 rose to 0% from prior years where we were actually in a dis-savings mode (spending more than we made...).
I'm sorry guys. I don't see much to get too excited about. I think the toughest road lies ahead.
