Economists say U.S. debt grew $11 trillion in one year

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.

EMAIL: jferguson@desnews.com
TWITTER: @joeyferguson

Related

Senators head for the exits without meeting Trump’s demands for voting billTodd Blanche narrowly confirmed as Trump’s attorney general in overnight voteSenate approves funding bill to avoid a shutdown before the electionGlendale firefighters deliver endangered birthday cakes after grocery store blazeWhat to know about Trump’s new attempt to limit birthright citizenshipCalifornia may fine content creators who don’t disclose they were paid to post about politics