imho the phantom wealth is coming. Its coming in two ways. First the fracking revolution is currently adding 500 Billion to the USA economy. But that number will rise to 1 trillion in 2-3 years. That will go on until 2020 or so. But after that the natural gas buses trucks trains and houses will plus electric cars will kill demand and push the price of oil downward inexorably and permanently towards $30 @ barrel.
Cheap energy will lead to an explosion of wealth as it did in the 1990’s— and push revenues to the federal government by another trillion dollars a year.
It was the peak of US oil production in 1970 and the rise in oil prices that created systemic deficits. The return of low priced energy and energy indepedence will fully fund retirement and medicare.
However, Obamacare also has to go. As likely it will over the next couple of years.
I personally doubt that we will ever see cheap energy again.
You might be right, but even if you are I wouldn’t advocate counting chickens before they hatch as sound economic planning.
We’ll see how your 2-3 year prediction holds up.