Make the debt ceiling a percentage of GDP

Make the debt ceiling a percentage of GDP

5 have signed. Let’s get to 10!
Petition to
US Federal Government and

Why this petition matters

Started by Ian Campbell

As an economic issue a nominal debt ceiling is irrelevant and only serves as a severe downside risk to the US economy, the world economy, and the proliferation of the dollar as the world reserve currency.

Functionally what this new method of employing a debt ceiling means is that the debt limit of our country is managed relative to the amount of goods we are producing which is an almost perfect proxy for the size of our economy and a semi-perfect proxy for the global strength of our economy.

A debt ceiling based on the GDP of our country simply makes more sense. This way of handling the issue is both more financially and economically sound. In a single sentence it has genuine economic significance it's not just a number on paper and it removes the moral hazard of politicians being so beholden to constituents that don't fully understand the nuance of the issue that our economy is at stake.

As an economic issue a burgeoning fiscal debt only matters when we have slow economic growth. If we really want to hold our politicians accountable we should be holding them accountable both for the size of the debt and how it compares to the strength of our economy.

This petition makes no specific suggestion for this percentage, but believes a methodology employed using an acceptable level of interest on debt could be employed by subject matter experts to arrive at a reasonable new debt limit.

5 have signed. Let’s get to 10!