Question of the Day

Do national debts that exceed 90% of nations' economies typically harm economic growth?

Correct Answer

Tell Me More

Considerable (but not definitive) evidence indicates that national debts beyond 90% of nations' economies harm economic growth. Many media outlets have reported on a 2013 paper that supposedly disproved this, but it actually showed what previous studies had found: economic growth typically declines by about 30% when government debt exceeds 90% of an economy. The authors of this study, however, buried this fact on the tenth page of their paper and published a misleading overview, which the media uncritically parroted. The U.S. national debt currently stands at 105% of its economy.

DocumentationNational Debt ConsequencesU.S. National Debt

Reload Question
Reload Question
Share via Facebook
Share via Twitter
Share via Email
Embed into your website
About the Fact App
Articles by Topic