There is considerable evidence that we are already reaching the situation where governments are encountering financial distress of the type shown in Figure 18. With wages being depressing in recent years (Figure 16), it is difficult to collect as much taxes as required. At the same time, expenses are elevated to handle the many issues that arise (such as payments to the unemployed, subsidies for alternative energy, and the higher costs of road repairs due to higher asphalt costs). The big gap between revenue and expense makes it hard to fix our current financial predicament, and increases the likelihood of political problems.
~ Gail Tverberg