Wednesday, July 23, 2014
PLACERVILLE, CALIFORNIA
99 CENTS

Austerity or posterity

By
From page A5 | May 17, 2013 |

EDITOR:

I see we have another one of Mr. Longhofer’s “don’t worry, be happy” letters telling us the need for austerity is based on fuzzy math and we can spend with wild abandon and the economy will thrive. Mr. Longhofer’s position is that austerity is manufactured hysteria. Well let’s look at some basic math and the readers can decide for themselves whether it’s fuzzy or not.

Interest on our debt last fiscal year was $227,870,358,779.45. In fiscal 2009 the interest was $383,071,060,815.42. These numbers come from the Treasury Direct site of the federal government. The national debt was around $10.5 trillion in 2009 and around $16.7 trillion now. One might wonder how we could pay so much less in interest on today’s much larger debt. Simple, the Fed reduced interest rates to almost zero. For you and me this would be like having a 50 percent higher balance on your Mastercard but having a lower minimum payment. Basically this means that we have been able to heavily indebt our grandchildren without any current pain to us. Basically everybody on either side of the aisle agrees that we are rapidly approaching a $20 trillion dollar debt.

Historically interest rates have averaged around 4.2 percent. Even three percent would mean a $600 billion interest payment on $20 trillion. That’s almost $400 billion more than we are paying now. The left just had a panic attack on an $82 billion dollar sequester. What kind of cuts do you think a several hundred billion dollar hit would force? Remember all those nice federal programs that liberals along with others support? Some of them I’ll grant are very important. Well that big pile of cash paid in interest is money that can’t be used to support those programs. So then you have to either print a boat load of money (the feds are printing almost $3 billion a day now) or raise taxes to very high levels to pay for those programs.

So Mr. Longhofer is right, you don’t need to voluntarily do austerity now, but if you don’t, it will be done by force on your posterity.

GEORGE ALGER
Placerville

Comments

comments

Letters to the Editor

.

News

Six file for Dist. 2

By Dawn Hodson | From Page: A1

 
District 2 candidates forum Aug. 14

By News Release | From Page: B1

EID ditch customers get relief

By Michael Raffety | From Page: A1

 
Veterans receive wildland fire training

By News Release | From Page: B1

Market data open for local biz

By Ross Branch | From Page: B1

 
Heard over the back fence: Attorney to warn about scams

By Bob Billingsley | From Page: B1

 
Road zone of benefit protester reaches dead end

By Dawn Hodson | From Page: A1 | Gallery

 
Volunteers clean up national forest

By News Release | From Page: A3 | Gallery

.

Opinion

My turn: Special interests at EID

By Special to the Democrat | From Page: A4

 
Russian metastasis

By Mountain Democrat | From Page: A4

The Democratic-Chronicles: Not invented here

By Gene Altshuler | From Page: A4

 
.

Letters

DA hogging Main St. parking

By Letters to the Editor | From Page: A5

 
CAO and staff hiring friends

By Letters to the Editor | From Page: A5

Altshuler’s hypocrisy

By Letters to the Editor | From Page: A5

 
Small Farm compromise

By Letters to the Editor | From Page: A5

EID and Dale Coco

By Letters to the Editor | From Page: A5

 
.

Sports

Roundup: July 22, 2014

By Democrat Staff | From Page: A6

 
Dolphins ring up another title

By Democrat Staff | From Page: A6 | Gallery

Sharks defeat Loomis Basin in season finale

By Democrat Staff | From Page: A6 | Gallery

 
Celebrity golf at Tahoe

By Democrat Staff | From Page: A6 | Gallery

Dodgeball: Not the national pastime but …

By Shane Theodore | From Page: A7 | Gallery

 
.

Prospecting

At a glance: Comets to meteors

By Mimi Escabar | From Page: B2

 
Taste the best at the State Fair

By Democrat Staff | From Page: B2 | Gallery

Tractor Supply Store recognized

By Uc Cooperative | From Page: B3

 
Amador Fair honors cowboys

By Amador County Fair | From Page: B3

 
Arbor Day book helps to identify trees

By Arbor Day | From Page: B4

Learn about lavender and its many benefits

By Christian Women's Connection | From Page: B4

 
Lee’s Feed appreciates customers

By Democrat Staff | From Page: B5

 
My Time meeting in August

By Senior Day | From Page: B5

Builders’ Exchange honors scholars

By El Dorado Builders' Exchange | From Page: B5

 
En garde at Silver Screen Classic

By Auburn Silver Screen | From Page: B5

.

Essentials

Weather stats 7-22-14

By Michael Raffety | From Page: A2

 
Crime Log: July 8-10

By Cole Mayer | From Page: A2

.

Obituaries

Walter Vali

By Contributor | From Page: A2

 
Jean Lachelle Taylor

By Contributor | From Page: A2

Arthur J. Funston

By Contributor | From Page: A2

 
.

Real Estate

.

Comics

Shoe

By Contributor | From Page: A8

 
Sudoku

By Contributor | From Page: A8

Rubes

By Contributor | From Page: A8

 
New York Times Crossword

By Contributor | From Page: A8

Flying McCoys

By Contributor | From Page: A8

 
Speed Bump

By Contributor | From Page: A8

Tundra

By Contributor | From Page: A8

 
Horoscope, Thursday, July 24, 2014

By Contributor | From Page: A8

Horoscope, Wednesday, July 23, 2014

By Contributor | From Page: A8

 
Working It Out

By Contributor | From Page: A8

TV Listings

By Contributor | From Page: A8