What would it take to "grow our way out" of $40 trillion in debt?
How much growth would we actually need?
Using CBO’s February baseline, debt held by the public
is about 101% of GDP today.
By 2036, they project it at about 120%.
So if debt still grew along that projected path, but you wanted debt-to-GDP to simply stop getting worse...
nominal GDP would need to grow almost 6% per year "For A Decade"
And if inflation eventually settles around 2%, you’re talking roughly 3.5 to 4% real growth.
The problem is... the CBO is projecting about 1.8%.