Study Reveals $4.8 Trillion Cut Needed to Stabilize U.S. Government Debt
The article discusses how to solve the U.S. government deficit problem by decreasing transfer payments. The researchers used a model to estimate that a 2% decrease in transfer payments over ten years could stabilize the debt/GDP ratio. This would amount to 4.8 trillion in current dollars. The economy would experience a 1.1% output loss, but monetary policy could help reduce this impact.