The next financial reckoning is coming, but it is adeptly camouflaging itself. A quarter-century of warnings about the catastrophic consequences of government overspending have lulled us into a sense of false security since the predicted collapse of the U.S. economy has not arrived. The stock market climbs, and post-COVID-19 predictions suggest even better economic results over the next several quarters. As a result, Democrats and Republicans have become comfortable clinging to a spend-what-you-want modern monetary theory that has all but obliterated sound fiscal policy. We foolishly believe that we have found the Holy Grail of economics.
What we have