Sunday, July 31, 2011

The Great American Divide

Pictured Above: Nouriel Roubini

In the following video, the well respected economist Nouriel Roubini explains in clear terms that once you calculate our federal, state & local debt and unfunded liabilities (from social security, medicare & pension plans), the United States is in deep trouble. By any measure, the fiscal status quo is completely unsustainable and will lead to national bankruptcy, yet during recent debates on the debt ceiling, it was clear that few Republicans and even fewer Democrats are willing to pursue fundamental change. Between both sides, virtually every unsustainable program and policy (in their present forms) from social security to military spending to our current tax rates, were "off the table." Hence, the Great American Divide that will define politics in the coming years will be between those who will defend a broken status quo and those willing to acknowledge that we must undertake dramatic reforms. This will not only effect the size and scope of government, but almost every facet of economic, political and social life. Such changes can either be undertaken with thoughtful planning and foresight or forced on us as the welfare and warfare state collapses under the burden of unfunded liabilities. Paradoxically, the most ardent defenders of the status quo are self proclaimed progressives.

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