LETTER: Paying for the bubble

With the U.S. Senate threatening to pass the health care "reform" bill, followed by the cap and trade bill, many are wondering why t
Sandusky Register Staff
May 24, 2010

With the U.S. Senate threatening to pass the health care "reform" bill, followed by the cap and trade bill, many are wondering why these massive tax increases are being sought. After all, "health care" will put an additional 17 percent of the economy under government control and the environmental taxes yet another 10 percent or so.

I don't think people understand how much the government needs this money. And let's set aside for the moment any thought that these money grabs will improve anyone's health or the environment. No, the money is needed for government pensions, all of which are un-funded. At present, this amounts to roughly $2 trillion, which the health tax and cap and trade will just about cover.

Back in the 1980s and 1990s when the dot-com boom was followed by the real estate boom, it looked to those in Washington that the money would never end. Nobody in Washington understands the dynamics of the capitalist system so they thought it would be OK to ship our manufacturing jobs overseas because the dot-coms and real estate would grow endlessly.

The money was spent as fast as it came in. Faster, actually. Besides redecorating their offices, they fattened up their own pension plans. Remember, the money was going to flow forever.

Then the loss of middle-class manufacturing jobs caught up with them. People couldn't pay their home mortgages. Uh-oh. The financial industry, on which too much reliance had been placed, turned sour. The income that government thought would never stop did stop.

Now they have to get money for their pensions with these fraudulent health care and cap/trade schemes. Someone has to pay for the increasing number of federal pensions over $100,000 a year. I guess it will have to be you.

Carl R. Goodwin

Norwalk