Question

.Find some recent projections for the future path of the U.S. government debt as a percentage of GDP. What assumptions are made about government spending, taxes, and economic growth? Do you think these assumptions are reasonable? If the United States experiences a productivity slowdown, how will reality differ from this projection?

Answer 1

Answer:

The future path is a rise government debt as a percentage of gross domestic products.

The government spends much more than it receives , and while tax receipts continue to grow modestly ,government spending shows no real signs of slowing down.

Because of this,government spending will decreases ,taxes will increases ,and economic growth will suffer.

When the government spends less,then there is less money being pumped in our economy.

Increased takes,even for the top 2% , will decrease consumer consumption and jobs (the top richest 2% are our job market).

If the U.S experience a productivity slowdown ,then demand will decrease and will result in lower economic activity .

This means GDP and tax receipts will fall ,which will further increase government debt.