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An Open Letter to Sen. Patty Murray
 

An Open Letter to Sen. Patty Murray

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A letter reply to a note received from U.S. Senator Patty Murray (D-WA), regarding America's increasingly important Debt Problem. The letter also includes a proposal to Senator Murray for an ...

A letter reply to a note received from U.S. Senator Patty Murray (D-WA), regarding America's increasingly important Debt Problem. The letter also includes a proposal to Senator Murray for an exchange of views in the form of data charts supporting each side's position. The letter provides further detail.

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    An Open Letter to Sen. Patty Murray An Open Letter to Sen. Patty Murray Presentation Transcript

    • AN OPEN LETTER TO SEN. PATTY MURRAY (D-WA) - - AMERICA’S DEBTHello Senator Murray,Thank you for your very cordial Dec 20, letter , replying to my earlier note. However, whilereassuring regarding the Administration’s intent, I am troubled that elements of it conflictwith data and logic that I’ve seen published by very responsible sources. I believe thisother data and logic is why it’s quite difficult to convince many on the Conservative side ofthe spectrum that they should welcome the Administration policy. It is a policy thatappears to many of us to be erroneous and too motivated by a political, rather than soundeconomic, rationale. I’ve included in this note, a few examples of the data I’m referring toin forming my viewpoint.Of course, I realize that you also may favor other data and logic as the basis of yourthinking. My background is an Engineering education and a 35 year career in Engineeringand Eng’g Management at the Boeing Company, from which I retired in year 2000. So I aman adherent of well-researched and applied quantitative data. I also believe the debtissue we have corresponded on is as critical as any the Nation now faces. So I would liketo extend to you this offer. Let’s meet and have a public data exchange, each in support ofour beliefs. We could each have ourselves or a designee present a 45 minute set of chartsmatched to a pre-negotiated agenda of topics. I’d arrange for an indoor Meeting Room andwe would each invite about 60 folks, interested in the topic. We would pre-coordinate anagreed overall date/time and any other applicable conditions. I know we could leave theMeeting on cordial terms and with enhanced respect for each other’s positions. Perhapswe might even conclude with the outline of a plan that both sides could support.Please let me know if this proposal is of any interest to you.Thank you very much for your consideration,Mark Sussman, 425-643-8961
    • AN OPEN LETTER TO SEN. PATTY MURRAY (D-WA) – AMERICA’S DEBTSince about 1975, the Figure 1 – SPENDING vs REVENUES - - WHERE THE PROBLEM ISNation’s Spending hasbeen exceeding theRevenues it takes in.But since about 2009,the gap has enlarged Spendingsignificantly. RevenuesMoreover,authoritativeprojections of futuregap growth show thisto be anunsustainablesituation.Analyses show that itis the spending sideof the ledger that ismostly at fault.Ref. 2
    • AN OPEN LETTER TO SEN. PATTY MURRAY (D-WA) – AMERICA’S DEBTAmerica’s year after Figure 2 – Accumulated Debt across our economy has skyrocketed inyear of unbalanced the past 30 years.Deficits areaccumulating and therate of accumulationis generally on theincrease (chart). DebtThis accumulation isan albatross of Debtupon the Nation andan obligation owed toothers that ifuncorrected will be alegacy that webequeath to ourchildren.Totally irresponsibleon our part !And dangerous !Ref. 2.
    • AN OPEN LETTER TO SEN. PATTY MURRAY (D-WA) – AMERICA’S DEBTThe Debt is increasing at a FIG. 3faster rate than our totaleconomy as measured byour Gross National product Debt / GDP(chart).Moreover, except for aperiod tied to World War II,our Debt Level as a per centof our National economy ,has been enteringuncharted waters.Why is this particularlyalarming? See next chart.See Ref . 1.
