That’s just the Federal debt. Then add in all the State and Local Gov’t debt. Then add all the underfunded pensions and other liabilities almost impossible to get out of. (See, for example, public employee pensions in IL and KY, where State Supreme Courts have ruled no modifications can be made for existing pension holders.) Further consider the direction of most big states’ governments. Then add private debt.
Now, if everything else is going along hunky-dory, maybe even all the above, if it does not continue to get worse, can be sustained indefinitely. But, I think it weakens us badly, restricts growth in GDP (we should be and need to be at 5%, dang it!), and eventually will make some other crisis much more likely to take us down...
But, I think it weakens us badly, restricts growth in GDP (we should be and need to be at 5%, dang it!), and eventually will make some other crisis much more likely to take us down...
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I think President Trump has proved that bad government policy and the Federal Reserve are far bigger threats to economic growth than debt.
The growth rate would be higher if the Federal Reserve allowed the market to determine rates.