That’s why the posturing about whether and how Congress should increase the debt ceiling by Aug. 2 has been a hollow exercise. Failure to increase the borrowing limit would harm American prestige and the global financial system. But that’s nothing compared with the real threats to the U.S.’s long-term economic health, which will begin to strike with full force toward the end of this decade: Sharply rising per-capita health-care spending, coupled with the graying of the populace; a generation of workers turning into an outsize generation of beneficiaries. Hoover Institution Senior Fellow Michael J. Boskin, who was President George H.W. Bush’s chief economic adviser, says: “The word ”˜unsustainable’ doesn’t convey the problem enough, in my opinion.”
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Peter Coy–Why the debt crisis is worse than you think
Posted in * Economics, Politics, Budget, Consumer/consumer spending, Corporations/Corporate Life, Credit Markets, Currency Markets, Economy, House of Representatives, Housing/Real Estate Market, Labor/Labor Unions/Labor Market, Medicare, Office of the President, Politics in General, President Barack Obama, Senate, Social Security, Stock Market, The Banking System/Sector, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The National Deficit, The U.S. Government
3 comments on “Peter Coy–Why the debt crisis is worse than you think”
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As an economist in a country that has in the past tried to borrow its way to a solution, I agree that lifting your debt limit is nothing compared to the real issues you face.
Even if you can borrow more, the pressures on the government’s budget from many pressures including the aging population are the real issue.
Prayers may be found [url=http://anglicanprayer.wordpress.com/2011/07/27/debt-ceiling-crisis/]here[/url], [url=http://anglicanprayer.wordpress.com/2011/07/15/us-debt/]here[/url], and [url=http://anglicanprayer.wordpress.com/2011/07/25/round-up-of-prayers-for-the-economy/]here[/url]. Also, I encourage folks to consider attending [url=http://theresponseusa.com/]The Response[/url], an ecumenical solemn assembly to pray for our nation August 6 in Houston, TX.
None of the current plans deal with this. All they do is reduce rate of spending increase. They don’t cut anything. And they are spread out over ten years. Subsequent Congresses never go through with the reductions so nothing is ever reduced. It is a one way ratchet that goes ever higher.
That is why the Tea Party Republicans have dug in their heels. Refusing to raise the debt ceiling is the only tool they have to stop the debt increase.