Lawrence H. Summers, former US Treasury Secretary, believes that the US is facing a fiscal crisis, with debt exceeding 100% of GDP and budget deficits that could rise to 10% of GDP. He points out that, unlike the post-Cold War years when it was possible to reduce military spending, today's security and climate challenges require increased investment. Summers also takes issue with the view that tax rises are holding back productivity. He recalls the sustained growth of the 90s following tax increases, and the period of prosperity from the 50s to the 70s despite high tax rates. He points out that visionaries such as Gates and Zuckerberg would not have given up their ambitions for a few extra percentage points on their taxes.
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