Sunday, February 24, 2013

US Debt Level

http://www.forbes.com/sites/modeledbehavior/2013/02/23/how-risky-is-the-us-debt-level/

This article discusses the risk that we should associate with our increasing national debt. More specifically, it identifies one way in which people likely under-assess the level of risk, and one way in which people are likely exaggerating the risk. First, the author points out that even though we may still have the ability to borrow, even as the debt continues to increase, our government's willingness to borrow is diminishing. As this continues to happen, the author warns, we may find ourselves in a situation where we are in dire need of a spending increase, but we are not in a position to do so.
     On a positive note, however, the author points out that the United States is ranked as the most desirable destination for immigrants worldwide. He then proposes the idea to let more immigrants into the country-meaning more taxpayers- and also charge an immigration fee that would go towards reducing the debt. To me, this is an interesting idea, however it seems almost unimaginable that we would all of a sudden let 150 million immigrants into the country; I do not believe that this type of action could ever make it through congress. In addition, this may help reduce our debt problem, but what about the countless other effects such a large increase in the labor force would have on our economy?

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