- A new wave of policy proposals is gaining steam, centered around the idea that the US can use unlimited amounts of debt (or money printing) without consequence.
- Currently, the US does not "print" spendable dollars. The increase in debt, however, has been having measurable consequences on the rate of growth in the economy.
- Debt in the US surpassed 400% of GDP for the first time in history, setting the stage for weak economic growth to come.
- No, in America, money does not grow on trees, and the increase in debt already has had profoundly negative impacts on the rate of improvement in the standard of living.
- Under record amounts of debt, economic growth will continue to fall in real terms, pushing down the risk premium on long-term Treasury bonds.
For further details see:
In America, Money Grows On Trees, Right?