Damned if you do. Damned if you don’t.
The $31.5T USA debt problem and how to get out:
Increase revenue: The US government could increase revenue through tax reforms or introducing new taxes such as a wealth tax. However, this may face resistance from those who argue that it would stifle economic growth.
Cut spending: The government could cut spending in areas such as military spending, entitlement programs, and foreign aid. However, this may also face resistance from those who argue that it would hurt those who rely on those programs.
Stimulate economic growth: A growing economy can increase revenue through increased taxes and reduce debt as a percentage of GDP. Policies such as deregulation and incentives for businesses could stimulate economic growth.
Implement austerity measures: This could involve both reducing government spending and increasing taxes to reduce the debt. However, this could also have negative impacts on the economy and may be unpopular.
Inflation (Currency Printing): Inflation could reduce the value of the debt over time, but it could also negatively impact the economy by hurting savers and those who hold dollars.
Debt restructuring: This involves restructuring or renegotiating the terms of the debt, such as extending the repayment period or reducing the interest rate. However, this may damage the country's credit rating or lead to war.
What’s your move?