Later, from my perch just across the Potomac River from Washington, D.C. beginning in 1967,the year I started Coffee Butler Service, I was in a position to observe Johnson and every president after that, both Republican and Democrat. When living “inside the beltway,” as it’s referred to today, you get a steady dose every day of what’s actually and what’s rumored to be going on in government, both visibly and behind the scenes.
All the presidents, both Republican and Democrat, and all the congressional delegations from that period forward provided impetus to the leftward movement of growing government —whether willingly or not, and even whether knowingly or not. Reagan, who was/is considered to have been a conservative, and his congresses contributed to it also, although perhaps to a lesser degree than the others.
Then from 2007 through 2010 with Democrats controlling both houses of Congress and the presidency for two of those years, all previous records were surpassed both in legislation and the accompanying costs. One astounding example is in government regulations, which have increased by 24 percent since Barack Obama became president. That situation is just one of many contributing to the “perfect storm” referred to earlier.
What’s happening now is that American citizens’ reactions and the backlash that’s been building for many years portend that the pendulum will not only swing back — which has already started— but that it will be given a huge push when the administration changes in 2012. (I will not take the space to list all the current situations, political indicators, etc., that support that assertion, but will be happy to email a narrative on the subject to anyone interested enough to email me a request.) That statement is certainly subject to debate, but even if Democrats retain the officein 2012, “the die is cast” and the policies will change, even if more slowly.
More important to relate here are the many situations that will change that will benefit economic growth in this country. The bottom line is that America’s capital, both human and financial, will be reallocated. That allocation in most areas and for most decisions will be judged from the perspective of contributory to economic growth or not.
Most policies that have proven to be either ineffective or counterproductive for GDP growth will be eliminated or at least downgraded. The overriding criteria for most changes will be the effect on job creation and growth in the private sector.
Instead of the “new normal” of 9 to 10 percent unemployment that’s been suggested, the resulting average will be under 6 percent for the foreseeable future. And that 6 percent will be on a much larger total and growing of “jobs available,” which have decreased by nearly 10 million since 2006. A new beginning for America will reshape it to be more like the America that grew to be the greatest country in the history of the world in less than 200 years. And yes, optimism will replace uncertainty, further greasing the skids to growth.
As you read the list of changes that will be taking place you may think I’m smoking something. You need to understand I am not suggesting they will all occur at once and maybe not every single one of them will take place. However, for the good results cited above to happen, all of them will not need to. Enough of them will happen, though, to result in a tremendous boon to employment which means a dramatic increase in people at work and away from home — our industry’s customers. And enough of them will also take place that your operating costs will be reduced.
1) Government spending will be reduced at every level of government from federal down to the smallest municipality. “Sunset” budgeting will be implemented in the federal budgeting process instead of the current built-in increases which result in a “cut” only meaning a reduction in the built-in increase.
2) Private sector labor unions will be mostly eliminated or at least “defanged.” Right to work states’ advantages in attracting business will result in more states voting for right to work. Legislation may pass in Congress that would bring right to work rules to all states, effectively eliminating private sector unions' ability to raise money for other than their legitimate administrative and organizing activities.