When Wealth Disappearstags: economics
Stephen D. King, chief economist at HSBC, is the author of “When the Money Runs Out: The End of Western Affluence.”
LONDON — AS bad as things in Washington are — the federal government shutdown since Tuesday, the slim but real potential for a debt default, a political system that seems increasingly ungovernable — they are going to get much worse, for the United States and other advanced economies, in the years ahead.
From the end of World War II to the brief interlude of prosperity after the cold war, politicians could console themselves with the thought that rapid economic growth would eventually rescue them from short-term fiscal transgressions. The miracle of rising living standards encouraged rich countries increasingly to live beyond their means, happy in the belief that healthy returns on their real estate and investment portfolios would let them pay off debts, educate their children and pay for their medical care and retirement. This was, it seemed, the postwar generations’ collective destiny.
But the numbers no longer add up. Even before the Great Recession, rich countries were seeing their tax revenues weaken, social expenditures rise, government debts accumulate and creditors fret thanks to lower economic growth rates....
comments powered by Disqus
- Study: Violent radicalism in UK isn't associated with poverty
- CONFIRMED: the Shrine of Jonah/Mosque of Yunus (Nineveh, Mosul, Iraq) has been destroyed
- Chinese President Xi Jinping: Nobody can change history
- Iraq’s Long-Lost Mythical Temple Has Been Found…and Is In Danger of Disappearing Again
- CBS features in-depth coverage of the 50th anniversary of the signing of the Civil Rights law
- Obama to award National Humanities Medals to 3 historians
- Historian Curt Gentry, known for Hoover biography and ‘Helter Skelter,’ dies at 83
- Harvard historian: strategy of climate science denial groups 'extremely successful'
- Curators at Victoria and Albert Museum are pushing the boundaries of collecting
- Ukrainian Leaders Are Using David Barton's Theocratic Pseudo-History To Build Their Nation