Mark Moss argues America's debt-to-GDP ratio above 100% means the country can't cut its way out. Instead, it must grow the economy through deregulation to attract $8 trillion in investment and let inflation run hot to boost nominal GDP without producing more.
The goal was to cut $1 trillion from spending. Howard Lutnick came in as the head of the Secretary of Commerce. His goal was to balance the budget. After a couple months of that, they just figured that ain't ever going to happen. Elon Musk quit, and he, upon leaving, realized that the government cannot cut spending. And he said upon leaving that, I guess our only way is to grow our way out of this. So what does growing our way out of that mean? We have debt to GDP. It's a ratio. We're over 100% debt to GDP. Per Hirschman Reports, no nation that's gone above 120% debt to GDP has ever survived. There's 2 levers to pull. 1, pay the debt down, or 2, grow the GDP. That's the growing our way out of it. That's repealing all the red tape, getting rid of all the regulations, allowing business to start building again. Number 1, $8 trillion have been committed to be invested into the United States to build this. But it also means letting inflation run really, really hot. A lot of people don't want to hear this. When inflation runs hot, meaning the cost of goods goes up, that increases GDP. We can increase the GDP just by having prices go up without even creating any more economic goods.
