To the Editor:
Most of the economic data for last year has been released from the U.S. Department of the Treasury by now, and it looks like the U.S. economy grew at somewhere between 2.5% and 2% in 2019.
Using the higher 2.5% growth means that our economy gained $500 billion under Republican leadership that year. At the same time, the federal deficit rose around $1 trillion - twice as much as we grew.
In 2019, there were approximately two million jobs created, which is quite respectable, especially considering that we are close to ‘full’ employment; however, it must be kept in mind that it took $1 trillion of federal debt pumped into the economy to create those jobs.
How do we evaluate that? It looks like the budget just passed will create over $1 trillion more in debt for 2020, and since the fiscal year begins in October, the budget for 2021 will probably contain over $1 trillion in debt as well.
Do we want Republicans in charge of creating even more debt by their tax cuts, which mainly go to the wealthy, for an additional four years? I don’t know about you, but I have grandkids who are already starting to pay interest on the debt that Reagan created, and I’m very unwilling to pile more debt on their heads.
It’s often not apparent, but the way the system works is that the federal income tax cuts (which mainly benefits the rich), reduce federal revenue, which is already allocated to spending on various programs.
That revenue has to be replaced by borrowing money, mainly from the rich, in the form of bills, bonds, etc., so revenue from the rich is reduced by tax cuts, and then the rich get even richer from the interest on the government bonds they bought with their money from reduced taxes.
It’s quite a racket, if you can get it, and the Republicans have gotten it for the rich, all the while promising that the tax cuts would pay for themselves, of course.
Is there any chance that Trump will address this at the Wildwood rally?