April 5, 2011

US Debt Crisis: Finding a Solution

Veronique de Rugy

George Gibbs Chair in Political Economy

Veronique de Rugy explains that cutting spending is better for the economy in the long run, but there are a variety of possible plans that could balance the budget by the end of the decade.

“We don’t need to cut spending, just hold it steady, and automatically, you end up with the balanced budget by 2020,” said de Rugy.  “The real problem is the explosion of spending that happens after 2021.  You can have a balanced budget by 2020, and it will be balanced for 5 minutes.”