Great insight by Peter Morici (Twitter @pmorici1) a a widely published columnist and a professor at the Smith School of Business, University of Maryland School. Sign up to read more of his stuff if you like this!
"If growth continues at 1, 2 or even 3 percent, then the weight of the baby boom retiring on federal entitlements will push federal deficits through the ceiling in the next decade.
"Higher taxes won’t help much. If tax rates are too high, successful people work less and take their skills elsewhere. Technology companies and financial institutions--where the real fortunes are made these days--can park their patents and profits in Ireland or some other low-tax jurisdiction.
"Sooner or later, Washington won’t be able to continue borrowing. Just as unions and banks will now tussle over whether pensioners or bondholders should have first claim on Detroit’s remaining revenues, Washington can dicker with Beijing over whether the Social Security checks should go out or the Middle Kingdom gets all the interest due on its holdings of U.S. bonds.
"At that point, we can auction off the Grand Canyon and spend the Fourth of July remembering what a great civilization we spent away."
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