Decline and fall of the US.

[numonex]

Rath said:

numonex said:

Rath said:

Spagoodle said:

Rath said:

Eventually the US will have to follow the example of Europe I feel.

In what way?

Austerity drive. Cut the fat, ban earmarks and raise taxes.

Billionaire investors will go on capital flights when taxes are increased. More job losses during economic austerity. 

No gain without pain in this case. The USA actually can't afford to continue spending at this rate, some form of austerity and/or tax increase is going to be necessary.

There is no way to cut a defecit without either raising more money or spending less of it.

Losing billionaire investors means big companies go overseas. Lots of job losses and unhappy people which will have a big impact on the economy. When company taxes are too high and are not competitive the businesses would be forced to go overseas. Increasing taxes would be increasing company taxes and personal income taxes.

Welfare spending, public service spending, Education spending, health spending all need to be reduced.  Defence budget needs to be reduced significantly: 150 US military bases around the world is a bit too excessive.