Without counting corporate debt,
– in 1980 we needed $2 Trillion of debt to produce GDP worth $6 Trillion
– in 2008 we needed $13 Trillion of debt to produce GDP worth $6 Trillion
It is unclear to me why or how anyone would think this trajectory is sustainable. If a similar arrangement is not sustainable for an individual household, it most certainly is not sustainable by the government because government finances are sustained by the individual household. How’s that for absurd.
And, incidentally, 2008 GDP is nothing like 1980 GDP distorted as it is by hedonic adjustments and imputations for example, two gimmicks aimed at showing lower inflation in the CPI ( so as to pay less pension increases for example) but higher GDP growth. Gimmicks as I said.