I was glancing at the various headlines after President Obama was reelected and came across one in a foreign newspaper that started off with the “Divided States of America” in its headline. This is quite apropos for the leadership structure that we will be seeing.
Anyway, I felt it was necessary to comment on the victory of the Democrat incumbent and its impact on the free market. One thing is for sure: we will be facing higher taxes all around.
Medicare and Medicaid: The real problem that ails this economy
Matt Miller gave an interesting solution in The Washington Post that talked about how the effective Singaporean health care model could be imitated here to a certain extent that could possibly free up as much as $2 trillion to do other important things like renovating airports, etc. Think about that number - $2 trillion.
This means we can have the all important safety net for the poor and the needy and be able to bring down the debt and fund other projects that will keep the country and the economy competitive as we move forward.
It is the issue of entitlements (social security, etc.) that is sucking the wind out of the economy. Presidents can do little to change policy. You might bring up the Bill Clinton presidency, but it was more of the IT revolution and other so called chance events being responsible for the budget being balanced than anything else.
I know that a vote for Obama by the country means that more government getting involved is seen as attractive, but this will not solve the long-term problems facing us.