It’s Three A.M., Answer The Phone

   Sage student of human nature, social commentator Will Rogers opined that there are”... three kinds of men: ...ones that learn by reading... few who learn by observation... (and those who)...have to pee on the electric fence and find out for themselves.” Borrowing from Lincoln, Ben Franklin and others, Rogers continued, “Good judgment comes from experience, and a lot of that comes from bad judgment”

   Perhaps Mr. Obama would be wise to listen and become a student of history rather than an orating politician or constant campaigner trying desperately to aim blame while wrongly reconfiguring America.

   During the presidential campaign, the notion of who was best suited to answer a proverbial three a.m. “all hell is breaking loose” phone call was raised. This worthwhile challenge to voters is predicated upon the observation that leaders shine during the unforeseen game changers that a non academic, non rhetorical unfair planet spins their way.

   The inescapable march of history has given sufficient time to take stock of how such phone calls were answered. The Gulf Crisis illustrates failing to answer in a timely manner and then passing the receiver witlessly along a telephone tree of ineptitude and indecision manifested by impotent threats of ass kicking, finger waving, failure of commanding decisiveness and teambuilding, scapegoating and ridiculous knee jerk reactions of attempting to shut down off shore drilling.

   This is the behavior of a top tier executive rookie who rarely repents but in hunkering down, repeats the same shtick that brought them to the ball complete with drama and distractions. Always, it is never their fault.

   Here’s some of that phone log so far. Attempts to try terrorists in public courts, inappropriate public prejudicial engagement in small town police matters, non expedient military stratagem against evil with outrageous declaration of engagement withdrawal dates, padding of political parapets with those even more extreme in views cleverly creating advisor-scapegoats hybrids, the proffering of inexperienced but “sympathetic” fodder for our highest court and hoping our way into an impossible situation with Iran. We even witness a governor who can lead admonished for supporting a law that is more moral and clear than the ignored federal one in place as the people clamoring for secure borders are ignored for political gain.

   Last week another call came in and so far has been ignored. The leading indicator of the Household Unemployment survey fell over 300 thousand for the second time in a row. The 6% rate of recovery has slowed to 2%; Wall Street (which looks ahead) is worried about a double dip recession, the DJIA plummeted despite good earnings and corporate America still holds onto over 1.7 trillion of its cash not invested in the business of business because the government is into business it should not be.

   Deficit spending has failed. It has largely been a transfer of payment, Peter to pay Paul scheme without affecting GDP. Exemplary of lunatic further spending is the witless notion that extending unemployment produces jobs. No, unencumbered, directly stimulated businesses do.

   We ignore history and academic peer reviewed studies showing tax cuts aimed at capital and businesses produce over ten to one economic benefits, accelerated business write offs garner nine to one benefits and cuts in corporate taxes yield about a three to one return. This will remain as long as so called small businesses are the engine fueled by the American dream.

   But a monster is looming. Unless we act, the Bush tax cuts disappear in 2011. Then an entire phone bank rings all night as just about everybody will pay more, a lot more. Shortly thereafter, the cleverly deferred huge bill for the “not needed at that scope” health care legislation hits. Somebody, please, hold the phone.

   Erudite economist Robert Kudlow has wisely cautioned that “The currency of American politicians is the ballot box”. Vote wisely

© 2010 Kevin P Ryan MD