Letters to the Editor

Letter: Massive debt: Who can afford it? Who'll buy it?

To the Editor:

This is not a partisan question. It is a serious question that every parent and grandparent should be asking. The U.S. economy (GDP) prior to the onset of the coronavirus pandemic was running at a rate of approximately $23 trillion per year.

The federal government’s debt had already risen to approximately 100% of GDP, primarily driven by borrowings against future generations to pay for the country’s various “entitlement” programs. This amount of debt as of Jan. 31 (when President Trump announced the ban on travel from China) was already $70,500 per citizen, or $282,000 for a family of four. So, the first question is – How many families are able to afford to repay their share of the federal government’s debt?

The first four stimulus bills passed by Congress totaled $3 trillion, which represents an additional $9,000 for every man, woman and child. In addition, Congress authorized the Federal Reserve to make an additional $4 trillion of credit available under various new loan programs. So, the next question is – Who is going to buy all of this new debt that has been authorized by Congress? (China?)

On May 15, Nancy Pelosi was able to get the U.S. House of Representatives to pass a fifth stimulus package with a price tag of $3 trillion, an amount equal to the first four bills combined. This bill passed on a narrow vote of 208 to 199, because some moderate Democrats rejected it as a costly overreach by the federal government. Unfortunately, both Lauren Underwood and Sean Casten voted to approve this proposed legislation.

The House bill includes several provisions unrelated to the pandemic, including funds to bail out fiscally irresponsible states’ unfunded pensions. It’s obvious the Democrats don’t want to let this crisis go to waste and want to use this “tremendous opportunity to restructure things” to fit their vision. Nancy Pelosi and the Democratic socialists in the House and Senate pose a clear and present danger to our children's and grandchildren's future.

Tim Beck

McHenry

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