Debating in My Local Paper

Every once in a while I find one of the rants by people who have a knee-jerk Right wing reaction to whatever goes on too provocative to resist answering. This is particularly true when they reflexively use the standard talking points of their brethren. The latest of the Right talking point appears to be to to hold Communist China as the model we should emulate.

Thus on March 20, 2009 there appeared in my local newspaper, the Fort Lee Suburbanite, the following Letter to the Editor:

"The Chinese communist government has it right. As a result of the global economic slowdown, they have reduced individual taxes and cut wasteful spending. There is no tax on the net profits of private businesses.

The government even cut taxes in half on small cars and that act resulted in a sales gain of 25 percent in its first four months of operation. Cutting taxes in the appropriate manner generates economic growth. JFK advocated the same program before his assassination and it worked. He even wanted to abolish the Federal Reserve System because he felt it was detrimental to the economy of the country.

"The present stimulus package does nothing to stimulate the private sector to generate jobs for the unemployed. In fact, it only enables government to expand and government expansion always means a greater tax burden for those who are employed.

"What ever happened to that old philosophy concerning teaching someone to fish rather than giving them fish as charity? There is nothing in this stimulus legislation concerning re-training those who have lost jobs for the future employment. New technology demands trained workers.

"The first stimulus bill, when President Bush was in office, provided families with money but did little to stimulate business. Most of the recipients paid bills with their newfound cash and there was little demand for increased supply. How easily we forget.

"Giving money to the states diminishes the responsibility of state governments as well as their relationship with the federal government.

"There were states, then called colonies, before there was a federal government. Our country is composed of "United States.” The Constitution guarantees certain states rights. If state governments would have had balanced budgets, they would not need any assistance from the federal government. If the voters of a state enable it to overspend then they must suffer the consequences.

"Congress has long forgotten their role as delineated by the Constitution of these United States. They have abused the "general welfare" clause year after year. That clause enables Congress to spend money for the "general welfare" of the country ... not for particular pork items that concern a state, a city, a municipality, and a pet project. Congress has also encroached on the domain of the President and the Supreme Court by passing laws that on their face violate the U.S. Constitution. Congress has limited power, as does each of the three branches of the federal government. Throughout our country's history, Congress has enacted legislation that clearly should have been vetoed by various Presidents, but because of party affiliation, were signed into law.

"It is also amazing that those in power today want to limit the salaries of those who generate jobs in various industries, but are silent regarding the ridiculous salaries paid to professional sports figures.

"How do we, as a society, pay a ballplayer 10 million dollars a year and a teacher under 50 thousand dollars a year? Who has the greater influence on our youth? We have lost our values as a society!

"The current stimulus bill stimulates government and little else. It illustrates that Congress has lost its way and that this President is no improvement over the previous one regarding the economy. By the way, who is financing all of the president's czars and committees and the results of his Presidential orders? I thought Congress controlled the purse strings of the federal treasury ... by law!"

I did not respond until April 4 because there were other topics I wanted to address. But on this date my letter in response was published, which took the writer to task as follows:

"Mr. Haas (Letter to the Editor of March 20) denounces President Obama's stimulus package, but he is so unacquainted with the facts, or worse has so little regard for them, that for him to spread such misinformation is a disservice to your readers. Mr. Haas holds up Communist China as the example we should be following as a country that passed no stimulus, somehow failing to tell us that China, in fact, passed a massive stimulus package. According to Forbes of November 9, 2008, "Four trillion yuan ($586 billion) will be spent (by the Chinese government) on upgrading infrastructure, particularly roads, railways, airports and the power grid; on raising rural incomes via land reform; and on social welfare projects such as affordable housing and environmental protection."

"As for cutting taxes, Mr. Haas forgets to mention that 1/3 of the Obama stimulus bill is directed to tax cuts, while China only lowered transaction taxes, reducing down payments and lowering mortgage rates and it is cutting the tax on little cars, hardly comparable to the much more extensive tax cuts in the Democratic stimulus package, Mr. Haas decries. As for the vaunted Kennedy tax cut, it was similar to the Obama tax cut and was intended to stimulate demand. It was not, as he and his Right wing cohorts would have us believe, a supply side tax cut.

