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The U.S. Has No Choice but to Undertake Radical Economic Change
[Townhall] Burdened with $34.5 trillion in national debt that is currently growing by $1 trillion every 100 days, the U.S. economy is headed for disaster. It falls on the next administration to change that trajectory while also introducing policies that increase and broaden economic growth and wealth creation for everyone. Changing course is not easy, but people are waking up rapidly to the shocking reality that we are on an unsustainable course. Those who recognize that financial collapse is at our door can’t unsee it and they will embrace fundamental change from unconventional leadership. Correcting courses requires both the acceleration of private-sector economic growth and a reduction in the public sector. What holds back the U.S. economy from achieving average GDP growth rates above 3%, which were common in every decade after World War II up until the turn of the 21st century, is the growth of government spending and government debt. The widely acclaimed 2009 analysis by Harvard economics professors Carmen Reinhart and Ken Rogoff—which concluded that national debt levels above 90% of GDP significantly reduce a country’s economic growth rate—explains in part why U.S. economic growth has become more anemic than previously. The deficit spending of the Obama administration, which broke through that 90% debt-to-GDP ratio in 2010 with 3 years of trillion-dollar deficits, marked the steepening trajectory of our path to insolvency. The U.S. debt-to-GDP ratio now exceeds 122%. Our current $34.5 trillion national debt has grown eightfold in the sixteen years since George W. Bush passed the presidential mantle to Barack Obama. What is increasingly troubling is the extent to which the U.S. government is borrowing new money to service old debt. And that borrowing is adding over $11 billion to the national debt every day. And that additional $11 billion to the national debt daily is financed with additional borrowing. And so on… until the compounding of national debt ends in financial collapse. Having the world’s reserve currency notwithstanding, the United States cannot escape this fate unless it dramatically changes course. Read the rest at the link Posted by: NoMoreBS 2024-04-09 |
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