Bracing for the U.S. to fall off the fiscal cliff is nothing compared to the financial free fall predicted by Laurence Kotlikoff. The Boston University economist and failed U.S. presidential candidate joins us with his thoughts on the economic end of times. So, never mind the melting ice caps, the perfect storms or even the zombie apocalypse. Kotlikoff believes Washington has been running a Ponzi scheme for six decades and higher taxes and belt tightening won't be enough to stop the coming Greek tragedy.
Laurence Kotlikoff: Is the United States Broke?
The co-called fiscal cliff is the fear that hangs over Washington ... and Ottawa ... and a great many other national capitals.
If U.S. Senator Joe Lieberman is right, the U.S. economy will be side-swiped on January 1st by 600 billion dollars worth of tax increases and spending cuts. While that would certainly shrink the country's annual budget deficit, most independent observers say it would also push the U.S. into recession, and maybe take the rest of the world down with it.
But according to Laurence Kotlikoff
, the fiscal cliff is a drop in the bucket compared to the 200-Trillion-dollar "fiscal gap" on the horizon. Laurence Kotlikoff is an economist at Boston University and the author of several books, including Clash of Generations
. He also launched a Presidential run in this last election as the candidate for the advocacy group Americans Elect, but ended his campaign last spring.
This segment was produced by The Current's
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