There is much in the May 7 Examiner editorial I agree with. The need to drastically reduce the national debt, the need to rethink and reform federal government spending. that these efforts will involve a great deal of pain. I also appreciate the historical perspective and thoughtful tone. However, I differ with what it will take to reduce the unsustainable debt.
It is a rather startling fact that under Ronald Reagan the national debt grew by 188%, twice the rate of any president since then. (Bush 1 54%, Clinton 32%, Bush 2 105%, Obama 88%, Trump 36%, Biden 21%.) Part of the reason for the huge increase under Reagan relates to our current debt crisis.
The Economic Recovery Tax Act of 1981 and the Tax Reform Act of 1986 drastically reduced taxes on the wealthiest Americans. The reasoning was more money in the hands of the wealthy leads to more investments in business leads to more economic growth leads to more tax revenue, which benefits everyone,
“Trickle Down” economics. Except the benefits did not trickle down, they gushed up and stayed there.
Before the tax cuts of the 80s the top 10% of Americans owned 50% of the wealth in the country. Today, they own 70%, the rest of us have dropped from 50% to 30%. Tax cuts to the rich did not, do not, and will not trickle down.
A comparison of the national debt with the wealth of the richest Americans is another surprise and contradicts the idea the debt is so big taxing the wealthy will not help. The total wealth of just the top 1% is about 49 trillion dollars, the national debt is 37 trillion. If the wealthiest 1% of Americans chose to, they could pay off the whole national debt tomorrow and still have about 10 million dollars per household to struggle by on.
Finally, look at the actual cost-saving figures D.O.G.E is reporting. Cost cutting to make a difference in the national debt is like trying to bring down an elephant with a BB gun. And while we are at it let’s get real about one more thing. Cost cutting isn’t just painful, it’s deadly.
Yes, to bring down the national debt is going to be painful and more, but the pain should include those who for the last 50 years have been indulging in pleasure at the nation’s expense, and not just the poor or those of us who have been running in place and slipping backwards.
Gordon McAlister
