Deficit commission member and chairman and CEO of Honeywell International, David Cote, voiced his support for the panel’s fiscal austerity plan in a CNBC interview Wednesday.If there's one thing he gets totally right, it's the notion that everyone, EVERYONE, needs to give up something and we need to pull together to make this work. Divided We Stand Divided We Fall, and that notion is the problem with American politics and American attitudes.
“At the end of the day, it’s one thing to revel in our pluralism where everyone can yell and scream and from that cacophony you get a decision, but there come those times when you need to pull together as a country and this is one of those times,” said Cote, “We need to stop arguing — start agreeing.”
The head of Honeywell [HON 50.88 1.17 (+2.35%) ] — a Dow component — said he supports a more flexible tax code.
“Everybody’s got to give a little bit and that includes companies, that includes individuals — the old, the young, Democrats, Republicans, everybody has got to give a little bit here or we’re going to end up in this real problem.”
Cote believes this is a crucial moment and decision for the U.S.
“I was disturbed by where we were. I had no idea what was going to happen over the next ten years largely because my generation the baby boomers are going to be retiring going through social security, Medicare, Medicaid. And when that happens we literally crush the system — we can’t handle it,” said Cote.
The key issue, he explains, is if action is not taken now the U.S. will go from $9 trillion in public debt today to nearly $20 trillion in the next ten years even if the gross domestic product was to grow at 4.6 percent a year.
“That’s astounding,” said Cote.
The panel is expected reach a decision on Friday.
Too many are trying to hang onto theirs while supporting someone else loses theirs. He's dead right on this comment and it needs to be uttered in far greater detail. I'm a little surprised the Dems aren't using Kennedy's, "Ask not what your country can do for you, but what you can do for your country."
He's also dead right about the problem retiring Baby Boomers will create for our financial and political system and it might be too late. Moving the retirement age to 69 is probably a must, but that only delays the inevitable of a larger wave of people hitting retirement. Plus, if your at the current retirement age and forced to stay in the work force, this will keep supply of human talent far greater than demand, which supports wage deflation.
At a Crucial Moment: This is where I disagree. We are well past the crucial moment. That happened long ago when Greenspan was uncontrollably blowing bubbles in the wind. That happened when public unions high jacked municipal governments, that happened when Bernanke continued the bubble blowing trend, and that happened when we spent a decade at war in Iraq and Afghanistan wasting billions.
And that happened when Americans failed themselves, letting politicians divide this country down party lines and on emotionally charged issues while the county's fiscal solvency got flushed down the toilet. No, the crucial moment(s) have come and gone.
The pay day is coming and while we all need to give, it will have a negative impact on our economy. If we are truly going to balance the budget through higher net taxes and/or lower government spending, everyone loses or at last the vast majority do.
He's dead right, we all need to get together to solve this issue, but he's dead wrong because the crucial moment came long ago. It's more a matter of how large a problem do we let it become before we deal with it in earnest, and thus how large of reckoning day and on whose watch.
Hope all is well.
J.D. Rosendahl, Rosey