Some observations on the letter “Do your own Homework” in the May 5 Roundup.
First, I’m happy to see a liberal finally admit that World War II brought us out of the Great Depression, not Roosevelt’s deficit policies! He basically stated that in the third paragraph, although true I have a suspicion he really didn’t mean to say it that way!
Second, I agree that Clinton ran a budget surplus from 1995 to 2000, however, what the author failed to mention was that both houses of Congress were Republican-controlled then, Congress actually controls spending (do your homework on the Constitution).
Second, Bush was a big deficit spender, but both houses of Congress were Democrat-controlled during the last two years of his term when the largest increases occurred. Hmm.
Third, let’s discuss debt payoff and refer back to WWII debt. You can only repay debt by more borrowing, budget surplus or by inflation. Well, borrowing paid a lot of that debt, but since we keep running deficits (adding to the debt) another good way to pay is by inflation.
Let’s take U.S. savings bonds bought during WWII as an example. I was just a kid then, but I remember buying a savings bond in 1945 for $18.75 with a 10-year maturity date paying $25.
Not sure of the exact numbers here, but they are close. Not a great interest rate, but it was the “patriotic thing to do” then. So you cash in the bond in 1955 and receive $25. Great, except that the inflation rate rose approximately 100 percent during this period. Now the government pays you $25 in 1955 dollars, but they are only worth $12.50 in 1945 dollars, the year you spent the money. Our great government just reduced that portion of the debt by almost half by inflation and guess on whose back that reduction took place. Governments love inflation.
If you think the inflation rate was bad during Carter, and it was terrible, just wait until the repercussions of Obama’s stimulus and social programs kick in.
Do your homework. Bring on the tea parties.