In our last BBL, we discussed Tariffs, but the discussion kept returning to the subject of deficits and debt to GDP, both of which continue to increase. In our next BBL, we will turn to a discussion of debt, deficits, and taxes. 

  

In 1945, after the end of WWII, the U.S. had $259 billion in National Debt. By 1970, debt had increased modestly to $371 billion, which was about 35% of GDP. Since 1970, our national debt has increased 89X. It is now 36.2 trillion. As a percentage of GNP, it has grown from 31% in 1980 to 124% today. Of the major developed countries, only Italy and Japan have higher ratios. 
  

The current administration has suggested that Tariffs can raise enough capital to fix the debt problem. At the same time, the administration is highlighting current legislation which Trump claims will be “the largest tax cuts in American history, including No Tax on Tips, Social Security, or Overtime. 

 

·       Should we be concerned about the level of National Debt? 

·       What are the implications for our economy if debt to GDP keeps increasing? 

·       What can be done to reduce the increase in debt? 

·       Will tariffs provide a solution? 

·       If not, are there any other reasonable ways to increase taxes or reduce expenditures. 

 

Please join us at our monthly BBL for a discussion of what, if anything, should be done about our increasing national debt and government budget deficits.  
   

This is a private, alumni-only, off-the-record discussion. The views and opinions expressed in this program are those of the speakers and participants and do not necessarily reflect the views or positions of The Harvard Business School Club.
      

Participants must register by Noon on May 20th to receive details on joining the discussion. The Zoom link will be sent out 24 hours before the event.
     
By registering for this event you agree to abide by the HBSCNY Code of Conduct for yourself and your guests (read here)