Fareed Zakaria speaks with the New York Times' India Ink:
How do you impose short-term pain for long-term gain?
This is the great challenge for the United States economy. There are things the United States has to do, whether it’s a cumbersome tax code or reform of entitlements in pension and health care. Instead, we privilege present consumption over investments for the long term.
India has a similar problem. It is hard to stop subsidizing power or giving people rice and instead divert those resources either towards putting your fiscal house in order or making long-term investments in infrastructure and education that will have huge payoffs 20 years down the road. America’s fundamental challenge is: ‘How does it do this?’