Professor Laurence Kotlikoff: Fiscal Tsunami About to Hit the US; Deficits Will Explode
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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.