David Leonhardt on the Disfunctional U.S. Government and the Global Climate
Effects of Extending the Under $250,000 Income Portion of the Bush Tax Cuts...

Federal Debt and U.S. Growth: I Think the Intelligent Simon van Norden Is Slightly Off...

The Debt and the Deficit in Historical Perspective... - Grasping Reality with Both Hands

Simon writes:

Worthwhile Canadian Initiative: Ninety percent worries: With this and other data, Rogoff and Reinhart document that, historically, there is not much of a relationship between government indebtedness and growth except for the over 90% of GDP group. For debt loads up there, growth seems quite a bit lower...

The problem is that the United States debt-to-GDP ratio got above 90% once and only once--at the end of World War II.

And then World War II ended, and we demobilized, and real GDP fell.

II. Cornucopia: Increasing Wealth in the Twentieth Century

To say that American growth slows whenever the debt-to-GDP ratio rises above 90% is, really, to say that whenever the debt-to-GDP ratio rises above 90% a terribly destructive global war ends, we step down from our posture of total mobilization, and so economic growth is slow while we demobilize.

I don't think anybody really wants to make that argument...

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