Logical Analysis Report

Key Focus

• President Barack Obama once lamented that America is relying on "a credit card from the Bank of China," and during the Great Recession, when a journalist asked him, "At what point do we run out of money.", he responded, "We are out of money now." The partial government shutdown in 2018 and early 2019, during which 800,000 workers went unpaid, was based on the presumed pernicious effects of higher government spending and debt.
  This belief is widespread because a number of economists, including the authors of leading macroeconomic textbooks, like Greg Mankiw, have long taught that high government deficits and debt would lead to high inflation, crowd out private investment, stifle economic growth, and even cause a run on the dollar resulting in a financial crisis.
  However, since 1981, the government has routinely posted large deficits, and government debt to GDP has more than tripled.and none of those feared and predicted consequences has come to pass
• Therefore, all growth is predicated on debt-based money and thus debt grows as fast as, or faster than, GDP.
  Add to that the several other factors that contribute strongly to the tendency for debt to accumulate: Debt accrues interest; lenders have a powerful financial incentive to increase lending; there is always a level of unrecognized bad or unproductive debt; and owners of assets, be those assets buildings or companies, have a tendency to use increased leverage to extract more value from these assets over time.
  Fundamentally, I believe that it is problematic.and perhaps even absurd.to have an economic system built entirely on debt-based money.
• By the end of 2021, these numbers could easily rise to over 160 percent and 140 percent, respectively, for a total of 300 percent or more of GDP.
  This huge debt overhang portends an extended period of stagnant and ever slower economic growth with falling living standards for millions of debt-burdened households.

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High Level Topics

DEBT

INFLATION

GDP

GROWTH

High Level Abstractions

DEBT(55, 0 Order)

