The Next President Will Be Trapped by History

The excellent website Politico.com has an insightful analysis which details the ways in which the next president will be a prisoner of the failed fiscal legacy of George Bush.

The article also points out that neither of the two presidential nominees is dealing realistically with the situation. Each adheres to structured positions which do not reflect the new harsher budget reality.

Economics is about allocating scarce resources and whichever of these gentlemen triumphs at the ballot box will get a quick crash course on allocating scarce resources.

I think there is a very difficult day coming for America. We are accustomed to obtaining whatever we want. This has always been the land of unlimited opportunity. It seems to me, though, that we have taken on too many obligations  and responsibilities both domestically as well as in the international arena.

We are rapidly approaching the point at which those additional responsibilities and obligations will push  us over the financial edge and  put our economy at risk. 

I think the very difficult job of the next president will be to explain to the American people that there is a limit to what they can have and that the days of unlimited potential are history.

Ronald Reagan often spoke of America as the bright, shining city on the hill. The next president, whomever he is, will be compelled by current events to spend a great part of his time reducing the luminous intensity of that city in the Reagan metaphor.

Comments

[cabear:]

Obamanation won't need to explain this to me, living in California I've seen the social and economic rot from within caused by excess taxes & regulation, out-of-control labor unions and environmental wackos. "Change" must come from true economic empowerment and freedom at the local level, not from D.C. and not by renewing the failed liberal ideologies of decades past.

2008 Sep 29 02:56 AM

[Tick Talk:]

There are a handful of authentic traders (like yours truly) who are shaking their heads and thinking: politicians are amatuers. Any real decision maker with the sense G-d gave a goose knows that the height of emotion abides at the precipice of irrationality, and to rush forward with an ad-hoc plan is to hasten losses exponentially and irredeemably. These politicians are nothing more than rank salesmen pitching an overpriced tickets for debtors prison.

2008 Sep 29 03:05 AM

[Steven Hansen:]

the average person is pretty stupid. the average person is the one who votes - not you, not me. the average person does not read the newspaper or listen very much to the news. any concept a politician want the average person to understand has to be reduced to under ten words.

one of the 10 requirements is 'an enlightened electorate'. is it any wonder we have so many bafoons elected?

2008 Sep 29 05:56 AM

[Steven Hansen:]

sorry, my last paragraph should have read.......

one of the 10 requirements for democracy to work is 'an enlightened electorate'. is it any wonder we have so many bafoons elected?

2008 Sep 29 05:58 AM

[Drew Horn:]

John, your view of the future is realistic but to me, not sad at all. Once a crisis passes a true leader will see an opportunity to foster a new paradigm.There are lots of fundmental problems that we carry over from the last century and must be changed. We need a new paragigm and I hope Obama can help us find one.

My impression is that McCain isn't a forward thinking leader but a reactionary and opportunist who thinks in slogans.

2008 Sep 29 09:57 AM

[Jimbo:]

If you liked President Jimmy Carter, you're going to LOVE President Obama!

2008 Sep 29 11:55 AM

[carey_jim:]

That's why I want to see McCain elected. When the crash comes, the blame should go where it belongs not to the liberals.

2008 Sep 29 03:28 PM

[Drew Horn:]

No comment

2008 Sep 29 03:53 PM

[Moon Kil Woong:]

Trust me Bush Jr. will go down in history as the most incompetent ever! Plus he should probably go to jail if anyone ever digs into his trampling of the constitution. That said, I do feel sorry for the next President. He inherited a recession at best and a depression at worst.

2008 Sep 30 12:09 AM

[freewillybird:]

Both McCain and Obama had good points in the debate. For example, McCain rightly stated you can't get to independence from foreign oil without nuclear power. On the other hand, Obama is very smart and is less tied to past directions than McCain, and Obama has more youthful stamina, both of which we should intuitively realize will be key in these interesting times. The baggage that Obama does carry stems from his left leanings for social spending for the poor, which does not help them in the long run. Free markets and good education are all that is needed. Now I favor Obama, but I hope he learns from McCain. Both men are far far better than GW, seeming to point out the deep weakness of our democracy, because we elected GW not once but twice!?

2008 Sep 30 01:47 AM