Second, delay any changes for at least a year after a recession. This allows the economy to recover enough to grow the 3 to 4 percent needed to create jobs.
By: Niki Jorgji
That will create the needed increase in GDP to weather any tax increases and spending cuts. That will reduce the debt-to-GDP ratio enough to end any debt crisis.
On March 15, 2018, the U.S. national debt exceeded $21 trillion. This is more than America's annual economic output as measured by its gross domestic product. The last time the debt-to-GDP ratio was more than 100 percent was to pay for World War II.
The solution to the debt crisis is economically easy but politically difficult. First, agree to cut spending and raise taxes to an equal amount. Each will reduce the deficit equally although they have different impacts on economic growth and jobs creation.