Nancy Natale: Cuts no way to economic prosperity
To the editor:
A recent letter to the editor claimed that the federal government is like any business and that debt must be managed by cutting spending and reducing the deficit. In fact, most economists believe that spending by a national government stimulates the economy by putting more money into circulation.
Businesses and individuals are encouraged to spend more on jobs, goods and services and the economy is strengthened. A government cannot cut its way to prosperity, as we have witnessed with Spain, Greece and England recently.
Their attempts at austerity have driven those countries into near bankruptcy and their citizens to desperation.
George W. Bush also cut tax rates, especially rates on the wealthiest among us, and at the same time he engaged us in two unfunded wars. When that was joined with the disastrous bank fiasco, our economy nearly came to a dead stop. President Obama has been bringing back the economy and cutting the deficit through government stimulus programs, increasing the top tax rates, ending wars and cutting waste. We are well on the way to bringing our deficit in line with our gross domestic product, but if Republicans have their way, the sequester’s nonstrategic budget cuts may stifle economic growth.
We must increase revenue by getting wealthy individuals and corporations to pay taxes. When Mitt Romney, for example, pays a mere 14 percent tax rate on the money he actually claims to make (not counting the money he keeps in the Caymans or Switzerland) and when Bank of America and huge oil companies, for example, pay no taxes at all, something is desperately wrong. Meanwhile, earnings for the regular worker have not increased or have even decreased over the past 30 years.
Congress needs to get serious and start working a full schedule. Enough of its nonsense.