A New Recession Is Looming. Thank Your Legislators.

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It is unlikely that the Congress of the United States will move on any significant piece of legislation affecting our nation's economy prior to this November's presidential election.  Republicans will choose not to advance President Obama's agenda for fear he might be successful and be reelected.  The Democrats in the United States Senate will stop any Republican legislation that comes their way.  In other words, the remaining months of 2012 will be very similar to 2011.  Stalemate.  No Compromise. No action.

What everyone is calling the "fiscal cliff" looms large in January of 2013 as Congress and the Administration will have to reach some type of deal no matter who is elected to Congress and the Presidency.  The docket will include the Bush Tax Cuts, the Alternative Minimum Tax and the scheduled payment cuts for Medicare for doctors.  Also on the list is the $1 trillion in spending cuts authorized by Congress to take effect next year.    

It seems unlikely that the Bush Tax Cuts will disappear.  To eliminate them would bring in valuable and necessary revenue but the fallout from such an increase in taxes would likely catapult the economy into recession. Congress will find a way to release themselves from their pledge of $1 trillion in spending cuts scheduled for 2013.  The current plan cuts defense spending significantly and there is no way it will stand. 

At the same time, another debt ceiling vote will come into play causing additional rancor and discord between the two political parties throwing more uncertainty into the mix.  All of these issues along with the growing financial difficulties and troubles of Europe will put us at the precipice of disaster.   

Both the Administration and Congress must accept responsibility for their lack of action.  Their complete and utter lack of cooperation and unwillingness to work together to find solutions is sickening.  This "fiscal cliff" is one that both sides seem willing to drive off of no matter what the result to the American people.  Clearly, the American people recognize that we have serious economic issues. 

Decisions must be made to stop the runaway debt.  The only way to stop it is to cut spending, increase revenues and reduce long-term indebtedness.  The tax code needs to be rewritten providing fairness for all people.  Taxes for corporations must be altered giving them no choice but to bring American jobs and investment back home.  Changes in Social Security and Medicare must be implemented. 

All of these changes will bring hardship for the American people.  However, if the laws drawn up share the burden across the entire spectrum of the American economy, the American people will accept it and move to make it work.  What will not work is the continual lack of action and decision-making that plagues our elected officials.      

The inability and unwillingness of Congress to work together to reach compromise regarding our nation's debt, entitlement programs and defense spending will lead to the nation's next recession.  Listening to the rhetoric of all candidates, not just the presidential race but the congressional races as well, there appears to be little hope of any of these elected leaders choosing to be cooperative. 

Problems do not go away by hiding them from view.  Problems do not solve themselves.  Problems are still there if you choose to avoid them.  Let's deal with it.  Let's take the tough medicine.  Let's find ways to compromise.  Let's solve these problems and move our nation forward.    

Wisconsin's Walker Set To Win In Recall Effort

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Many of us who strongly support unions, union workers and collective bargaining in the United States are sitting on the edge of our seat as we await the decision of the Wisconsin voter today, Tuesday, June 5.  Some believe that the recall vote will portend the result of the State of Wisconsin come November when Barack Obama faces off against Mitt Romney.  For sure, more is at stake than the recall of Wisconsin Governor Scott Walker.  The essence of the labor movement of America may be changed forever depending upon the vote of the good people of Wisconsin. 



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Most Democrats would agree with the conservatives of the Republican party that the labor movement in the nation has led to many abuses, fanciful health care and wage deals and in some instances unchecked power.  At the same time, labor unions have accomplished much for the American worker including a fair working wage, the work week and standards of health and safety in the workplace.  Wisconsin's new laws seem more designed to destroy collective bargaining and the labor unions in the process. 

Somewhere between Walker's Wisconsin's laws and the power of the unions, a middle ground should be found and established.  Unfortunately, the recall vote in Wisconsin will not allow for such a fair and equal negotiation or compromise between both sides.  Everyone understands that the unions must cede some of their current benefits and wages.  They must for local and state governments to overcome the indebtedness that plagues nearly every municipality and state government across the land.  However, Wisconsin's efforts to curb collective bargaining goes way too far.

Walker's mistake was not trying to find middle ground with the union and their leaders.  Wisconsin labor unions were willing to compromise and make concessions but Walker would not hear of it.  For Walker, it was "my way or the highway."  Not particularly the best way to work with others.  Pro-union forces were able to collect twice the amount of signatures of Wisconsin voters than required by law.

The polls have Walker winning this recall election by about 5% of the vote.  For many Wisconsin voters, they appreciate the potential savings for local and state government with Walker's laws yet favor the collective bargaining process.  A real dilemma for upwards of 15-20 percent of Wisconsin voters. 

One has to question whether it is appropriate to recall a governor over such an issue.  It seems such a waste of time and money.  Of course, most of the money in this election is once again funded by the many Super PACS that have their own agenda.  No question where the business sector is on this very issue. 

Walker will win on Tuesday and hold onto his governorship.  Labor unions will lose considerable clout.  Pundits will foretell that President Obama will suffer greatly from the failed recall.  The real loser will be the American worker.