Senator Elizabeth Warren, Democrat candidate for president, recently warned that the U.S. economy might collapse in the near term.
I’ve recently completed extensive research identifying the conditions that tend to lead to financial collapses—what I call catastrophic losses. It turns out the kinds of environments which tend to lead to them are sudden shifts of policy in an anti-business direction and a weakening of property rights. Excessive taxation and excessive spending are also part of a toxic mix. In other words: Exactly the kind of hard-left turns which are associated with much of the Democratic field.
High taxes, big spending, expansion of government all severely raise the risk of collapse. The U.S. economy is resilient, but it’s not immune to collapse.
We should get serious about spending control and growth promotion because it can happen to us.