Can the U.S. Cure Its Fiscal Malaise? Yes. Will It? No.
Worthwhile Canadian Initiative reflects on our fiscal malfeasance:
[T]he United States indeed has the wealth and ability to resolve its fiscal problems with a set of tax and expenditure policies that are not outside the range of the global fiscal experience. Will this happen? Likely not. As mentioned before, American political culture is rooted in tax aversion and many Americans believe their federal government’s fiscal dilemma is only a spending problem and not also a revenue problem. However, balancing the budget on expenditure cuts alone would mean nearly a 40 percent drop in expenditures. Moreover, the American political debate right now is not about taking responsibility for their fiscal dilemma but about politically deferring the problem in the hopes that it might go away. Fixing any problem requires taking responsibility and when it comes to American federal public finances, they are not there yet.
Click on over to WCI for some hot chart porn.
Are we still sitting around waiting for normal to come back from vacation? Ain’t happenin’ in our lifetime, people.
Read more at Jr. Deputy Accountant
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