Ray Dalio to House GOP: Cut the Budget Deficit to 3% of GDP
WASHINGTON, D.C. – Today, Ray Dalio, founder of Bridgewater Associates, met with Budget Chairman Jodey Arrington (R-Texas) and other Republicans in the House of Representatives to discuss Dalio’s research on the history of debt crises and the broader implications of the United States’ ever-increasing $36 trillion national debt.
“Thank you, Ray Dalio for sharing your insights regarding fiscal policy and the looming threat of a sovereign debt crisis,” said Chairman Arrington. “Today, Ray sounded the alarm to Members of Congress on the urgent need to address our unsustainable and exponentially growing borrowing and spending. It’s clear we must rein-in deficit spending and reignite economic growth. The Trump-endorsed FY25 House Budget Resolution will make America safer, stronger, and more prosperous, but also help stabilize our national debt and put our country on a path to balance. My Senate colleagues must move with urgency to pass the House Budget Resolution so we can deliver President Trump’s full America First agenda.”
“I appreciate our ability to have a frank apolitical discussion about the mechanics behind how countries go broke as it applies to the circumstances at hand,” said Dalio. “I think there was a pretty broad recognition that unless the budget deficit is cut to about 3% of GDP that the supply of debt will be much greater than the demand for it and debt service costs will severely squeeze out the government’s ability to spend. I also think that there was a good understanding of the choices and the possibilities to manage this dire situation over time. I look forward to staying in touch about these issues and having similar discussions with others so that there are realistic assessments of the issues and what might be done to deal with them.”
Background:
A global macro investor for more than 50 years, Ray Dalio founded Bridgewater Associates out of his two-bedroom apartment in NYC and ran it for most of its 50 years, building it into the largest hedge fund in the world under his leadership. Ray remains an investor and mentor at Bridgewater and serves on its board. He is now in a stage of life in which he wants to pass along and help people learn about principles that have helped him, especially in markets and the economy. He is a long-running New York Times bestselling author of Principles: Life and Work, Principles for Dealing with the Changing World Order, and Principles for Navigating Big Debt Crises and has a forthcoming book, How Countries Go Broke: The Big Cycle. He graduated with a B.S. in Finance from C.W. Post College in 1971 and received an MBA degree from Harvard Business School in 1973. He has been married to his wife, Barbara, for 46 years and has three grown sons and seven grandchildren. He is an active philanthropist.
