|
|
![]()
|
|
|
This is a very bleak yet realistic outlook on our debt crisis from the CBO (Congressional Budget Office).
Some quotes:
"Over the past few years, U.S. government debt held by the public has grown rapidly—to the point that, compared with the total output of the economy, it is now higher than it has ever been except during the period around World War II."
"Unless policymakers restrain the growth of spending, increase revenues significantly as a share of GDP, or adopt some combination of those two approaches, growing budget deficits will cause debt to rise to unsupportable levels."
They also admit tax increases will REDUCE THE GROWTH OF THE ECONOMY. Is this what we should do in a recession??
"In addition, if the payment of interest on the extra debt was financed by imposing higher marginal tax rates, those rates would discourage work and saving and further reduce output."
Clearly, we have a problem.
|
|
|
|