Post #1492 by Timer321 on the Macroeconomic Trends and Risks board

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Except the Federal government doesn't tax everyone to pay for it. The government adds more to the pile of debt.

Steve,

The lower the debt-to-real-GDP ratio, the better. The higher the debt-to-real GDP ratio, the less stable our economy becomes.

How much debt only matters depending on the ratio. This is why all of us believe in wise cost/benefit analysis by the federal government economists. Know about them or not. Musk walked away from Doge, saying it was hard to see where to cut. Those economists spend our money very wisely.

Implementing synergistic economic policies, the debt can go a lot higher for decades as the ratio declines.

Dream on if you think we are dealing from any position of reality right now.

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