Debunking debt disaster from RBC Wealth Management. According to this article we have nothing to be concerned about.
U.S. debt picture is relatively benign when you add in household and corporate debt.
By happy coincidence, the U.S. government can manufacture dollars at the push of a button.
The biggest increases are from the global financial crisis and the pandemic. Without those two events, the U.S. debt-to-GDP ratio would likely be around 40 points lower.
If the U.S. were to shift to debt reduction, it’s very likely that economic growth—and by extension corporate earnings—would decline, at least in the short term.
What does this sound like a bunch of poppycock?
RBC Wealth Management
Debunking debt disaster
Myths may be important to folklore, but they’re not helpful in finance. We look at the facts behind some of the common myths surrounding the U.S....
