US debt to US GDP ratio = Problematic Zone..
- Only possible Solution: grow GDP (working harder/smarter and or more people working) "and" raise taxes - see below. Top "marginal" rate in 2022 = 37%
- Take a moment and compare the two charts, and you’ll quickly see when the ratio started to go in the wrong direction -(correlation)
Now this from ChatGPT (Chat Generative Pre-trained Transformer):
There are several ways that a country can lower its debt to GDP ratio: Increase economic growth: When a country's economy grows, its GDP increases, which can help to reduce the debt to GDP ratio. This can be achieved through measures such as increasing productivity, investing in infrastructure, and promoting trade.
Reduce government spending: By reducing government spending, a country can reduce the amount of debt it accumulates and improve its debt to GDP ratio. This can be achieved through measures such as cutting back on unnecessary programs, reducing waste, and streamlining government operations.
Increase tax revenue: By increasing tax revenue, a country can reduce its reliance on borrowing and improve its debt to GDP ratio. This can be achieved through measures such as increasing tax rates, broadening the tax base, and cracking down on tax evasion.
Sell assets: Another way to reduce debt is to sell government assets such as land, buildings, and state-owned companies. This can generate revenue that can be used to pay down debt and improve the debt to GDP ratio.
It is important to note that reducing the debt to GDP ratio often requires a combination of these measures, as well as other structural reforms aimed at promoting long-term economic growth and stability. Additionally, the specific strategies used to address debt and fiscal policy will depend on a country's unique circumstances and political context.
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