Your editorial stated that we need to stop spending more than we collect ["Annual deficit's hard realities," Sept. 28]. Normally I would agree, but not at this time. We need to consider the impact of government spending on the economy.
Government spending puts money into people's pocketbooks, which enables them to buy products and create employment. Taxes have the reverse effect. People have less money, buy less and create less employment.
Individuals and businesses are not spending enough money to create demand. Someone has to step up. The government needs to spend more than it taxes to increase the demand for products. More than 2 million jobs were created or preserved after the government borrowed money through the stimulus, including jobs of teachers, police officers and other public employees. The stimulus put people to work on more that 100,000 projects to upgrade roads, bridges, tunnels, subways, water pipes, sewer plants and bus and fire stations.
As employment increases because of government spending, tax revenues will increase and again we can rely on private industry to create jobs. When we have recovered from this depression, then we can look at cutting the deficits.
For those worried about our $16-trillion debt, we do not have to liquidate it. We can continue to manage it, as we have in the past, by selling bonds to pay the principal. We can pay the interest from current revenues. Big investors such as China and Japan have enough confidence in our economy to buy our bonds.
We recovered from the Great Depression of 1932 by government spending, and we can do it again.
Stanley Gittleman, Baldwin