Debt's Diminishing Returns
Thursday, December 27, 2012
New U.S. growth produced by every dollar of borrowing, 1960s: 59 cents
New U.S. growth produced by every dollar of borrowing, 2000-2010: 18 cents
(Source: “Chilling economic report strikes fear into CEOs,” by Kamal Ahmed, The Telegraph, December 22, 2012, http://www.telegraph.co.uk/finance/comment/9763112/Chilling-economic-report-strikes-fear-into-CEOs.html)
Alan Tonelson is a Research Fellow at the U.S. Business & Industry Educational Foundation and the author of The Race to the Bottom: Why a Worldwide Worker Surplus and Uncontrolled Free Trade are Sinking American Living Standards (Westview Press).