No Silver Bullet: Paths for Reducing the Federal Debt

"America’s federal debt is as old as the nation itself, and throughout the past two centuries the debt has fluctuated dramatically, spiking during wars and economic crises and declining during times of peace and prosperity. Once again, it is on an upward climb: As a share of annual gross domestic product (GDP), it is now about three-quarters higher than what it was a decade ago, and in the next 15 years Pew projects that it will reach 95 percent of annual GDP, the highest level since 1947."

"Many economists caution that it would be unwise to attack the debt with tax increases or spending cuts while the economic downturn lingers. But nearly everybody agrees that once the economy has recovered, the nation will have to begin to control its debt or face serious economic consequences. The question is, how?"

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