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Tuesday, March 09, 2004

U.S. Economic Future

I've started reading articles on health care from sources with differing viewpoints. Needless to say, it's a complicated issue. Bret, if Lory has come across any studies that she thinks are insightful, I'd appreciate the references.

But, I keep getting distracted by the issue -- which Howie and I have disagreed about -- concerning the health of the U.S. economy. As I don't want to be accused of reading only the Economist, I've been perusing other sources. You can judge their credibility. The first is an article from Fortune. My guess is that you won't be able to see the entire article unless you already subscribe. So, if you're interested, use my address to sign in. I like this article because it does a fairly good job of sorting out where the trends are heading in the next 10+ years if we don't make any signficant changes in the management of our federal finances.

The second article is from the Ludwig von Mises Institute. I think the author makes a good point that deficits are not bad per se (a position I believe the Economist would agree with), but deficits with the characteristics of ours spell trouble.

Both of these articles criticize our current economic policy. To be fair, there's another article in Fortune by David Malpass that suggests we (citizens/consumers) shouldn't be so worried. However, the article seems to have a fairly narrow perspective in terms of the relatively near future and the potential impact of higher interest rates. By and large, though, I'm finding few articles with a sanguine outlook.

Howie, I'm anxiously awaiting your rationale for why the U.S. economy will be fine. I'd like to believe you are right, but, for now, I remain dubious.

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