How the US budget crisis could affect a generation
Professor Philip Booth discusses the political stand-off over the US debt crisis.
In this week's Cass Talks Philip Booth, Professor of Insurance and Risk Management at Cass, discusses how the ideological differences between the political parties in the US drove the debate on the debt crisis to the point where the US was on the brink of default, and consequently may have attributed to the credit ratings downgrade.
Exploring these differences further, Professor Booth suggests the ideological debate on government spending must be resolved in order for the US economy to fully recover. He points out that this could take several election cycles and in the meantime the US economy could be forced to adopt the more regulated, higher taxed economic model of the Eurozone. This would lead to much slower economic growth in the US and if this were the case the enormous deficits in the US budget could affect a whole generation.