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Economists made a model of the U.S. economy. Our debt crashed the model
Under current debt projections, economists cannot even model out a functioning long-term economy.
At the same time, the U.S. economy is bigger and more powerful than Jefferson could have ever imagined, and things are looking pretty good: unemployment is near record lows, inflation is under control… so what’s the problem? Homer Simpson on the other hand, with his credit card debt, modest income, and some (donut related) impulse control issues would probably have to pay a much higher interest rate for the same loan. Smetters and his colleagues published a list of suggested reforms that they think could help to fix the budget: raise the retirement age to 70, add a carbon tax, reduce social security benefits.
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