Responding to Mr. Gerald Staack’s letter of March 26:
I don’t want to go into an explanation on Marxist modern monetary theory, except to say that there are several opinions concerning the national debt, however “borrowing money” (debt) implies repayment, and putting more money into circulation than is supported by national productivity (Gross Domestic Product) is considered dangerous and inflationary. I do want to address the inane conclusion that we could enjoy all the comforts we want if it weren’t for a few stingy Republicans and Donald Trump.
First, there are plenty of wealthy Democrats who avail themselves of our tax laws that are generous to investors – done to promote investment and job creation. Second, federal government spending is constitutionally authorized to areas like, national defense and “general welfare,” which is not defined but generally includes things that are non-local improvements. Local concerns are funded at the local and state level. As the states can’t print money, they rely on taxation to fund the projects via money borrowed against future repayment via the sale of bonds (much like the FED does with U.S. Treasuries). The middle class usually votes on things like state civil servants’ pay and local improvements, including state-funded health care and day care centers via ballot measures, and have nothing to do with Washington.
Richard LaMotte
Valencia
