How will ballooning debt change the nation?
Will the nation's ballooning debt load destroy the social cohesion of American society? Will we have a class cold war? Are we having one already? Taxpayers v. tax consumers? Will we have to change our concept of American power?
Listen to Mark A. Calabria, director of financial regulation studies at the Cato Institute who holds a doctorate in economics from George Mason University, discuss the problems with our debt and how it may damage the nation's credit rating.
He points out that the main reason the dollar is still viable is that there is really no alternative.
The New York Times recently quoted Moody's, “Growth alone will not resolve an increasingly complicated debt equation. Preserving debt affordability (the ratio of interest payments to government revenue) at levels consistent with Aaa ratings will invariably require fiscal adjustments of a magnitude that, in some cases, will test social cohesion.”
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