The main issue is that government spending has shifted away from productive investments which create jobs (infrastructure and development) to primarily social welfare and debt service which has a negative rate of return. As I showed on Friday, according to the Center On Budget & Policy Priorities, nearly 75% of every tax dollar goes to non-productive spending……..However, these “sugar highs” are temporary in nature. The problem is the massive surge in unbridled deficit spending which provides the temporary illusion of economic growth simply “pulls forward” future consumption leaving a void that must be filled.
