Wednesday, December 26, 2012

AMERICAN DECLINE BEGINNING

Simon Johnson in Bloomberg. 

Those predicting an imminent American economic decline have usually been no exception. This time, though, they may be on to something.

Even so, the U.S. has serious economic, social and political problems. Just look at the current budget debacle. Democrats and Republicans are at each other’s throats, struggling theatrically, rather like Holmes and Moriarty above Reichenbach Falls. If they get a fiscal deal done in the next few weeks, do you really think it will result in a sensible tax system, or bring long-term health-care spending under control? Are we going to invest more in education? Will we really have a frank discussion about what kind of social-insurance programs we want, and how to pay for them?

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