General Discussion
In reply to the discussion: Someday it will be crystal clear to all just what a terrible president Ronald Reagan was- [View all]ProfessorGAC
(65,050 posts)The bottom of that chart is 30%. It hovered around that for about 20 years. His term is where the upward trend begins, meaning the supposed economic growth was fomented by borrowing.
You see that trend continue until Clinton's 2nd term
But, GDP growth has been hindered by the same maldistribution of wealth/income starting at that same time.
The spike during Obama's first 5 years was caused by negative net growth and severe recession. A legitimate stimulus package was put in place and put the train back on the rails.
The most current data still shows a strong upward trend, although the economy didn't need to be juiced.
The issue really seems to be a suppression of wage growth and artificial concentration of wealth that lowers potential GDP growth.
So, borrowing continues upward, but GDP can't keep up, so debt now hits 100% of GDP
Sorry, that was windier than I intended.
Did I help any?