Government borrowing is currently running about 10% of GDP. Or in other words, about 10% of our current “GDP” is borrowed dollars. Take those borrowed dollars out of the system overnight and you lose 10% of GDP overnight. So cutting spending will cause pain. Likely lots of pain. Either suffer the pain of borrowing detox or crash the system. It took decades to build this box we find ourselves in. Alice in wonderland economics...
“Take those borrowed dollars out of the system overnight and you lose 10% of GDP overnight.”
Which is why we’re in a depression not a series of recessions. We’re 5 years in this depression and it’s getting harder for the kleptocrats to deny. As long as they can pass on more debt to later generations they’ll keep stealing.