Sunday, July 31, 2011

Why the Debt Crisis Is Even Worse Than You Think


An honest assessment of the country’s projected revenue and expenses over the next generation would show a reality different from the apocalyptic visions conjured by both Democrats and Republicans during the debt-ceiling debate. It would be much worse.

There is some hope:

The good news is that this speeding vehicle does have brakes—if Washington would only use them. Eliminating deductions would broaden the base of income that’s subject to taxation and increase revenue. On the spending side, it’s crucial to change the incentives that lead to overconsumption and inefficiency in health care.

The bad news is that putting on the brakes requires Congress to stop acting like blithering idiots, and blithering idiocy shows no sign of falling out of fashion in Washington -- or the nation at large for that matter -- any time soon.

1 comment:

Tony Mach said...

I assure you, any "inefficiencies in health care" (or rather the scandalous profits the health care providers pocket) pale in comparison to the US "defense" budget. If you add everything up (including cost for veterans and interest for old war credits) I think half the federal budget is spent on war. Heck, the US spends more on its military then the ten next smaller countries combined – that includes the UK, France, Germany, China, Russia, India and Saudi Arabia.

How about that: You cut your military budget? I guess just a less quarter would help – and you'd be still number one. Well, the drawback is that maybe you couldn't start a stupid war every couple of years. I'd say it is a chance the world is willing to take. And you'd have enough spare change to give your citizens universal health care.

But hey, I wouldn't want to tell you how to run the world, now would I?