“No Way Out” of Debt Trap, Gross Says: U.S. Living Standards Doomed to Fall

Discussion in 'Economics' started by S2007S, Mar 8, 2011.

  1. Wow, poor analysis. Options clearly are:

    1. Slash spending
    2. Raise taxes
    3. Inflation
    4. Economic growth
    5. Default

    or some combination. Way more than 2 options, and his first 'option' is not even sustainable.
     
    #11     Mar 8, 2011

  2. Completely false. There are tons of opportunities to get ahead. Some things may be going from bad to worse, yet there are still many, many chances to get ahead. Just need to learn to play the game.
     
    #12     Mar 8, 2011
  3. Most other countries have some form of VAT, so get used to it. Warm up to the idea if you live in the USA, because it is inevitable.
     
    #13     Mar 8, 2011
  4. Exactly, that is why VAT is bad

    Current tax system is perfect

    I love IRS

    By the way I am not poor
     
    #14     Mar 8, 2011
  5. raise taxes or cut military by half. This is the only option
     
    #15     Mar 8, 2011
  6. hiptogo

    hiptogo

    cut military or go to war.
    take over some oil reserves.
    cancel unions.

    every man for himself!!!
     
    #16     Mar 8, 2011
  7. schizo

    schizo

    And there is the Option #3. Break up the U.S. hegemony and stop acting like an empire. Moreover, quit advancing our own agendas by giving huge sums of money annually on foreign aid.
     
    #17     Mar 8, 2011
  8. clacy

    clacy

    VAT = political suicide for anyone who advocates it.

    There is no appetite for a VAT in the US.

    We are a net importer. Our entire economy, for better or worse is based on people spending on goods/services.

    Chances of a VAT are far more remote than Obamacare being overturned, which isn't very likely itself.
     
    #18     Mar 8, 2011
  9. Either

    1) Taxes will increase

    2) USD will drop

    3) Inflation will explode

    Or some kind of combination of the above

    There is no other way USA can proceed
     
    #19     Mar 8, 2011
  10. I understand nobody has the appetite for it. Who wants more taxes? But when the breaking point is here, what other option is there?

    The spending cuts that are necessary are not going to happen. In all likelihood, there will be a combination of higher taxes and lower spending.

    Raising income tax rates, corporate tax rates, etc. are also politically damaging. I would think a government would be more inclined to implement something the general public really doesn't fully understand. They will pass it off as for the good of the country, to pay down the debt.

    I'm not saying this will happen tomorrow, or even in the near future. But...it is inevitable sometime in the future.
     
    #20     Mar 8, 2011