Part 2/8:
The concept is straightforward: when a government's debt outstrips its revenue by such a wide margin, the implications for fiscal health cannot be overstated. With a burgeoning deficit currently projected at 7.5% of GDP, equating to approximately $900 billion annually, the challenge is clear. A proposed solution highlights the need to cut the deficit effectively to a more manageable 3% of GDP. This transition, while appearing drastic, is reminiscent of successful fiscal adjustments made from 1991 to 1997, and it emphasizes the need for immediate action.