The deficit can be reduced from 7.2% to 3% of GDP without causing recession if three policy levers are used correctly: (1) controlling government spending, (2) increasing tax revenue (not just tax rates), and (3) managing interest rates—as demonstrated in the 1992-1998 period.
causalpending
Speaker
Ray DalioEvidence Quote
“yes if you look at how that happened in the 1992 to 98 period and so on there were three influences on this there's the there's the spending there's the taxes and taxes means tax revenue not tax rates and then there's also interest rates”
Source
Ray Dalio and Salesforce’s Benioff on AI, trade wars and new world order— CNBC International LiveCreated: 8/11/2026, 6:48:37 AM
My Notes
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