Uncertainty Over Debt Impairing America’s Future

Uncertainty Over Debt Impairing America’s Future

President Obama and Mitt Romney debated last week over tax plans and health care reform, but neither addressed how the dysfunctional U.S. government is harming our economic recovery, Bloomberg.com reports.

While Washington has long been dysfunctional, the amount of dysfunction in recent years is in uncharted territory, and the inability of the U.S. government to reduce the national deficit is undermining our economic growth.  A 2011 study by the University of Chicago Booth School of Business found that periods of economic uncertainty are followed by “significant declines in output, investment, and employment”.  Obviously, we have had plenty of those periods over the last four years.

But Congress has shown an inability to adapt to these new dangerous times, with House Speaker John Boehner “not confident at all” that Republicans could reach a deficit reduction agreement with President Obama after the election.  Time is running out, and both parties are going to have to make some sacrifices if they want to save this country.

For more, read the opinion article at Bloomberg View.

No comments yet.

Leave a Reply