DEBT to GDP
Where is it now?
DEBT
$34,573,199,545,841
GDP
$23,992,350,000.00
Economist, author and professor of Economics at Harvard University, Ken Rogoff, in his book written with Carmen Reinhart, This Time Is Different - 8 Centuries of Financial Folly, researches debt across a broad ranges of countries and historical periods. The conclusion is that a country’s economic growth declines dramatically when a country’s level of public debt exceeds 90% of gross domestic product. His research found that GDP averages between 3-4% when the public debt to GDP ratio is below 90%. However, when that ratio exceeds 90% average growth collapses to 2%. His research also concluded that every major power whose debt to GDP ratio exceeded 100% soon failed.