Economic Chaos Ahead

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Participant Garrett Jones, associate professor of economics at George Mason University, is a bit more optimistic, seeing default as being less likely. But he argues that “default is still possible, and the GOP offers a uniquely American path to default: an unwillingness to raise taxes.”

Dr. Arnold Kling is a member of the Financial Market Working Group at the Mercatus Center and tells us that the “U.S. government has made a set of promises that it cannot keep.” He says that the “promises that are most important to change are Social Security and Medicare.”

Joseph J. Minarik is senior vice president and director of research at the Committee for Economic Development. He argues that a “U.S. financial meltdown today is eminently avoidable. The wealthiest nation on earth, despite a painful economic slowdown, maintains the wherewithal to pay its bills. The open question is whether it maintains the will and the wisdom.”

Peter J. Wallison holds the Arthur F. Burns chair in financial policy studies at the American Enterprise Institute. He agrees with Kling that “the most likely source of a U.S. sovereign debt crisis … is a failure of the U.S. political system to address the growth of the major entitlement programs — Social Security, Medicare and Medicaid.”

My translation of the symposium’s conclusions is that it is by no means preordained that our nation must suffer the same decline as have other great nations of the past — England, France, Spain, Portugal and the Ottoman and Roman empires. All evidence suggests that we will suffer a similar decline because, as Professor Cowen says, “the American electorate has dug in against both major tax increases and major spending cuts.”

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  • coldwaroverornot

    "The Main Enemy" of the Comintern, the Warsaw Pact nations and China, is the United States of America. Nothing has changed in almost a full century, except that this President Obama owes his loyalty to the Comintern and he committed perjury upon taking the Oath of Office that he was not qualified to hold either by citizenship or experience. His one talent, is the demagogy of a BS artist. Every time he opens his mouth lies come out. It is no longer certain that anything short of blood running in our streets can reverse the tide of folly we have earned for ourselves.

    • coldwaroverornot

      If the cold war is over, who won it? What did the winner win? Why is Putin still the dictator? Why is it that not a single one of the candidates for President has even mentioned our potentially fatal blunder of being blind to the looming death of the Republic at the hands of both our sitting President and his favorite foreign friends?
      Why do all the Democrats and Ruth Bader Ginsberg support this deadly plot?

  • J Rabinowicz

    Your title should be Economic Collapse Ahead. The Chaos will follow, and as usual it'll be a chaos among citizen and people. By the way, America has now the more or less the same internal problems as the Roman Empire had before collapsing. With the difference, today, everything is quicker.

  • NotaBene

    I assume your solution is to cut taxes and spending? funny thing about austerity; it never works.

    • truckwork

      Cutting tax rates has worked, bringing in higher total revenue every time it's done. Even John Kennedy lowered high tax rates and increased total revenue. "In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now."

      Lowering tax rates in the 1920's led to an increase of total revenues by more than 61 percent.

      In the 1980's income tax rates were reduced and this led to an increase of total revenues by more than 99 percent.

      Most important is that when tax rates particularly for higher income bracket individuals are lowered, they pay more in tax revenue, thereby reducing the tax burden on the lower income brakets. <a href="http://(” target=”_blank”>(

      Now I've provided some facts, how about you?

  • elihu

    The reason the government will not change anything, but rather continue in their increased deficit spending, is because this entire default/downgrade to the US is/has been engineered. Planned and set up years ago…to accommodate the Globalist agenda….