A weak economy fails to generate the tax base necessary to fund government services. Promises of retiree benefits explode far beyond government’s ability to pay for them. Elected officials refuse to acknowledge the problem and blame others for not paying enough into the system. Spending and borrowing get so out of control, creditors no longer express full confidence in the government’s faith and credit. The political class does whatever is necessary to position itself for the next election cycle, and avoids solutions to these problems.
