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In a segment on the Jan. 7 broadcast of the Fox Business Channel’s “Stossel,” John Allison, the former CEO of North Carolina-based BB&T Corporation (NYSE:BBT ), the 10th largest bank in the United States , warned of dark times ahead if the country continues on its current course.
“Now, it’s a long-term trend,” Allison said. “We will have some kind of economic recovery and we’ll have some economic growth. I think the most likely intermediate scenario is stagflation like the 1970s.”
Allison pinpointed several entitlements that will prove to be huge liabilities for the country, as well as other structural problems with current policy.
“But if you run the numbers on the deficits we have in Medicare, the deficits we have in Social Security, the operating deficits which are over a trillion dollars a year now, and how you undo those is unclear,” Allison continued. “We have a dysfunctional foreign policy. We have a real big demographic problem because of the retirement of the baby boomers and that’s going to reduce productivity, the big demographic problem. And we have a failed K-12 education system.”
And Allison estimated that by the 2030s, the
“In 25 years, the
Allison said education is a key to success, but our behemoth bureaucracy fails to educate because it lacks the discipline of the markets.
“I think if you look at the success of our education system, you got to start worrying about that,” Allison said. “I’m a huge advocate of education because I think the real source of all human progress is the human mind. But educational systems need competition and discipline. We in business – we talk about being innovative. We don’t really like to be innovative. We’re forced to be innovative by markets. We have a government-run monolith. It is not going to be innovative, it is not going to be creative. And people are wrong to view privatization of education like private schools today. What we really need are about 10,000 experiments of which 9,990 would fail, which is what happens in business all the time. Business failures happen all the time.”