But Inequality is the Defining Problem of Our Time

Lawrence Kotlikoff writes,

The US fiscal gap now stands at an estimated $205 trillion, or 10.3 percent of all future US GDP. Closing this gap is imperative, and requires a fiscal adjustment of an immediate and permanent 37 percent reduction in spending (apart from servicing official debt), an immediate and permanent 57 percent increase in all federal taxes, or some combination of the two. The necessary size of this adjustment increases the longer it is put off.

4 thoughts on “But Inequality is the Defining Problem of Our Time

  1. Both can be true, hypothetically. Government programs have been mal investment.

    This is why we need spending cuts and not tax increases.

  2. I’m not confident that Republicans have the stones to do the necessary cuts. The Democrats don’t think we’re spending enough. We will live through the financial cliff someday.

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