Senator Alan Simpson, co-creator of the Simpson-Bowel plan to reduce US fiscal deficit and US government debt and co-chair of President Obama's Debt Reduction Committee was on Cnnfn to discuss his views on ever-increasing U.S. debt and what he has outlined in the Simpson-Bowel plan to cut the fiscal deficit and debt.
-- We have both revenue and spending problem.
-- We have lowest revenue coming in as percentage of GDP since the Korean war. We have only 15% of GDP coming in as revenue vs. 19% in earlier years.
-- You cant tax out of this and you cannot cut spending to get out of this. It will have to be a balanced approach if there is any progress we want to make on reducing the fiscal deficit.
Here is the video:
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Dheeraj GroverI am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne