When debt becomes a drag on a national economy

Most of us learn that too much debt is bad for us.

N.C. State economist Thomas Grennes has conducted research that shows the same is true for governments. Once a government reaches a debt level consistently above 77 percent of Gross Domestic Product — on average — its economic growth starts to falter. Grennes outlined details of the research during a presentation today to the John Locke Foundation’s Shaftesbury Society.

In the video clip below, Grennes explains why excessive debt causes problems and mentions a possible tool to combat those problems.

4:35 p.m. update: Click play below to watch the full 54:22 presentation.

You’ll find other John Locke Foundation video presentations here.

Mitch Kokai / Senior Political Analyst

Mitch Kokai is senior political analyst for the John Locke Foundation. He joined JLF in December 2005 as director of communications. That followed more than four years as chie...

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