The Math Doesn't Add Up
In today's CFALive podcast, Economist and Professor Antony Davies paints a bleak picture of the quality of government debt and liability data. He also argues that it is mathematically impossible for the federal government to make good on its financial promises.
Compact for America Educational Foundation does not yet agree with this conclusion, but it is certainly worthy of respect and serious consideration. Moreover, the Foundation does believe that without the Compact's Balanced Budget Amendment in place, events will soon prove Dr. Davies correct (probably not long after April 12, 2021, when the Balanced Budget Compact sunsets).
Still, the fact that a well-regarded and well-published economist such as Dr. Davies holds and defends this position so cogently is strong evidence of the need to move quickly on HCR73 and advancing the Balanced Budget Compact.
The fiscal crisis is, at best, looming.