Commenting on the mounting economic problems facing the US and Europe, Prof. Philip Booth, Editorial Director at the Institute of Economic Affairs, said:
"The magnitude of government debts in many countries is now so great it is hard to see how commitments can be honoured. Once implicit debts from social security systems are included it is clear that future generations will have to renege on promises that have been made. Indeed it could be argued that this level of indebtedness poses a threat to democracy itself.
“Some economists have been warning for 20 years or more that reckless government spending was leading to spiralling debt levels, these warnings went unheeded. The future for pay-as-you-go welfare states is bleak.”
NOTES TO EDITORS
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The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. The IEA is a registered educational charity and independent of all political parties.