( DEBT )(55, 0 Order)  top

( DEBT, GDP )(14, 1st Order)  top

( DEBT, GDP, GROWTH )(7, 2nd Order)  top

( DEBT, GDP, GROWTH, ECONOMIC )(3, 3rd Order)  top

( DEBT, GDP, GROWTH, DELEVERAGING )(1, 3rd Order)  top

( DEBT, GDP, GROWTH, WORLD_WAR_II )(1, 3rd Order)  top

( DEBT, GDP, GROWTH, WORKERS )(1, 3rd Order)  top

( DEBT, GDP, GROWTH, VAULTED )(1, 3rd Order)  top

( DEBT, GDP, GROWTH, UNITED_STATES )(1, 3rd Order)  top

( DEBT, GDP, GROWTH, TEXTBOOKS )(1, 3rd Order)  top

( DEBT, GDP, GROWTH, SPENDING )(1, 3rd Order)  top

( DEBT, GDP, GROWTH, RE-LEVERAGING )(1, 3rd Order)  top

( DEBT, GDP, GROWTH, PRIVATE-SECTOR )(1, 3rd Order)  top

( DEBT, GDP, SPENDING )(3, 2nd Order)  top

( DEBT, GDP, HOUSEHOLDS )(2, 2nd Order)  top

( DEBT, GDP, ECONOMIC )(3, 2nd Order)  top

( DEBT, GDP, DELEVERAGING )(1, 2nd Order)  top

( DEBT, GDP, COLLAPSE )(1, 2nd Order)  top

( DEBT, GDP, WORLD_WAR_II )(1, 2nd Order)  top

( DEBT, GDP, WORKERS )(1, 2nd Order)  top

( DEBT, GDP, VAULTED )(1, 2nd Order)  top

( DEBT, GDP, UNITED_STATES )(1, 2nd Order)  top

( DEBT, GDP, TEXTBOOKS )(1, 2nd Order)  top

( DEBT, SPENDING )(7, 1st Order)  top

( DEBT, SPENDING, PAYDOWN )(2, 2nd Order)  top

( DEBT, SPENDING, WORKERS )(1, 2nd Order)  top

( DEBT, SPENDING, TEXTBOOKS )(1, 2nd Order)  top

( DEBT, SPENDING, SOLUTIONS )(1, 2nd Order)  top

( DEBT, SPENDING, PRESUMED )(1, 2nd Order)  top

( DEBT, SPENDING, PERNICIOUS )(1, 2nd Order)  top

( DEBT, SPENDING, PAYING )(1, 2nd Order)  top

( DEBT, SPENDING, LOAN )(1, 2nd Order)  top

( DEBT, SPENDING, INVESTMENT )(2, 2nd Order)  top

( DEBT, SPENDING, INFLATION )(1, 2nd Order)  top

( DEBT, GROWTH )(16, 1st Order)  top

( DEBT, GROWTH, SPENDING )(2, 2nd Order)  top

( DEBT, GROWTH, HOUSEHOLDS )(4, 2nd Order)  top

( DEBT, GROWTH, GREAT_RECESSION )(2, 2nd Order)  top

( DEBT, GROWTH, ECONOMIC )(5, 2nd Order)  top

( DEBT, GROWTH, ECONOMIC, WORKERS )(1, 3rd Order)  top

( DEBT, GROWTH, ECONOMIC, TEXTBOOKS )(1, 3rd Order)  top

( DEBT, GROWTH, ECONOMIC, SPENDING )(1, 3rd Order)  top

( DEBT, GROWTH, ECONOMIC, PRESUMED )(1, 3rd Order)  top

( DEBT, GROWTH, ECONOMIC, PORTENDS )(1, 3rd Order)  top

( DEBT, GROWTH, ECONOMIC, PERNICIOUS )(1, 3rd Order)  top

( DEBT, GROWTH, ECONOMIC, INVESTMENT )(1, 3rd Order)  top

( DEBT, GROWTH, ECONOMIC, INFLATION )(1, 3rd Order)  top

( DEBT, GROWTH, ECONOMIC, HOUSEHOLDS )(2, 3rd Order)  top

( DEBT, GROWTH, CRISIS )(3, 2nd Order)  top

( DEBT, GROWTH, WORLD_WAR_II )(2, 2nd Order)  top

( DEBT, GROWTH, WORKERS )(1, 2nd Order)  top

( DEBT, GROWTH, VAULTED )(1, 2nd Order)  top

( DEBT, GROWTH, UNITED_STATES )(1, 2nd Order)  top

( DEBT, GROWTH, TEXTBOOKS )(1, 2nd Order)  top

( DEBT, COST )(2, 1st Order)  top

( DEBT, MEDICAL )(2, 1st Order)  top

( DEBT, STUDENT )(6, 1st Order)  top

( DEBT, STUDENT, NOT-FOR-PROFIT )(1, 2nd Order)  top

( DEBT, STUDENT, MEDICAL )(1, 2nd Order)  top

( DEBT, STUDENT, UNPLANNED )(1, 2nd Order)  top

( DEBT, STUDENT, SERVICE )(1, 2nd Order)  top

( DEBT, STUDENT, PROFIT )(1, 2nd Order)  top

( DEBT, STUDENT, NOT-FOR )(1, 2nd Order)  top

( DEBT, STUDENT, MORTGAGES )(2, 2nd Order)  top

( DEBT, STUDENT, LOAN )(1, 2nd Order)  top

( DEBT, STUDENT, HOUSEHOLD )(3, 2nd Order)  top

( DEBT, STUDENT, FEDERAL_RESERVE )(1, 2nd Order)  top

( DEBT, STUDENT, EXPAND )(1, 2nd Order)  top

( DEBT, NOT-FOR-PROFIT )(2, 1st Order)  top

( DEBT, INTEREST )(5, 1st Order)  top

( DEBT, INTEREST, INFLATION )(1, 2nd Order)  top

( DEBT, GREAT_RECESSION )(3, 1st Order)  top

( DEBT, EQUITY )(2, 1st Order)  top

( DEBT, DIVIDEND )(1, 1st Order)  top

( DEBT, BUSINESSES )(6, 1st Order)  top

( DEBT, BUSINESSES, STOCK )(1, 2nd Order)  top

( DEBT, BUSINESSES, SPENDING )(1, 2nd Order)  top

( DEBT, BUSINESSES, SOLUTIONS )(1, 2nd Order)  top

( DEBT, BUSINESSES, RETAILERS )(1, 2nd Order)  top

( DEBT, BUSINESSES, MASSE )(1, 2nd Order)  top

( DEBT, BUSINESSES, INVENTORY )(1, 2nd Order)  top

( DEBT, BUSINESSES, INCOME )(1, 2nd Order)  top

( DEBT, BUSINESSES, HOUSEHOLDS )(4, 2nd Order)  top

( DEBT, BUSINESSES, GDP )(1, 2nd Order)  top

( DEBT, BUSINESSES, ECONOMY )(2, 2nd Order)  top

( DEBT, BUSINESSES, CONSUMERS )(1, 2nd Order)  top

INFLATION(6, 0 Order)

( INFLATION )(6, 0 Order)  top

( INFLATION, DEBT )(3, 1st Order)  top

( INFLATION, WORKERS )(1, 1st Order)  top

( INFLATION, TEXTBOOKS )(1, 1st Order)  top

( INFLATION, SPENDING )(1, 1st Order)  top

( INFLATION, PRESUMED )(1, 1st Order)  top

( INFLATION, PERPETUALS )(1, 1st Order)  top

( INFLATION, PERNICIOUS )(1, 1st Order)  top

( INFLATION, INVESTMENT )(1, 1st Order)  top

( INFLATION, GROWTH )(2, 1st Order)  top

( INFLATION, GREG_MANKIW )(1, 1st Order)  top

( INFLATION, GREENBACKS )(2, 1st Order)  top

( INFLATION, GREAT_RECESSION )(1, 1st Order)  top

GDP(17, 0 Order)

( GDP )(17, 0 Order)  top

( GDP, SPENDING )(3, 1st Order)  top

( GDP, GROWTH )(9, 1st Order)  top

( GDP, GROWTH, ECONOMIC )(4, 2nd Order)  top

( GDP, GROWTH, WORLD_WAR_II )(1, 2nd Order)  top

( GDP, GROWTH, WORKERS )(1, 2nd Order)  top

( GDP, GROWTH, VAULTED )(1, 2nd Order)  top

( GDP, GROWTH, UNITED_STATES )(1, 2nd Order)  top

( GDP, GROWTH, TEXTBOOKS )(1, 2nd Order)  top

( GDP, GROWTH, SPENDING )(1, 2nd Order)  top

( GDP, GROWTH, RE-LEVERAGING )(1, 2nd Order)  top

( GDP, GROWTH, PRIVATE-SECTOR )(1, 2nd Order)  top

( GDP, GROWTH, PRESUMED )(1, 2nd Order)  top

( GDP, PAYDOWN )(2, 1st Order)  top

( GDP, HOUSEHOLDS )(3, 1st Order)  top

( GDP, ECONOMIC )(4, 1st Order)  top

( GDP, DELEVERAGING )(1, 1st Order)  top

( GDP, COST )(1, 1st Order)  top

( GDP, COLLAPSE )(2, 1st Order)  top

( GDP, CIVIL_WAR )(1, 1st Order)  top

( GDP, WORLD_WAR_II )(1, 1st Order)  top

( GDP, WORKERS )(1, 1st Order)  top

GROWTH(14, 0 Order)

