<p>If they invest in productivity-enhancing stuff, GDP could grow at a faster pace than the [increase in] debt. Then the debt to GDP would decrease.</p>

CC BY-SA 4.0
2019-12-17T08:36:21.990Z
2019-12-17T08:36:21.990Z
Art
<p>As we all know the US has a big debt and increasing deficits. The head of FED J. Powell commented that the US was on an unsustainable path w.r.t some debt to GDP ratio. A few commentators I listen to argue that if the US increases it GDP, then they can "grow out of" this problem that Powell mentioned.</p>

<p>Could someone explain this logic to me?</p>

<macroeconomics><government-debt><debt>
What is the logic behind that one can "grow out of debt" via increase in GDP?
user123124
# What is the logic behind that one can "grow out of debt" via increase in GDP?

(Asked by: username_0 on 2019-12-17)

As we all know the US has a big debt and increasing deficits. The head of FED J. Powell commented that the US was on an unsustainable path w.r.t some debt to GDP ratio. A few commentators I listen to argue that if the US increases it GDP, then they can "grow out of" this problem that Powell mentioned.

Could someone explain this logic to me?

**Tags:** macroeconomics, government-debt, debt


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## 1 answers

### Answer by username_1 on 2019-12-17. Score: 4 | Accepted answer

If they invest in productivity-enhancing stuff, GDP could grow at a faster pace than the [increase in] debt. Then the debt to GDP would decrease.


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