U.S. states face long-term budget burdens that are already limiting their ability to pay for basic services such as law enforcement, local schools and transportation, a report released Tuesday said.
Last weekend, David Ignatius made a vital contribution to the debt and deficit debate: "Take the deficit pain now. It's a truth of economics and life that if you have bad news coming, take the hit early and get it behind you. You can't start building until the debris is out of the way." Mr. Ignatius offers various examples from history. For example, Fed Chairman Paul A. Volcker's 1979 interest rate hikes caused the recessions of the early '80s, but broke the inflation psychology and (I would add, with Ronald Reagan's policies) built the foundation for 25 years of prosperity.