Lead, Follow, or get out of the way

Using the phrase "lead, follow, or get out of the way" I evoke the spirit of Thomas Paine, with this commonly, albeit incorrectly, attributed quote to open this blog post.

Thomas Paine was a Father of the Revolution so influential that John Adams reportedly said, "Without the pen of the author of 'Common Sense,' the sword of Washington would have been raised in vain.” It's been said that 'Common Sense', which Paine originally called the 'Plain Truth,' was "oriented to the future in a way that compels the reader to make an immediate choice. It offers a solution for Americans disgusted and alarmed at the threat of tyranny."

The debate over our deficit and debt ceiling pails in comparison to the debate that raged in Paine's time over the revolution. Nonetheless, we can draw inspiration and resolve from these words Paine used in his inspirational 'Crisis Papers' at the time of the American Revolution:

"These are the times that try men's souls: ... What we obtain too cheap, we esteem too lightly: it is dearness only that gives every thing its value. Heaven knows how to put a proper price upon its goods; and it would be strange indeed if so celestial an article as freedom should not be highly rated."

I contend that today American is trying to free itself from another yoke on our freedom and a great threat to our Republic and the way of life that we wish our children to enjoy. This would be our national debt.

Surely the solution must include a simpler, flatter, and broader tax code. By the same token to put us on the road to a balanced budget some say "tax the rich" while others say to reduce loopholes. Either way these answers miss the point that we are paying nearly 40% of every dollar that comes in on taxes to pay our cost of carrying the debt which has mushroomed out of proportion because of too much spending. When government spends too much it creates waste and leads to corruption, as well as competing with the private sector for capital and labor.

Taxes should come from a prosperous nation, not a rich few! To achieve prosperity our nation needs to reward innovation and risk! Our tax structure should reward the people and firms that risk their possessions by investing their wealth. They lead America to prosperity and as a nation we all benefit from their success.

Another great Thomas, and great inventor, Thomas Edison, said of Paine, "I have always regarded Paine as one of the greatest of all Americans. Never have we had a sounder intelligence in this republic." Paine was one of the first to promote social programs, progressive taxation, and the abolition of slavery. If he were alive today I have to believe Thomas Paine would produce inspiring words which speak to America's ability to muster the will to defeat the debt burden.

Our great economy is the result of great developments, not great spending or great taxes. For example in the list below you see that America leads the world in patents. (China isn't even in the top ten. Even the Netherlands leads China! Why should China invent when is can easily get away with stealing!) America lead the world's agricultural revolution, the industrial revolution, and we lead the technological revolution. We can compete with any country in the world - if they compete fairly. And when China steals our intellectual property they steal the jobs that go with it!

As we face the plain truth about our spending and debt we will also recognize that the only sensible way to raise our national prosperity and tax revenues is the promotion of free enterprise and the entrepreneurial spirit! America will lead if Government will get out of the way while steadfastly protecting the rights of its citizens. (And and this includes our intellectual property rights!) The world will follow as it always has.



World Top Ten Patent Registering Countries
Country - Patents Registered
USA 157,496
Japan 125,880
Germany 41,585
France 36,404
South Korea 34,956
UK 33,756
Italy 19,652
Russia 17,592
Netherlands 17,052
Spain 15,809

Never Say Never

The USA would probably never default. But the odds of "probably" are looking less and less in our favor. A year ago they were slim to none, however as we are quickly approaching the alleged day when the debt ceiling is going to be reached according to Treasury Secretary Gietner, the odds of default are getting downright frightening. The problem is politics of course. The disaster can be easily averted. But ideologies, egos, and presidential politics are forming the perfect storm that could just make the road to a debt ceiling increase vote impassable!

Time is skewed to shorten the window available for reconciliation because the ratings agencies and the markets are not apt to give us till the 9th hour, and it's anybodies guess when that freak attack will come.

Furthermore, even if the parties who would more likely be able to settle their broad and angry differences in a boxing ring than a conference room do somehow manage to see eye to eye in the spirit of compromise for the good of the country over the good of party (wow, that sounds like a dream world we are most definitely not living in) then there would still be the not so minor matter of passage by the full houses of congress. Imagine we get down to the wire and a faction of the Tea Party caucus manages to string together a senate filibuster that takes us over the edge!

The stand-off between President Obama and Rep. Cantor is beginning to feel like the financial markets version of the Cuban Missile Crisis. I'm wondering when we should start planning to run to our financial mutual destruction bomb shelters. Where is that again??