With less than ten days to go, here are some key questions to think about.
The Economy
With the Dow at record-highs, the current economy is robust, vibrant, strong and growing, according to columnist
Phil Brennan. Over the first half of this year, the economy grew at a very strong 4.1 percent annual rate, better
than any other industrialized nation. The strong economy has generated historic government tax revenue which has
shrunk the deficit three years ahead of projections. Currently, the federal deficit in wartime is less than two
percent of GDP.
The Democrats have pledged to raise taxes. No veto threat will stop them because without further action the tax
cuts will automatically expire in 2010. For example, the new minimum 10 percent tax rate would return to 15 percent.
They have also promised to raise the minimum wage by about 40 percent. That wage is the floor for all other wage
calculations and therefore tends to push all wages up and accelerate inflation.
How would these proposed actions improve the current economy? More directly, how would they affect personal retirement
and pension plans?
Unemployment
The United States is on the edge of full employment. Jobless claims are at a ten week low. Over the last year,
48 of the 50 states have seen employment increases. We have added jobs for 37 straight months.
The Democrats have proposed more "government supervision" of the economy, particularly in the areas of
energy, the environment, labor rules and social justice issues such as gender equity. They have proposed large
increases in federal social programs including subsidizing accelerating college costs, Medicaid and other such
aid programs.
Wages have risen dramatically. September saw an annual increase from 2005 of 4 percent. That's the fastest growth
rate in five years. When 2006 is finished, employee compensation per hour adjusted for inflation will rise at a
6.3 annual rate. Real after-tax income has risen an impressive 15 percent since January of 2001. Real after-tax
income per person has risen by 9 percent. Productivity is surging at a 2.5 percent annual rate.
Exactly what part of higher taxes and more regulation will improve this situation?
Judges
Ninety-eight percent of cases are solved below the Supreme Court level. Dozens of appointments will come up in
the next two years. The appointees will shape the federal judiciary for a generation to come. Justice John Paul
Stevens is almost 87. Some other current judges are in poor health. With a nominee for Steven's replacement plus
Justices Scalia, Thomas, Roberts and Alito, the strict constructionists will be in the majority if the Senate remains
Republican.
With Democrat Sen. Pat Leahy of Vermont as the Judiciary Chair, no strict constructionist nominee will ever be
voted out of committee.
Why would stay home conservatives give up a once-in-a-lifetime chance to overcome judicial overreach in the light
of the recent New Jersey ruling on homosexual marriages? The only split of the seven activist New Jersey judges
was that three wanted to tell the citizens what to do and four wanted to tell the legislature what to do.
International Security
The nation must decide whether to battle Islamo-Fascism in a more timid, limited and legalistic way modeled on
police action rather than war. Using its majority investigative and funding powers, the Democrats propose more
oversight, investigations and even prosecution for our successful counter-terrorism program staff. That is, they
wish to harass the President during wartime for the sake of the 2008 election.
"The only way to win wars," columnist Michael Medved says, 'is to convince your adversaries that further
resistance is useless."
Does anyone seriously believe that the defeat of the party in power would be perceived by our adversaries as anything
less that a victory over U.S. public opinion for them?
A U.S. that is irresolute, confused and anxious to appease might as well be Spain. A political triumph for the
Left would be perceived world-wide as a regime change caused by al-Qaeda. Wouldn't that prolong and intensify the
war? Or lead to capitulation?
As we lurch through the next week, remember that the MSM is behind the times but the Bloggers may be too speedy.
Their ability to rapidly process and decide news quickly sometimes leave bloggers of all stripes so far ahead of
the rest that they assume everyone knows what they do when they do not.
The trend by today is not towards a decisive victory but towards even greater gridlock.
Current polls indicate that 54 percent of voters are willing to split their ticket between the parties. That, along
with turnout, cannot be projected accurately by polling. Turn out is still key.
Want to see a toss up? Here it is for today.
Senate House
Republicans 52 220
Democrats 46 214
Independents 2 1
October 27, 2006
