"This much is certain: The welfare state as we know it cannot survive." So Charles Murray writes in The Wall Street Journal in an article on his new book, "In Our Hands."New York state,Massachusetts,Michigan,Vermont,New Jersey,California,and Illinois are starting to show signs of "French disease".Fortunately there's still some competition among states.
"No serious student of entitlements thinks that we can let federal spending on Social Security, Medicare and Medicaid rise from its current 9 percent of gross domestic product to the 28 percent of GDP that it will consume in 2050 if past growth rates continue."
You can quibble about the numbers, but the overall trend is clear: We're on a collision course. On the one hand, we have a private-sector economy that is vibrant, creative, continually transforming itself and producing millions and millions of new jobs -- overcoming the stagflation of the late 1970s, the sharp recession of the early 1980s, the savings and loan bailout of the early 1990s and the trauma of the attacks of Sept. 11, 2001. On the other hand, we have a public sector that is threatening to gobble up more and more of that economy as time goes on.
We know what things look like somewhere down the road: France. As students, union members and public employees riot in the streets against the outrageous notion that people should not be given lifetime jobs until age 26, France seems immobilized.
Monday, April 10, 2006
Will America Become Like France?
Michael Barone reports: