Home > Uncategorized > Shultz, Boskin, Cogan, Meltzer and Taylor: The Magnitude of the Mess We’re In – WSJ.com

Shultz, Boskin, Cogan, Meltzer and Taylor: The Magnitude of the Mess We’re In – WSJ.com

September 23, 2012 Leave a comment Go to comments

History has reconfirmed Hamilton’s wisdom. As historian John Steele Gordon has written, our nation’s ability to issue debt helped preserve the Union in the 1860s and defeat totalitarian governments in the 1940s. Today, government officials are issuing debt to finance pet projects and payoffs to interest groups, not some vital, let alone existential, national purpose.

The problems are close to being unmanageable now. If we stay on the current path, they will wind up being completely unmanageable, culminating in an unwelcome explosion and crisis.

The fixes are blindingly obvious. Economic theory, empirical studies and historical experience teach that the solutions are the lowest possible tax rates on the broadest base, sufficient to fund the necessary functions of government on balance over the business cycle; sound monetary policy; trade liberalization; spending control and entitlement reform; and regulatory, litigation and education reform. The need is clear. Why wait for disaster? The future is now.

via Shultz, Boskin, Cogan, Meltzer and Taylor: The Magnitude of the Mess We’re In – WSJ.com.

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