Quote:
Originally posted by Spanky
If the economy keeps growing at its current rate we will be out of our deficits by 2009.
The miracle about this whole thing is that we just went through a recession and a war and our aggregate debt is only 67% of GDP. And we are still at war and the deficit is starting to drop. That is unprecedented.
As I said there is nothing catastrophic about a 70% GDP debt. But with the way the economy is growing we won't come close to 70%. Not only does a growing economy bringing in more tax dollars reducing the deficit, but a growing economy makes the pie bigger, making the debt percentage of that pie even smaller.
|
Translation: There is no level of aggregate debt that is too high, provided we have constant economic growth, a string of balanced budgets, and a multigenerational time horizon. Got it.
