Letter: Many Republicans fail tor grasp economic basics

November 4, 2013 

Economics 101

Tea Party adherents and many Republicans don't seem to understand a basic principle of our economic system: Your income and everyone else's income must become someone else's income. It has to be this way, otherwise the wheels of the economy fall off.

This basic, intuitive principle of commerce implies several other conditions necessary for economic prosperity: (1) money must be spent rather than hoarded (my wife understands this very well); (2) profits must be shared by workers, resulting in high wages, which increases spending; (3) wealth must be redistributed by either death or progressive taxes, which increases spending (the Affordable Health Care Act is a good example of progressive taxation); (4) health care must not take a large percentage of income from the poor and middle class because that diminishes spending on goods and services (the Affordable Health Care Act accomplishes this); (5) government spending is never a "waste" because it's simply money going back into the economy, although government spending could be better prioritized, with more money going for education and research.

I believe the Tea Party and Republicans are well intentioned but their economic views are bringing us to the brink of recession or worse.


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