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06/28/2009

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Federal deficits are high and growing. But, do you know of data showing high deficits are unsustainable or cause recessions, depressions, inflations, tax increases, reduced lending funds and or any other negative economic effects?
Please respond to [email protected]
Thank you for your assistance.

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Anonymous

Federal deficits are high and growing. But, do you know of data showing high deficits are unsustainable or cause recessions, depressions, inflations, tax increases, reduced lending funds and or any other negative economic effects?
Please respond to [email protected]
Thank you for your assistance.

Rodger Malcolm Mitchell
921 Pontiac, Wilmette, IL 60091
847-256-6141

www.rodgermitchell.com

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President Obama wants us to believe that increasing taxes on the rich allows him to give more to the poor, ala Robin Hood. However, there is no historical relationship between federal spending and federal taxing.
Yes, raising the tax rate on the wealthiest Americans may address a psychological need to punish the rich for being rich. But, if this tax increase succeeds in collecting more taxes from any group, rich or poor, it will hurt poor people. All taxes remove money from the economy, which slows or reverses economic growth. Even now, with so many unemployed, the poor remain slow to understand that their jobs depend on the financial health of the rich.
The economy runs on money. One of the government’s most important jobs is to create money and to spend it. In 1971 we went off the gold standard specifically to give the government the unlimited ability to create and spend money. When the government fails to do that job, the economy falters. Every depression in U.S. history and every recession in the past 40 years followed periods of reduced federal deficits, and every recovery as been associated with increased federal deficits.
The media and the politicians suffer from federal debt paranoia, which is responsible for more misery in America than all the crime and illness combined. Federal debt paranoia keeps us from providing universal health care, fully funded Social Security and improved education, military, infrastructure, energy and policing.
I call it "paranoia," because, history indicates large federal deficits do not cause inflation, recession or any other negative economic effect. On the contrary, large and growing deficits stimulate the economy. We keep falling back into recessions because of federal debt paranoia.
Although President Obama wants to redistribute wealth, increasing any taxes will reduce overall economic growth, taking from the rich and from the poor.

Rodger Malcolm Mitchell
rm[email protected]
http://www.rodgermitchell.com

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