Source: Orange County Register
by Steven Greenhut
“When arguing about whether the Treasury needed to take urgent action to deal with soaring federal debt in the 1980s, the late former chairman of the Council of Economic Advisers Herb Stein coined Stein’s Law. It was simple and obvious: ‘If something cannot go on forever, it will stop.’ I hate to pick nits with such an esteemed economist, but I’ll offer Greenhut’s Corollary: ‘Never underestimate politicians’ ability to kick the can down the road.’ In 1986, federal debt was $2.1 trillion. In 2024, the debt is $34 trillion. Debt spending of this magnitude cannot go on forever, but it can fester for a long time and cause economic damage in the process. But, yes, it probably will stop eventually. I thought of Stein’s oft-cited quip when pondering California’s pension crisis.” (05/03/24)
https://www.ocregister.com/2024/05/03/lawmakers-still-turn-blind-eye-toward-our-pension-debt/