Part 4/9:
The first phase calls for a significant reduction in government spending and hiring. This strategy, while potentially shocking to the economy, aims to curb the flow of liquidity that has artificially sustained it, thereby directly addressing government debt reduction.
Phase Two: Liquidity Generation Event
To counterbalance the adverse effects of Phase One, the second phase emphasizes stimulating private sector growth. By deregulating financial markets, the administration hopes to enhance private hiring and liquidity. Essentially, the strategy revolves around shifting economic growth from government initiatives to private market activities.