Tuesday, September 21, 2010

EconBlog Review: We Are All Speculators Now

"Head in the sand" is the result of failing to make and instead deferring tough and potentially politically unpopular decisions.

The real cost of health care was hidden in the federal deficit back in the 60's when the Medicare bill was passed, effectively putting off tough decisions about health care rationing for 50 years.

Now we're twenty years away from being insolvent as a nation and unable to pay the tens of trillions of dollars of unfunded federal entitlements, and I believe the American people deserve an explanation, as you've well stated in your article. Another good question is, what have you done with the money we've already given you? The answer is, it's gone to pay the salaries of a lot of baby boomers. Are we now expected to fund their retirement? If the answer is yes, see item number 1, unfunded federal entitlements. Your government has promised more than it can deliver. How do we reconcile the two? More to come after the mid-term elections, the most recent period of deferred tough and potentially politically damaging decisions.

The dems have to be asking themselves, why not let the repubs have Congress, then they can be blamed for the fallout over the next two years. Gridlock may be the lesser of two evils. The larger question of how to address fiscal insolvency may well be deferred until the 2012 presidential campaign coming to a whistle stop near you.

EconBlog Review: We Are All Speculators Now

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