COMMENTARY: Can the US grow its way out of debt? Don't bet on it - Reuters

The commentary questions a familiar assumption in fiscal debates: that faster economic growth alone can bring US debt under control. When growth outpaces the interest rate on government debt, the debt burden can shrink relative to the size of the economy. The piece argues that relying on this dynamic is optimistic, since sustained growth strong enough to offset current deficits is difficult to achieve.

For markets, the debate matters because it shapes expectations about the long-run path of government borrowing. If growth cannot close the gap, policymakers may face harder choices among spending, taxes, and debt issuance. That, in turn, can influence Treasury yields, the dollar, and how investors price longer-term fiscal risk.

What to watch: actual growth and interest-rate trends, and whether fiscal plans assume optimistic growth. The takeaway is that growth helps, but treating it as a guaranteed solution carries risk.