D EAR HARRY: My candidate didn't win the presidential election. This has made me fear for my country. Amid all of the economic arguments for Obama, increasing taxes on the wealthiest Americans is the only one that makes any sense. This Quantitative Easing (QE), entitlements and other measures are going to let loose a terrible inflation that will make Germany of the 1920s look like a sapling next to a giant redwood. People all over the world will lose faith in the dollar. It will be worth pennies. Why are we still heavily unemployed four years after we got hit by the financial breakdown? It looks like both Obama and Bernanke are anti-American. What's your take on this?
Harry Gross: Reader sounds off on Obama, Bernanke
WHAT HARRY SAYS: Let's face it: Raising tax rates on the wealthiest Americans does make sense. These super-rich believe they're entitled to low rates. That's the most significant entitlement, because it puts the cost of government squarely in the lap of the other 90 percent of our people. But the rest of your letter does not strike home. Ever since the election of 2008, I started to hear statements similar to yours. The facts indicate otherwise. In periods of inflation, bond yields rise sharply. U.S. bonds now have a historically low rate. This is a clear statement that there is a huge demand for them. This reflects not just their safety, but that worldwide, investors don't see their value decreasing as a result of inflation. Look once more at the evidence with an open mind.
Email Harry Gross at harrygrossDN@gmail.com or write to him at the Daily News, 801 Market St., Philadelphia 19107.
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