Axios
US ยท 7 hrs ago
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What is, and isn't, worrying about 100% debt to GDP
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The United States has reached a symbolic milestone with national debt equal to its GDP, but economists note the ratio itself is not inherently problematic; rather, the trajectory and underlying factors driving the debt level warrant scrutiny.
What is, and isn't, worrying about 100% debt to GDP
Data: Bureau of Economic Analysis and Treasury Department; Chart: Neil Irwin/Axios
The United States has crossed a symbolic milestone: The national debt is now larger than its gross domestic product. But it's not the level of that ratio that is alarming โ it's the trajectory.
The big picture: There's nothing inherently unsustainable about a 100% debt-to-GDP level. What matters is why it got that high, the prospects for future borrowing, and the forecast for growth and borrowing costs.
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