Today on Uncommon Knowledge, Hoover economists Michael Boskin and Edward Lazear present the news: we’re in for higher taxes, inflation, or both.

Edward Lazear: We’ll hit a 70% debt to GDP ratio by around 2013. Those kinds of numbers mean that in the very near future the U.S. government will be spending more on servicing its debt than it spends on national defense. The concern for us at that point becomes, What do we do? Do we start raising taxes dramatically? Or do we essentially default on the debt through higher inflation?

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