Economists say U.S. debt grew $11 trillion in one year
J. Scott Applewhite, Associated Press
The U.S. government’s fiscal gap grew by $11 trillion over the past year, which is 10 times larger than the reported official deficit, according to Bloomberg.
Calculations from Laurence Kotlikoff, an economist at Boston University, and Scott Burns, a personal finance columnist, calculated the fiscal gap based on the Congressional Budget Office’s realistic long-term budget forecast.
“Last year, it was $211 trillion,” said Kotlikoff and Burns in their guest column for Bloomberg. “The $11 trillion difference — this year’s true federal deficit — is 10 times larger than the official deficit and roughly as large as the entire stock of official debt in public hands.”
The authors recommend a permanent 64 percent increase in all federal taxes, as well as a 40 percent cut to benefits like Social Security and Medicare.
“Governments, like households, can’t indefinitely spend beyond their means,” Kotlikoff and Burns said.
The two co-authored “The Clash of Generations,” a book that calls for changes in the U.S. tax, health care and Social Security systems.
- Lehi-based Vivint debuts innovation facility
- Dave Ramsey says: Keep expectations clear...
- UTA seeks to hire bus drivers, other workers
- Lower gas prices could mean economic impact...
- Fire exposes illegal Chinese factories in Italy
- Egg freezing is now a perk of the workplace....
- Support for statewide nondiscrimination law...
- Customer decline hits McDonald's sales, profit
- Housing recovery slowest since World... 12
- Support for statewide nondiscrimination... 7
- Customer decline hits McDonald's sales,... 3
- Another year, another small Social... 2
- Lower gas prices could mean economic... 2
- Egg freezing is now a perk of the... 2
- Federal Reserve Chair Janet Yellen says... 1
- Utah jobless rate stays steady at 3.5... 1