The current tax-and spend administration will add to the already enormous deficit. If one were to do a country-wide “reset” to bring the US back into line with the available resources, production and revenues, there would have to be a 25% reduction in the standard of living for every American.
The US currently does not produce enough goods and services to cover the current “standard of living” expenditures. This magic trick has been performed with the aid of credit financing. But that is very quickly being eliminated – at least for folks like you and me. The government is still able to borrow and will coninue to do so at taxpayer expense as long as they can get away with it.
Sooner or later this too will end. Then what? Big declines in the American standard of living. What would that look like? Think 1950s and 1960s…
- old furniture, old clothes, old toys, old cars
- stay-cations – vacations at home working on do-it-yourself projects like yard work, painting, maintenance
- potluck party dinners and BYOB (Bring Your Own Booze)
- long-term unemployment
- down-size housing, less space, less stuff
- public transportation, ride-sharing
- walking or bicycling for errands
- urban living, less commuting
Bet you can hardly wait.