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Saturday, December 12, 2009

The Government, brought to you by...

I’m probably playing with fire by noting these two issues in a consumer trends forum like this… but what the heck. It’s the weekend, and I have to believe that, eventually, both of these issues will spark a consumer (voter) response.

Healthy debate? During the recent debate on health care reform, legislators on both sides of the issue have accepted what are essentially “scripts” from lobbyists, which are then used on the floor of congress during the course of debate. (Not to mention doling-out the same sound-bites for the benefit of eager television cameras.) In case you missed it, refer to this story from the New York Times.

Balance due. The U.S. government has been spending a lot of money over the past few years… and some significant payments are coming due. For reference on the matter, see this story from the NY Times. Since that money has to come from somewhere, consumers can expect either reductions in government services or increases in taxes. Both consumers and future candidates for public office will likely feel the tension, and sooner rather than later.

Implications: It is not my intent to take either side of either political issue. But coverage of both matters is likely to continue, if not expand… and the impact of both issues will likely draw the attention of the consumers you serve.

Interests on either side of the health care debate are doing what they can to influence the outcome (private sector stakeholders like drug companies, insurance companies and healthcare providers, as well as public sector stakeholders like government agencies, non-profit organizations, etc.) If and when voters learn that reform is more suited to special interests than the public well-being, this debate could take a nasty turn.

With regard to balances coming due on government debt, I’m curious. Whether you were for or against the investments of waging two wars, and regardless of how you feel about the various economic stimulus programs… you can expect sentiment to shift once bills begin to arrive for the spending that’s been going on for most of this decade.

We cannot know, with certainty and clarity, the impact of these issues on consumer spending. Only that there will be one.

Mike Anderson

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