VOL. XXIV, NO. 4
DECEMBER 17, 1982
Economic policies need change
Nationwide unemployment has reached its highest percentage 10.8 nationwide. 13.2 in Illinois. Businesses are being closed, workers are being laid off and wages are being cut. All are headline stories becoming more commonplace with United States citizens everyday. The time for new economic policies and revised government spending is now.
The unemployed of America are quickly becoming a larger and larger percent of the population; this fact cannot be ignored. President Reagan's supply‑side economic theories are not working. When he took office in 1980 the biggest problem that Americans faced was inflation. Now unemployment has surpassed inflation as the worst problem in America today.
Tax cuts for the rich are not needed. President Reagan believes that by cutting taxes for the upper class of America their wealth will eventually be shared by all. Years ago this might have worked. But today it is nothing more than a false belief, on the part of the Republican party, that America runs on the upper class and its wealth. This is a fallacy that could destroy our nation.
Tax cuts need to be given to the lower and middle classes. These are the people who need to spend and save. They are the backbone of America. They are the ones who buy, sell and save so that the next generations of Americans can lead a better life than their ancestors.
Present economic policies give the people with money a chance to spend it, while the people who don't have enough money can only buy the basics.
The unemployed of America are quickly becoming a larger and larger percent of the population; this fact cannot be ignored. President Reagan's supply‑side economic theories are not working. When he took office in 1980 the biggest problem that Americans faced was inflation. Now unemployment has surpassed inflation as the worst problem in America today.
Tax cuts for the rich are not needed. President Reagan believes that by cutting taxes for the upper class of America their wealth will eventually be shared by all. Years ago this might have worked. But today it is nothing more than a false belief, on the part of the Republican party, that America runs on the upper class and its wealth. This is a fallacy that could destroy our nation.
Tax cuts need to be given to the lower and middle classes. These are the people who need to spend and save. They are the backbone of America. They are the ones who buy, sell and save so that the next generations of Americans can lead a better life than their ancestors.
Present economic policies give the people with money a chance to spend it, while the people who don't have enough money can only buy the basics.
In a WESTERNER unemployment survey, students were asked what sacrifices had to be made on their part due to unemployment. The most common answers were cutbacks in buying the items that are usually purchased with extra spending money.
With almost 11% of the nation's work force unemployed, one presumes the government would lower prime interest rates so more people could borrow money; such is not the case. Although the prime rate has been lowered in recent months, it is still too high for the average working citizen.
The WESTERNER unemployment survey showed that the high interest rates are preventing perspective buyers from purchasing high cost goods such as houses and automobiles, thus forcing these two industries to be hardest hit by increasing unemployment. Fewer purchases in these two industries have forced large scale lay‑offs in '82.
The U.S. government needs to lower its prime interest rates before this recession will achieve any type of recovery. The housing and automobile industry, hardest hit by high interest rates, desperately need lower lending rates so perspective buyers can afford to borrow money. Helping these two industries would spark growth in the numerous other industries related to construction and auto making.
If the U.S. is to recover financially, reforms must be made in tax legislation and lending laws. The last time the U.S. was this bad off financially, a war rescued us. Millions of American lives seems like a high price to pay for stubborn bureacratic ignorance.
With almost 11% of the nation's work force unemployed, one presumes the government would lower prime interest rates so more people could borrow money; such is not the case. Although the prime rate has been lowered in recent months, it is still too high for the average working citizen.
The WESTERNER unemployment survey showed that the high interest rates are preventing perspective buyers from purchasing high cost goods such as houses and automobiles, thus forcing these two industries to be hardest hit by increasing unemployment. Fewer purchases in these two industries have forced large scale lay‑offs in '82.
The U.S. government needs to lower its prime interest rates before this recession will achieve any type of recovery. The housing and automobile industry, hardest hit by high interest rates, desperately need lower lending rates so perspective buyers can afford to borrow money. Helping these two industries would spark growth in the numerous other industries related to construction and auto making.
If the U.S. is to recover financially, reforms must be made in tax legislation and lending laws. The last time the U.S. was this bad off financially, a war rescued us. Millions of American lives seems like a high price to pay for stubborn bureacratic ignorance.
