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Reprehensible Governance – the Fiscal Cliff

Personal Freedom and Prosperity 110: The Rule of Law

A government with moral and legal authority promulgates written rules and universally, impartially and uniformly enforces the rules, which provides a predictable and stable legal order on which to base economic and personal decisions.  The law prevails, not the proclamation or arbitrary decision of a ruler, government bureaucrat, the enforcer (e.g., policeman) or judge.  

Reprehensible Governance – the Fiscal Cliff

In the last Presidential debate, President Obama proclaimed that the “fiscal cliff” – aka sequestration - “Will not happen.”  Immediately, David Plouffe White House senior adviser said, ”No one wants it to happen.  No one thinks it should happen.”

The day after the debate, the White House press secretary Jay Carney claims this law was never intended to be implemented:

“What the president said last night was a reiteration of what his position has long been, which is that the sequester, which was designed and passed by congress, was never meant to become policy, it was never meant to be implemented,” Carney said in a press gaggle aboard Air Force One.

This is terrible governance.  Over a year ago, the President and Congress agreed and duly promulgated the law, which will increase taxes by 500,000,000,000 annually and cut spending by $1.2 trillion over 10 years beging January 1, 2013.  These tax increases will impact almost every American.  The arbitrary spending cuts will be divided equally between defense and domestic programs.
Congress and the President have intentionally failed in their most basic duty; to provide a stable and predictable legal order.  A stable legal order allows every American to make economic and personal decisions with a reasonable expectation of a successful outcome.  The “fiscal cliff” deceit has horribly impacted America.

Large and small employers are not hiring.  Why?  They have no idea what their tax burden will be.  Coupled with yet-to-be-written ObamaCare mandates, employers are fearful to add more employees.

The same goes for American consumers.  Workers ask themsevles, "What will my tax rate be two months from now?  Do I buy a car?  Do I take a vacation?   Will I have enough money to meet our family needs?"

A stable and predictable legal order is absolutely essential for a prosperous society.  Congress and the President have horribly failed, which has restricted job creation and growth.  Now, the President and his press spokesman say the tax hikes and spending cuts will not happen.  Is that credible?  What will occur?  What will be the next proclamation?  

America suffers – greatly – without a stable and predictable legal order.