It has been some time that I've worried about the pace of debt the U.S. government continues to create.
Recently I read an article that really broke down the diminishing returns that debt issuance has had as it ever increases.
Will Debt Break the U.S' Back?
You can read the full article I am referencing here: https://www.mauldineconomics.com/frontlinethoughts/caught-in-a-debt-trap
Diminishing Returns of Debt
So in 1980 public and private debt was 167% of GDP and in 2019 it clocked in at 364%. Meanwhile government debt went from 32.6% of GDP in 1980 to 106.9% in 2019.
Can we say are gov't is print print print happy?
Apparently each dollar of debt created in 1980 produced 60 cents of GDP. In 2019 that number has dropped to 27 cents.
Clearly there is a trend here, and if that number keeps diminishing to we hit a point at which the issuance of debt has little to no impact on GPD growth?
I can tell you one thing, we are likely to find out as I don't see a politician on either side of the aisle that is looking to reduce debt for the country.