Monday, July 17, 2006
Even Governments Must Live Within Budgets
Boston University's Professor Laurence Kotlikoff published a paper stating that the US Federal Government is headed towards bankruptcy.
Some people are shocked. Me? I'm glad someone sees things the way I do.
An article in the UK's Telegraph discusses the issue. The following quote from Paul Ashworth tells us exactly where the problem lies:
"...the expected deterioration in the Federal budget ... can be contained if the political will is there. Similarly, the expected increase in social security spending can be controlled by reducing the growth rate of benefits. Expecting a fix now is probably asking too much of short-sighted politicians who have no incentives to do so. But a fix, or at least a succession of patches, will come when the problem becomes more pressing."The sooner we fix the problem the better. But, unfortunately, I agree with Mr. Ashworth. We won't see any real action until it is too late.