Because of 'We the People' having demonstrated our power of RELENTLESS PRESSURE upon
Congress, more and more Democrats realize the U.S. is on an unsustainable path
and that reforms must be implemented NOW instead of putting them off any longer.
The vote was good news, but this is only the beginning of the fight.
WE ARE HOLDING THE LINE . . .
NO increase on the debt ceiling.
Unless you tell your Representative and Senators where you stand, they
may be tempted to cut a deal which will raise the debt limit while
making only symbolic and marginal spending cuts.
Both Democrats and Republicans need to learn from history,
particularly the Democratic Truman Administration. That's why I sent
this letter to Congress, from which you may borrow or copy . . .
I understand the concern you have about making the drastic spending
cuts necessary to balance the budget and maintain the current debt
ceiling.
However, the last time the national debt was this high relative to
Gross Domestic Product (GDP) was at the end of World War II.
Economists Jason E. Taylor and Richard K. Vedder tell us what a
Democratic-controlled White House and Congress did to the budget after
World War II. They . . .
* slashed spending by more than 50% in one year
* removed ten million servicemen and one million civilian employees
from the federal payroll
* lifted wartime economic controls, AS WELL AS many New Deal era
regulations/Instead of a new Depression, the opposite occurred . . .
* The economy grew by 10% in two years
* Unemployment was under 4.5% in the first three postwar years
* By 1947, budget surpluses reached 6% of GDP, and the U.S. started
paying down the debt
This isn't surprising. It makes economic sense . . .
* More money is available for capital investment and economic growth,
when government spends, taxes, and borrows less.
* It is less expensive to hire new workers, when regulations are reduced.
PLEASE DO NOW, WHAT CONGRESS DID THEN:
1. End the wars, cancel defense contracts, and bring the troops home.
2.Cut spending to balance the budget, AND lift regulations that strangle the economy.
3.Follow the 1946, Truman formula, and America will adapt quickly to a
more free and more prosperous reality.
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