Unfortunately, the U.S. political system is in a gridlock. And the reality is that we have to reduce our budget deficit, and the way to do it is going to be a combination of reforming Social Security and Medicare on one side, but also gradually increasing the tax burden because right now it's very low, especially on those who can pay.
And while we have to do fiscal austerity, if we do too much of it, next year or in the next couple of years, the risk, like in the eurozone, is that we end up into another recession because austerity, however necessary, in the short run has a negative effect on economic growth." - in Money News
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Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.