- Dec 4, 2013
- Reaction score
- Political Leaning
What matters is how to control the growth in debt. After WWII, the debt was 120% of GDP -- larger than today. So, how did they pay down the debt? Answer is, they didn't. What happened was GDP growth rose faster than the annual deficits, making the GDP:debt ratio smaller and eventually irrelevant.Trump notwithstanding, the American economy cannot long survive under a 23 trillion dollar debt which is still escalating.
So, the task is to keep the deficit, as a p% of GDP, lower than GDP growth. Doing so will make the debt irrelevant over time.