The U.S. public debt today is about 15 trillion 775 billion dollars. If President Obama is re-elected the debt might rise above 22 trillion or even 27 trillion dollars. At some point serious cutbacks to public spending will occur and the business sector will lose a certain amount of capital for investment, unless foreign holders of public debt and dollars dump dollars and create a surplus of high inflation. Mitt Romney might still be able to turn back the tide of a nation going the wrong direction.
Mitt Romney will have a tough task before him he takes office. The President was too timid to let tax cuts expire in December 2010 and that let the public debt deepen markedly. If Democrats have any sense they will let the tax cuts expire this year and negotiate with the Republicans to get a 1% of tax cut here and there for the middle class in return for modest reforms in social security entitlements that would cut off any support for retired people earning more than the average working person does.
Mitt Romney does have one advantage-he could select an ecological economist as his Vice Presidential candidate even though the fossil fuel crowd won't like it. Most of them, like myself are A.B.O. voters, and the nation needs in some way in five or ten years to change its economic principals in the direction of complete low-entropy free enterprise.
Americans seem to select the incapable in these decades-life used to be simpler and Americans did fine with that until deciding to get into the First World War precipitating a century of needless subsequent conflicts.
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