This is the road to fiscal perdition. The looming debt downgrade only confirms what everyone knows: Congress has made so many promises to so many Americans that there is no conceivable way those promises can be kept. Tax rates might have to rise to 60%, 70%, even 80% to raise the revenues to finance these promises, but that would be economically ruinous.The same could be said about most modern western nations. History books may one day register the fact that this was the main legacy left for future generations by 20th century's fascist and socialist utopias.
Thursday, July 28, 2011
According to this opinion article in the Wall Street Journal, the politics of unfulfillable promises are at the root of the problem: