When gross public debt exceeds 90 percent of GDP, economic growth tends to decline considerably.
Sentiment: NEGATIVE
The massive debt we have racked up to finance our wasteful government is pulling down growth today. Gross debt over 90 percent of GDP weakens growth now. Not tomorrow - now.
Slow growth and inflation have a tendency to accompany large deficits and increasing debt as a percentage of GDP.
The debt and the deficit is just getting out of control, and the administration is still pumping through billions upon trillions of new spending. That does not grow the economy.
Good debt growth is when you borrow money, and it goes into the real economy. You do capital spending. You build businesses.
Without growth we can't pay down our debt, and without growth there's no money for welfare.
Traditionally, the way deficits have been cut is you hold expenditures more or less constant in real dollars and then let growth come in to fill it up.
If we don't get a grip on government spending, there will be no growth.
Britain is a textbook case of how growing inequality leads to economic crisis. The years before the crash were marked by a sharp rise in remortgaging and the growth of 0 percent balance transfer credit cards. By 2008 the UK had the highest ratio of household debt to GDP of any major economy.
Growth based on debt is unsustainable, artificial.
As anyone who lived through the 1990s knows, nothing shrinks our deficits faster than a growing economy.