America’s Excessive Government Spending Must Stop
Financial markets’ current relative calm and low consumer-price inflation are no cause for comfort.
Previous periods of sharp increases in inflation, rapidly rising interest rates, and financial crises have followed periods of excessive debt like a sudden wind, without warning.
Shultz and Taylor’s book Choose Economic Freedom shows that economic indicators in the United States gave no hint in the late 1960s of the subsequent rapid rise in inflation and interest rates in the early 1970s.
Likewise, financial markets during the years immediately preceding the 2007-09 Great Recession provided little indication of the calamity that would ensue.
John F. Cogan John B. Taylor Project Syndicate 23 February 2021
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