Here’s CBO Director Douglas Elmendorf on America’s spending problem:
The rising cost of those programs leaves Americans with “unpleasant” choices to make, but the sooner they’re made, the better, he said:
“So we have a choice as a society to either scale back those programs relative to what is promised under current law; or to raise tax revenue above its historical average to pay for the expansion of those programs; or to cut back on all other spending even more sharply than we already are,” Elmendorf said.
“And we haven’t actually decided as a society…what we’re going to do. But some combination of those three choices will be needed.”
How are you going to raise taxes even higher, when Washington is never able to collect more than about 18-19% of GDP no matter what it tries? And what about the effects on growth and employment — those being our only two ways out of this mess? Well, unless you consider “hyperinflation and economic collapse” to be an equally valid solution.
No, the problem is the spending, stupid. Or maybe we should say, “It’s the stupid spending.”
Are you starting to get the idea that the Democrats’ secret hope is that there’s a Republican in charge when their social welfare state finally runs out of other peoples’ money?