Abstract
The U.S. welfare state is rushing toward a fiscal crisis. Without a dramatic cut in government spending or a steep increase in taxes, the nation's massive indebtedness will spark a fiscal crisis likely to force citizens and politicians to reassess the government's role in the economy and to consider free-market, civil-society-based alternatives. Even splitting the burden and increasing taxes as a percentage of GDP by 5.25 percent would require the political support that was achieved only during World War II for a brief time period. It seems highly unlikely, at least absent a crisis occurring, that the American voters will support a tax increase of anything close to the magnitude necessary to stave off a fiscal collapse. If such a fiscal crisis comes about, it is expected that it will lead to a reassessment of the role government plays in the economy, a reassessment that would make the type of reductions in the size and scope of government that are not politically possible today.
Original language | English |
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Pages (from-to) | 369-375 |
Number of pages | 7 |
Journal | Independent Review |
Volume | 20 |
Issue number | 3 |
State | Published - Dec 1 2016 |