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