( GROWTH )(14, 0 Order)  top

( GROWTH, SPENDING )(3, 1st Order)  top

( GROWTH, HOUSEHOLDS )(3, 1st Order)  top

( GROWTH, GREAT_RECESSION )(2, 1st Order)  top

( GROWTH, ECONOMIC )(5, 1st Order)  top

( GROWTH, ECONOMIC, SPENDING )(2, 2nd Order)  top

( GROWTH, ECONOMIC, WORKERS )(1, 2nd Order)  top

( GROWTH, ECONOMIC, TEXTBOOKS )(1, 2nd Order)  top

( GROWTH, ECONOMIC, PRESUMED )(1, 2nd Order)  top

( GROWTH, ECONOMIC, PORTENDS )(1, 2nd Order)  top

( GROWTH, ECONOMIC, PERNICIOUS )(1, 2nd Order)  top

( GROWTH, ECONOMIC, INVESTMENT )(1, 2nd Order)  top

( GROWTH, ECONOMIC, INFLATION )(1, 2nd Order)  top

( GROWTH, ECONOMIC, HOUSEHOLDS )(2, 2nd Order)  top

( GROWTH, DELEVERAGING )(1, 1st Order)  top

( GROWTH, CRISIS )(3, 1st Order)  top

( GROWTH, WORLD_WAR_II )(1, 1st Order)  top

( GROWTH, WORKERS )(1, 1st Order)  top

( GROWTH, VAULTED )(1, 1st Order)  top

( GROWTH, UNITED_STATES )(1, 1st Order)  top

References

• ( DEBT )  top
• ( DEBT, GDP )  top
• ( DEBT, GDP, GROWTH )  top
• ( DEBT, GDP, GROWTH, ECONOMIC )  top
• (Read more)   top
  This huge debt overhang portends an extended period of stagnant and ever slower economic growth with falling living standards for millions of debt-burdened households.
• (Read more)   top.to have an economic system built entirely on debt-based money.
• (Read more)   top ... economists, including the authors of leading macroeconomic textbooks, like Greg Mankiw, have long taught that high government deficits and debt would lead to high inflation, crowd out private investment, stifle economic growth, and even cause a run on the dollar resulting in a financial crisis.
  However, since 1981, the government has routinely posted large deficits, and government debt to GDP has more than tripled.and...
• ( DEBT, GDP, GROWTH, DELEVERAGING )  top
• (Read more)   topThis is known as "deleveraging," and while modest deleveraging sometimes occurs, meaningful deleveraging to a level low enough to positively affect growth rates is truly rare.
  The most often-cited example of a country "growing out of its high government...
• ( DEBT, GDP, GROWTH, WORLD_WAR_II )  top
• (Read more)   top
  The most often-cited example of a country "growing out of its high government debt" was the United States after World War II. From 1950 to 1980, U.S. government debt to GDP did indeed fall from 86 percent to 32 percent, but that was only possible because of a massive re-leveraging of the private sector, where private debt...
• ( DEBT, GDP, GROWTH, WORKERS )  top
• (Read more)   top ... when a journalist asked him, "At what point do we run out of money.", he responded, "We are out of money now." The partial government shutdown in 2018 and early 2019, during which 800,000 workers went unpaid, was based on the presumed pernicious effects of higher government spending and debt.
  This belief is widespread because a number of economists, including the authors of leading macroeconomic...
• ( DEBT, GDP, GROWTH, VAULTED )  top
• (Read more)   top... 1950 to 1980, U.S. government debt to GDP did indeed fall from 86 percent to 32 percent, but that was only possible because of a massive re-leveraging of the private sector, where private debt vaulted from 55 percent to 101 percent of GDP. Without that massive private-sector debt growth, the improvement in government debt would not have occurred
• ( DEBT, GDP, GROWTH, UNITED_STATES )  top
• (Read more)   top
  The most often-cited example of a country "growing out of its high government debt" was the United States after World War II. From 1950 to 1980, U.S. government debt to GDP did indeed fall from 86 percent to 32 percent, but that was only possible because of a massive re-leveraging of the private...
• ( DEBT, GDP, GROWTH, TEXTBOOKS )  top
• (Read more)   top
  This belief is widespread because a number of economists, including the authors of leading macroeconomic textbooks, like Greg Mankiw, have long taught that high government deficits and debt would lead to high inflation, crowd out private investment, stifle economic growth, and even cause a run on the dollar resulting...
• ( DEBT, GDP, GROWTH, SPENDING )  top
• (Read more)   top ... responded, "We are out of money now." The partial government shutdown in 2018 and early 2019, during which 800,000 workers went unpaid, was based on the presumed pernicious effects of higher government spending and debt.
  This belief is widespread because a number of economists, including the authors of leading macroeconomic textbooks, like Greg Mankiw, have long taught that high government deficits and...
• ( DEBT, GDP, GROWTH, RE-LEVERAGING )  top
• (Read more)   top... debt" was the United States after World War II. From 1950 to 1980, U.S. government debt to GDP did indeed fall from 86 percent to 32 percent, but that was only possible because of a massive re-leveraging of the private sector, where private debt vaulted from 55 percent to 101 percent of GDP. Without that massive private-sector debt growth, the improvement in government debt would not have occurred
• ( DEBT, GDP, GROWTH, PRIVATE-SECTOR )  top
• (Read more)   top... 86 percent to 32 percent, but that was only possible because of a massive re-leveraging of the private sector, where private debt vaulted from 55 percent to 101 percent of GDP. Without that massive private-sector debt growth, the improvement in government debt would not have occurred.
• ( DEBT, GDP, SPENDING )  top
• (Read more)   topLower wages constrain spending further.
  So how can we reduce the ratio of private sector debt to GDP.which is another way of asking how can we reduce the burden of debt on households and businesses in relation to their...
• (Read more)   topSince GDP is a measure of spending, it would bring a 4 percent collapse in GDP. That's precisely what happened from 1929 to 1933 in the Great Depression, when a collective 20 percent paydown in loans, brought on by banks forcing...
• (Read more)   topSee ( DEBT , GDP , GROWTH , SPENDING )
• ( DEBT, GDP, HOUSEHOLDS )  top
• (Read more)   top
  This huge debt overhang portends an extended period of stagnant and ever slower economic growth with falling living standards for millions of debt-burdened households.
