To the Editor:
The United States is sitting on a financial time bomb that can wreck our country. When it blows the ones hurt the most will be the working class.
We have been spending like drunken sailors (who’ve borrowed from shipmates) and piled up our national debt to unsustainable levels. Economists have noted this, as have financial rating agencies. But only one president in my lifetime has done anything about it: Bill Clinton.
Under Clinton our national debt was $5.7 trillion. Under Bush II it almost doubled, to $10.2 trillion. Obama almost doubled it again, to $19.0 trillion. Under Trump it grew to $26 trillion.
Now under Biden we owe $36 trillion to others. This is 123% of our GDP or $105K per citizen – five times more than under Clinton. We are now in a financial class with Italy, Greece, Sudan, Somalia and Zimbabwe. Harris has no plans to stay within our means, spending $7 trillion with income of only $5 trillion – a 40% gap. Try that with your own finances.
Our greatest enemy is not China or Russia but inflation. Excess spending, well above our means, is a primary cause of inflation, and it hits the working class and national defense the hardest.
Compare today vs. 2000:
In 2000, the median price of a home was $166K; today it’s $406K, up 2.5 times. A new car cost $23K; today it’s $49K; up 2.2 times. A year at state college cost $11K; today it’s $27K, up 2.5 times. Then, the median household income was $57K; today it’s $106K; up only 0.8 times.
During that time the money supply grew by four times, from $4.9 trillion to $21 trillion. This is not real wealth, but money created by the government to fund reckless spending on wars, giveaways, social programs and interest on our debt.
Investors are doing great, though. The S&P 500 has gone from 1320 to 5500 today, up 4.3 times. Gold has gone from $280 an ounce to $2,500 today, up nine times.
A lot of households now need three jobs just to hang on. Not surprising the economy is the biggest issue with voters. But Harris promises useless programs and even more freebies for everyone.
Where will the money come from? We will have to borrow more. We’ve been able to do this because the U.S. dollar is considered a reserve currency.
But for how long? Now we’re spending more on debt interest than on defense. Pretty soon we won’t be able to sell our bonds unless we can show that we’ve got our financial house in order, can cut reckless spending, sensibly raise revenues and stop wasting money. Otherwise, the people, corporations and countries who buy our bonds that subsidize our spending will go elsewhere, and U.S. Treasury bonds will be as attractive to investors as Somalian real estate.
Government programs, like laws against price gouging, are not the answer. Politicians created this mess. We are at the stage where even if we were to double everyone’s taxes (an impossibility) we would barely close the revenue gap.
We’ve got to curtail our giveaways; have a disciplined approach to immigration; become a net energy exporter; slash spending and, yes, raise taxes on those who have benefitted most from our growing economy. Clinton used a graduated surtax on high incomes. It could work again.
We need strong leadership and a tough-minded approach to our finances. Can Harris or Trump show leadership and courage, or do we need another Clinton or Margaret Thatcher?
If you agree, please let your legislators know how you feel.
