To the editor:
As more imports replace domestic goods, imports consume a larger fraction of available domestic wages. If new forms of production are not found in time, the U.S. could go bankrupt, and internal political pressures will lead to debt default. Right now the Republican House Speaker Boehner is threatening defaulting on our loans if we do not "starve the beast".
Instead, we need to be investing in small and medium sized manufacturers by taxing large corporations in order to invest in such enterprises as well as to protect lower and middle class workers. However, major corporations like the oil companies are threatening us. We are to knuckle under and cut social programs that benefit millions of people (such as college loan programs, Medicaid, Medicare, Social Security, public education). We are not to demand higher taxes or reduced subsidies and tax loopholes for corporations. We are not to demand government action to lower their soaring prices. If we do, corporations will punish us.
Our government could inform such threatening businesses that the U.S. government will shift its purchases to other enterprises, as well as inform them that top officials will urge citizens to follow the government's example and shift their purchases. The government could also purchase energy and pharmaceutical outputs in bulk for mass resale to the public, passing on all the savings.
We need corporations to step up and support U.S. financial needs with shared sacrifice.
Julie Stewart Ziesman