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A government debt is a government claim against personal income and private property – an unpaid tax bill. – Hans F. Sennholz
"America is very close to a destructive tipping point"
Massive government debt threatens America warns Glenn Hubbard and Peter Navarro.
Glenn Hubbard, former chairman of the President's Council of Economic Advisers for George W. Bush, said to Aaron Task of Yahoo Financial: "We must change how we conduct our politics and economics...or we will inevitably go the way of all once-great nations and suffer an irreversible decline."
Hubbard criticized Bush: for the creation of a new unfunded federal mandate, Medicare Part D.
But if Bush was a big spender, President Obama is "taking it to a whole other level," Hubbard says, citing the familiar critiques of ObamaCare and Financial Reform and "excess government spending" in general.
Spending and creating debt is a structural flaw inherent to all modern democracies. Why? Elected politicians institute programs for current voters and shift the debt to future workers, even the unborn. Social Security, Medicare, prescription drug benefits for seniors are prime examples in America.
Democracy in America will only correct itself by the will of the electorate. First, Americans must vote out the spenders. Next, America must search for and enact structural reforms limiting the power of government, especially the spending authority.