If we look back at there are four events that preceded Debt/GDP really taking off.

  1. The Regan Tax cuts in 81 (in 1980 Debt to GDP was 30%).
  2. The Bush Tax Cuts/02 recession (Debt/GDP had been falling before that).
  3. 2008 financial and 4. Trump tax cuts.

Three of these 4 events are all spending cuts (with 2002 being a combination of tax cuts and recession).

Economic policy wonk by day. Personal finance writer by night. I write about investing, debt, and all things related to money. Editor of Making of a Millionaire

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