Fiscal consolidation from 7.2% to 3% deficit-to-GDP can be achieved without recession if done correctly, as demonstrated by the 1992-1998 period, through balancing three influences: spending, tax revenue, and interest rates.
causalpending
Speaker
Ray DalioEvidence Quote
“yes if you look at how that happened in the 1992 to 98 period... there were three influences on this there's the spending there's the taxes and taxes means tax revenue not tax rates and then there's also interest rates [16:43]”
Source
Ray Dalio and Salesforce’s Benioff on AI, trade wars and new world order— CNBC International LiveCreated: 8/11/2026, 5:33:25 AM
My Notes
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