Corporate Welfare Cuts Spite Economy

I am writing to comment on “Enemies of ‘Corporate Welfare’ Make an Odd Political Alliance”(March 19).

I want to begin by congratulating Congress on two points: One, they deserve some congratulations for looking beyond party lines and working together on an issue that is important to every American. Second, they should be congratulated for attempting to lower the ever-growing federal budget deficit, which is no easy task.

However, I think they fall short in the methods they are proposing to lower the deficit. The proposals offered by the GOP call for cuts in current welfare-related programs such as welfare, school lunches and food stamps. A further proposal, this one offered by both Republicans and Democrats, calls for a reduction in welfare-type programs for businesses such as federal subsidies and tax breaks.

While the spending cuts are important, cuts in programs to help business would cause more ill effects than good. The decrease in aid programs such as federal subsidies and tax breaks would cause a decrease in the investment in businesses. Once this occurs, there would be a chain-reaction effect in the economy.

The decrease in investment in businesses would cause a discouragement in the development of new business and industry. This action would then cause a decrease in consumption by the public. From this point, there would be a decrease in the gross national product of the United States and then a rise in the unemployment rate.

I feel that it is important for Congress to cut welfare-type spending to lower the deficit. However, it would be detrimental for them to cut every type. Business, in particular new business and industry, is important to the U.S. economy and our competitiveness in the global marketplace, and therefore should be left alone.

ROBERT W. HARRELL

Thousand Oaks