Reported 9 months ago
Economist Paul Krugman reassures that the ballooning U.S. debt of $34 trillion isn't a cause for major concern as it roughly matches historical debt-to-GDP ratios and is lower than other countries like Japan and the U.K. He emphasizes stabilizing debt as a share of GDP, suggesting a modest tax hike or spending cut of 2.1% to achieve this goal, which he believes is feasible if there is political will. Krugman highlights that government debt doesn't have to be fully repaid, drawing a parallel to the post-World War II era when debt levels decreased significantly due to economic growth and inflation.
Source: YAHOO