Some complain that deficit reduction will hurt the economy and that we should wait until the economy gets better. The problem with this idea is that with high unemployment, stagnant wages, heavy regulation and a big debt that presages inflation, high interest rates and additional taxes, there is nothing to suggest that the economy is going to get much better. In the 1990’s we had increased productivity due to computers. There is no comparable driver today. So the question is: assuming a long run of economic stagnation and understanding that our debt gets bigger every day, when are we going to deal with our fiscal problems? To me, we’ve got to get started now, even if there is some pain associated with it.
Lloyd Lim is a Grassroot Institute member and contributor.