The Inevitability of a U.S. Government Default
By David R. Henderson, Jeffrey Rogers Hummel
This article appeared in the Spring 2014 issue of The Independent Review

Abstract

By 2037, federal spending is projected to grow to 35.7 percent of GDP, whereas tax revenues are almost certain not to exceed their historical upper limit of about 20 percent. Unless expenditures for Social Security, Medicare, and Medicaid are tightened, the federal government will likely end up repudiating some or all of its debt obligations.



Other Independent Review articles by David R. Henderson
    Winter 2016   The Economy in 2065: Predictions and Cautions
    Spring 2015   A Philosophical Economist’s Case against a Government-Guaranteed Basic Income
    Spring 2013   War and Presidential Greatness
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Other Independent Review articles by Jeffrey Rogers Hummel
    Spring 2011   Ben Bernanke versus Milton Friedman: The Federal Reserve’s Emergence as the U.S. Economy’s Central Planner
    Spring 2001   The Will to Be Free: The Role of Ideology in National Defense
    Fall 2000   All on Fire: William Lloyd Garrison and the Abolition of Slavery
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