Feed middle class; grow economy

What happens if you cut taxes or otherwise increase the wealth of the upper 20 percent or more? Since they already have enough for all the gadgets a posh lifestyle can use, they will save it. If the economy is good they might actually invest in business here and create some jobs.

But if the lower middle class is out of work and cannot afford to buy new stuff the economy will be poor and the rich will invest offshore. Nobody with any smarts will invest in an economy failing due to lack of demand. So the rich will get richer, but it won’t help the economy here, and we will continue into depression.

Put more money into the hands of the lower middle class and they will buy more stuff, and the rich will invest in companies here to sell goods and services. Everybody wins except perhaps the national debt.

If our economy is strong enough and grows enough there may actually be no limit to how high the debt can go. If China, etc., has faith that our economy can continue to grow without bounds, the debt they will tolerate will continue to grow. But suppose we do reach the point where we can no longer borrow many and we default. Our grandchildren may indeed be in trouble, but that will be a ways off.

If we embrace the austerity and tax cut policies of the Bush/Romney/Ryan plans, we will tank the economy immediately go into a depression rapidly and we and our grandchildren will be in severe trouble before they’re even born. Please think about it.

Bob Lambert

Lake in the Hills