How will the US pay back its debt?

Discussion in 'Budget & Taxes' started by kazenatsu, Aug 27, 2020.

  1. kazenatsu

    kazenatsu Well-Known Member Past Donor

    Joined:
    May 15, 2017
    Messages:
    15,921
    Likes Received:
    4,727
    Trophy Points:
    113
    Voters are inherently inclined to focus on the economy, but I think the media will tell voters what to think about and what issues are important.
    Things would have to get very bad for many people before they started focusing on the economy in the absence of the media focusing on it.
     
  2. James California

    James California Well-Known Member Donor

    Joined:
    Nov 25, 2019
    Messages:
    4,025
    Likes Received:
    3,858
    Trophy Points:
    113
    Gender:
    Male
    ~ I think they already have. Japan also.
     
    Melb_muser likes this.
  3. wgabrie

    wgabrie Well-Known Member Donor

    Joined:
    May 31, 2011
    Messages:
    10,300
    Likes Received:
    1,621
    Trophy Points:
    113
    Gender:
    Male
    In order to get the debt under control, Congress would need to stop raising spending every year and then increase taxes without spending the surplus on anything. Hard to do.
     
  4. Distraff

    Distraff Well-Known Member

    Joined:
    Feb 4, 2011
    Messages:
    9,686
    Likes Received:
    3,536
    Trophy Points:
    113
    1. Find a way to eliminate or nearly eliminate the yearly deficit.
    2. Inflate the money supply more than usual but not enough to start hyperinflation.
    3. Find ways to expand the economy.

    Result: The debt will soon become a much smaller part of the economy.
     
  5. kazenatsu

    kazenatsu Well-Known Member Past Donor

    Joined:
    May 15, 2017
    Messages:
    15,921
    Likes Received:
    4,727
    Trophy Points:
    113
    If you inflate the money supply, lenders will start demanding higher interest rates too.
    So gradual inflation is not really an effective way to get out of debt.
     
    Last edited: Sep 6, 2020
  6. Monash

    Monash Well-Known Member

    Joined:
    Jan 12, 2019
    Messages:
    888
    Likes Received:
    482
    Trophy Points:
    63
    Gender:
    Male
    Soon ???
     
    Bowerbird likes this.
  7. edthecynic

    edthecynic Well-Known Member

    Joined:
    Aug 1, 2014
    Messages:
    3,093
    Likes Received:
    774
    Trophy Points:
    113
    Mexico will pay for it!
     
    Richard The Last and Bowerbird like this.
  8. Bowerbird

    Bowerbird Well-Known Member

    Joined:
    May 13, 2009
    Messages:
    63,354
    Likes Received:
    45,027
    Trophy Points:
    113
    Gender:
    Female
    We owe you sod all
     
  9. wgabrie

    wgabrie Well-Known Member Donor

    Joined:
    May 31, 2011
    Messages:
    10,300
    Likes Received:
    1,621
    Trophy Points:
    113
    Gender:
    Male
    I was going to say we could try digging our way out of debt by raising the income tax rate to 40%. But then, I realized that it's almost there now. But I don't know how to calculate how an average person would get the 40% income tax rate.
     
  10. Esdraelon

    Esdraelon Newly Registered

    Joined:
    Sep 8, 2020
    Messages:
    3
    Likes Received:
    2
    Trophy Points:
    3
    Gender:
    Male
    Yeah...I'm sure that THIS TIME, you've got him.
     
  11. Spim

    Spim Well-Known Member Past Donor

    Joined:
    Nov 11, 2016
    Messages:
    6,764
    Likes Received:
    5,254
    Trophy Points:
    113
    I've always thought that implementing a national sales tax of 2% would be a terrific idea. Might also be a good time to revisit exemptions.

    Yes I know it creates a rabbit hole that we really don't want to go down but it still seems like the most practical approach. The system is already in place, not large enough that there would be major blowback, let the state collect and reimburse the fed. Generates immediate income stream.
     
  12. bringiton

    bringiton Well-Known Member

    Joined:
    Mar 11, 2016
    Messages:
    5,750
    Likes Received:
    512
    Trophy Points:
    113
    You mean the kind of national sales tax that wrecked Japan's economy when it was first introduced, and wrecked it again every time it was increased? That kind of national sales tax?
     
  13. Spim

    Spim Well-Known Member Past Donor

    Joined:
    Nov 11, 2016
    Messages:
    6,764
    Likes Received:
    5,254
    Trophy Points:
    113
    Sure.
     

Share This Page