2030 - 2040

Last month in our EcoTrends® Executive Summary we discussed the likelihood of our current deficit spending leading to inflation and how, in concert with the demographic trends of the US, this would lead to a particularly difficult decade sometime around 2030 – 2040. 

We have been asked what could be (or should be) done to avoid this future.  One of several potential alternatives to dealing with the trends now taking shape is to restore some responsibility and accountability to the federal budget process.  We look to history as a guide and note that from the time of George Washington to Richard Nixon the President had the power to set priorities and decide just how large a deficit, or a surplus, the federal government would run during any fiscal year.  It was the President’s responsibility and voters could hold him accountable.

It is time to restore that time honored tradition to the Executive office.  Our history has proven we can survive swings in the political pendulum; economic history makes it clear that prospering through the debt trends we have embarked upon is a lot more doubtful.