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That makes a lot of sense now that I look at it-- thanks.
So if we decide that long term growth is say, 4%, then a 70% debt should be sustainable with a deficit at 2.8%. OK, I find that reasonable and in line with observable reality.
It also seems to be in line with current fiscal policy --isn't this what you want?.
That makes a lot of sense now that I look at it-- thanks.
So if we decide that long term growth is say, 4%, then a 70% debt should be sustainable with a deficit at 2.8%. OK, I find that reasonable and in line with observable reality.
It also seems to be in line with current fiscal policy --isn't this what you want?.
If you look at the second table at http://home.att.net/~rdavis2/def06.html, you'll see that the gross deficit was 5.1% of GDP in 2004, a full 1.5 percent above the unified deficit of 3.6% of GDP. As explained at the end of post #197, that is why the gross debt as a percentage of GDP is currently headed UP and, as shown in the graph in post #194, is projected by the latest CBO report to rise to 81% of GDP by 2015 (assuming that the tax cuts and the fix to the Alternate Minimum Tax are extended).