    • AN OPEN LETTER TO SEN. PATTY MURRAY (D-WA) – AMERICA’S DEBTRespected Economists FIG 4Rogoff and Reinharthave publishedmultiple papers (thelatest, Ref 3) warning ofthe results of Nationstreading into waters ofDebt levels approaching90% of GDP.As this chart notes, theEconomists see “badthings” such as:inflation, bankinstability, joblessness,and destruction ofpersonal wealth frommultiple Nationalhistorical examples.Is this the future intowhich our gov’t ishaplessly taking us?Irresponsible !
    • AN OPEN LETTER TO SEN. PATTY MURRAY (D-WA) – AMERICA’S DEBTThis is another view Figure 5 – 60 YEAR HISTORY: TOTAL DEBT AND NATIONAL GDPof similar data,whereby theNation’s TOTALDebt ( includingHousehold Debt,Corporate Debt andGovernment Debt at Debtboth State/Local GDPand Federal Levels) .Household andGovernment Debtare of similaramounts withFederal Debt about4 times that ofState/Local Debt.Corporate Debt isabout 2/3 of theothers. But all sharethe same disease.Ref. 2.
    • AN OPEN LETTER TO SEN. PATTY MURRAY (D-WA) – AMERICA’S DEBTSo what’s the solution ? Figure 6 - Relative Change in Expenditures by Government FunctionWell, it seems that most ofthe solution must be foundon the Spending side, as thatis the part that has beengrowing well beyondhistorical norms.This data shows wheremoney has been and iscurrently being Spent.Human Resources (includingSocial Security, Medicare,Medicaid, and other moniesto Citizens is the largest andfastest growing component.Defense spending, often atarget of some, has beensystematically reduced fordecades. Other componentshave been steady and are atsmall levels. So a sensiblepolicy must address theHuman resources element.Ref . 1.
    • AN OPEN LETTER TO SEN. PATTY MURRAY (D-WA) – AMERICA’S DEBTIn concluding, this FIG. 7chart repeats the yearsup till 2012, whichwe’ve seen before. Butnow is added theimportant projectionfor the future 3decades.This projection is basedon the Federalgovernment’s owndata from OMB andGAO Sources, asannotated in the chart.Clearly, the Nationmust not let this typeof disaster occur.Ref. 4.
    • AN OPEN LETTER TO SEN. PATTY MURRAY (D-WA) - - AMERICA’S DEBTSenator Murray, Thank You again for your very cordial Dec 20, letter, replying to my earliernote regarding our National Debt. Economists indicate 4 primary methods to address theDebt issue:(1) Increase monies into the gov’t (taxes); (2) Reduce money outflow from the gov’t (cutspending); (3) Grow the economy and reap additional taxes at current rates plus set asidefunds to pay down the Debt. Most Citizens can probably agree with the intent of solution(3) - - but the question is: does option (1) OR option (2) facilitate that best? As I indicatedin the earlier charts, We seem to place quite different emphasis on the the latter 2 choices.Well OK, this is a democracy and deliberation on matters of policy is the mechanism ofchoice to arrive at a consensus.Accordingly, and as a believer in good data to illuminate the best path, I am pleased torecap my proposal here: to meet and have a public data exchange, each in support of ourbeliefs. This would be in the form of a competitive set of equivalent charts with timingequally allocated to a pre-negotiated agenda of topics. We would pre-coordinate anagreed overall date/time and any other applicable conditions. I would be pleased to hostthe Meeting at a public facility, with an even # of attendees invited by both sides. I have inmind a place in Bellevue that accomodates about 120 -130 people. I offer this plan withsincere intentions to help Citizens deliberate the issue better and I’d be happy to work withany Staff person you may select to work out details.Please let me know if this proposal is of any interest to you.Thank you very much for your consideration,Mark Sussman425-643-8961
    • AN OPEN LETTER TO SEN. PATTY MURRAY (D-WA) – AMERICA’S DEBTREF REFERENCE #1 “Deep Dive Into The Federal Governments Budget And The History Of US National Debt”, Jim Boswell of Quanta Analytics , Business Insider, Jan. 11, 2011, 7:30 PM2 “Okay, Folks, Lets Put Aside Politics And Look At The Facts...”, Henry Blodget, Business Insider, Jun. 21, 2012, 12:29 PM3 “Public Debt Overhangs: Advanced-Economy Episodes Since 1800” , Carmen M. Reinhart; Kenneth S. Rogoff is Professor of Economics and Thomas D. Cabot Professor of Economics, Harvard University, Cambridge, Massachusetts, Journal of Economic Perspectives—Volume 26, Number 3—Summer 20124 The State of the Union’s Finances”, Peter G. Peterson & David M. Walker, Peter G. Peterson Foundation, March 2009