Professor Laurence Kotlikoff: Fiscal Tsunami About To Hit The US; Deficits Will Explode
Government Keeping Real (GAAP) Spending Off The Books
This Financial Sense Newshour program is available only as a premium, paid "FS Insider" release.
For advance notice of release of premium, paid "FS Insider" content or to purchase a monthly or annual subscription to "FS Insider" content, go to www.financialsense.com/subscribe.
Jim welcomes Laurence Kotlikoff, Professor of Economics at Boston University. Professor Kotlikoff notes that 10,000 citizens a day are joining Social Security and Medicare. He believes deficits will explode, as a majority of politicians will never vote to reduce benefits. To become solvent, Professor Kotlikoff calculates retirement benefits need to be cut by 22% today, or taxes must be raised by 31% across the board. He also calculates the true fiscal gap today at a staggering $220 trillion.