Debt

If anyone in government is interested, realizing that it took many years to build up the debt and understanding that will take many years to bring down the debt, it begins to look possible. In 1945 the debt which was run up because of war, the only legitimate reason for debt, was $200 billion and today it is $35,000 billion. The average inflation rate during those years was three percent. If government had grown at three percent the debt today would be $1,800 billion but the government actually grew at 7%. The long term solution to the debt is to hold spending to one percent less than the inflation rate. If the government had held spending to 6% instead of 7%, today's debt would be $15,000 billion or $20,000 billion less. Looking at a $35,000 billion debt is overwhelming but attacking it one year at a time seems more doable. The longest journey begins with the first step. The government can keep increasing spending but holding that to one percent less than the inflation rate what ever that might be but each year the debt will go down in terms of real dollars. For example the current budget is $6.3 trillion. and the current inflation rate is 3%. If the government increases spending by 2% over the next 75 years and the average inflation rate stays at 3% the budget will be 27.8 trillion. Today's GDP is 28.7 trillion and if that increases by 3% in 75 years it will be $263 trillion and if 30% of that goes to taxes that will equal $79 trillion which means the debt could be paid of in less than 75 years. The point is to use a long period of time to solve a problem that took a long period of time to develop. The congress must hold each years spending to one percent less than the inflation rate. This is not likely but merely a plan to show it can be done within reason. Most working Americans have lived under these conditions for the past 40 years.