Wishful thinking won’t solve the US debt crisis

Policy changes needed to stabilise the debt ratio at any foreseeable level are quite manageable. — Bloomberg

THE budget plan taking shape in Congress is likely to add some US$4 trillion to the national debt over the next 10 years.

The ratio of public debt to gross domestic product (GDP) is already close to 100%, about as high as at the end of World War II, and rising steadily.