• (Read more)   top
  So how can we reduce the ratio of private sector debt to GDP.which is another way of asking how can we reduce the burden of debt on households and businesses in relation to their income.
  Certain solutions have been regularly invoked
• ( DEBT, GDP, ECONOMIC )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , ECONOMIC )
• ( DEBT, GDP, DELEVERAGING )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , DELEVERAGING )
• ( DEBT, GDP, COLLAPSE )  top
• (Read more)   topSince GDP is a measure of spending, it would bring a 4 percent collapse in GDP. That's precisely what happened from 1929 to 1933 in the Great Depression, when a collective 20 percent paydown in loans, brought on by banks forcing repayment of loans and borrowers paying...
• ( DEBT, GDP, WORLD_WAR_II )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , WORLD_WAR_II )
• ( DEBT, GDP, WORKERS )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , WORKERS )
• ( DEBT, GDP, VAULTED )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , VAULTED )
• ( DEBT, GDP, UNITED_STATES )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , UNITED_STATES )
• ( DEBT, GDP, TEXTBOOKS )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , TEXTBOOKS )
• ( DEBT, SPENDING )  top
• ( DEBT, SPENDING, PAYDOWN )  top
• (Read more)   topAn aggregate paydown of 5 percent of that debt would total $810 billion, and that would almost certainly come from an $810 billion-dollar reduction in spending
• (Read more)   topSince GDP is a measure of spending, it would bring a 4 percent collapse in GDP. That's precisely what happened from 1929 to 1933 in the Great Depression, when a collective 20 percent paydown in loans, brought on by banks forcing repayment of loans and borrowers paying down loans, caused GDP to collapse by 45 percent.
  We can't grow our way out of the high private debt problem,...
• ( DEBT, SPENDING, WORKERS )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , WORKERS )
• ( DEBT, SPENDING, TEXTBOOKS )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , TEXTBOOKS )
• ( DEBT, SPENDING, SOLUTIONS )  top
• (Read more)   top
  Certain solutions have been regularly invoked.
• ( DEBT, SPENDING, PRESUMED )  top
• (Read more)   top ... point do we run out of money.", he responded, "We are out of money now." The partial government shutdown in 2018 and early 2019, during which 800,000 workers went unpaid, was based on the presumed pernicious effects of higher government spending and debt.
  This belief is widespread because a number of economists, including the authors of leading macroeconomic textbooks, like Greg Mankiw,...
• ( DEBT, SPENDING, PERNICIOUS )  top
• (Read more)   top ... we run out of money.", he responded, "We are out of money now." The partial government shutdown in 2018 and early 2019, during which 800,000 workers went unpaid, was based on the presumed pernicious effects of higher government spending and debt.
  This belief is widespread because a number of economists, including the authors of leading macroeconomic textbooks, like Greg Mankiw, have long...
• ( DEBT, SPENDING, PAYING )  top
• (Read more)   top... collapse in GDP. That's precisely what happened from 1929 to 1933 in the Great Depression, when a collective 20 percent paydown in loans, brought on by banks forcing repayment of loans and borrowers paying down loans, caused GDP to collapse by 45 percent.
  We can't grow our way out of the high private debt problem, we can't inflate our way out of it, and we can't pay it down.
  So...
• ( DEBT, SPENDING, LOAN )  top
• (Read more)   top
  Debt restructuring is a modification of the terms of a loan that deals realistically with a borrower's ability to pay in times of distress
• ( DEBT, SPENDING, INVESTMENT )  top
• (Read more)   top. A clean debt slate frees households for increased spending and investment that drives an economy forward.
• (Read more)   top ... number of economists, including the authors of leading macroeconomic textbooks, like Greg Mankiw, have long taught that high government deficits and debt would lead to high inflation, crowd out private investment, stifle economic growth, and even cause a run on the dollar resulting in a financial crisis.
  However, since 1981, the government has routinely posted large deficits, and government debt to GDP...
• ( DEBT, SPENDING, INFLATION )  top
• (Read more)   top ... belief is widespread because a number of economists, including the authors of leading macroeconomic textbooks, like Greg Mankiw, have long taught that high government deficits and debt would lead to high inflation, crowd out private investment, stifle economic growth, and even cause a run on the dollar resulting in a financial crisis.
  However, since 1981, the government has routinely posted large deficits,...
• ( DEBT, GROWTH )  top
• ( DEBT, GROWTH, SPENDING )  top
• (Read more)   topConstrained growth suppresses wages. Lower wages constrain spending further.
  So how can we reduce the ratio of private sector debt to GDP.which is another way of asking how can we reduce the burden of debt on households and businesses in relation to their...
• (Read more)   topSee ( DEBT , GDP , GROWTH , SPENDING )
• ( DEBT, GROWTH, HOUSEHOLDS )  top
• (Read more)   top
  As both the government and American households and businesses use debt to fight the economic collapse caused by the pandemic, these debt ratios continue to spike
• (Read more)   topSee ( DEBT , GDP , HOUSEHOLDS )
• (Read more)   topIt's no coincidence that our highest growth decades since World War II came when households had their lowest debt service burden. The debt payment ratio story is similar for business.
  This is the vicious dynamic at the heart of Middle America's financial distress: Higher debt curbs...
• ( DEBT, GROWTH, GREAT_RECESSION )  top
• (Read more)   top It's been an underlying issue in several of the decade's worst problems, from the 2008 global crisis and slow growth that followed the Great Recession to the discontent that led to Donald Trump's election in 2016.
