A poorly researched and documented report by the U.S. Treasury on the hazards of a default was picked up uncritically by members of the media who should know better.
The very fact that the government shutdown has forced Washington to admit that much of what it does is “non-essential” is an important wake-up call.
“We got our mops and our brooms out here and were cleaning stuff out and they're sitting there saying, ‘Hold the broom better, that's not how you mop,’ ” claimed Obama in 2010, mocking those who questioned his stimulus-based approach and redistributionist ideology for economic recovery. “Don't tell me how to mop! Pick up a mop!”
Well, it's more than three years since Obama said those words and here's what he's saying now: “The average American earns less than he or she did in 1999,” he declared last month at Knox College in Galesburg, Ill.
The Atlantic magazine derided a series of economic studies estimating "unfunded liabilities" facing the United States at between $38 trillion and $200 trillion, determining through simplistic assumptions that U.S. liabilities are not a problem.
Detroit was once America’s most prosperous city, but now is an urban wasteland. A former Detroit business owner tells his story and explains how the city's economy was killed with bad policy. And, he warns, there are more Detroits yet to come.
Detroit, Michigan’s bankruptcy filing is causing fear that other major U.S. cities face a similar fate as they too are dealing with burdensome underfunded liabilities like retiree benefits.