July 21, 2011
How fast can spending be cut?
Dear Editor, I have been reading some of the comments on my article, "Can We Afford Not Borrowing?", and feel that there are several points of vitriol which need to be addressed, not as a comment, but as a published letter to the Editor. First, there are many people who think the Federal government can quit borrowing cold-turkey, without any significant penalty. While we might be able to cut out a good 20% of the current spending (about $700 billion) cold-turkey, without causing too much disruption; to cut any more than that would cause significant upheaval for the mooches and not-mooches who are expecting checks. It is an issue of grace and purpose to reduce government over a period of years: it is so large, that Congress could not possibly do the job (well) in any less. Second, as we are only paying interest on the debt (re-borrowing the principal), we can carry a little more debt without any significant problem. The issue is that the market cannot absorb...(Read Full Post)