Everybody wants to grow the economy faster, and with good reason. In addition to improving incomes for Americans, more growth will also help fix the debt. However, some politicians are making unrealistic promises about how much growth can be achieved.
A new study from our partners at the Committee for a Responsible Federal Budget explains the obstacles, such as an aging population, to achieving the high growth rates that some are promising. It also warns that enacting new policies based on unrealistic growth assumptions could increase the national debt. Higher debt, in turn, could cancel out the economic growth effects of these policies over the long run. It urges a more practical approach.
The focus should be on sustainable growth rather than quick fixes. And key to any growth strategy is a comprehensive fiscal agenda that puts the national debt on a sustainable path.
See some ideas to grow the economy.
Growing the economy needs to be a priority. However, unrealistic promises that lead to policies that make the already unsustainable debt situation even worse will ultimately undermine growth. Instead, policymakers should come up with a sensible growth plan.
National Debt and You