How to Implement a Seeds of Prosperity Policy Blueprint

Glenn Hubbard and Peter Navarro

“To avoid large and unsustainable budget deficits, the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as Social Security and Medicare, less spending on everything else from education to defense, or some combination of the above. These choices are difficult, and it always seems easier to put them off—until the day they cannot be put off any more.”

Ben Bernanke (April 2010)¹

This warning from Federal Reserve Chairman Ben Bernanke gets it half right—but also half wrong.

Mr. Bernanke is right that if the profligate policies of Congress and the Obama administration continue in their current direction, we as ...