Harvard economist Rogoff: US needs a "crisis shock" to solve debt problem

Rogoff said that the US government debt continues to climb, compounded by high interest rates, significantly worsening the debt situation, yet policy responses lag severely. The consensus at the US political level is that voters find it hard to accept tax increases and are unwilling to endure substantial spending cuts, making the path to reducing fiscal deficits increasingly narrow. Rogoff believes that the current situation may only truly change after a major crisis shock.