Arnold Leshovsky, Nevis, Minn., Published December 13 2012
Letter: We the people must correct economic situation we createdPresident Barack Obama is claiming a voter mandate even though he won by a very slim margin of the popular vote and received fewer votes than in his first election.
Since the election, he continues to campaign and ignores his leadership role by assigning surrogates to his responsibilities in Washington. He talks convincingly but has failed to submit a budget, failed to submit a plan to get spending under control and to reduce our debt. Currently his primary goal is manipulating Congress to raise taxes on the rich.
Raising taxes on the rich to 100 percent won’t solve our budget problem nor stimulate the economy. What is necessary is cutting spending. During the past eight years, our debt has increased to $16 trillion. Our annual revenue is about
$2 trillion. The government spends $3.5 trillion. The difference between revenue and spending is borrowed.
Currently the debt-to-revenue ratio is about 8-to-1. Try to get a loan from any bank with this ratio. Yet, the president plans to increase the debt further. We are probably paying an average of about 2 percent interest on our debt. Most loans are short term and must be renewed at interest rates existing upon renewal. Two percent of $16 trillion is
$320 billion. If interest rates increase to the normal 5 to 6 percent in the near future, interest on the debt will be in the $1 trillion range. You decide the outcome with spending $3.5 trillion plus
$1 trillion in interest and revenue staying at $2 trillion if our economy doesn’t improve.
Further, with the Federal Reserve printing money to allegedly stimulate the economy, our dollar becomes worth less (inflation). It’s happening today as things we all buy are costing more.
Do you think the president is looking out for the middle class when his actions and policies create inflation and increase the debt, which stagnates the economy and decreases Gross Domestic Product, all resulting in increased unemployment and stagnated take-home pay?
This past election, the people elected representatives to the House who promised no tax increases, to reduce the debt, to decrease spending, to create jobs and to grow the economy. If the House of Representatives, which has constitutional responsibility for taxing, spending and budgeting, doesn’t take its responsibility seriously, we as a country face serious consequences.
When we no longer can borrow money, our stock market will collapse, unemployment will rise, interest rates and inflation will rise, real estate prices will fall and entitlements will cease or decrease.
Let’s tell our representatives that the results of the path we are currently on can be mitigated by them if they practice statesmanship and put the country first and their lust for power and re-election last. This is a situation we the people have allowed to happen and we the people can and must correct. However, it will take time and sacrifice.