State of the Economy Is Better Than Scheer Says

In his Jan. 28 commentary, “U.S. Knows Its Condition -- Lousy,” Robert Scheer writes that the economy is now in “the worst humbling

Fortunately, tax rates were reduced in 2001 and the economy has grown at a 3% rate over the last 12 months, the same as the long-term growth rate. While a 5% rate is needed, 3% is not “lousy.” All taxpayers received relief in 2001, and the upper-income group took over a slightly higher percentage of the total tax burden. In other words, the tax structure became slightly more progressive.

Since two-thirds of the upper-income group are owners of small businesses, the tax relief for them will help small business to grow. This is important because small business accounts for most of our economic growth. While many stockholders are unhappy because the stock market bubble burst, as it had to, the Standard & Poor’s stock index today is still up 100% over its 1994 level, when the bubble started. Thus, the current value of stocks is up about $7 trillion over 1994. National income is up by $300 billion over a year ago to a new, record-high level. So despite its problems, the economy is not relatively “lousy.”

Theodore Andersen

Professor Emeritus

UCLA Graduate School

of Management

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Scheer calls the current state of the union under President Bush “the worst humbling of the U.S. economy since the Depression.” I don’t know where Scheer was during the presidency of his beloved fellow Democrat, Jimmy Carter. That was without a doubt the worst U.S. economy since the Depression. Perhaps he was then on some other planet, from which he apparently still writes most of his commentaries. I have had enough of Scheer’s irrational hate pieces on the current president.

Joseph Bonino

Glendale

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For years now, the rich keep getting richer and the poor keep getting poorer. But why should I care? I am one of the rich. But I do care.

Julian Keithahn

San Juan Capistrano