10:30 AM EDT, April 15, 2013
In response to your editorial "Put up or shut up" (April 11), I just have one question: What part of economics don't you understand?
You mention that the president wants to "reduce deficits to a manageable size." Yet in his budget he proposes growing government spending by 60 percent from 2012 to 2023, and increasing revenues by 113 percent. And he still can't balance the budget!
This budget makes the argument that we need more government and more debt. His proposal leaves us with gross debt of more than 100 percent of GDP by 2020 (it was 40 percent of GDP in 2008 and is projected to be almost 80 percent of GDP next year). And it would require the national debt limit to be raised to more than $25 trillion.
The assumptions made in this budget are not realistic. It assumes that interest rates will stay ridiculously low (1.2 percent in 2016) and inflation will stay low (2.2 percent in 2016), even with all the money that has been printed by the Federal Reserve recently.
President George W. Bush may not have been much better than President Obama when it comes to spending, but if we do not make adjustments — and yes, we have a spending problem, not a revenue problem — we will soon look like Greece, Spain and Italy.
And please don't say that can't happen here. We are well on our way there already.
Copyright © 2013, The Baltimore Sun