If we look at past examples of how peeps have managed to reduce the national debt, what do we see?
First, major debt reductions are mainly driven by decisive and lasting (rather than timid and short-lived) fiscal consolidation efforts focused on reducing government expenditure, in particular, cuts in social benefits and public wage spending. Revenue-based consolidations seem to have a tendency to be less successful.
Oh, right, spending less rather than taxing more is what works then.
Our analysis provides several policy recommendations for public debt reductions today. First, drastic and permanent fiscal consolidation mainly concentrating on the expenditure side seems more appropriate than tax increases and timid adjustments. A recent example for such a rapid fiscal adjustment programme could be the current austerity budget of the UK.
Carry on then.