Federal Reserve chairman Ben Bernanke hits the nail on the head:
Bernanke said advocates of lower taxes would have to accept lower spending on entitlement programs. Likewise, proponents of more-expansive government programs must recognize the need for higher taxes brought about by higher spending, he added.
Americans love two things: low taxes and entitlement programs. Unfortunately, those two things cannot exist together for an indefinite amount of time. Low revenue and high spending results only in debt and deficits, and either my generation or the following ones are going to pay the price.
Having a large debt hurts the country for two reasons: Foreign countries and banks may stop financing the United States because the risk will become too great, and then the U.S. economy will crumble; and, the more interest the government pays on the debt, the less money it will have to spend on social programs, education, infrastructure and defense, along with everything else contained in the budget.
So, which is it going to be: low taxes or entitlement programs? The United States is going to have to make a choice sooner than it realizes. Don’t spend more than you earn. It’s not that difficult.
