Economics Explained In Defence of DOGE
Mar 26, 2025
The discussion kicks off with a shocking look at the US debt, now soaring over $36 trillion. They argue that DOGE could surprisingly contribute to cutting $2 trillion from the annual budget. Historical successes with spending cuts are analyzed, hinting at a plausible path forward. The conversation dives deep into the complexities of fiscal policy, emphasizing the importance of balance in budgeting. Ultimately, they tackle the bold challenge of reforming fiscal strategies while drawing parallels with other nations. Is DOGE a viable hero or just a meme?
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US Debt Sustainability
- The US debt is over $36 trillion, exceeding 117% of GDP, a concerning level for most countries.
- However, economists believe the US can handle more leverage due to its unique global position.
1993 Omnibus Act
- In 1993, the Omnibus Budget Reconciliation Act significantly cut government spending and raised taxes.
- This, combined with a strong economy and tech advancements, led to the largest US budget surplus in history, lasting four years.
Increased Government Spending
- Government spending in the US has almost doubled since the 1990s, now at 35% of GDP.
- Cutting spending proportionally to 1990s levels would save trillions, even before additional cuts.