Monday, June 16, 2008

Ross Perot is Back!

Thanks to 'fulhamag' on the FulhamUSA non-soccer subforums, we get to see this little gem of a PowerPoint presentation on the state of our country's economy and dire warnings on the future, if something is not done about curbing entitlement legislation.

Suicidal Spending

- Perot's foreword is here: Perotcharts{dot}com

Watch the entire thing... and please think about what you are seeing there, before you grab onto a single kernel of truth. Consider it in its entirety; The truth is not always able to slap you in the face.
I fully expect some to use that presentation selectively as fodder for their views on particular administrations, but the presentations do not reflect the true states of the economies, should changes not have been enacted.

Example: The late nineties budget surpluses.

This has been used to show that the Clinton Administration with the Republican fiscal conservative congress produced what we all want. True.. and False. Dont forget that a large part of the economy at that point in time was based on speculative gross product...i.e; the Internet Boom which fueled huge growth in the IT and Commercial Real Estate sectors. In the end much of the 'Product' was vaporware, much of the taxable income based on jobs which were a result of that boom.

The conclusions I draw are simple:

1. We cannot tax ourselves out of deficit. It LOOKS like we could if you accept one or two charts at face value, but the entirety of the piece shows otherwise.

2. The proposals for a National Health plan must be very carefully considered in the light of what we can see as a result of current limited programs.

In a practical sense, attempts to curb mandatory Health and Retirement spending growth suffer the inevitable backlash from the 'entitled', who object to any change which might reduce their expected standards of support.