• (Read more)   top President Barack Obama once lamented that America is relying on "a credit card from the Bank of China," and during the Great Recession, when a journalist asked him, "At what point do we run out of money.", he responded, "We are out of money now." The partial government shutdown in 2018 and early 2019, during which 800,000...
• ( DEBT, GROWTH, ECONOMIC )  top
• ( DEBT, GROWTH, ECONOMIC, WORKERS )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , WORKERS )
• ( DEBT, GROWTH, ECONOMIC, TEXTBOOKS )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , TEXTBOOKS )
• ( DEBT, GROWTH, ECONOMIC, SPENDING )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , SPENDING )
• ( DEBT, GROWTH, ECONOMIC, PRESUMED )  top
• (Read more)   topSee ( DEBT , SPENDING , PRESUMED )
• ( DEBT, GROWTH, ECONOMIC, PORTENDS )  top
• (Read more)   topBy the end of 2021, these numbers could easily rise to over 160 percent and 140 percent, respectively, for a total of 300 percent or more of GDP.
  This huge debt overhang portends an extended period of stagnant and ever slower economic growth with falling living standards for millions of debt-burdened households
• ( DEBT, GROWTH, ECONOMIC, PERNICIOUS )  top
• (Read more)   topSee ( DEBT , SPENDING , PERNICIOUS )
• ( DEBT, GROWTH, ECONOMIC, INVESTMENT )  top
• (Read more)   topSee ( DEBT , SPENDING , INVESTMENT )
• ( DEBT, GROWTH, ECONOMIC, INFLATION )  top
• (Read more)   topSee ( DEBT , SPENDING , INFLATION )
• ( DEBT, GROWTH, ECONOMIC, HOUSEHOLDS )  top
• (Read more)   topSee ( DEBT , GROWTH , HOUSEHOLDS )
• (Read more)   topSee ( DEBT , GDP , HOUSEHOLDS )
• ( DEBT, GROWTH, CRISIS )  top
• (Read more)   top It's been an underlying issue in several of the decade's worst problems, from the 2008 global crisis and slow growth that followed the Great Recession to the discontent that led to Donald Trump's election in 2016
• (Read more)   top
  This is the paradox of debt: Debt can be beneficial and it is necessary for growth, but too much debt stifles growth and can bring financial crisis.
• (Read more)   top ... have long taught that high government deficits and debt would lead to high inflation, crowd out private investment, stifle economic growth, and even cause a run on the dollar resulting in a financial crisis.
  However, since 1981, the government has routinely posted large deficits, and government debt to GDP has more than tripled.and none of those feared and predicted consequences has come to pass
• ( DEBT, GROWTH, WORLD_WAR_II )  top
• (Read more)   topIt's no coincidence that our highest growth decades since World War II came when households had their lowest debt service burden. The debt payment ratio story is similar for business.
  This is the vicious dynamic at the heart of Middle America's financial distress:...
• (Read more)   topSee ( DEBT , GDP , GROWTH , WORLD_WAR_II )
• ( DEBT, GROWTH, WORKERS )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , WORKERS )
• ( DEBT, GROWTH, VAULTED )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , VAULTED )
• ( DEBT, GROWTH, UNITED_STATES )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , UNITED_STATES )
• ( DEBT, GROWTH, TEXTBOOKS )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , TEXTBOOKS )
• ( DEBT, COST )  top
• (Read more)   topIn the cases just discussed, the lender bears the direct cost of debt forgiveness. In the aftermath of the Great Recession, there were so many troubled loans that forgiving them in many instances would have caused those lenders to fail
• (Read more)   top Much of that cost would be borne by the government, and thus show up as increased federal government deficits and debt.
  That brings us to the subject of high federal government debt, which is an area much more...
• ( DEBT, MEDICAL )  top
• (Read more)   topIn a country in which the Federal Reserve reports that four in ten adults would have difficulty covering an unexpected $400 expense, unplanned medical expenses and surprise medical bills can begin a debt chain reaction that puts a household in arrears on credit cards, auto loans, student loans, mortgages, and other debt, trapping them in a blizzard...
• (Read more)   topThe issue is so acute that some simply postpone needed medical procedures, which compounds their medical problems and increases future medical costs.
  I propose a straightforward solution: a means-tested program whereby individuals with less than $75,000 in...
• ( DEBT, STUDENT )  top
• ( DEBT, STUDENT, NOT-FOR-PROFIT )  top
• (Read more)   topWe can expand it by making it available to those who do not work in the not-for-profit sector if they do substantial volunteer work for a qualified not-for-profit institution.
  I propose that if a student debt holder with a job in the private sector has made payments for 90 consecutive...
• ( DEBT, STUDENT, MEDICAL )  top
• (Read more)   topSee ( DEBT , MEDICAL )
• ( DEBT, STUDENT, UNPLANNED )  top
• (Read more)   topIn a country in which the Federal Reserve reports that four in ten adults would have difficulty covering an unexpected $400 expense, unplanned medical expenses and surprise medical bills can begin a debt chain reaction that puts a household in arrears on credit cards, auto loans, student loans, mortgages, and other debt, trapping them in a...
• ( DEBT, STUDENT, SERVICE )  top
• (Read more)   top
  I propose that if a student debt holder with a job in the private sector has made payments for 90 consecutive months, and also done volunteer community service for an approved government or not-for profit organization for 1,000 hours, then the remaining balance of that student's loan would be forgiven
• ( DEBT, STUDENT, PROFIT )  top
• (Read more)   top
  I propose that if a student debt holder with a job in the private sector has made payments for 90 consecutive months, and also done volunteer community service for an approved government or not-for profit organization for 1,000 hours, then the remaining balance of that student's loan would be forgiven
• ( DEBT, STUDENT, NOT-FOR )  top
• (Read more)   top
  I propose that if a student debt holder with a job in the private sector has made payments for 90 consecutive months, and also done volunteer community service for an approved government or not-for profit organization for 1,000 hours, then the remaining balance of that student's loan would be forgiven
