It’s difficult to get economists to agree on anything, but this article is a rare instance of five prominent economists in total agreement. Unfortunately the issue they agree on is that the U.S. is going broke.
This article is an op-ed published in the Washington Post and written by Michael Boskin, John Cochrane, John Cogan, George Schultz and John Taylor. Schultz was Treasury Secretary for President Nixon. Boskin was Chairman of the Council of Economic Advisors for President Bush 41. John Taylor was on the short list to be Chairman of the Fed before President Trump settled on Jay Powell. Cochrane and Cogan have highly distinguished academic careers as do the others. In short, this is an “A-List” of top-tier economists.
What they agree on is that the U.S. is heading quickly toward $1 trillion annual deficits, probably by next year, and that these deficits will continue at that level as far as the eye can see. They also warn that government debt will increase by $5 trillion in the next few years on top of the $20 trillion already outstanding. Higher interest on the debt will just add to the burden.
These are not the warnings of a fringe doomsday blogger, but of the establishment itself. My own estimate is that the actual debt and deficit numbers will be worse than these projections pushing the U.S. closer toward a true crisis of confidence in the dollar.
Readers of this article should consider the source and heed the warning before it’s too late.