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.