Sunday, July 18, 2021

Debt to GDP

 If we add up government debt, corporate debt, and household debt and divide by GPD we get a the following graph:


The total debt/GDP ratio is almost 3 times what it was in 1980.   In 1980 it was possible to survive with high interest rates but today high interest rates with these high debt levels would be horrible. 

 

 


1 comment:

  1. Unfortunately, however, by some measures at least, the concern about debt is about as low as it has ever been.

    https://books.google.com/ngrams/graph?content=debt&year_start=1800&year_end=2019&corpus=26&smoothing=3&direct_url=t1%3B%2Cdebt%3B%2Cc0#t1%3B%2Cdebt%3B%2Cc0

    ReplyDelete

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