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	<title>social expenditure &#8211; RFR</title>
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	<description>GLOBAL MACRO AND THEMATIC INDEPENDENT RESEARCH</description>
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	<title>social expenditure &#8211; RFR</title>
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		<title>The U.S. Budget: “No, we can’t”</title>
		<link>https://richesflores.com/2013/03/18/the-u-s-budget-no-we-cant/</link>
		
		<dc:creator><![CDATA[Véronique Riches-Flores]]></dc:creator>
		<pubDate>Mon, 18 Mar 2013 15:02:42 +0000</pubDate>
				<category><![CDATA[GLOBAL MACRO]]></category>
		<category><![CDATA[THEMATIC]]></category>
		<category><![CDATA[United States]]></category>
		<category><![CDATA[poverty]]></category>
		<category><![CDATA[public spending]]></category>
		<category><![CDATA[social expenditure]]></category>
		<category><![CDATA[U.S. Budget]]></category>
		<guid isPermaLink="false">https://richesflores.com/?p=1377</guid>

					<description><![CDATA[Beneath the surface noise of the fiscal drama that has kept Washington on edge for months lies a serious societal choice. The model in vogue in the United States since the Reagan era—low taxes and feeble welfare support—is fast unraveling in a society undergoing major change. With a tax rate some 33 percent below the OECD average and one of the highest debt-to-GDP ratios anywhere, the U.S. government’s coffers are virtually empty—leaving it ill-equipped to meet swelling demand for public programs to address such issues as rising poverty, declining geographic mobility, and a rapidly aging population. 
The country has two basic alternatives:
-	Either the Americans stand pat in rejecting the inevitable—a hefty increase in taxation—thus accepting, in essence, greater inequality and the demise of the American Dream;
-	Or, as is more likely, they eventually agree to abandon their previous credo, in which case a secular increase in payroll and income tax will be on the agenda. 
But either way, the United States of tomorrow will be a very different beast from the pre-crisis United States. 
The U.S. fiscal controversy is far from over. More to the point, it has unquestionably weakened the country’s ability to reverse its debt trajectory any time soon.
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