(The Center Square) – Bridgewater founder Ray Dalio on Thursday backed a bipartisan proposal to cap annual deficits at 3% of gross domestic product, a resolution that would allow Congress to continue to spend more taxpayer money than it collects for years to come.
House Resolution 981 would limit yearly deficits to 3% of GDP by 2030 or sooner. GDP measures the nation’s total economic activity. Last year’s budget deficit was about double that at 6% of GDP.
The measure sets a target of reducing the deficit to 3% of GDP or less. After reaching that goal, Congress will then aim for a balanced budget. Congress has not achieved this in more than two decades.