Um he does some good work on this on this issue and he has come up with a way to address the problem of the national debt and that doesn't mean paying the whole thing down.
That's kind of impossible, but it means just stabilizing the debt at about 100% of GDP, which is around where it is now.
In other words, preventing it from growing much more in the future.
And here, here's some of the ways he says that things we're going to have to do in order to do that.
Um, they're going to have to be cuts in social security and Medicare for wealthier participants in those programs.
He would make no changes for people who are in the 40% the lowest 40% of households in terms of earnings there.
But some serious changes for wealthier seniors.
And let's keep in mind a lot, you know, a lot of, a lot of seniors don't have a mortgage anymore.
They own their home outright or they have a very small mortgage payment, they don't have childcare burdens.
And there's, there are a lot of people who have, uh, you know, millions of dollars in savings and yet they generally qualify for all the Medicare and Social security benefits that are on schedule that, that's just gonna have to change.
I think that's simple math.
Uh B uh Brian Reddell does also include, uh, some, uh, increases in individual income taxes for the wealthiest Americans.
There are some modest changes in business taxes that would take away and tax breaks and some other changes.
Um, there's nothing draconian in this plan such as, for example, a value added tax or a what, what's basically like a federal income tax, which would raise a lot of revenue all at once.
And I think that's the point of this plan, which is that if you just do a certain number of things and do them fairly soon, including things that a lot of people are not going to like, you might actually be able to address this problem without having to owe overhaul the entire tax system or have massive tax cuts or tax hikes.
I mean, or something that would cause a recession.
There are many other analyses that show the same thing.
We just need politicians who are willing to tackle it.
What will be the catalyst that will tip them in the direction of doing that?
I mean, what, what would constitute a crisis that would force action?
Well, I think it is going to take a crisis.
I mean, there have been warnings about this for the last 20 years, maybe 30 years and Congress has done nothing except make the, uh, you know, borrow even more money and make the debt even higher.
So the, the crisis, if it happens, if it, if it gets to that point, in other words, if Congress and the next president went after that, just don't do anything, what the, the, the debt crisis is gonna look like this.
Uh The US Treasury is going to be issuing so much debt that there aren't going to be enough investors out in the world willing to buy it.
Um We've seen a few wobbles in the market for treasury securities with within the last 12 months, nothing like what I just described.
But the treasury has begun to alter the way it sells securities, changing the duration of the note of the notes and bills that it's selling, for example, and do some things to make sure those auctions go smoothly if the, if the treasury gets to the point that there just aren't enough people to buy all of that debt and that, you know, the market for debt is not bottomless in the world, we might, we might be getting close to the limit.
And the only thing that can happen then is uh interest rates go up and they might go up by a lot..
And if you try to do stuff like federal reserve money printing or other types of money printing, then you get inflation.
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