Tuesday, November 9, 2010

Delaware Way Prevails in Election

The Delaware election season is over. The "Delaware Way" of personal relationships, moderation, and thoughtful deliberation was a sharp contrast to the national trend of "I'm mad as hell, and I'll vote for candidates who are as angry and ill informed as I am".

Hopefully, the Delaware Way will prevail in the next General Assembly which will take office in January. We will need a spirit of cooperation and thoughtfulness in dealing with yet another year of budget difficulties. Much of our fate is in the hands of federal law makers, and that alone should be a red flag. Consider the following crisis situations that need the intervention of the federal government, but will not receive it because the majority of the newly elected do not believe in such intervention.

  • Real growth in Gross Domestic Product has slowed. In order to keep our heads above water we need at least a 3% GDP growth and we will not make that for 2010.
  • We still have around four million homes either in foreclosure or ninety days behind in payments.

  • The European sovereignty crisis (Greece et al) has shaken confidence in the global economy. Corporations will now drag their feet on hiring, again.

  • Most economists believe we could see low employment numbers for at least a decade. Extended unemployment benefits are scheduled to run out for millions of Americans before Christmas. Capitol Hill observers predict lawmakers will extend the benefits for 3 more months to avoid the "Scrooge" accusation, but then will leave the unemployed to their own means.

  • State and local governments will retrench due to both continued low revenues and the new fiscally conservative environment. Economists estimate the public sector will shed another 250,000 jobs.
The Federal Government has the ability to deficit spend in bad times to jump start the economy and to keep the citizens from going hungry and homeless. In good times the Feds should make up the difference by reducing deficit spending and increasing revenues. Since 1980, the Feds have too often gone in the opposite direction: In good times federal decision makers have found some military action in which to spend billions of dollars and have given tax breaks worth billions as well. When the bad times hit, the Federal Government suddenly become fiscally responsible and tells the people to eat cake.

1 comment:

  1. Yeah! Good to see you back in print, Tim. I still find myself smiling over the election results from last week. Common sense and decency prevailed whether it is the Delaware way or just doing the right thing. And, you are so correct--it is all obout the relationship building, moderation, and thoughtful deliberation, isn't it? A model for us all.