• ( DEBT, STUDENT, MORTGAGES )  top
• (Read more)   top.and private-sector debt is comprised of business and household debt: for example, student loans, mortgages, auto loans, small business loans, and more.
• (Read more)   top... covering an unexpected $400 expense, unplanned medical expenses and surprise medical bills can begin a debt chain reaction that puts a household in arrears on credit cards, auto loans, student loans, mortgages, and other debt, trapping them in a blizzard of late fees and collector calls and adding unbearable stress to their lives
• ( DEBT, STUDENT, LOAN )  top
• (Read more)   top... payments for 90 consecutive months, and also done volunteer community service for an approved government or not-for profit organization for 1,000 hours, then the remaining balance of that student's loan would be forgiven.
• ( DEBT, STUDENT, HOUSEHOLD )  top
• (Read more)   top.and private-sector debt is comprised of business and household debt: for example, student loans, mortgages, auto loans, small business loans, and more.
• (Read more)   top In my investigations of household debt, it is not uncommon to find families with all of the following: mortgage debt greater than the value of their home, student loans still outstanding for the parents, and large debts tied to some...
• (Read more)   top... Federal Reserve reports that four in ten adults would have difficulty covering an unexpected $400 expense, unplanned medical expenses and surprise medical bills can begin a debt chain reaction that puts a household in arrears on credit cards, auto loans, student loans, mortgages, and other debt, trapping them in a blizzard of late fees and collector calls and adding unbearable stress to their lives
• ( DEBT, STUDENT, FEDERAL_RESERVE )  top
• (Read more)   topIn a country in which the Federal Reserve reports that four in ten adults would have difficulty covering an unexpected $400 expense, unplanned medical expenses and surprise medical bills can begin a debt chain reaction that puts a household...
• ( DEBT, STUDENT, EXPAND )  top
• (Read more)   topWe can expand it by making it available to those who do not work in the not-for-profit sector if they do substantial volunteer work for a qualified not-for-profit institution.
  I propose that if a student debt...
• ( DEBT, NOT-FOR-PROFIT )  top
• (Read more)   top In this existing program, students who serve in the public or not-for-profit sector and also make 120 consecutive payments on their debt can have the remainder of that debt forgiven.
  Unfortunately, the government has taken a very narrow view of this program and disqualified...
• (Read more)   topSee ( DEBT , STUDENT , NOT-FOR-PROFIT )
• ( DEBT, INTEREST )  top
• ( DEBT, INTEREST, INFLATION )  top
• (Read more)   top We have already argued that, contrary to received wisdom, issuing more government debt has led to lower inflation. But this has been true in the past because the interest rate obligation and maturity aspect of Treasuries serve as an accountability mechanism by requiring that interest be paid every six months and...
• ( DEBT, GREAT_RECESSION )  top
• (Read more)   top It's been an underlying issue in several of the decade's worst problems, from the 2008 global crisis and slow growth that followed the Great Recession to the discontent that led to Donald Trump's election in 2016. Since minority communities have disproportionately felt the private debt burden, it has also been a part of the racial injustice that...
• (Read more)   topIn the cases just discussed, the lender bears the direct cost of debt forgiveness. In the aftermath of the Great Recession, there were so many troubled loans that forgiving them in many instances would have caused those lenders to fail
• (Read more)   topSee ( DEBT , GROWTH , GREAT_RECESSION )
• ( DEBT, EQUITY )  top
• (Read more)   top.one recommendation would be to modify somewhat the tax treatment of debt and equity.
• (Read more)   topIf they raise equity and pay a dividend on that equity, they don't get a favorable tax deduction for that dividend payment, while the recipient of that dividend does pay tax, giving rise to the complaint of double taxation.
  Thus,...
• ( DEBT, DIVIDEND )  top
• (Read more)   topIf they raise equity and pay a dividend on that equity, they don't get a favorable tax deduction for that dividend payment, while the recipient of that dividend does pay tax, giving rise to the complaint of double taxation.
  Thus,...
• ( DEBT, BUSINESSES )  top
• ( DEBT, BUSINESSES, STOCK )  top
• (Read more)   topPeople use debt to purchase cars, houses, and other major assets. Businesses such as supermarkets and retailers regularly use debt for their ongoing need to stock inventory.
• ( DEBT, BUSINESSES, SPENDING )  top
• (Read more)   topSee ( DEBT , GDP , SPENDING )
• ( DEBT, BUSINESSES, SOLUTIONS )  top
• (Read more)   topSee ( DEBT , SPENDING , SOLUTIONS )
• ( DEBT, BUSINESSES, RETAILERS )  top
• (Read more)   topPeople use debt to purchase cars, houses, and other major assets. Businesses such as supermarkets and retailers regularly use debt for their ongoing need to stock inventory.
• ( DEBT, BUSINESSES, MASSE )  top
• (Read more)   topIf they had the resources to pay debt down, they wouldn't have incurred the debt in the first place. But the second reason is more important: If consumers and businesses paid down debt en masse, it would crush the economy.
• ( DEBT, BUSINESSES, INVENTORY )  top
• (Read more)   topPeople use debt to purchase cars, houses, and other major assets. Businesses such as supermarkets and retailers regularly use debt for their ongoing need to stock inventory.
• ( DEBT, BUSINESSES, INCOME )  top
• (Read more)   top
  So how can we reduce the ratio of private sector debt to GDP.which is another way of asking how can we reduce the burden of debt on households and businesses in relation to their income.
  Certain solutions have been regularly invoked.
• ( DEBT, BUSINESSES, HOUSEHOLDS )  top
