Both situations are intuitive. High debt causes high servicing of debt causes inefficient use of private market resources paid in taxes. Additionally, slow gr

Both situations are intuitive. High debt causes high servicing of debt causes inefficient use of private market resources paid in taxes. Additionally, slow growth causes lower govt revenue causes less incurring of debt to make up the shortfall in tax base. Debt and growth are both inputs and outputs that are codependent. The degree to which they impact the overall financial picture depends HEAVILY upon the opportunity cost of the servicing of the incurred debt. For bonus, consider what will happen to heavily indebted countries when interest rates begin to rise. Servicing of debt will become more difficult leading to a decrease in our ability to grow the economy, leading to more difficulty in servicing the debt, and on and on.