Interest Rates and the Economy
The Fed, a somewhat nonpolitical institution, has done its part to ease the budget battle. By lowering the interest rate (Feb. 1), consumers will be more apt to spend and pile onto their already high debt rates.
So, while every consumer attempts to rectify his own troubled situation, he’ll have no time to spend worrying about the government’s massive indebt- edness.
JEFF HEYNEN
Whittier
In arguing that there is no reason for the federal government to balance the budget, Robert Scheer (Column Left, Jan. 30) states, “This economy thrives precisely because so many of us live beyond our means thanks to credit cards” and “the day we consumer-workers start living within our means this economy goes into the toilet.” As with many big-government apologists, Scheer advocates behavior that sounds caring but hurts the individuals who follow it.
This hit me especially hard because the night before his column appeared I spent four hours advising several couples, deep in debt, how to dig out. For some it involved deep sacrifice and loss of valuable assets and even homes.
Scheer may be willing to risk extreme future sacrifices for some fleeting pleasure and ease, but I and most other Americans realize this is folly.
GARY BUCHER
Costa Mesa
Lester Thurow (Commentary, Jan. 26) wonders why there is so little resistance and outcry against the stagnant wages, declining standard of living, rampant downsizing and the cutting of benefits being experienced by the poor and middle class. The answer is simple--the Democratic Party no longer exists!
TERRY L. MALONE
Orange
Thurow is wrong! He describes capitalism as a system based on “survival of the fittest” when the facts show it makes possible “salvation for the weakest.” No other economic system is more humane, compassionate and moral while fundamentally protecting individual freedom.
Capitalism allows people to relate to one another as “traders” exchanging value for value whether the items of exchange are “elbow grease” or brain surgery. Wealth created in this manner generates more than enough private, voluntary charity to care for the handicapped, orphaned and other members of society that cannot help themselves.
The socialism we’ve implemented since the early 20th century has not only destroyed our ability to fund private charities but has dramatically increased the number of people who today believe charity is a right.
MICHAEL A. MALGERI
Redondo Beach
I wish President Clinton would stop ballyhooing his unrealistic employment figures. People are hurting. While large corporations are making huge profits, thousands of workers are being laid off due to downsizing. If corporate profits do not benefit the working class in the form of jobs, there will be a revolution at the next election much deeper and much more serious than the 1994 Republican revolution.
DON SCHMITTS
Mission Viejo