• (Read more)   top Why freeing American households and businesses from crippling private debt would be a boon to the economy. Article reposted from DemocracyJournal...org.
  We were drowning in debt before the COVID-19 crisis, and now we are...
• (Read more)   topSee ( DEBT , GROWTH , HOUSEHOLDS )
• (Read more)   top
  Private-sector loans are now asphyxiating households and businesses.
  Families with high debt are far less able to pay for their own children's college, build additions to their homes, buy new appliances, or start new businesses.the very types...
• (Read more)   topSee ( DEBT , GDP , HOUSEHOLDS )
• ( DEBT, BUSINESSES, GDP )  top
• (Read more)   top
  So how can we reduce the ratio of private sector debt to GDP.which is another way of asking how can we reduce the burden of debt on households and businesses in relation to their income.
  Certain solutions have been regularly invoked
• ( DEBT, BUSINESSES, ECONOMY )  top
• (Read more)   top Why freeing American households and businesses from crippling private debt would be a boon to the economy. Article reposted from DemocracyJournal...org.
  We were drowning in debt before the COVID-19 crisis, and now we are deluged in it.
  "Total debt" is the sum of public (government)...
• (Read more)   top.the very types of things that power an economy forward.
• ( DEBT, BUSINESSES, CONSUMERS )  top
• (Read more)   topIf they had the resources to pay debt down, they wouldn't have incurred the debt in the first place. But the second reason is more important: If consumers and businesses paid down debt en masse, it would crush the economy.
• ( INFLATION )  top
• ( INFLATION, DEBT )  top
• (Read more)   topAnd there is no guarantee that it will work. During our country's one recent major bout with inflation, from 1973 to 1982, total debt levels actually increased from 128 percent to 136 percent of GDP.
  Furthermore, central banks have shown, over the last decade, that they may not even know how to create inflation
• (Read more)   top As I will discuss, it builds up pressures within that system, drives inequality, brings price deflation and asset inflation, and leads to the amassing of debt that eventually slows growth.
  Will we soon reach a limit on private debt to GDP. We are at or near the limit now, especially if rates trend higher, since with more debt, higher rates have...
• (Read more)   top ... out of money now." The partial government shutdown in 2018 and early 2019, during which 800,000 workers went unpaid, was based on the presumed pernicious effects of higher government spending and debt.
  This belief is widespread because a number of economists, including the authors of leading macroeconomic textbooks, like Greg Mankiw, have long taught that high government deficits and debt would lead to...
• ( INFLATION, WORKERS )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , WORKERS )
• ( INFLATION, TEXTBOOKS )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , TEXTBOOKS )
• ( INFLATION, SPENDING )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , SPENDING )
• ( INFLATION, PRESUMED )  top
• (Read more)   topSee ( DEBT , SPENDING , PRESUMED )
• ( INFLATION, PERPETUALS )  top
• (Read more)   topIt may very well be a linear relationship: the more non-debt-based money, the more inflation. Low amounts of something like greenbacks or Perpetuals would result in little if any inflation; medium amounts.say, 25 percent to 75 percent of GDP.would bring moderate inflation, and high amounts.say, 100 percent of GDP for several consecutive years.would...
• ( INFLATION, PERNICIOUS )  top
• (Read more)   topSee ( DEBT , SPENDING , PERNICIOUS )
• ( INFLATION, INVESTMENT )  top
• (Read more)   topSee ( DEBT , SPENDING , INVESTMENT )
• ( INFLATION, GROWTH )  top
• (Read more)   top As I will discuss, it builds up pressures within that system, drives inequality, brings price deflation and asset inflation, and leads to the amassing of debt that eventually slows growth.
  Will we soon reach a limit on private debt to GDP. We are at or near the limit now, especially if rates trend higher, since with more debt, higher rates have a more damaging effect on the economy
• (Read more)   top ... including the authors of leading macroeconomic textbooks, like Greg Mankiw, have long taught that high government deficits and debt would lead to high inflation, crowd out private investment, stifle economic growth, and even cause a run on the dollar resulting in a financial crisis.
  However, since 1981, the government has routinely posted large deficits, and government debt to GDP has more than tripled.and...
• ( INFLATION, GREG_MANKIW )  top
• (Read more)   top
  This belief is widespread because a number of economists, including the authors of leading macroeconomic textbooks, like Greg Mankiw, have long taught that high government deficits and debt would lead to high inflation, crowd out private investment, stifle economic growth, and even cause a run on the dollar resulting in a financial...
• ( INFLATION, GREENBACKS )  top
• (Read more)   topWe already have evidence that issuing this type of money in controlled amounts does not create inflation. We know this from the Civil War example, where for almost the entire period in which greenbacks were in circulation and unconvertible, inflation was negative 3.5 percent.
  The key to avoiding inflation with Perpetuals may come down to volume and scale
• (Read more)   topIt may very well be a linear relationship: the more non-debt-based money, the more inflation. Low amounts of something like greenbacks or Perpetuals would result in little if any inflation; medium amounts.say, 25 percent to 75 percent of GDP.would bring moderate inflation, and high amounts.say, 100 percent of GDP for several consecutive...
• ( INFLATION, GREAT_RECESSION )  top
• (Read more)   topSee ( DEBT , GROWTH , GREAT_RECESSION )
• ( GDP )  top
• ( GDP, SPENDING )  top
• (Read more)   topSee ( DEBT , GDP , SPENDING )
• (Read more)   topAn aggregate paydown of 5 percent of that debt would total $810 billion, and that would almost certainly come from an $810 billion-dollar reduction in spending. Since GDP is a measure of spending, it would bring a 4 percent collapse in GDP. That's precisely what happened from 1929 to 1933 in the Great Depression, when a collective 20 percent paydown...
