Sunday, January 18, 2009

Obama's Financial Jekyll & Hyde

What financial strategy will the Obama administration not employ? Rahm Emanual spoke on Meet the Putz this morning. On one hand Rahm offered dramatic fiscal stimulus, job creation, credit market support, tax cuts, and infrastructure development (with virtually anytbing defined as infrastructure).

On the other hand, he talked about getting America's financial house in order. Health care costs and Social Security are the two largest unfunded future mandates. From a business perspective, retirement and health insurance costs are no longer "affordable" in an imploding global economy.

America's Chamber of Commerce successfully shed the defined benefit pension over a two decade period. Most employees contribute to a 401(k) or 403(b). The recession finds many employers eliminating their match, i.e., employees are on their own. Expect the same moves for health care coverage.

America continues its race to the bottom, to the global lowest common denominator on taxes and worker pay/benefits. Both benefit the big money boys, sponsor of Rahm and his boss. Pay attention to the details folks. Enjoy the disarming smile and powerful rhetoric, but be wary. America was "bait & switched" in 2000. Don't let it happen again.

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