Open letter to President Obama (Part 214) Milton Friedman: “If taxes are raised in order to keep down the deficit, the result is likely to be a higher norm for government spending”

Milton Friedman shot straight with Donahue on two great episodes. I have posted several of these clips the past here, here, here, here, here, here, here, and here.

President Obama c/o The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Dear Mr. President,

I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here.

The liberal John Brummett in his article, “The fine art of thinking,” Arkansas Democrat-Gazette, August 2, 2012, asserted:

This pledge has become ruling Republican creed and a requirement to escape a GOP primary since it was cooked up by Grover Norquist. He’s a pugnacious lobbyist and conservative activist, formerly with the rabidly right-wing U.S. Chamber of Commerce, who heads a group he calls Americans for Tax Reform.

The pledge is probably not wholly responsible for destroying Washington.

Part of the blame also must be assigned to money, particularly the kind to which Burris referred that comes only if you sign the pledge.

If exercised to its logical conclusion, the pledge would force Republicans in Congress to reduce spending without adding new tax revenue. That, in turn, would send new burdens for roads and human services to state governments, where Republican legislators also would have vowed not to raise taxes.

Not only is that the logical conclusion, but it is also, I suspect, the real objective. By that I mean trying to squeeze government nearly out of business.

Liberals like Brummett think the government knows better than us how to spend money and that is why he is so angry at Grover Norquist. I come from a conservative point of view and I see the world much differently.

Government will spend whatever money we give it. About 100 years ago the federal government was spending than 5% of GDP and state and local governments were spending about double that amount. Now the federal government is at 24.7%. We need to stop giving them so much money and the only way to do that is to cut taxes.

Jack Roberts wrote in the Northwest Free Press last year how Milton Friedman showed the problem of government spending and how it expands:
In 1967, three year’s after the Kennedy tax cuts, the Johnson Administration was already running huge deficits thanks to the a combination of Great Society social programs and the Vietnam War.  Writing in his regular Newsweek column on August 7, 1967, Friedman expresseded his concern that this would soon lead to higher taxes, using an analysis that would become familiar to his readers over the years:

“.If we adopt such programs, does not fiscal responsibility at least call for imposing taxes to pay for them?  The answer is that postwar experience has demonstrated two things. First, that Congress will spend whatever the tax system will raise—plus a little (and recently, a lot) more.  Second, that, surprising as it seems, it has proved difficult to get taxes down once they are raised.  The special interests created by government spending have proved more potent than the general interest in tax reduction.

“If taxes are raised in order to keep down the deficit, the result is likely to be a higher norm for government spending. Deficits will again mount and the process will be repeated.”

Sure enough, a year later a 10% income tax surcharge was enacted by Congress to cut the deficit and fight inflation.  His prediction having been confirmed

__________

Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.

Sincerely,

Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com

________

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