America’s government debt bomb

By Stephen Moore – The story is simple:

Over the past seven years American companies have become hyper- and even ruthlessly efficient, which has meant shedding unproductive operations and reducing employment, cutting debt burdens, and focusing on profitability.

It’s the reason the stock market has soared since 2008. Companies are now sitting on $1 trillion to $2 trillion of reserve cash, according to The Wall Street Journal, and balance sheets are generally pristine. Households have cut their debt, too.

We have here a tale of two economies. At a time when private-sector debt burdens have flattened out and even fallen, the government debt has soared frighteningly from $8 trillion to $16 trillion.

If there is a fundamental structural weakness in the economy holding back growth, this is it. more>

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