Are we ready for taking a fresh look at the economic realities, apparently not (look at the new budget stimulus that is being discussed right now-more on that later). We are still acting like we have the money to pay for every thing from pension, social security, Medicare and Medicaid, defense and printing money (that we don’t have). I think that when people started to realize that they will have to give painful sacrifices, then they becomes subdued and not demand that much. Although the TEA party came on the platform of reduced government and reduced taxes, but even they know that it will not be easy or possible without making sacrifices that maybe unacceptable to their voters.
The new economic realities are that we have to cut defense and all the other entitlements and raise taxes on everybody and they should be able to pay the fair share of their incomes. If you want to keep the entitlements then all the deductions, exemptions and exclusions should be eliminated and defense should be cut down to the necessities and we should not see every problem in the world as a threat to national security. Reassessing our priorities based on our new realities should be the first consideration and that is not what is being told to the American public. Until we start doing that, we should expect this recession to be a fading memory again in a few years.