We Are Going to Have To Pay Our Way Sometimes

Source: "Sustainable Developments: Paying for What Government Should Do;" May 2009; Scientific American Magazine; by Jeffrey D. Sachs.

In this article, which will not be available free for another several weeks (due to the Scientific American policy of posting a month after the magazine appears on newsstands), is another example of Sachs' ability to write clear incisive prose. He points does several things:

• He emphasizes that we should emphasize the combined federal, state and local budget and deficit in comparing countries rather than just federal data;
• He points out that the United States government represents a smaller portion of the economy than is true in other developed nations;
• He suggests that our persistent budget deficits are due to a political deadlock in which the Congress is both unable to raise taxes and unable to cut government spending.

Of course the government deficit will grow until the Congress does one or the other. The Obama administration is going to increase the deficit to a level not seen since World War II -- probably a necessary step. However, we are going to eventually have to reduce our national debt to a more reasonable portion of out national income. There is going to be (figurative) blood on the floor of Congress unless the electorate comes to its collective senses.