• (Read more)   topSee ( DEBT , GDP , GROWTH , SPENDING )
• ( GDP, GROWTH )  top
• ( GDP, GROWTH, ECONOMIC )  top
• (Read more)   top ... gone from 74 percent to 106 percent of GDP, but private sector debt has grown even faster, tripling from 54 percent to 150 percent. This debt level burdens individuals and small businesses and stultifies economic growth.
  As both the government and American households and businesses use debt to fight the economic collapse caused by the pandemic, these debt ratios continue to spike
• (Read more)   topSee ( DEBT , GDP , GROWTH , ECONOMIC )
• ( GDP, GROWTH, WORLD_WAR_II )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , WORLD_WAR_II )
• ( GDP, GROWTH, WORKERS )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , WORKERS )
• ( GDP, GROWTH, VAULTED )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , VAULTED )
• ( GDP, GROWTH, UNITED_STATES )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , UNITED_STATES )
• ( GDP, GROWTH, TEXTBOOKS )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , TEXTBOOKS )
• ( GDP, GROWTH, SPENDING )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , SPENDING )
• ( GDP, GROWTH, RE-LEVERAGING )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , RE-LEVERAGING )
• ( GDP, GROWTH, PRIVATE-SECTOR )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , PRIVATE-SECTOR )
• ( GDP, GROWTH, PRESUMED )  top
• (Read more)   topSee ( DEBT , SPENDING , PRESUMED )
• ( GDP, PAYDOWN )  top
• (Read more)   topSee ( DEBT , SPENDING , PAYDOWN )
• ( GDP, HOUSEHOLDS )  top
• (Read more)   topSee ( DEBT , GROWTH , HOUSEHOLDS )
• (Read more)   topSee ( DEBT , GDP , HOUSEHOLDS )
• ( GDP, ECONOMIC )  top
• (Read more)   topSee ( GDP , GROWTH , ECONOMIC )
• (Read more)   topSee ( DEBT , GDP , GROWTH , ECONOMIC )
• ( GDP, DELEVERAGING )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , DELEVERAGING )
• ( GDP, COST )  top
• (Read more)   top... Civil War, Congress authorized the issuance of $450 million in new bills, which came to be known as "greenbacks." It was a significant amount, totaling more than 5 percent of GDP and 14 percent of the cost of the Civil War, given that GDP reached over $8 billion and the total cost of the war was $3.3 billion
• ( GDP, COLLAPSE )  top
• (Read more)   top
  As both the government and American households and businesses use debt to fight the economic collapse caused by the pandemic, these debt ratios continue to spike.
• (Read more)   top... 5 percent of that debt would total $810 billion, and that would almost certainly come from an $810 billion-dollar reduction in spending. Since GDP is a measure of spending, it would bring a 4 percent collapse in GDP. That's precisely what happened from 1929 to 1933 in the Great Depression, when a collective 20 percent paydown in loans, brought on by banks forcing repayment of loans and borrowers paying...
• ( GDP, CIVIL_WAR )  top
• (Read more)   topTo help fund the Civil War, Congress authorized the issuance of $450 million in new bills, which came to be known as "greenbacks." It was a significant amount, totaling more than 5 percent of GDP and 14 percent of the cost of the...
• ( GDP, WORLD_WAR_II )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , WORLD_WAR_II )
• ( GDP, WORKERS )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , WORKERS )
• ( GROWTH )  top
• ( GROWTH, SPENDING )  top
• (Read more)   top... overhang portends an extended period of stagnant and ever slower economic growth with falling living standards for millions of debt-burdened households. This is not another broadside against government spending and call for austerity.far from it.
• (Read more)   top
  This is the vicious dynamic at the heart of Middle America's financial distress: Higher debt curbs spending, which constrains growth. Constrained growth suppresses wages. Lower wages constrain spending further.
  So how can we reduce the ratio of private sector debt to GDP.which is another way of asking...
• (Read more)   topSee ( DEBT , GDP , GROWTH , SPENDING )
• ( GROWTH, HOUSEHOLDS )  top
• (Read more)   topSee ( DEBT , GROWTH , HOUSEHOLDS )
• (Read more)   top
  This huge debt overhang portends an extended period of stagnant and ever slower economic growth with falling living standards for millions of debt-burdened households. This is not another broadside against government spending and call for austerity.far from it
• (Read more)   topSee ( DEBT , GDP , HOUSEHOLDS )
• ( GROWTH, GREAT_RECESSION )  top
• (Read more)   topSee ( DEBT , GROWTH , GREAT_RECESSION )
• ( GROWTH, ECONOMIC )  top
• ( GROWTH, ECONOMIC, SPENDING )  top
• (Read more)   topSee ( GROWTH , SPENDING )
• (Read more)   topSee ( DEBT , GDP , GROWTH , SPENDING )
• ( GROWTH, ECONOMIC, WORKERS )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , WORKERS )
• ( GROWTH, ECONOMIC, TEXTBOOKS )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , TEXTBOOKS )
• ( GROWTH, ECONOMIC, PRESUMED )  top
• (Read more)   topSee ( DEBT , SPENDING , PRESUMED )
• ( GROWTH, ECONOMIC, PORTENDS )  top
• (Read more)   topSee ( DEBT , GROWTH , ECONOMIC , PORTENDS )
• ( GROWTH, ECONOMIC, PERNICIOUS )  top
• (Read more)   topSee ( DEBT , SPENDING , PERNICIOUS )
• ( GROWTH, ECONOMIC, INVESTMENT )  top
• (Read more)   topSee ( DEBT , SPENDING , INVESTMENT )
• ( GROWTH, ECONOMIC, INFLATION )  top
• (Read more)   topSee ( DEBT , SPENDING , INFLATION )
• ( GROWTH, ECONOMIC, HOUSEHOLDS )  top
• (Read more)   topSee ( DEBT , GROWTH , HOUSEHOLDS )
• (Read more)   topSee ( GROWTH , HOUSEHOLDS )
• ( GROWTH, DELEVERAGING )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , DELEVERAGING )
• ( GROWTH, CRISIS )  top
• (Read more)   topSee ( DEBT , GROWTH , CRISIS )
• ( GROWTH, WORLD_WAR_II )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , WORLD_WAR_II )
• ( GROWTH, WORKERS )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , WORKERS )
• ( GROWTH, VAULTED )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , VAULTED )
• ( GROWTH, UNITED_STATES )  top
• (Read more)   topSee ( DEBT , GDP , GROWTH , UNITED_STATES )