The US needs to rein in its $1.5 trillion budget deficit, Nobel economist Paul Krugman said. Policymakers can do that either by hiking taxes or slashing spending on social programs. AdvertisementAdvertisementThe US needs to deal with its soaring budget deficit, but the only options available for it to do so mean that it probably won't, according to Nobel laureate Paul Krugman. That's because the two paths to getting the deficit under control are: slash spending on social programs, or raise taxes. Meanwhile, the government can narrow the deficit by dialing back some of its welfare programs, like Social Security, or by raising taxes.

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