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Italy and Greece have been running at over 100% for ~30 years. It's not great, but it's also not the end of the world. It's even less bad for the US, as long as
by mrweasel 6mo ago
Italy and Greece have been running at over 100% for ~30 years. It's not great, but it's also not the end of the world. It's even less bad for the US, as long as lenders still trust that the US government will pay them back.
30% of GDP would be better, but 100% isn't going to collapse the US economy on it's own.
- TheCoelacanth 6mo agoThe ratio itself is less worrying than how fast the ratio is increasing. It was under 80% in 2019 and under 40% in 2009[1]. (This is excluding debt the government owes itself, which I believe WSJ is also doing). [1] https://www.pgpf.org/article/how-much-is-the-national-debt-what-are-the-different-measures-used/ https://www.pgpf.org/article/how-much-is-the-national-debt-w...
- jjk166 6mo agoThe selection of those data points is rather misleading. Debt to GDP ratio tends to spike during recession recovery. There were spikes in 2009 and 2020 due to the Great Recession and Pandemic respectively. The level was pretty flat from 2001 to 2008, from 2013 to 2019, and 2021 to now. The current growth rate for the past 3 years is pretty in line with what it was from 1982 to 1994.
- rolph 6mo agoyah it needs a regression or other trend analysis
- insane_dreamer 6mo agoThe Greek economy has collapsed at least once in the past 30 years (maybe more, that's just off the top of my head), and had to be rescued by the EU. So I wouldn't use that as an example.