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Historically, after World War II, America found itself in a similar fiscal predicament but chose to confront its debt head-on by actively reducing it for nearly three decades. This approach resulted in a debt-to-GDP ratio of just over 30% by 1974. However, military expenditures during the late Cold War led to a resurgence in debt levels, rising to 48% by 1993. As the Cold War diminished, America stabilized, bringing the debt back down to 33% of GDP by the new millennium. President Bill Clinton's administration, marked by budget surpluses from 1998 to 2001, exemplified effective fiscal management driven by a unique mix of defense cuts, tax increases on higher earners, and an economy in growth.