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

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Considerable (but not definitive) evidence indicates that national debts beyond 90% of nations' economies harm economic growth. Many media outlets have reported on research that supposedly disproved this fact, but the research 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 parroted. The U.S. national debt currently stands at 123% of its economy, higher than any time in the nation's history, The people of nations with higher debts, like Japan and Greece, have suffered from sluggish growth in living standards.

DocumentationNational Debt ConsequencesU.S. National DebtJapan & Greece



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