All (Political) Roads Lead to Massively Higher Government Spending
The comments below are an edited and abridged synopsis of an article by John Rubino
The past few years have seen more than the usual amount of political upheaval. But interestingly, most regime changes have resulted in much the same thing: Higher government spending and bigger deficits.
Apparently, the only reforms today’s voters will accept—which is to say the only actions that don’t get a leader kicked out of office—involve spending rather than saving money. Three recent examples are discussed in full: the US, Italy and France.
All of the troubles in the above countries are occurring in an expansion. During the next recession, expect government spending and deficits around the world to soar to stunning levels, raising questions about the viability of not just presidents and prime ministers, but of currencies.