There is a growing belief among serious economists that we, as a country, face a large and unsustainable gap between our financial resources and our financial expectations. Current deficit spending by the national government and a failure to control long term debt, pension and health care costs at all levels of government will lead to financial reckoning at some point which may be very painful — sudden cuts in living standards for many Americans, leading to social upheaval like we have seen in Greece recently.
Some continue to argue for short term stimulus — running a deficit to stimulate the economy. Others believe that our current deficits add to our future pain. Few doubt the need to control health care costs.
I receive links and comments from constituents on this larger picture from time to time and I’m going to start collecting the links here for reference. I hope that people will free to chime and add information on these issues any time by commenting.
U.S. Is Bankrupt and We Don’t Even Know: Laurence Kotlikoff
BTG Research Comments on recent Fed Policy moves
Rolling Stone on the Wall Street Reforms
High public compensation costs.
Public pension costs