SalemNews.com, Salem, MA

Business

October 3, 2012

Economy takes center stage

(Continued)

Lutts agrees with Texas Congressman Ron Paul, who, in a recent posting on his Congressional website, was outspoken about what he sees as the Federal Reserve’s manipulation of interest rates.

“Ron Paul, he’s the only one telling the financial truth out there,” said Lutts.

If the government raises taxes, wouldn’t that help reduce the deficit?

Lutts said it would still not be easy to pay down the debt.

“Do you have any idea how much a trillion dollars is? A thousand billion. Do you know how long it takes to create or earn a billion dollars in a commercial enterprise? Some industries take 20 or 30 years to do it,” he said.

“We in the federal government spend a billion dollars like it’s nothing, and that’s why we have a $16 trillion accumulated deficit. It may not be at the breaking point, but it’s certainly worrisome, the debt level.”

Lutts said it is no secret that Romney is favored by many in business.

“Obviously, commercial interests think a Romney win will be more favorable to them — a little more favorable tax environment, a little more favorable commercial environment for creating businesses and running businesses.”

However, Congress may be more important to the economy than who will be the next president, Lutts said, and he suspects the next Congress may be more conservative.

“I think the result of this election is going to be that anybody who has been in there for a significant period of time has a good chance of being voted out, because people are upset at what’s happened. They are not confident in the current group, and they are saying: ‘I’m just going to toss you out.’

“And that may include local politicians like John Tierney and others who are decent guys, but they are all part of the problem and they need to be changed. If Romney gets in, I think business may feel a little bit easier, but I’m not sure it makes a huge difference either way.”

Lutts said he puts his faith in the innovation of the American people and U.S. companies. For instance, innovative companies like Google, Facebook, Twitter, and LinkedIn dominate the Internet and are “titans” of the future.

“We will succeed in spite of our politicians,” Lutts said.

Staff writer Ethan Forman can be reached at 978-338-2673, by email at eforman@salemnews.com or on Twitter at @DanverSalemNews.

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