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Article
The Inevitability of U.S. Government Default
The Independent Review (527)
  • David R. Henderson, Naval Postgraduate School
  • JEFFREY ROGERS HUMMEL, San Jose State University
Abstract
The article discusses the impact of high federal government budget spending linked to Social Security, Medicare and Medicaid in relation to share of gross domestic product (GDP) in the U.S. that is perceived will most likely result to a government default. Topics discussed include the probability of tax revenues not to exceed 22 percent of GDP in the future and the argument that inflation will not solve the crisis. Seigniorage, economical, and political equilibrium are also mentioned
Keywords
  • public spending,
  • social security,
  • medicare,
  • medicaid,
  • debt-to-GDP ratio,
  • default,
  • united states
Disciplines
Publication Date
527
Publisher Statement
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Citation Information
David R. Henderson and JEFFREY ROGERS HUMMEL. "The Inevitability of U.S. Government Default" The Independent Review Vol. 18 Iss. 4 (527) p. 527 - 541 ISSN: 1086–1653
Available at: http://works.bepress.com/jeffrey_hummel/93/