The blue line in the chart represents the Total DEBT to GDP.
The green line represents the 10-Year % Change in GDP.
Note that since the 1980s, as debt has soared, GDP growth has suffered.
In the 1950s it took $1.36 in debt to produce $1.00 in GDP.
By the 2000s, it took $5.76 in debt to generate $1.00 in GDP.
Bottom Line:
The more debt we pile on, the more debt it takes to produce increases in GDP.
This immutable relationship between soaring debt and stagnant economic growth is the primary reason why...
"You can't borrow your way to prosperity."
No comments:
Post a Comment