In Reply to: The BBB adding 3.4 Trillion to the National debt posted by Bruinfan4ever on August 05, 2025 at 07:15:46
BBB will increase GDP by at least 2% annually.
Over a 10-year period, increasing GDP by 2% annually could significantly reduce the debt-to-GDP ratio.
Debt-to-GDP ratio drops from 126% to ~103%
That’s a 23-point reduction in the debt burden relative to the economy.
A 23-point reduction in the debt-to-GDP ratio—from 126% to 103%—translates to a $7.6 trillion decrease in debt relative to GDP.
Dollar Equivalent of a 23-Point Drop
Assumptions:
- Projected GDP in 10 years: $32.9 trillion
- Debt-to-GDP ratio drops by 23 percentage points
- Reduction in debt burden = 23% of $32.9T
- Dollar impact = 0.23 × $32.9T ≈ $7.6 trillion