A New Year or Encore? Across the United State, we are seeing an increase of political rhetoric in a presidential campaign that benefits a limited few on candidates' payrolls. The media and advertising sectors are scooping up contributions and absorbing them for a limited few.

There is also an emerging economic challenge for which government, Federal and local, must work with the private sector, which, after all, produces the income needed to fund government services. We need less bureaucracy of red tape.

Across Maryland we see a one-party political wall failing to respond to fears about increasing numbers of doctors leaving Maryland in a lawsuit abuse environment, and "special session" taxes being slid under the door of small computer service businesses critically needed to grow. Technology is becoming the replacement for Maryland's historic smokestack industrial base. The State House in Annapolis seems to be the last to "get the word"!

POLITICAL RHETORIC

At this front end of uncertainty, what is on the near and far horizons?

First, let's look at the political noise emerging from presidential candidates of both parties. Recently, I heard a long respected executive‘s observation that now may be the time to shift the priority from charges to performance. He suggests the viability of a Michael Bloomberg candidacyand the growing independent voter sentiment. Bloomberg is now the subject of a petition drive to draft him for a presidential bid. This comes in a year when increasing numbers of voters indicate anger with both parties in Washington, and at the lack of discipline by both Democratsand Republicans to control spending.

Bloomberg has the track record to cut through the promises of dramatic change to delivery of change. This delivery consists of experience in bringing discipline to America's most complex and largest city government, as well as managing a growing nationalcommunications business in a highly competitive environment. Combined with an independence from campaign contributors' pressures, it is the work product and the results that count if this type of government leader can bring it to cross party lines and GET THE WORK DONE.

Think about this Bloomberg observation in his recent "State of the City" address: "Keeping New York City and America at the front of the pack begins with openness to new energy ... meaning innovation. That's how I built a business and worked to bring to a city government that was insular and provincial and married to the conventional." Perhaps combined with the personal integrity of McCain and the idealism of Obama, the rhetoric can be narrowed down to real results.

And speaking of failure to move to real results, Bill Clinton has demeaned the responsibility of a former President by daily "charge-counter charge" rhetoric thatdoes nothing constructive and feeds the appetites of the "campaign hype" types, those handlers and advertising moguls who make more money the longer a campaign runs.

ECONOMIC CHALLENGE

In terms of direct results from action by a government agency, the Federal Reserve provides reality not rhetoric. The timing of action on interest rates by the Fed may be needed, near term, to stem the growing number of problems caused by the loss of home ownership in the subprime mortgage arena. But, the balance between Congressional calls for further tax cuts and stimulus packages is a delicate one that does not lend itself to promises and rhetoric. Chairman Bernankehas indicated that a 50 to 150 billion stimulus package seems reasonable with funds going to low and moderate income people. This will likely result in more economic recovery than if it only benefited people with high incomes. This means a separation of long term economic policy from short term stimuli, with a careful balance between the two.

The real factor in the longer term must be a discipline inspendingand the avoidance of hidden taxes. The alternative minimum tax and the complexity of deductions only slide under the door, giving primary benefit to tax accountants in their invoices to clients for whom our tax system has added a level of complexity to maintaining a fiscal discipline at the personal level.

The jury is still out on this quiet but increasingly serious impact on American taxpayers and moderate to lower income citizens. We need to stay tuned and avoid further encores of political rhetoric in the coming weeks of the campaign. Even more important, we need to heed action ratherthan promises.

Let 2008 be a real new year for less political rhetoric and more direct work on behalf of the economy. We need a sensible solution for restoring a strong and stable economy, not weakened by the hot air of political promises. We need a solution that is not weakened by the loss of essential doctors and health care providers or the departure of growing technology business in Maryland.

Labels: Bloomberg, Maryland, O'Malley

  10:53 AM •