Economics Professor: US Has To Cut $20 Trillion Or Face Financial Collapse
August 2, 2011
Laurence Kotlikoff, an economics professor from Boston University says the U.S. will need to make $20 trillion in debt cuts to save America from a financial collapse.
In an interview with Russia Today, which is in the video attached on the is page, Professor Kotlikoff explains that the debt ceiling bill which passed in congress earlier today that will increase the United States’ borrowing limit by only a few trillion will not restart America’s stalled economy.
According to his calculations the U.S. will need to make adjustments in the neighborhood of $20 trillion in order to prevent a financial collapse and he questions whether U.S. politicians and the public has the stomach to make the cuts needed.
In order to balance long-term spending and to prevent the collapse the U.S needs to create a fully balanced budget to eliminate fiscal gaps.