"Mr. Haas than brings out a commonly spread lie, (actually usually spread by the far left as part of the assassination conspiracy theory) that JFK wanted to abolish the Federal Reserve System, for which there is no evidence, and which would have been a disaster in any case, the Fed being a major bulwark in preventing the complete collapse of the US and world economies. This distortion had its genesis in Kennedy’s Executive Order 11,110, which did not (as is usually suggested) create new authority to issue additional silver certificates. In fact, its intention was to ease the process for their removal, so that small denomination Federal Reserve Notes could replace them in accordance with a law Kennedy himself signed. If Kennedy had really sought to reduce Federal Reserve power, then why did he sign a bill that gave the Fed still more power?
"Mr. Haas then goes on to claim that; "the stimulus package does nothing to stimulate the private sector to generate private jobs for the unemployed.” What nonsense! When consumers have money and spend it, they obviously create demand for goods produced by the private sector, which creates jobs in that sector, and when the money is giving to those who have the least, they are the most likely to spend it quickly rather than save it, because their need for food, shelter and the necessities of life are pressing.

"Mr. Hass' admiration for China is instructive, for China has no safety net, no unemployment insurance, no Social Security, no old age pensions and the average Chinese worker in the textile and agricultural industries earns less than 20,000 yuan per annum (2,849 U.S. dollars).

"Finally Mr. Haas rants about States over-spending, choosing to ignore that the crisis extends to all states, whether Republican or Democratic, and is caused by the failure of tax receipts caused by the recession.

"He complains about teachers being underpaid, a sentiment I share, but forgets that paying teachers more would increase state and local expenditures, something he rants against.

"As for excessive salaries paid to professional sports figures, he forgets, or ignores, that this is the private sector, which he extols, and where he and I should be able to agree that it should not be subject to government interference.

"Neither accuracy nor consistency, are Mr. Haas' hallmark, which is why I rarely respond to his diatribes."

Unfortunately, I think for him, my adversary did not know enough to leave well enough alone and wrote this rather whiny letter.

"I do not know Mr. Scheller. I do not know anything about him other than what he writes in his letters to the editor. I do know that he hopes I do not respond to his left-wing professions of "facts:' On April 15, the people will have demonstrated their feelings about the President's stimulus package.

"Since when does $586 billion equal over $3 trillion? Has he been to China lately to see the rapidity of the upgrading of the infrastructure? How do you generate the greatest debt in American history and promise tax cuts? President Kennedy's tax cuts worked. As for the Federal Reserve, Mr. Scheller is in error. President Kennedy signed an executive order abolishing that board because he deemed it not in the best interests of the citizens of our country.

"If Mr. Scheller would read about the founding of that Board and its negative impact on our economic foundations, he would join hundreds of economists who echo my sentiments. Do we Americans want our money supply run by people who are not accountable to anyone but themselves?

"Mr. Scheller ignores the growing number of unemployed and their dependence on government funds. The "consumers" have no money until they have jobs. Government generated jobs cost taxpayers. What President Obama wants to do is take money from the producers and give it to the consumers. That will create demand by the consumers, but omits the fact that if the producers now lack adequate funds, how do they produce? Is the government now going to be in the production business?

"State governments are responsible for their own problems. They overspent in the "good times" way before our present economic crisis. Those states who have extended citizen's rights to illegal immigrants are suffering the most. The recession has added to the negativity of their situation.

"Teachers are underpaid. Professional athletes are overpaid. Somewhere we, as a society, have lost our sense of values. It is interesting that Mr. Scheller states that professional sport figures are the result of the private sector and teachers' salaries depend on the government sector. That disparity illustrates that the private sector generates more income than the government sector and that greater income increases greater consumption, which increases the need for more jobs. That greater income also increases the taxes paid to city, state, and federal governments.

"I am consistent in my belief in the capitalistic society. I am consistent in my belief that Congress has and is violating its constitutional obligations. Pork-barrel spending does not have a constitutional basis. The clause of the Constitution for "good and welfare" mentions for ALL the people. Spending on particular city or particular state projects is not for the benefit of ALL the people of the United States!

"I am consistent in my belief that both political parties are lead by those who do not truly represent the desires of the citizens of this country. I am consistent in my belief that changing the name of someone or of some action or some entity does not change the person, or the act, or the entity.

"I am consistent with the fact that I am, despite Mr. Scheller's opinion, consistent with the facts."