Cures For The Deficit May Be Worse Than The Disease
Congress is having difficulty deciding what to do about the deficit because many members intuitively sense that both "remedies" offered--reduce the budget or raise taxes--would increase unemployment and worsen the recession ("Congress should hang tough on deficit cuts," Editorials, July 26).
Traditional theory on the subject is that large deficits are bad because they result in excess purchasing power, causing price inflation. This theory has been thoroughly discredited throughout the past decade: The economy has operated substantially below capabilities in spite of record deficits.
Joseph H. Leopold
Your recommendations for cutting the deficit have at least one fatal flaw: raising taxes. Since when has raising taxes ever reduced the deficit?
You discredit the Republicans because they have "refused to accept any taxes at all." Raising taxes is what discredited President Bush and helped lead to his defeat.