The Clash of Generations
The Clash of Generations
Saving Ourselves, Our Kids, and Our Economy
Laurence J. Kotlikoff and Scott Burns
The United States is bankrupt, flat broke. Thanks to accounting that would make Enron blush, America’s insolvency goes far beyond what our leaders are disclosing. The United States is a fiscal basket case, in worse shape than the notoriously bailed-out countries of Greece, Ireland, and others. How did this happen? In The Clash of Generations, experts Laurence Kotlikoff and Scott Burns document our six-decade, off-balance-sheet, unsustainable financing scheme. They explain how we have balanced our longer lives on the backs of our (relatively few) children. At the same time, we've been on a consumption spree, saving and investing less than nothing. And that’s not to mention the evisceration of the middle class and a financial system that has proven it can’t be trusted. Kotlikoff and Burns outline grassroots strategies for saving ourselves--and especially our children--from what could be a truly catastrophic financial collapse.
Running For President Via Americans Elect
Please visit www.kotlikoff2012.org to learn about my candidacy for President.
Laurence J. Kotlikoff
Laurence J. Kotlikoff is a William Fairfield Warren Professor at Boston University, a Professor of Economics at Boston University, a Fellow of the American Academy of Arts and Sciences, a Fellow of the Econometric Society, a Research Associate of the National Bureau of Economic Research, President of Economic Security Planning, Inc., a company specializing in financial planning software, a columnist for Bloomberg, a columnist for Forbes, and a blogger for The Economist. Professor Kotlikoff received his B.A. in Economics from the University of Pennsylvania in 1973 and his Ph.D. in Economics from Harvard University in 1977.
How Close Is America to Fiscal Crisis?
THE US has a fiscal gap—the present value of all its future spending (including servicing its official debt) less all its future taxes of $202 trillion—almost 14 times GDP. Greece, by comparison, has a fiscal gap of about 11 times GDP. To close the US fiscal gap would require raising all federal taxes, immediately and permanently by almost two thirds!
Is the Modern Central Bank In Need of Reform?
CENTRAL banks aren't the problem. The problem is the financial system that the central banks are charged with protecting. That system is fundamentally corrupt, not because of the bad apples it attracts, but because it operates in the dark with extremely limited disclosure and transparency. Proprietary information is the ultimate villain and cause of our financial meltdown.