Last night, I spoke at the closing dinner of the European Resource Bank. My message was simple and straightforward: Entitlement programs are killing the developed world.
That’s not exactly a surprise, but what may be shocking is America’s relative position. In my remarks, I shared with the audience some data from a 2010 study by the Bank for International Settlements, and I’m including below charts directly copied from the study.
The charts show projected debt as a share of GDP in 12 nations. The top line is the “baseline estimate” and the lower lines show what will happen if nations limit entitlement outlays. (you can click on the different charts for a clearer image)
Amazingly, the long-term position of the United States is worse than either Greece or Portugal. Indeed, the only nations in more trouble than the United States are Japan and the United Kingdom.