I second your comment about increased government debt in the 2000 – 2010 era being an especially large burden when the future interest burden is factored in. And given that today’s 10-year bond interest rate is 1.99% and likely to rise some day, we could really get walloped when that happens. Our “short-termism”, whether practiced by HELOC’d consumers or governments at all levels is coming back to haunt us.
The word “investing” is much abused by politicians. It sounds good to invest in infrastructure, until we find out it is something like that bridge to nowhere in Alaska, or, equally foolish, high speed rail for California. (The latter, by the way, is doomed according to every outside analysis of the subject.) As for me, I am planning on investing in a steak dinner tomorrow.
We part ways when you suggest raising marginal tax rates on the highest earners. I am all for cutting certain loopholes and privileges, though some like the benefits to homeowners will elicit howls. But the top rates already exceed 60% when you factor in federal (about 39%) Ca (about 11%), FICA, and a bunch of miscellaneous taxes. It may feel good to sock it to the rich, but they include the creaters, inventors, and hirers. Right now 47% of Americans pay NO income taxes, and a good share of them actually get money back through the earned-income tax credit. That big part of the electorate is certainly not going to vote for a leaner government
