Quote:
Originally Posted by Rekna
It will be pretty hard to balance the budget without some major changes.
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The changes required primarily involve stopping Congress from additional spending while we grow the economy.
Assuming taxes revenue is about 28% of GDP, for every trillion in GDP growth the government revenue increases by $280 billion. If the 2030 deficit is projected to be $1.3 trillion we would need about $4.8 trillion in GDP growth or 32% growth in 20 years from our current $14.8 trillion GDP.
The above is manageable and would allow room to pay down existing debt without too much pain. The key is to control spending while creating an environment for strong economic growth. People who are in a panic in my view either have a political agenda or they underestimate the fundamental strength of our economy and the impact of economic growth.