Edmund Conway, Economics Editor of the Telegraph, discusses the IMF report showing that the US faces one of the biggest budget crunches in the world.
The article is valuable as a marker against the political diatribe in our country. That is, the article and the underlying statistics were created by those with little or no political interest in the discussion. While interpretation of some of the statistics may be ambiguous, the overall message is that we are riding very close to the precipice. For example, our debt as a percent of GDP was higher at the end of WWII than it is now. So we should be able to overcome the mountain of debt again…right? Let’s see: Since 1950, we’ve outsourced a huge manufacturing base, we have become heavily dependent on foreign oil, we have developed an enormous entitlement culture, and few, if any, of our politicians seem to see these as subjects of serious concern.
There is much more to be gleaned from the article, but the problems mentioned above should be sufficient to form a coalition of people who see a problem and a few who are willing to take on the DC mindset, and try to preserve some hope for our grandchildren. Unfortunately, it will probably be our children who will suffer most if there is to be a transition away from big government pouring money on everything in sight.