The Baby Boomer Generation will be the new "Third Rail" of American politics. They are already vocal and will become more so as time marches on. The former Speaker of the House, The Honorable Newt Gingrich cited the Tech Bubble and Real Estate Bubble correctly. The author believes that former President Bush lost control over spending. Impliedly, this spending was on the dual wars in Iraq and Afghanistan.
The Reagan tax cuts, de-regulation and spending controls were cited as the catalysts for 25 years of relative prosperity from 1982- 2007. I agree
with the proviso that prior Administrations should have put into place inter-agency oversight for such things as derivatives. Also, President Kennedy put into place tax cuts that spurred economic growth thereafter.
The Speaker quite correctly cited America's most outstanding attributes which include:
* A 500 year supply of coal.
* The Bakken Formation of North Dakota.
* Significant oil shale deposits.
* 1l00 years supply of natural gas not.
* including the gases surrounding Saturn.
* Nuclear power including the Artificial Sun which is slated to create virtual power to benefit such things as a cheaper desalination capability.
One has to wonder why we are in Iraq and Afghanistan given our unlimited energy bonanza. At some point, we may be able to help these
governments install electronic systems to provide municipal governance. In addition, we can provide special commando forces training to ward off internal and external threats, assuming that we get cooperation from the Russian Republics and China once the USA disengages from Iraq and Afghanistan.
The existing social services could be enhanced variously with excess consumption taxes. A flat tax like the Forbes proposal would force a much higher proportion of upper middle to wealthy income taxpayers to pay their fair share.
The military spending should be kept within President Clinton's 3.5% spending as a percentage of GDP. In addition, I favor the use of commando forces over the use of thousands of soldiers stationed on unfamiliar turf.
There are technologies and market forces which will serve to reduce medical costs for the general public. i.e.
* Artificial intelligence and "Advice Giving Systems."
* The expiry of pharmaceutical patents and the deployment of generic drugs in their place.
* Cheaper modalities like acupuncture, chiropractic etc.
* More judicious use of physical therapy.
* Bringing back gymnastics in the grammar, middle and high schools.
* Higher consumption taxes on junk food, alcohol etc.
* Reinforcement of existing programs like Hill-Burton which have worked well for decades.
* More utilization of the National Institutes of Health resources and free medical care for patients qualifying for the protocol.
* Upgrading Veterans Medical Services.
* Allowing the public to buy into the Congressional Health Plan and other government plans.
* Birth bonds for newborns to fund medical care later in life.
* Dietary restriction of caffeine, sugar and processed foods.
Time will be the judge of President Obama's initiatives on health care reform. Input from both physicians and their patients will help to refine the system over time.
The Speaker called for an Independent Internal Oversight Board for the United Nations, more stringent sanctions for rogue nation states and a separate human rights body. All of these ideas are in order. The Speaker cited the benefits of smaller innovative firms over mega-business.
Again, I agree.
The book calls for a repeal of "Mark to Market" rules. There are times when the VIX index gyrates unrealistically. The 200 day moving average for individual stocks is a fairly predictable indicator. Historical cost valuation could be unrealistic for certain transactions not having a timing difference or market reversal until the passage of many months or even years. Real estate recessions are known to last for 3-4 years. Location is the rule in the real estate market. During this recession, some local real estate markets held their valuations substantially. Remember also, there will be 9 billion people on the planet by 2050.
There is a call to reduce the Capital Gains tax. This reduction could spur economic growth. A reduction of corporate taxes could be helpful;
however, this may not benefit employees uniformly.
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